Reaping What You Sow?

 One of the things that many prospects and IBOs believe is that they will make an investment of time and money into their Amway business and that they will eventually get their time and money back in such abundance that they can walk off their jobs and walk the beaches of the world while living in luxury because of lifelong residual income, all because of the Amway opportunity. For IBOs and prospects of Amway, I wonder if any of you can actually name even five people who have actually accomplished this? How about two? Keep in mind that there have probably been tens of millions of people or more who also wanted this and tried Amway and the systems, only to find that reality paints a different picture.

Many people truly believe they will reap what they sow. While that many sound true, I guess the next logical question is what are you sowing? Are you deceptive when prospecting people to see the plan? Are you having to justify and high priced Amway product comparisons that are not favorable? Are you actually selling goods to customers and actually qualifying for your Amway bonus or are you self-consuming and getting others to do the same? Do you have a negative opinion (broke losers) about people who don't join Amway or are not interested in seeing the plan? Do you now think your boss and your job are evil? Do you leave your kids at home to attend endless numbers of functions and meetings? You reap what you sow correct? The questions is what kinds of seeds are you actually planting?

I wonder what some WWDB diamonds were sowing? At least the ones who had their homes foreclosed, and one in particular was involved in chapter 7 bankruptcy proceedings. Are they reaping what they sowed? What about the WWDB diamonds who got divorced? What were they sowing? Are IBOs sure about wanting to make the claim of reaping and sowing? And yes, Joecool the person also has his own flaws, but the difference is that I am not on stage proclaiming to be flawless and many diamonds would imply when they speak (and profit from) their tens of thousands of downlines. I am not earning a living by deceiving people and profiting from people I am supposed to be helping. But your upline diamonds are. Take a close look at the fruit on the WWDB tree. Reaping and sowing might be a different discussion then.

Sucked In?

 Sometimes it happens to the nicest of people and it often happens slowly and subtly. These are the signs that you are becoming indoctrinated and you are likely annoying your friends and loved ones at this point. It may not be apparent right away, but the change occurs and eventually becomes noticeable to those who know you. You think you are doing what it takes and developing your ability to succeed in Amway so you may not notice that you've become "one of those Amway people"

You're driven to recruit everyone you know. You made your name list and you're working it hard! You may even resort to deception or outright lies to get people to meetings because saying "Amway typically will not work. Before you know it, your family and friends avoid you like the plague. You end up spending time at malls or book stores or coffee shops and other public placse scouting for "sharp" recruits. You almost become phony in talking to people and feigning interest in other people and their interests because that's how it's done in Amway!

You're encouraged to develop an unreasonable, irrational zeal for the products. Even so far as to justify the quality of toilet paper or to call the products prestigious. You may even argue the quality of energy drinks or about phytonutrients, something you may not even know about. Even when there is contrary but concrete evidence, you continue to defend your Amway goods because it is your ticket to "freedom"!

A whole bunch of demands, promises, subtle threats of failure if you don't try hard enough are made in the promotional material and motivational seminars. i.e. If you quit, you are a loser destined to die broke and unhappy. Or you let someone steal your dream. These ridiculous claims are how your upline keeps you hooked. While the pressure can b subtle, it can still be powerful. After all, nobody wants to be labeled as a "loser".

Because the system is touted as the way you're going to make yourself fantastically rich, you're under pressure to drop any conflicting or competing interests such as your bowling or tennis league or golf club. Nothing else in life has importance except for the quest of financial freedom. All activities in your life must enhance your Amway business and have an effect on your financial future. No other activities matter to you unless it affects your financial future. Even family and friends may be shunned in your quest for the holy financial grail. And this is in spite of your business generating $10 a month in income while you spend $250 on cds, books, voicemail and function tickets.

Your upline soon becomes your most trusted friend. Your thoughts and feelings are shaped in part by the cds, meetings and functions. People who you may have trusted all your life suddenly becomes secondary in your life because of your undying loyalty to your upline. You shun the advice of (formerly) trusted family and friends because they are "broke minded" or have an "employee" mentality.

Do you recognize these behaviors? Hopefully you aren't displaying these behaviors, If you do, you have been sucked into Amway.

