Nicer People?

 Many IBOs "think" they have become nicer people as a result of their association with other IBOs and because a part of the system they are with advises them to read self-help books and other positive material. The upline may also advise you to skip watching the news because of the "negatives" you see. They are also taught that as a side benefit of the Amway business, that they are nicer people. Of course, many IBOs mistakenly think that they started a business not to make money, but to become "nicer". If dealing with people made you a nice person, that's a nice side benefit but a business exists to make money, not to soften your demeanor.

I certainly agree that some people can benefit from positive books and association with others, but for many, it is not a genuine "nicer" person, but simply a phony persona that is put on in order to recruit potential Amway downlines. That is how my former sponsor appeared to me. Because I had known him for a long time, the "nicer" looked as phony as phony can be. There are many examples of phony niceness that some IBOs profess. Even Amway's biggest defender was apparently called a "cyber bully" by an Amway corporate blogger and some others for making disparaging comments about those with opposing views. Others have resorted to calling people broke or losers simply because they did not agree that Amway was their savior. Seems IBOs are nicer when they are recruiting you but that goes out the window if you don't sign up. Then you become a broke loser.

On this very blog, there are comments, I assume by IBOs, that make implied or subtle threats. Some of these comments are not subtle at all. In fact, in my blogging experience, it is usually the IBOs and Amway defenders that resort to name calling. I suspect that is because the facts are on the side of the Amway critics. For example, it is a fact that most IBOs never make a dime, even if you don't count the ones who "do nothing". If you look at system IBOs, then the vast majority never make enough to pay their voicemail expenses.

Even the coveted diamond level appears to be a facade, especially seeing diamonds quit, resign and simply walk away from the business without the lifelong passive income. A triple diamond's bankruptcy revealed some financials, and it wasn't all that impressive considering the size of his business plus longevity in the business. The "success" appears to be a façade in Amway, just like IBOs who think Amway has made them nicer people.

So IBOs, are you a nicer person? Is it evident by your words and actions? It doesn't appear to be very clear to me.

Legal, But It Still Sucks?

 Amway is a legal company. They were investigated by the FTC back in 1979 and the FTC ruled that Amway was not an illegal pyramid because they did not pay for recruiting (headhunting fees) and they required product purchases. Also, there is no required purchases, and Amway has a fairly generous refund policy. So yes, by the letter of the law, Amway is a perfectly legal MLM company. What is not true is that the better business bureau (BBB) endorses Amway and the FTC did not "praise" Amway after the 1979 ruling.  Even if this were true, it would still not be indicative of Amway as a business opportunity.

However, that being said, doesn't mean that IBOs and IBO leaders can't run their independent businesses in an illegal and unethical manner. For example, if your upline tells you not to sell anything and to simply buy your volume to qualify for bonuses, that is a very questionable practice. If your upline tells you to deceive people about the Amway opportunity or teaches "fake it till you make it", that is also a questionable practice.

Amway the company has some standards that they uphold but at times, IBOs or IBO leaders will disregard those standards. New IBOs and prospects at times may not know when their upline or sponsor is leading them astray, which is what prompted me to write this post. If you are taught to "submit to upline", keep in mind that you are an independent business owner and will be responsible for what happens with your business. Too many times, I've seen or heard of IBOs failing and accepting the responsibility all the while following the "experienced" advice given by upline. What is troubling is that many serious IBOs will be paying for advice from upline in the form of functions, seminars, cd of the week, open meetings. Yet when followed advise fails, upline will tell the IBO they are responsible for their own failure. WTF??

Some IBOs I've known stayed in Amway for many years, spent tens of thousands of dollars or more and have not made a cent in net profit. They have been programmed to think that they will succeed if they never quit or that success is right around the corner and they can't quit because they don't want to quit just before the business pays off. In the end, a business is a business and IBOs need to look at their bottom line. If you aren't making a net profit after following the plan and advice mapped out by upline, there comes a point where tough business decisions must be made. Maybe Amway is not the way. Maybe it's time to do something else? Nobody can make that decision except the business owner.

