Financial Freedom?

The way that Amway is often presented as some kind of dream come true opportunity is by talking about the 40/40 plan. Work 40 hours per week for 40 years and then still winding up broke is how people's jobs are portrayed with of course, Amway being the solution. It can sound appealing and it might make sense on the surface but once you peel away the half truths and myths about Amway, you are putting lipstick on a pig.

First of all, I know of people who are retired fire fighters, retired government workers and retired people of many professions. I'm sure this is true for most people. But where are there any Amway retirees? Diamonds are still working and while they claim to be financially free, they don't disclose their finances. We know that main stream retirees generally have enough income to live comfortably because there are real life examples that we can see. But as a contrast, diamonds live a life of alleged luxury and excess. The diamond lifestyle certainly appears to be an expensive one. Is your diamond really living in luxury or are they like the rest of society living in debt but having the newest toys?

Do the math. Amway says a Q12 Diamond averages around $600k but a Q12 Diamond is rare. The average non Q12 Diamond earns about $150k before taxes and business expenses. Yes, that income might be augmented by tool and function income but after taxes and business expenses, you are looking at a middle class lifestyle, not one where you are living in first class and enjoying only the finest things in life. It is for this reason that the are reports of diamonds and emeralds living in average neighborhoods or sometimes in dives.

There was also some documentation of diamonds who had foreclosures and bankruptcies. It is for that reason that I believe that's diamond is not much different than someone with a job. The diamonds basically run functions and meetings for a living while promoting Amway. Is that the kind of freedom you seek? So where is this financial freedom that diamonds speak of? Where are the Amway retirees? Do they exist at all?

Walking The Beaches?

One of the things Amway IBOS like to talk about is ongoing residual income that they believe they can generate thru their Amway business that keeps rolling in, thus allowing and IBO to retire and walk the beaches of the world. But I ask this of Amway defenders. Name one or two diamonds who built their business right and built it once and are now walking the finest beaches of the world while barrels of money rolls in. Over the years not a single Amway supporter has been able to name a single diamond to achieve such a feat.

More than likely such a person does not exist. Overl all of these years, do we believe that not a single diamond wanted to retire quietly and privately to live a life of luxury?

More likely with the majority of IBOs doing little or nothing and quitting, diamonds are working harder than anyone but with a flexible schedule instead of a 9-5 job. These diamonds are working the night or the graveyard shift. They are constantly replacing people who quit and forever recruiting fresh young ambitious IBOs because they have to. Think abouyt it. A diamond business is like a sand castle. It will stand on its own for a while but the waves will quickly destroy it and soon enough, you'll never know a sand castle was there. That's how your "residual" income will be. It will be temporary.

The diamond lifestyle seems alluring but the reality would very likely show a far different lifestyle and peek into the world of a diamond where you ate always running to and from functions and meetings to hold your group together. It not just a glamorous life of luxury that they lead you to believe. If you don't believe me, name a diamond or two who's living the high life on residual income after walking away from their Amway business. These diamonds are like Sasquatch. Many have seen or heard about them but there is no real evidence that they exist.

The Least Efficient Way To Do Business?

I remember seeing the plan as a prospect back over a dozen years ago. I remember the speaker talking about how you can capitalize on distribution efficiencies to make money. We as IBOs would simply cut out the middleman and that savings would be passed onto us as IBOs. In its simplest form, it made sense and and misconception passed onto the audience that you will actually save money by purchasing Amway products. I even remember the speakers saying that even if the whole world signed up for Amway, even the last guy getting would would have the benefit of saving money. Looking back now, much of it was deception and lies. And to think, people now and back then paid good money for training on how to become, in my opinion, the least efficient manner in which to move products.

We recently enjoyed the Superbowl. And as you know, super bowl commercials can cost millions of dollars. But do you know why? It's because hundreds of millions of people across the world are tuned into the super bowl. Companies probably have their best staff working on developing these commercials because they want to leave a lasting impression on their viewers. And it apparently works because people today are still willing to shell out serious coin for these commercials.

Amway IBOs advertise person to person, one person at a time.

What are the chances of an IBO ever moving a significant amount of products or being able to reach out to potential new downline when they prospect person to person, face to face, one at a time? To me, that is the most inefficient manner of expanding business. And let's face it, Amway's rules don't help when you are not supposed to advertise online without special permissions and you are not supposed to sell product on Ebay or Craigslist. In today's technological society, it seems almost crippling to be so inefficient.

