The first time I was prospected for Amway, I was in college. I actually didn't know much about Amway but I had somehow formed a negative opinion of it. Needless to say, when I was invited to a beer bust and it turned instead to be an Amway meeting, my impression of Amway wasn't that good. Some years later, I eventually did join because a close friend of mine had achieved direct distributor (now called platinum) and he had assured me that it could be done and that he would make sure that I would also achieve it. I did achieve a level just below platinum (4000 PV), but I quit for several reasons. First of all, I didn't make a net profit as the expenses for tools ate up my profits. Secondly, the more I progressed in the business, the more and more my upline wanted control of my life. For example, we were told that we should check upline before getting married, buying a car, or even having children, etc. I thought that was very strange and I eventually left the business for good.
But in the US at least, I believe Amway's name to be so battered that an IBO cannot sponsor downline and build a business without lies and deception. There are hoards of stories confirming testimony that lies and deceit are common in prospecting potential IBOs. This was extremely rampant when Amway changed their name to Quixtar. IBOs would deny the connection or IBOs would say they are with network 21 or WWDB and claim something ridiculous such as Amway simply being their supplier. The promotion of perfect water also brought on silly antics about a $50 case of water being capable of performing miracles. If the opportunity could stand on its own merits, then IBOs would not have to resort to such desperate measures which include lies and deception.
Even the Amway presentation if often filled with deception and lies. I remember seeing the presentation and they said shopping through Amway, an IBO would save 30% over local retailers. When I actually saw the catalogs, I wondered where are the savings?? An open minded price comparison will easily show that Amway products are not cheaper than a retailer like WalMart. It's not possible when you consider that Amway's bonuses must be a part of their product price.
The 6-4-2 plan or similar variations are made to sound easy and the presenter talked about lifelong residual willable income, which I also find to be deceptive if not an outright lie. The presenter never mentions that only about 1 in 400 ever reach the platinum level, where allegedly you begin to break even as an IBO if you are consuming training and tools.
But can Amway be successfully promoted without lies and deception? It is my opinion that an IBO has no chance of building a business by being completely upfront and honest about Amway and about being an IBO. Even with lies and deceit, many IBOs still cannot get people to see the plan or to buy products. It is my opinion that overall, very little Amway products are sold to non IBOs. So if you cannot sell products and you cannot get people to see the plan, you cannot build a business and if you are purchasing tools, you are simply digging yourself a financial hole that will only grow larger as time passes. The cost of 100 PV (about $300) is already more than what most families and/or singles spend in a month on household products. This means that most people simply cannot sustain themselves in the business and it explains why most IBOs drop out in the first year.
It is why lies and/or deception are needed for an IBO to have a chance at promoting and building an Amway business. Because the truth is not pretty and more than likely, will not work for building an Amway business.
Tuesday, April 10, 2018
Monday, April 9, 2018
An Amway IBO Is A Glorified Customer
One of the silly things IBOs say is how they need to be their own best customer. That a McDonald's owner would never eat at Burger King, etc. That is complete hogwash. While there is nothing wrong with supporting your own business, IBOs are blinded by the fact that their business produces nothing. They are simply middlemen distributors. Do you really think diamonds consume thousands of dollars of standing orders because they own or profit from tool companies, which are for profit companies that produces training materials? Of course not. When you purchase something from your Amway business, you make no profit. Any "false" profit you see is simply money out of your own pocket moving to the other pocket. The Amway corporation makes the profit. Yes, you may receive a volume bonus, but that is still a lot of your own money being given back to you. Spend $300 and get back $10. If you can get enough people to follow you and move volume, your bonus will increase, but the increase then comes out of your follower's pockets instead of your own. The only real profit would be selling product to actual non IBO customers.
I know some business owners and they are never the best or sole customer of their own stores. Many Amway business owners are their only customers or their best customer. That simply is not how a business is run. Any REAL business cannot support itself by having the owners and perhaps the owner's employees as the primary customer base. For any business to thrive, you need customers and a demand for products. Without customers and a demand for products, you have no business. But some upline leaders still teach "buy from yourself" as the primary means of doing business. Other leaders may ask you to sell, but to focus on sponsoring others because they are hopeful that this will result in increased volume. Sadly, most IBOs will never sponsor a downline and many will never acquire a customer other than themselves.