So to summarize, the Amway corporation is perfectly legal but your sponsor or your upline can be running things illegally without Amway's knowledge, which can cause you financial damages. New IBOs and people who are looking into the business need to be aware of these facts. I hope this post helps someone.

Warning Signs?

 Having been involved in many Amway discussions for some time now, I recognize the many warning signs of a bad upline or a bad LOS. While not all uplines are the same, I do not believe that any LOS (Line of Sponsorship such as WWDB or BWW) is free of bad teaching, regardless of what you hear. Some of these points are simply clues that you could be in a bad LOS, you still need to think as an independent business owner and watch out for your own best interest because these folks will say they have your best interest at heart, but they really have their own best interest at heart.

When you were prospected or recruited, was your sponsor upfront about the Amway opportunity or were you told about some new e-commerce opportunity or the like? Were you told that selling products was important or were you told that buying from yourself is the way to succeed? Did you know that some uplines make most of their income from selling business support materials and not from Amway? Were you told that functions and other tools were vital to your success? Were you told that the system was "optional, but so is success"?

Were you told that a college education was not important to your success in Amway? Were you told that buying from yourself can result in a profit? Did someone say that the Amway opportunity helps save marriages or makes you a better person? Was the Amway opportunity used to preach religion or politics to you? Did anyone tell you to ignore facts if you have a dream? Were you told to submit to upline? Or were you told to check your ego at the door? Did you get the impression that your upline was a divine being? Did you give the speaker a standing ovation when they entered a meeting or function? Did you ever wonder why?

Were you told that you save money on Amway products only to realize that they are not generally cheaper than other retailers? Were you told that you have joined the best or the fastest growing LOS? Were you shown fancy cars or other luxuries and told that you can also achieve these lifestyles if you follow the system? Did your upline or sponsor tell you and verify how they are performing in the Amway opportunity or were you simply shown a photocopy of some check from an upline? Did you hear that you should always avoid "negative", or that people who are not in Amway are broke or losers?

These are some warning signs that you could be in a questionable LOS. In many cases, an LOS's priority is simply to sell you tools. Tools that are supposed to help you succeed in Amway, but more often than not, they help the person selling the tools to profit, regardless of whether you make a cent in Amway or not. It is important to look at facts, to track your progress and to keep track of expenses. If you are not progressing as the plan was shown, you may want to take a look and make sure that you are not overspending on tools that aren't helping you. Or if you are unable to sponsor downline, you may have to ask if this business is for you.

The business has warning signs. It is up to you to see them or to ignore them.

Joecool Off To Vegas Again?

Another vacation for Joecool.  I'll be back on Tuesday or so.  Until then, please enjoy an article about Amway and recruiting.

What does the HR department is a company do? Recruit?  That's what I was told when a diamond speaker was trying to downplay the fact that so many Amway IBOs are focused on recruiting. If you've ever been accosted by a zealous and probably new Amway IBO, you'll probably know what I'm talking about. Newly sponsored IBOs often have the motivation and zeal to try to recruit anyone and everyone they know. They are trying to achieve what upline has told them is needed to accomplish their "dreams". Afterall, nobody is going diamond or even platinum without an army of downline right?  But it also begs the question, in addition to being unpaid commission only sales people for Amway. IBOs are also unpaid HR staff who do the recruiting as well?  Isn't it amazing how much free for work Amway the uplines get their faithful followers to do for Amway?  It's great for Amway, but maybe not so much for the IBOs.

