Tuesday, November 9, 2010

WWDB 12 Years Later - Nothing Has Changed?

There's one Amway apologist named Bridgett Baron who continually likes to use "old" and "outdated" as her source of criticism against Amway critics. She uses this feeble excuse as a means to defend Amway and WWDB. She claims that things have changed and that critic's experiences are old and invalid. She says some of these things despite the fact that she participates on the blog of a WWDB IBO who is saying the same things I heard as an IBO over 12 years ago. Bridgett is either wrong or purposely distorting the truth, apparently. I recently had a WWDB IBO email me with current WWDB documents and I will be posting the details below. It is exactly the same stuff I was told as an IBO more than 12 years ago. Old habits die hard I guess. The only difference is that as an IBO, we did not use the internet. Basically the rest is the same VERBATIM. So much for Bridgett Baron's credibility. Not that she had credibility..... I don't think she's very smart. :-)

Here's the details from the WWDB IBO's documents:

4 STANDARDS
1. Membership with Amway Global
2. Meet the Bigger Team
3. Ditto on the First
4. Check your Team Website Daily and Listen to LIT Updates sent through e-mail

5 NIGHTS A WEEK
Build your business 5 nights a week!

9 CORE STEPS

1. STP 3-5x Each Week
2. Personal Circle (150PV Single/300PV Couples)
3. Customers (50PV Minimum)
4. Membership CD.s- Listen Daily
5. Read a Book from the Book List 15 min. Daily
6. Attend ALL Events / Game Day.s
7. Associate & Counsel regularly
8. Integrity & Accountability
9. Check your Team Website Daily and Listen to LIT Updates sent through e-mail

3 POWERS
1. Power of Agreement . this means be willing to listen & learn, submit your ego & be teachable.
2. Power of Unity . unity with your growing upline & the bigger Dream Team
3. Power of the Spoken Word . speak positively, expecting the best from yourself & your business

3 CARDINAL RULES
1. Never mess with anyone's money (Is bankruptcy messing with someone's money?)
2. Never mess with anyone's ego
3. Never mess with anyone's spouse

3 NEVERS
1. Never embarrass your upline, downline, or crossline
2. Never pass negative downline or crossline
3. Never do anything for the first time without checking upline

Dream Night?

Across many US cities, IBOs are buying tickets for a major function called "Dream Night". It used to cost about $65 but I believe it now costs anywhere from $75 to $100 per person. I read an IBO blog recently where the IBO says that 1200 to 1300 people signed up so fast that they scheduled a second Dream Night. FYI, these events where you have a ballroom and a nice dinner can be purchased for about $25 to $30 per person. The rest of that money goes directly into the Diamond's pockets, just like all of the other functions and meetings with a cost. So much for diamonds working for the "love" of their groups.

At dream night, the diamonds will show displays of wealth. Allegedly, these luxuries are attained by building an Amway business but many diamonds will not mention that the luxuries they show off might not have been attained by Amway income. For some diamonds and above, their luxuries and alleged wealth are often attained by income sources outside of Amway, such as other businesses and investments, or from income received by selling voicemail, standing orders, book of the month and functions such as Dream Night.

I remember the diamonds urging people on. That everyone needed to "hurry up" and join them living in the lap of luxury. If only you would do as they do, you would have what they have. I was shown slideshows of yachts, sports cars, mansions, jet skis and jewelry. It was implied that building the Amway business would lead you to these trappings of wealth. All we needed to do was commit ourselves to the system and never quit. What went unnoticed, was how the speakers were few and the audience was large. And that's how it will always be. A platinum will often have 100 IBOs or more in their groups and a diamonds has at least six of these legs in their group. It is not true that everyone can eventually go diamond and be on stage.

Dream Night is like an advertisement for the lottery. You show the excessive luxuries of life and imply that the Amway oportunity can provide all of this. While some people may obtain wealth from Amway, they are the very rare exception and not a common experience. Just as showing lottery winners sitting in mansions is common. What goes unseen is that many end up losing so a few can win. For many IBOs, it is the tools themselves that ultimately doom most IBOs to a net loss. Ironic because the tools are promoted as the key to IBO success. Sadly, hard work and perserverence more often leads to massive losses than success in Amway.