It seems as though many IBOs think they are business owners but the reality is that they are simply glorified customers of their own business. Their only hope of making a profit is to sponsor others. In my opinion, this method of doing business is a pyramid because the only way to eventually make a profit is to sponsor enough downline until you can leverage enough volume to fimally break even or profit. An IBO with a real customer (and not buying tools) can make a profit by selling a single product. But many IBOs are not taught this because their upline makes a much bigger profit by selling to their downline IBOs standing orders, voicemail, books and seminar tickets. Many IBOs do not realize that they are simply customers of Amway and customers of the tools system.
For people already involved or considering involvement in the Amway opportunity, you are highly encouraged to seek more information and to fully understand how a profit is made in this business. Simply seeing circles drawn oversimplifies the process as most IBOs never get close to finding six (6) like minded people. Even those who find six are unlikely to be able to retain them. Over time, the cost of the products and the cost of the training will start to add up and the losses will escalate. For real business owners, an assessment of profit/loss and return on investment should be done and if the return is not good, a real business owner would consider other options.
So are you a business owner or a glorified customer?
I know some business owners and they are never the best or sole customer of their own stores. Many Amway business owners are their only customers or their best customer. That simply is not how a business is run. Any REAL business cannot support itself by having the owners and perhaps the owner's employees as the primary customer base. For any business to thrive, you need customers and a demand for products. Without customers and a demand for products, you have no business. But some upline leaders still teach "buy from yourself" as the primary means of doing business. Other leaders may ask you to sell, but to focus on sponsoring others because they are hopeful that this will result in increased volume. Sadly, most IBOs will never sponsor a downline and many will never acquire a customer other than themselves.
It seems as though many IBOs think they are business owners but the reality is that they are simply glorified customers of their own business. Their only hope of making a profit is to sponsor others. In my opinion, this method of doing business is a pyramid because the only way to eventually make a profit is to sponsor enough downline until you can leverage enough volume to fimally break even or profit. An IBO with a real customer (and not buying tools) can make a profit by selling a single product. But many IBOs are not taught this because their upline makes a much bigger profit by selling to their downline IBOs standing orders, voicemail, books and seminar tickets. Many IBOs do not realize that they are simply customers of Amway and customers of the tools system.
For people already involved or considering involvement in the Amway opportunity, you are highly encouraged to seek more information and to fully understand how a profit is made in this business. Simply seeing circles drawn oversimplifies the process as most IBOs never get close to finding six (6) like minded people. Even those who find six are unlikely to be able to retain them. Over time, the cost of the products and the cost of the training will start to add up and the losses will escalate. For real business owners, an assessment of profit/loss and return on investment should be done and if the return is not good, a real business owner would consider other options.
So are you a business owner or a glorified customer?
Friday, April 6, 2018
Who's The Loser?
One of the things I heard as an Amway IBO and still hear today, is that people who do not view Amway as favorable, or decided to quit and walk away from the Amway opportunity are "broke" or "losers" or "broke losers". As an IBO I remember one of the upline saying that IBOs are winners, and therefore, if you are not an IBO, you must be a loser. I still see much of that today. I'm not sure why that kind of teaching still exists, especially when most people who work for minimum wage earn more than most IBOs.
I suppose it's a form of subtle pressure used by upline to prevent people from quitting, as nobody wants to be labeled a loser. It creates an "us" versus "them" attitude. One of Amway's co founders, Rich DeVos, stated quite clearly in a speech that IBOs should not use the term loser just because someone doesn't agree that Amway is the greatest. And I agree.
Many people who are not IBOs are very successful and many people are simply not suited for or want to run a "side" business. Some people are not in need of an extra income and some people do not want to sacrifice family time. IBOs should respect other people's wishes if they are turned down when offering the opportunity to others. Also, because of previous unethical behaviors of IBOs, many people simply do not wish to get involved in an opportunity where such behavior exists. Sure, not all IBOs act that way, but enough of them still exists. And what's more, it appears that not much, if anything has been done about it.