But upon closer inspection, you can see the real problem. I mean if I as an IBO, someone could simply sell tons of products for a profit, then the focus doesn't have to be on recruiting, but simply on sales. But over the years, I've unsuccessfully challenged IBOs and Amway defenders to name 1 or 2 people who has sizable Amway businesses sustained primarily by sales and not by recruiting an army. Of course, nobody has even been able to give me an answer.  And that's because Amway products are generic in nature but premium in prices. It makes it a tough sell when your friends and family can get far more product and value at a retailer at a fraction of the cost of Amway products. Try doing an open-minded price comparison and you'll easily see what I mean.  I've seen some Amway IBO created price comparisons and they don't hold up well to scrutiny.

For these reasons, upline developed the concept of buy from yourself and get others to do the same. People generally do not like selling things anyway, so it makes sense that a concept of buying from your own store makes the Amway business seem more palatable to the masses. Of course, the problem with this method is that you end up focusing on recruiting and you've basically turned Amway into a product pyramid scheme. Look at the FTC vs. Herbalife some years back. They found that a majority of sales were not made to actual customers but appeared to be made to the distributors themselves. Herbalife is required to track these sales now and it's yet to be seen how this FTC injunction will impact Herbalife long term.  

But if you're a prospect or an IBO and focused on recruiting, then you are likely doing so because you too, are unable to sell Amway products just like all the critics claim. Oh, I've heard stories of people having hordes of customers, but nobody has ever shown evidence of such.   Nobody can answer why the "diamonds" seemingly have large groups of downline "buying from themselves". Like the mysterious "Amway retirees" that no one can identify, nobody has been able to identify a few successful and sustainable Amway businesses that relies on product sales primarily. It's because the majority of groups are basically focused on recruiting and running pyramid schemes.

Sucked In?

 If you have ever sat through an Amway presentation and the follow up teachings as I did, you can get a clear picture of how the uplines slowly suck people into the system. The speaker will be introduced as a picture of success. Possibly introduced as being in the top 1/10 of 1% in income (But with no evidence or proof). They will talk about how taxes, insurance, and inflation eat away at your paycheck. More than likely, they will say they suffered the same way until they figured out how to defeat these issues by making more money. Of course, they will eventually drop the "A" bomb on you and say it's Amway. Very likely they will say that you should not care what it is if it gets results.

You are then shown the plan, and many people think that 2-5 years and "finding six" is something very manageable for the results they promote (walking the beaches while residual income flows in).  Finding six means directly sponsoring six downline legs where there is a qualified direct distributor, pr platinum. At the very least they say, you will make some money and save some money. Who can argue with that kind of logic? They will also likely mention that Amway is low risk or no risk with little or no startup costs. Again, how can you argue with that logic?  On paper, it seems like a no brainer.

You finally convince yourself that you can reasonably do this. You sign up and you are likely told that it is important to get some tools because after all, a carpenter can't build homes without a hammer and saw and that any business owner would have to make some investment into their own business. So now because of the tools, you are operating at a loss. You may then be told that business owners normally operate at a loss for years and that it might also be wise to channel your bonuses back into your business by purchasing more tools to fuel business growth.

Before you know it, months or years may pass before you start to realize that you are on a treadmill. You keep walking but end up going nowhere. Then your upline may tell you that the business is not about money but more about making lifelong friendships.

In my opinion, this whole system is a cleverly designed systematic way for uplines to slowly drain your resources and making you think that you are successful despite showing no profits. Your upline may edify small things like showing the plan or making a sacrifice to attend a function. Sadly, you will rarely see someone edified for actually making a net profit.

It's a slow process, but most people slowly get sucked into the system, just like quicksand. I hope IBOs and information seekers are able to recognize the scheme if and when it happens to them.

Prey On The Needy?

 One of the big things that was taught by my upline was to recruit people who are in need. People in need of time and/or money are perfect candidates is what I was told. You look for a need and use it as a chance to show the plan. Someone who may be looking for more income is likely to be more open minded. It is also why the upper-level pins will display signs of wealth as an enticement, to get people interested and hopefully excited in seeing the plan, and hopefully to get people to register for the opportunity. IBOs will wave around a copy of an upline's check.