And even your beloved uplines, at your expense, run the most inefficient manner of doing business. Who needs voicemail when we have facebook, email, twitter or text messaging? Not to mention the added expense IBOs face by these outdated technologies. Also, with video conferencing, skype, or webcams, why do people need to travel long distances for meetings and functions? The answer is simple, your upline might not want your success, they simply might just want your money. All of the training and motivation is a profit center for upline and modernizing would simply reduce their tool profits.

Try asking that of your upline. Why do we keep using the most expensive and inefficient means of doing business and communicating? I'd be curious to hear that answer.

Justifying Yourself?

I remember how our upline diamond used to talk about how people justify themselves. They'll compare themselves to a neighbor or a co-worker and justify that they are doing okay. Or they may say that they went to public school, therefore public school is good enough for their kids. Or a man might respond to a wife's request to see Alaska by telling his wife to look in the freezer if she wants to see ice. We justify ourselves by finding someone equal or worse off than ourselves. It makes us feel better to know that we aren't that bad off.

Then uplines will tell you that you should strive to get better, which is good. Ironically, they'll also tell you that the way to do better is to join Amway and to dive into the tool system. While there might be initial excitement and euphoria, it wears out quickly, especially when the quick profits and advancement in the business never materializes for most. It is then that the uplines cleverly inject subtle pressure to keep you active by labeling people who quit as losers or failures. Their tools will tell you to never quit, or that you will eventually make it if you keep pressing on. The standing orders are filled with stories of guys who were broke, signed up for Amway, had struggles, but they never quit and now they are diamonds living large and only working functions out of the love for their downline. Don't you ever wonder why nobody can name people who actually built a diamond business, and then walked away, collecting hoards of cash and living happily ever after? I do not believe these people actually exist.

Then sadly, but ironically, the IBOs begin to justify their business losses. The phrases are common. I am a nicer person, I am a better father and husband. I am doing God's work (Amway is God's work?). I learned about business from being in Amway. There are many nice reasons people give to explain their involvement in Amway and the systems, but making a nice income is rarely ever one of the reasons. I do hear some outrageous income claims, but not a single IBO has provided any evidence or proof of this income.

Another justification that IBOs make is that Amway products are the best, therefore they cost the most. They also justify the cost with the concentration factor (I hope you don't spill any). Of course, product quality is subjective and secondly, many people are not concerned about quality when it comes to ordinary household goods such as bar soap. Most people look at price and value, which is why WalMart and Costco are wildly successful. It's really humorous at times when you see IBOs in action justifying their products and their business opportunity.

Obviously, it's a tough sell in North American where it appears that Amway sales have gone down and even with the national advertising campaign, I'm not sure a significant impact was made. Here's food for thought. WalMart's slogan is Live better, save money. Amway's slogan is "Now you know". Nuff said!

Is The Truth "Negative"?

One of the silly things many Amway IBOs are taught is to avoid negative. I believe this is taught today by uplines and it was certainly a point of emphasis even in my days as an IBO. The upline diamond would say that the world of full of negatives and that we as people take in too much of these negatives. Therefore, the IBOs were told to avoid television, newspapers and other forms of communication with the outside world. The group was also told to avoid people who speak negatively about Amway. For this reason, many people have considered Amway groups such as WWDB or N21 as cultish or cult-like. (information deprivation or information control).

I can agree that you surely don't want to only take in negatives as it can wear you down, but not seeing the news or reading about current events in the paper simply makes you apathetic and uninformed. For example, wouldn't you want and need to know if there was a storm heading your way? I live in Hawaii and we occasionally have hurricanes. Avoiding news could be very detrimental to your family and home. If you lived in the mid west of the US, wouldn't you want and need to know if a tornado was headed your way? Do you avoid the doctor because his assessment of your health might not be "positive"? For these reasons, I believe that many Amwayers walk around wearing a mask with a false smile, trying to appear overly positive.

Another important thing that many IBOs cannot distinguish is the difference between negative and the truth. If your wife asks you if her new dress makes her look fat, the truth might be that the new dress indeed makes her appear fat. That answer may be uncomfortable for you to deliver, but the truth is the truth. The truth at times can be positive or negative but it is still the truth.

Most IBOs earn less than $100 a month. That is the truth. Most IBOs lose money if they participate in functions and standing orders and such. That is the truth. Most IBOs will never even sponsor a downline. That is the truth. Most IBOs, filled with motivation and dreams, will never see those dreams fulfilled. That is the truth. Many upline diamonds, who advise IBOs to purchase tools and attend functions, and fill the IBO's heads full of dreams, make significant incomes from the sale of tools and functions. That is also the truth. In a 1 year time span, approximately 50% of IBOs will quit in the first year. That is the truth.