But here's the biggest reason, in my opinion, why IBOs should not be calling anyone derogatory names just because the prospect does not wish to join Amway or purchase goods. There's no reason to burn bridges with a potential customer or future IBO. Let's say I entered a store but for whatever reason, decided not to make a purchase that day. As I exit the store, the store owner calls me a loser or broke, or not having guts. What is the chance that I would want to do business with that store or store owner ever again? Furthermore, many or most Amway business owners conduct business person to person and face to face. If I insult people who don't initially do business with me, then I am doing a lousy job of PR and chances are by business will fail. Yet that is exactly what many IBOs do.
IBOs and upline leaders should read this and think twice before using the term loser or broke loser. You could be burning bridges with potential future customers or IBOs.
I suppose it's a form of subtle pressure used by upline to prevent people from quitting, as nobody wants to be labeled a loser. It creates an "us" versus "them" attitude. One of Amway's co founders, Rich DeVos, stated quite clearly in a speech that IBOs should not use the term loser just because someone doesn't agree that Amway is the greatest. And I agree.
Many people who are not IBOs are very successful and many people are simply not suited for or want to run a "side" business. Some people are not in need of an extra income and some people do not want to sacrifice family time. IBOs should respect other people's wishes if they are turned down when offering the opportunity to others. Also, because of previous unethical behaviors of IBOs, many people simply do not wish to get involved in an opportunity where such behavior exists. Sure, not all IBOs act that way, but enough of them still exists. And what's more, it appears that not much, if anything has been done about it.
But here's the biggest reason, in my opinion, why IBOs should not be calling anyone derogatory names just because the prospect does not wish to join Amway or purchase goods. There's no reason to burn bridges with a potential customer or future IBO. Let's say I entered a store but for whatever reason, decided not to make a purchase that day. As I exit the store, the store owner calls me a loser or broke, or not having guts. What is the chance that I would want to do business with that store or store owner ever again? Furthermore, many or most Amway business owners conduct business person to person and face to face. If I insult people who don't initially do business with me, then I am doing a lousy job of PR and chances are by business will fail. Yet that is exactly what many IBOs do.
IBOs and upline leaders should read this and think twice before using the term loser or broke loser. You could be burning bridges with potential future customers or IBOs.
Thursday, April 5, 2018
Building Wealth On 8-12 Hours A Week?
One of the Amway myths that upline used to, and likely still perpetuate is the claim that you can build an Amway mega empire on 8-12 hours per week. I'm venturing an educated guess that this number is used because while it still represents time, it is probably less hours than working a part time job. But let's take a closer look at this 8-12 hours per week.
If you listen to one (1) cd per day as recommended by upline and read one of their "success" books 15 minutes each day, you already spending close to nine hours of time used and neither of these activities produces any income for your Amway business. In fact, both activities cost you money and produce no tangible result. If you spend another 15 minutes a day contacting people, you are close to 12 hours per week. Where will you find additional time to show the plan and to expand your name and contact list? What about servicing customers, at least for IBOs who actually may have some customers.
What about attending meetings and functions? These are also non income producing activities. It's no wonder the vast majority of IBOs don't make money. Their upline has them running around participating in activities that produce no income for their businesses. Ironically, their non income producing activities such as listening to a cd, produces a lot of income for certain uplines who produce and sell them. To me, it is just an elaborate game of bait and switch played by upline. Your upline might tell you that you "need" these tools to succeed but the reality is that the tools take away resources and you wind up in non income producing activities such as listening to cds.
You sell the prospect the dream of financial freedom. You tell that prospect that Amway is their best chance. You tell them that you can help them and that the tools of the business (standing order, voicemail, books, functions) are the key to their success. Those who are serious enough to commit to the system likely won't quit without making some effort and will allow uplines to earn some nice profits before these downline eventually realize they aren't profitable and quit. Because many IBOs are sponsored by family and friends, you don't see too many formal complaints about the business. Most people chalk it up as a life lesson and do not complain.
But IBOs and information seekers, do not be fooled into thinking that you will create a financial empire by working 8-12 hours a week. If you attended a big meeting, look around and see how many people are rank and file as compared to the "successful" IBOs. It's likely less than 1%. Not the kind of odds a real businessman would undertake.