How To Silence Critics?

 There's been a lot of debate and activity on Joecool's blog over the years. IBOs come and go. They make interesting claims, but they never silence any of the criticism because they never prove their case. Or they make ridiculous claims or analogies such as comparing the Amway opportunity to a McDonald's franchise, or silly comparisons to colleges. The owner of Amway, Rich DeVos said in 1983, something to the effect that the tools business was basically an illegal pyramid. If the abuse of downline IBOs had been addressed back then, there might be less criticism of the Amway opportunity today.

I recently had a discussion with an (apparent) IBO who claimed that Amway has created the most millionaires in the world. When asked for the source of this claim, that same IBO disappeared. Now I am certain that Amway has created some millionaires, but the most in the world? Also, based on evidence and simple math, it appears that most IBOs who participate with the tools systems lose money, so even if Amway did produce many millionaires (which is not verified), then we could also claim that Amway produced many many bankruptcies and failures as well.  In fact, I would venture an educated guess that the number of real success stories in Amway versus the number of failures and the number of participants would equal something similar to the results of a lottery.  
  
Various IBOs have also claimed that because they are successful, that it serves as proof that the system works. But when asked for evidence of that success, or to show that their downline share some of that success, they disappear into the night.  You know what? Sweat shop owners are usually successful. They succeed by taking advantage of their underpaid workers. Basically, greedy tools kingpin diamonds are the same thing, maybe worse because at least sweat shop workers have a net gain, although it may be small. The only difference is that occasionally, an IBO might be able to break through and join the diamond ranks.  However, the vast amount of failures among the rank and file indicate that the opportunity is nothing like how uplines promote it.

Some of the zealous IBOs dared a critic to post a profit/loss statement some years ago, and it was produced. After that, not a single IBO came forward to post the same, or to even discuss their business income and expenses. Why do IBOs avoid discussion about their business? Is it because it makes you look bad? I'm sure if it helped to prove their points, they would discuss it. Maybe the IBOs who post on blogs have nothing? It appears that the biggest defenders of Amway, do so without any ammunition?

How to silence an Amway critic? Simple, back up your claims and show mathematically how the business can work for the group. It's easier to silence an Amway defender, simply ask for proof that it works.

Why IBOs Fail?

 Over the years, there must have been tens of millions of IBOs who had some experience with Amway. Obviously, not all of these folks got involved in a system or had the intention of trying to make millions of dollars. But looking at the business as a whole, the number of people who make a significant income from Amway is a tiny fraction of 1%. If a typical platinum has about 100 IBOs in a group, then you can conclude that platinum is in the top 1% of all IBOs. And we know that many IBOs quit and go through the business each year. The attrition rate can be staggering for bigger pins who need to keep working to replace those who quit.

But the question that seems to be ignored is why so many IBOs end up failing? Now for the sake of this discussion, let's exclude IBOs who do nothing and quit. Let's talk about IBOs who make an earnest effort. Often, the serious IBOs will be on the system consisting of voicemail, standing order, functions, books and other meetings. These all come at a cost, therefore, IBOs need to make several hundred dollars a month just to break even. Amway reports that the average income of active IBOs is $115 a month. Therefore, the average business building IBO is operating at a loss.

Let's look at some of the reasons why IBOs cannot succeed. In general, Amway product pricing is higher than local big box retailers. Amway pays bonuses; therefore, the bonus payout is included in the price of the products. I suppose a platinum gets a good deal, being at the 25% level, but a platinum is in the top 1% of IBOs. The majority of the rest receive a paltry 3% which leaves them at a loss when business expenses are factored in.

Past IBO abuse and past IBO behavior makes it nearly impossible, at least in North America, to find potential downline IBOs and customers. Seems everyone knows of someone who was tricked into an Amway meeting or was deceived about Amway in some manner. I believe Amway has seen a decline in sales in North America, with foreign countries being responsible for any current growth in business.