So IBOs and guests attending Dream Night, have a nice dinner but know that the dreams that are being fulfilled aren't likely to be your dreams. It is the speakers whose dreams you are fulfilling by paying and attending their Dream Night function.

Saturday, November 6, 2010

Amway Settles Lawsuit?

http://michiganmessenger.com/43148/amway-settles-lawsuit-by-former-members

Amway settles lawsuit by former members

By Ed Brayton 11/4/10 7:54 AM Michigan-based Amway (aka Quixtar, aka Alticor) has settled a lawsuit brought against it by a large group of former distributors who accused the company of a range of illegal activities for $56 million. The Grand Rapids Press reports:

Amway this morning announced a deal to pay $34 million in cash and provide $22 million worth of products to settle a 2007 class-action suit alleging the company and some of its top-level distributors operate an illegal pyramid scheme.

The case was filed in California by former distributors for Quixtar, the name Amway used for its U.S.-based operation at the time…

The plaintiffs said the company used unfair and illegal business practices that mislead distributors about their ability to make money and how much it would cost to be part of the business.

The settlement with the former distributors, or Independent Business Owners as Amway calls them, does not constitute an admission of guilt. But the company “stipulates that certain reforms in its business instituted after the filing of this action have been motivated” by the case.


Translation: “We didn’t do anything wrong but we promise not to do it again.”

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Joe's Opinion (Commentary): It appears by its actions that Amway is footing the bill and paying to cover the problems caused by upline leaders. It also looks like an admission that Amway has been aware of, but ineffective in monitoring the activities of the "kingpin" leaders who promote Amway as a means to gain wealth and obtain luxurious lifestyles. I wonder what happens next?

Friday, November 5, 2010

IBOs MIss The Point?

There are still a handful of Amway defenders who continue to defend Amway as if it's the greatest thing since sliced bread. No doubt that Amway works wonders for their owners, who are billionaires, and a select few leaders who make handsome profits from selling tools (standing orders, functions, voicemail) as well as Amway bonuses. But the main point seems to get lost.

The main point is that, even if the Amway owners and some Amway leaders make a nice income from Amway, it doesn't change the fact that the masses lose a lot of money attempting to build an Amway empire. What's more, many of these leaders earn money directly from the pockets of their trusting and faithful downline. The downline are taught to trust the leaders and to do what is advised. Often, that advice is to buy more and more tools regardless of how an IBO's business is progressing.

Failures in Amway appear to be rampant, but leaders absolve themselves of blame by claimng that the failures are the result of laziness, not enough effort, not doing things right, or lack of follow through on the part of the IBO. Sadly, many IBOs believe this and blame themselves, even if they did work hard and follow upline's sage advice. I believe that over the years, billions of dollars have been lost by millions of IBOs who chase the dream sold by upline. Because many IBOs are sponsored by friends and family, those who quit tend to fade away without much fanfare, leaving Amway and the upline leaders clear of any responsibility.

Too many IBOs miss that point. Hard work and following upline advice doesn't necessarily lead to success, and in fact, more people end up at a loss than those who gain a positive experience in the Amway business. I challenge IBOs to analyze their efforts and their income versus expenses. You are more likely to be expending more on support materials than the amount of income that is received. That's the real point and too many IBOs miss it.

Thursday, November 4, 2010

How To Stop Amway Criticism?

To this day, Amway has many critics and supporters. Many supporters become critics if they leave the Amway business. Some Amway apologists are claiming victory recently as they say there are few new internet critics. But yet, it doesn't appear that Amway is suddenly growing by leaps and bounds. The name Amway doesn't bring visions of sugarplums in most people's heads.

What does the Amway name bring? People often think of "pyramid" or "scam". Some people are negative about the Amway opportunity and they don't even know why. Many people however, were involved in Amway at one time, or knows someone who had a bad experience. While many people's experience may have little to do with the Amway corporation, surely the motivational groups such as N21, BWW, or WWDB has had an impact on people's experience with Amway. Getting tricked into attending meetings or being lied to will lead to a bad experience. So will ridiculous snake oil campaigns like perfect water.