If you listen to one (1) cd per day as recommended by upline and read one of their "success" books 15 minutes each day, you already spending close to nine hours of time used and neither of these activities produces any income for your Amway business. In fact, both activities cost you money and produce no tangible result. If you spend another 15 minutes a day contacting people, you are close to 12 hours per week. Where will you find additional time to show the plan and to expand your name and contact list? What about servicing customers, at least for IBOs who actually may have some customers.
What about attending meetings and functions? These are also non income producing activities. It's no wonder the vast majority of IBOs don't make money. Their upline has them running around participating in activities that produce no income for their businesses. Ironically, their non income producing activities such as listening to a cd, produces a lot of income for certain uplines who produce and sell them. To me, it is just an elaborate game of bait and switch played by upline. Your upline might tell you that you "need" these tools to succeed but the reality is that the tools take away resources and you wind up in non income producing activities such as listening to cds.
You sell the prospect the dream of financial freedom. You tell that prospect that Amway is their best chance. You tell them that you can help them and that the tools of the business (standing order, voicemail, books, functions) are the key to their success. Those who are serious enough to commit to the system likely won't quit without making some effort and will allow uplines to earn some nice profits before these downline eventually realize they aren't profitable and quit. Because many IBOs are sponsored by family and friends, you don't see too many formal complaints about the business. Most people chalk it up as a life lesson and do not complain.
But IBOs and information seekers, do not be fooled into thinking that you will create a financial empire by working 8-12 hours a week. If you attended a big meeting, look around and see how many people are rank and file as compared to the "successful" IBOs. It's likely less than 1%. Not the kind of odds a real businessman would undertake.
Wednesday, April 4, 2018
Alternative Options To Amway?
One of the humorous things that IBOs say on my blog is if Amway isn't such a great deal, then why don't we offer a better solution? I guess it's not enough that there are facts and experiences posted here so that information seekers can find and make informed decisions about joining or not joining Amway, but we must also suggest better options? Well, I will offer some. While I am not advising anyone to listen to my thoughts, nor do I think you should act on what you read what's here without doing your due diligence and your own soul searching, here are my opinions on what may be better than Amway:
1. Be a better steward of the money you already have. Many people have enough income but simply channel too much of it to things they don't need. A daily $5 cup of Starbucks for example. Disciplined saving and investing. Eliminating certain optional expenses can add up to a lot of money over the course of a month or a year. Even giving up a soft drink with your lunch can save you money and water is better for your health anyway.
2. Get a second job and set aside a portion for saving and investing. You will not only have more discretionary cash, but also more to be able to set aside for your golden years. Try to find a job that's not so stressful and something you may have fun with. For example, working part time at a sporting goods or a hardware store would be something that I might enjoy.
3. Start your own small business. The biggest issue with Amway, in my opinion is the endless supply of training that uplines sell. It causes most "serious" IBOs to end up with a net loss. You can find a niche product and sell it on ebay or craigslist, unlike Amway products. Another type of small business might be something like learning to do minor household repairs or installing hardwood flooring. These kinds of services are quite common and can be lucrative.
4. Do nothing. Since most business building IBOs lose money, doing nothing, although comical, actually makes you better off than losing money because of functions and standing orders. Doing nothing also takes far less effort.
5. Spend more time with your family. Ironically, many IBOs have this as a goal, but actually spend less time with family because of Amway related activities.
There you have it folks. There are some ideas of what might be better than spending your time and money participating in the Amway business and the Amway motivational organizations. While these are only ideas, only you can decide what is best for you and your family. In whatever you decide to do, I wish you well.
1. Be a better steward of the money you already have. Many people have enough income but simply channel too much of it to things they don't need. A daily $5 cup of Starbucks for example. Disciplined saving and investing. Eliminating certain optional expenses can add up to a lot of money over the course of a month or a year. Even giving up a soft drink with your lunch can save you money and water is better for your health anyway.
2. Get a second job and set aside a portion for saving and investing. You will not only have more discretionary cash, but also more to be able to set aside for your golden years. Try to find a job that's not so stressful and something you may have fun with. For example, working part time at a sporting goods or a hardware store would be something that I might enjoy.