Another factor is that IBOs are taught by uplines to engage in too many activities that do not produce income. Attending meetings, listening to cds, reading books and other functions cost the IBO money. They do not result in more sales to customers. These non-income producing activities seem to be the majority of an IBO's activities, thus it's easy to see why so many IBOs fail. While system leaders claim that their system works, there is no reasonable evidence to support this claim. Just the fact that new diamonds and emeralds are so rare these days suggest that the system, with their severely limited success is producing less success these days.

All told, an IBO's chance of succeeding in earning long term sustainable income is so tiny that IBOs seriously would be better off buying lottery tickets instead of buying tools such as standing orders and function tickets. At least buying lottery tickets would not use up 10-15 hours per week of your time, and your chance of winning is about the same. The system doesn't work, it is why most IBOs fail.

Accountability Of Uplines?

 Part of what Joecool perceives as the problem with the Amway opportunity is the utter lack of accountability of some upline leaders. They may tell you to trust them, to submit to them and simply copy or duplicate what they have done, and they imply that you will get the same results. Possibly millions of downlines over the years have put in blood sweat and tears into the business only to suffer massive losses following the system. Upline will take credit for meager success but place the blame on the downline when success is not there. Upline will claim that they either did not try hard enough, were not teachable enough, or they didn't put in enough time and effort. Despite a shockingly low success rate of system IBOs, nobody seems to fault the system as being flawed. And nobody seems to question whether upline is at fault. I believe it's obvious that the system and the upline advice is severely flawed.

In my observations, I would say that many financial systems are similar. Whether it be BWW, N21, WWDB, real estate gurus or other systems, the success rate is extremely low. Many systems that advertise on television will have a disclaimer that a success testimony is a rare or unique experience. I believe it is similar to the systems in Amway. Dedication or continued spending on the system is not the problem. The problem is often the system itself. It can work for some exceptional people. These people were likely to succeed in other venues anyway. The problem is that is does not work for the majority of people. People who succeed in Amway likely succeed in spite of the system and not because of it.

The bigger problem, is that for many years, some uplines have lived high on the hog off of the dedicated tool purchases of their downline. All the while, questionable or bad advice was given to the faithful downline. Advice such as quitting a job to attend a function, skipping financial obligations such as the rent or electric bills to buy more tools. One upline even said your family can skip a meal because the standing order may contain the one thing you needed to hear to make your business grow. I have personally seen couples lose their homes and go bankrupt because they followed upline advice. Upline to "has their best interest at heart". Granted, the couple has some culpability in these decisions, but uplines who give this advice seem to get a pass.

Where is the accountability? Some of these uplines who give and gave bad advice, are still active today, and some are still giving bad advice to their downlines. Advice that profits upline and drains downline. Even with valid complaints, it appears that many uplines avoid any accountability. For some, perhaps there is poetic justice, such as diamonds having their homes foreclosed. But as many uplines have nobody to hold them accountable, do you really want to do business with these folks? Would you invest your retirement money with a broker who could not be held accountable? Would you have your car repaired by a shop whose mechanics could not be held accountable? I believe the answer is not to these questions, yet many people are asked to trust and follow the advice of an upline who is not held accountable for their advice.

The system is credited for the few successes that are visible, but the individual is held accountable for any shortcomings or failures. IBOs, I encourage you to hold your upline leaders accountable for the advice they give you. If they won't answer tough questions or take responsibility, then one should wonder why the upline should be given your trust.

Endless Motivation?

 I believe that Amway IBOs have approximately a 50% attrition rate for the first year alone. If you look at a 5-year window, I believe the attrition rate is something like 95%. So, what we're saying is that out of 100 IBOs, only 5 will be around in 5 years, or out of 1000 IBOs, 50 will remain after 5 years. This is extremely significant because if you are a business builder, you will need to replace half of your IBOs every single year. For this reason, I am very doubtful that there are IBOs who "built the business right and built it once", who no longer do Amway related work, but still collect significant residual income. I would guess that significant income could be defined as being enough to live a lifestyle in the top tax bracket (for the US) without having to report to a J-O-B.