Recruits will be asked about their dreams. Amway recruiters will then show a "best case scenario" of people with trappings of great wealth. Of course, they will not show you what is likely, which is a net loss due to the "system".  Best case scenario is how everything is framed, but often this is not based in reality.

At this point, the recruit may start to wonder if he/she might be able to attain the same level of success. The recruit starts to think if he can find "six" as they talk about in the plan. In a 2004 Dateline segment, the show panned in on people in attendance at a function. Some poor saps were in tears. They probably wanted success so badly that they can taste it. They feel that it is definitely within reach. Sort of like how you can see the end of a rainbow, but you can never reach it. That's how success is for the vast majority of Amway IBOs. They want success and will work for it, but sadly, it will never materialize.

There are few people on the stage and thousands of people in the audience. That's the way it has always been. Unless the compensation plan changes, that's the way it is likely to be forever and ever. The 6-4-2 plan has 79 IBOs at 100 PV. Considering the people who never do a thing and those who quit, you can assume that you need much more than 78 downline to build a platinum business. And a platinum business is approximately where you start to break even, or possibly make a small net profit, depending on your level of dedication to the teaching system, which drains IBO's resources. That is because of the costs associated with being involved in a system such as BWW, WWDB, or N21.

For most IBOs who decide to try the business and the systems, they will likely end up losing time and money. LOSING TIME AND MONEY. Unfortunately, most IBOs sign up hoping to gain more time and money. Ironically, what they seek is what they have less of due to their involvement with the systems and Amway.

The Facts?

 So many people get caught up in hype about Amway. Perhaps not from Amway the company, but the Amway groups leaders such as WWDB, N21, or BWW. They may present themselves as the ultra rich, or you may be shown pictures of wealth such as jets, mansions and nice cars and jewelry. Amwayers dress up in suits and business attire. It is all to give prospects the illusion of success when the reality is a stark contrast. I remember as an IBO, seeing all kinds of IBOs driving clunkers to the meetings but dressed up in a nice suit. But the reality was cars on their last legs and (probably) car payments. These nice folks were probably just misled that Amway's opportunity could lead them out of debt, or they could earn enough for their wives to be "job optional" or they might even make enough to walk the beaches of the world while residual income rolls in. The audiences see hope, but it is false hope.  

That fact is that IBOs on average earn a gross income of about $100 a month. Amway says the average income of IBOs is $204. But their small print also says only 46% of IBOs are considered active, and therefore, Amway did not count inactive IBOs. So that representation is not a true "average". I might also add that the $204 is gross income, and IBOs who attend functions and purchase voicemail and cds are more than likely operating at a net loss.  

Amway presenters also like to talk about the money you can save by shopping with Amway. The fact is that you can get a great deal more value (and products) by shopping at Walmart or Costco. Some Amwayers will say that Walmart doesn't sell Amway products, and while that is true, Walmart does sell some similar or same products which will almost always be cheaper than obtaining them from an IBO. I can't imagine that laundry soap or shampoo would be cheaper through Amway. In past price comparisons that I posted, you can get up to 4 times more product for the same price. This is very plausible when you factor in the real money added to Amway's cost because of the IBO bonuses that they pay. That's not to say that you can't find a single Amway product that might be competitive, but overall, there is no comparison. If you use a cashback credit card like I do, then you too, can be "paid" for shopping at Walmart or Costco. 

It is also a fact that diamonds are not the care free uber wealthy people they would lead you to believe they are. As time passes, we see examples of former and current diamonds who spoke of their incomes and in some cases, foreclosures and bankruptcy also revealed through public documents, some background on what a diamond might earn and spend. It is my educated guess that many diamonds, if they try to keep up with the Joneses, are in financial difficulty. Ask your diamond for the facts. In real business, financials are verified, but alas, diamonds and Amway presenters are secretive about their income. Because they don't want you to see the facts? '