3. Start your own small business. The biggest issue with Amway, in my opinion is the endless supply of training that uplines sell. It causes most "serious" IBOs to end up with a net loss. You can find a niche product and sell it on ebay or craigslist, unlike Amway products. Another type of small business might be something like learning to do minor household repairs or installing hardwood flooring. These kinds of services are quite common and can be lucrative.
4. Do nothing. Since most business building IBOs lose money, doing nothing, although comical, actually makes you better off than losing money because of functions and standing orders. Doing nothing also takes far less effort.
5. Spend more time with your family. Ironically, many IBOs have this as a goal, but actually spend less time with family because of Amway related activities.
There you have it folks. There are some ideas of what might be better than spending your time and money participating in the Amway business and the Amway motivational organizations. While these are only ideas, only you can decide what is best for you and your family. In whatever you decide to do, I wish you well.
Tuesday, April 3, 2018
Amway IBOs Helping People?
One of the things I often thought odd as an IBO was how our upline would keep teaching us that the Amway business was all about "helping people". Somehow, our upline felt that showing someone the plan or talking to them about the business was helping someone. That is because our upline felt that everyone was dooomed for financial failure if they didn't join Amway. Of course, nothing could be further from the truth now that I am looking back. In fact, I would have to say that building the business and purchasing tools was the CAUSE of financial disaster for some of my fellow IBOs. I remember reading about more than one home foreclosure and a couple of bankruptcies within our group. I'm sure there were more than I as aware of.
It's like IBOs hold some dark secret and they could save the world by sharing this secret with prospects. So the theme of many voicemails (Amvox at the time) was about how IBOs in the group were saving the world by helping people. I used to wonder how we were helping people when we basically only "helped" IBOs who wanted to build the business. If someone declined to join, they were forgotten. Our upline said we threw them a life preserver but they rejected it, so we are moving on. It was often compared to a church activity where IBOs are saving souls. I actually found this very weird because we were often taught that we could give the church money in the future ($10,000 checks) and we could serve in ministry after we were "free". I find this ludicrous now, but at the time, we were told that this was delayed gratification. After I left Amway, I spoke to the senior pastor of my church and he opined that Amway was harmful to many because it simply held too many empty/false promises. In other words, they promote big dreams and wealth, but very few ever attain any success, for whatever reason. The pastor said the reason for the low success was not relevent. The fact that it was rare to see success was enough to conclude that Amway was not a good opportunity.
In fact, some diamonds can be seen as prosperity preachers. They speak about wealth attained through Amway when in reality their wealth may come from other sources, such as tools income, yet they falsely promote Amway as their primary source of success. Then they bait and switch IBOs and tell them that the tools system is the only way to succeed, all the while profiting handsomely from the tools. Then they justify their conflict of interest by claiming that IBOs are helping people and/or doing God's work by joining Amway. I believe many IBOs are giving false hope and promises to prospects as taught by upline leaders. All the while they themselves are losing money while thinking they are supporting a noble cause. I hope they awaken before it's too late.
It's like IBOs hold some dark secret and they could save the world by sharing this secret with prospects. So the theme of many voicemails (Amvox at the time) was about how IBOs in the group were saving the world by helping people. I used to wonder how we were helping people when we basically only "helped" IBOs who wanted to build the business. If someone declined to join, they were forgotten. Our upline said we threw them a life preserver but they rejected it, so we are moving on. It was often compared to a church activity where IBOs are saving souls. I actually found this very weird because we were often taught that we could give the church money in the future ($10,000 checks) and we could serve in ministry after we were "free". I find this ludicrous now, but at the time, we were told that this was delayed gratification. After I left Amway, I spoke to the senior pastor of my church and he opined that Amway was harmful to many because it simply held too many empty/false promises. In other words, they promote big dreams and wealth, but very few ever attain any success, for whatever reason. The pastor said the reason for the low success was not relevent. The fact that it was rare to see success was enough to conclude that Amway was not a good opportunity.
In fact, some diamonds can be seen as prosperity preachers. They speak about wealth attained through Amway when in reality their wealth may come from other sources, such as tools income, yet they falsely promote Amway as their primary source of success. Then they bait and switch IBOs and tell them that the tools system is the only way to succeed, all the while profiting handsomely from the tools. Then they justify their conflict of interest by claiming that IBOs are helping people and/or doing God's work by joining Amway. I believe many IBOs are giving false hope and promises to prospects as taught by upline leaders. All the while they themselves are losing money while thinking they are supporting a noble cause. I hope they awaken before it's too late.