Is it negative to tell the truth? Or can IBOs not handle the truth?

Are You "Playing Amway"?

One thing my sponsor often told the group was that many of us were "playing" Amway. What he meant was that many people can listen to an audio or CD every day, read a success book 15-30 minutes each day, attend all the functions, use and/or sell 100 PV or more each month, but never make progress in the business. Basically what he was saying was unless you are showing the plan and sponsoring downline, you are just playing Amway. And while I agree, I honestly believe that most IBOs simply "play" Amway. And that's partly because you can control some of these activities but you cannot control who you can sponsor.

People can do most of the CORE steps such as listening to standing orders or cds/audios each day. They can read every day and attend all the functions. They can even use and sell Amway products. But because of previous IBO behavior, many people cannot get anyone to see the plan, let alone sponsor others. Seems like everyone (at least in the US and Canada) know of someone who was lied to, or tricked into attending an Amway meeting. This alone has given Amway a shady reputation and just the mention of the name Amway can send people running. I was tricked into a meeting once, and as an IBO, I saw people get up, cuss and leave the meeting because they were lied to or tricked into attending a meeting based on the curiosity approach. (If you're an IBO, have you tried this or taught to use this?)

I do not believe that IBOs in general are dishonest or deceitful. I believe that most of them are probably motivated, wanting more in life, and hard working. But they are taught to duplicate or copy their uplines. I believe it is some of the tenured leaders who teach bad business practices that are duplicated and spreads a bad reputation like an infectious disease. I believe that because of this, Amway's North American sales tanked and now they don't even report the North American sales separately from Global sales. Amway's sales have dropped significantly from 2013 to now.

When you stop and take a deep breath, you see the signs of weakness and the chinks in the armor of the once untouchable and "divine" diamonds. We see diamonds suing other diamonds and Amway. We see diamonds losing their homes to foreclosure (so much for paying cash). A triple diamond was in chapter 7 bankruptcy some years ago and hoards of diamonds leaving their LOS along with their "awesome" mentors and lifelong friends to form their own LOS. Why is this happening? I believe it is because of greed. Why else would you leave a "mentor" and "lifelong friend" to start your own LOS? It's all about the money.

Sadly, while all of this goes on, most IBOs come and go, lose money and "play Amway" along the way. It truly saddens me that this has gone on for so long, and it looks like (in my opinion), that my former LOS, WWDB, seems to have been the worst of the bunch with no apparent improvement in the last 15 to 20 years or so.

You can "play Amway" hard, but you won't make enough net profit to buy a value meal a McDonald's. Of course you are welcome to prove me wrong.

Are You A Glorified Amway Customer?

IBO = Independent Business Owner. Most Amway folks consider themselves IBOs, or independent business owners. To some, owning a business sounds cool. It sounds like you are achieving something and it may even seem that there is status involved in being a business owner. It is one of the reasons that may compel someone into signing up for the Amway opportunity. It was a small factor in gaining my interest some years ago when I was pitched the "plan". But are you really a business owner running an Amway business?

Based on what I see and hear from Amway related blogs and forums, most people involved in the Amway opportunity are not business owners. They are simply customers. They are customers of Amway and they are customers of the system, consisting of voicemail, cds/audios, books, and seminars. Does this sound confusing? Think about it. Many groups teach "buy from yourself" and get others to do the same. If you belong to one of these groups, you are being taught to be an Amway and system customer, nothing more and nothing less. Both Amway and the system profit from your loyal purchases and they fool you into thinking you are getting a good deal by giving you a tiny rebate each month. Only if you are able to lure enough gullible people into your downline will you finally be able to leverage their purchases to make a small profit. If you can get a large following, then you might make some nice coin, but it will come at the expense of the people who trusted you enough to sign up and follow you.

If you stop for a minute and truly think about a business, what business can thrive without customers? I cannot think of any businesses where there are little or no customers. Why would the Amway opportunity be any different? If you are your only, or your own best customer, then maybe you are not even a business owner, but simply a customer of Amway and a customer of the system. Think about this for a moment. Without actual customers, any bonus you generate is coming out of your own pocket or from any downline you may have sponsored. Is this what your business consists of?

Without any sales to non IBO customers, any profit simply comes out of the pockets of the people in the Amway system. When you receive a rebate, you are simply getting some of your own money back. You have not generated any real profit. The only way to generate real profits is to sell to outside customers. This brings money into the system or the "Amway economy:, if you will. If not, an IBO is just a glorified customer bringing profits to Amway and the tools systems.

So are you a business owner or a customer?