But has Amway done anything significant about IBO abuses? Surely they must know something about this. Someone from Amway routinely visits my blog to see what I am writing. But as far as I know, even the most abusive uplines have gone unpunished.

I have some suggestions to curb Amway criticism. Transparency. Why not inform prospects of how many diamonds are currently qualified? Why not say how many IBOs are active or registered? Why not report North American sales? Why not say what the typical IBO earns? It would prevent critics and supporters from extrapolating information and making their own possibly inaccurate conclusions. Of course Amway is a private company and therefore will probably release only information that is required by law. And that is their right. But if that is the case, then criticism will continue.

Like the AMO saying goes, insanity is doing the same thing over and over and expecting different results. With no apparent changes forthcoming from Amway, the valid criticism continues........

Wednesday, November 3, 2010

Amway Makes You Rich?

Amway can make you rich. Many IBOs say they were told that Amway was not "get rich quick". But obviously, someone must have given them the impression that Amway would eventually make them rich, otherwise, why would anyone join? Why would anyone want to work that hard and embarrass themselves in front to friends and family to promote a business that will more likely get you funny looks than money. But can Amway actually make you rich?

Well, yeah, Amway can make you rich if you are a diamond selling voicemail services, books, standing orders and function tickets. Amway can make you rich if you own Amway and sell to millions of IBOs who "buy from themselves". Amway can make you rich if you write a book that millions of IBOs purchase. Amway can make you rich if you can get enough loyal downline to keep purchasing products so that you can get the bonuses. But aside from these few people who I just described, the Amway opportunity is more likely to make you broke, or at least lighter in the pockets.

Most IBOs do not even earn enough to cover their monthly voicemail expenditures, much less the other support materials that are pushed on the downline in groups such as WWDB or BWW, or N21. These materials are touted as the "key to success" in Amway when in reality, it is the key to success for the uplines who share in the profits from these materials. The real kicker is despite claims that these materials are key to success, the uplines get their followers to blame themselves if the system doesn't work for them. Kind of like tossing a coin and saying "heads I win, tails you lose". Upline wins as long as you buy support materials from them, and your results are of no consequence to them. In fact they probably don't want new diamonds as they would then have to share the tool money.

So can Amway make you rich? I would guess it is possible, but it is also possible for you to win the powerball lottery. It takes normally, over 100 downline IBOs to create a platinumship. And a platinumship occurs less than once in 200 IBOs. And at that level, you likely make little profit or break even. That tells me a whole lot. What does it tell you?

Tuesday, November 2, 2010

Not Working Hard Enough?

One of the things IBOs are taught is to blame themselves for is not working the business hard enough or not doing things right, exactly as upline advised. Actually, nothing could be further from the truth. It's just that uplines want to be absolved from any responsibility so they teach downline that failure in Amway is their own (The downline's) fault. Upline is also quick to take credit for any success, of course.

But the reason is why hard work doesn't equal success is because an Amway IBO is basically a commissioned sales person. In commissioned sales, one can work hard for no reward and at times, little effort may reap large rewards. But in Amway, with a spotty reputation, Amway IBOs are dealth with a handicap that most simply cannot overcome. Getting new people to recruitment meetings is hard enough, not even factoring in the abililty to sponsor others. When factoring in these tidbits, it's easy to see why uplines teach buy from yourself and selling is not needed.

The work involved is very simple. Sell products and get other IBOs in your downline to be able to leverage your volume. Many IBOs work hard and attend all of the functions and do all of the steps as outlined by upline, but very few reap rewards and most quit when they realize that the system doesn't work. It is sad that on top of losing money, that IBOs are also taught to blame themselves for their demise. Where is the upline when IBOs bust their butts working har and get no rewards? On top of that, to make it worse, uplines profit from selling training and motivation to their downlines. Why aren't they held acountable?

I've read comments by some Amway defenders wanting to sue Amway critics for a potential loss of business. But most critics, like myself are simply stating our experiences and opinions. Many of which are true and still happening today. So I will ask, what about the millions of former IBOs who may have lost billions of dollars because of false claims which led them to believe that they would get rich following upline advice? Maybe former IBOs should unite and file claims against unethical upline leaders who led them astray?

In any case, hard work doesn't equate success in Amway and I dare anyone to try to prove me wrong.