Monday, April 2, 2018
Upline's Lies?
One of the things my upline used to say in meetings was that they (upline) don't make any money until you (downline) do. Sometimes they would say they make pennies when you make dollars. Of course we know that is a full blown lie in most cases because once you register (many groups have a starter kit including products), upline makes some money. Once you purchase a cd, a book, or pay to attend a function, upline has also made some money off of you. It is important for IBOs and prospects to know that upline makes more profit from tools than from the products. Think about it, the tools have a higher profit margin than the Amway products and there are fewer people sharing in the tool profits.
It would appear that most uplines will try to lure prospects into Amway by showing them the best case scenario of going diamond or higher, and all the alleged trappings available at the diamond level such as mansions and fancy cars. Once they get a prospect excited about the possibility of not working while cash rolls in, they then pitch their "foolproof" system of voicemail, cds, tapes, books and seminars. Although it is VERY RARE for any IBO to reach a level where they can net a profit, much less buy mansions, the upline will convince you that these goals are only attainable through the system teaching. Sadly, it the expense of the teaching system that leads most IBOs to suffer net losses.
The sad reality is the upline makes money if you succeed, fail or do nothing, as long as you continue to purchase Amway products or tools from them. However, you may be edified as being a committed IBO. It is why they may tell you that the most important person to get to the function or meeting is yourself. In an open meeting, there really is no point in attending if you have no prospects as your business cannot grow as a result of your attendance, but your attendance costs you time and money. My sponsor would say it was important to attend to show support to those who brought guests. But that's BS. Your success in business depends on your income and expenses. Why take on expenses that won't benefit your business? It just makes sense, despite what your sponsor or upline might tell you.
If you as an IBO or a prospect really observes carefully, you will find many activities that will cost you time and money and will not result in your business volume growing. For example, reading a book might be good for you, but it is a non income producing activity. Attending an open meeting without prospects is another good example. Listening to standing order is another example. With all of these activities, an IBO is expending resources and not getting a return. Frankly the worst investment is attending an out of town function where your expenses are great while your business is left unattended to at home with no growth in downline or in product volume. A smart business owner needs to determine what makes him money versus what costs him money and make decisions based on that.
Don't buy the lies. Your upline makes money from you when you buy Amway products or tools, whether you do a lot, a little, or nothing.
It would appear that most uplines will try to lure prospects into Amway by showing them the best case scenario of going diamond or higher, and all the alleged trappings available at the diamond level such as mansions and fancy cars. Once they get a prospect excited about the possibility of not working while cash rolls in, they then pitch their "foolproof" system of voicemail, cds, tapes, books and seminars. Although it is VERY RARE for any IBO to reach a level where they can net a profit, much less buy mansions, the upline will convince you that these goals are only attainable through the system teaching. Sadly, it the expense of the teaching system that leads most IBOs to suffer net losses.
The sad reality is the upline makes money if you succeed, fail or do nothing, as long as you continue to purchase Amway products or tools from them. However, you may be edified as being a committed IBO. It is why they may tell you that the most important person to get to the function or meeting is yourself. In an open meeting, there really is no point in attending if you have no prospects as your business cannot grow as a result of your attendance, but your attendance costs you time and money. My sponsor would say it was important to attend to show support to those who brought guests. But that's BS. Your success in business depends on your income and expenses. Why take on expenses that won't benefit your business? It just makes sense, despite what your sponsor or upline might tell you.
If you as an IBO or a prospect really observes carefully, you will find many activities that will cost you time and money and will not result in your business volume growing. For example, reading a book might be good for you, but it is a non income producing activity. Attending an open meeting without prospects is another good example. Listening to standing order is another example. With all of these activities, an IBO is expending resources and not getting a return. Frankly the worst investment is attending an out of town function where your expenses are great while your business is left unattended to at home with no growth in downline or in product volume. A smart business owner needs to determine what makes him money versus what costs him money and make decisions based on that.
Don't buy the lies. Your upline makes money from you when you buy Amway products or tools, whether you do a lot, a little, or nothing.
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