Now I understand that some IBOs take it personally when I bring up subjects like this. It is because they have been deceived by some upline diamond or big pin who has sold them on a dream of financial prosperity for life if they will only work hard for 2-5 years. I once thought so too, but realized that there isn't a single diamond that I know of who built the business right and walked away to enjoy the beaches of the world while truckloads of money rolls in. Kinda makes you wonder why you see Crowns still working, and diamonds actually quitting or resigning. I have asked the question many times and it has never been answered. Can anyone name a few people who built their business right and built it once who is currently enjoying these lifelong residuals? Also, if that were a benefit, why doesn't Amway say so?

Instead, you have a constant and endless flow of motivation being sold to IBOs. This motivation comes in the form of cds, books, meetings, functions and other things like voicemail messages. It's sad that IBOs have to continue to pay through the nose for motivation and "teaching" about the Amway business when there are cheaper and more efficient means of communication. For example, why would you need an expensive voicemail when a facebook group account can disseminate messages to your group in seconds at no cost? It is because the uplines want to extract every possible sent from their downline. Because of the internet, I believe people are starting to figure things out and avoid the systems altogether. 

All the motivation IBOs truly need is to see a net profit at the end of the month. If IBOs actually earned an extra $200 a month, or $50 a month, or $600 a month as advertised, there would be no need for motivational speeches. The IBOs would simply look at the growth in their finances and they would keep going. The poor retention rate is easy to explain. IBOs are losing money because of the system expenses, and they lose their motivation to continue. If you are an IBO or a prospect, stop and think for a minute. If you are making an extra $200 a month with minimal effort, would you need functions and other materials to motivate you? Or would you have intrinsic motivation from the profit? All the motivation you will ever need is a net profit. Take that to the bank

Financial Freedom?

 Financial Freedom! That was one of the major battle cries when I was recruited for the Amway business. You gain control of time and money by creating residual or passive income. That is true financial freedom. You wake up at noon, no job, and just do whatever you please, whenever you please. I remember the speaker saying that broke/unemployed people also had freedom, but it was different because they were broke and could not afford to go golfing or do other activities that required money on a regular basis. But are Amway diamonds enjoying financial freedom or do they need to be at Amway conventions to make a living?

I am assuming that financial freedom is still the recruiting pitch for Amway prospects. Of course, upline leaders may toss in a disclaimer that you don't get rich quick as an IBO, but the pitch apparently still contains the financial freedom and residual income theme, based on my experiences with IBOs. IBOs still think they will be rich. Also, 2-5 years sounds like "get rich quick" to me. I heard as an IBO that Amway was simply a "shortcut" to financial freedom.

Financial freedom would be a great thing, don't get me wrong. Who wouldn't want to be 35 years old with enough cash to never have to work again and be able to do anything I wanted without financial restrictions? I mean I could spend some time imagining how fun that would be. It would also be fun to imagine what you would do with all the cash if you hit the Powerball lottery as well. But for the starry eyed IBOs, I simply have a few questions for you to ponder. A few realistic questions that you should be asking yourself. The answers to these questions will tell you a lot.

1. Who in your group or upline truly has achieved financial freedom? Have you seen their financials or simply a display of wealth such as pictures of mansions and fancy cars? Mansions and fancy cars could just be a massive pile of debt. Not too long ago, there apparently were diamonds who had their homes foreclosed, and a triple diamond who was in bankruptcy proceedings. Find out if anyone in your group/upline has actually achieved the success that they are using to recruit you with. Also, if they are financially free, why do they work at function after function? Traveling and speaking might not be a traditional job, but it is still work, nonetheless. If you need to be somewhere at a particular time for money, are you free?  If a diamond could "walk away" and collect barrels of cash, why hasn't a single diamond AFAIK ever chosen this option?

2. Even if you find someone who is retired and golfing every day because of Amway residual income, ask yourself what the likelihood is that you will be able to achieve the same results?  If diamonds are still working, what chance do you have of success if you are new or inexperienced in Amway and have few or no downline?  More than likely, your chance of winning the lottery will be greater than your chance of achieving a significant residual income from your Amway business. Also, I don't know of any Amway retirees who built their business once and walked away with any significant residual income from Amway. Do you?

Where is the financial freedom that Amway diamonds talk about? It's as elusive as the Loch Ness Monster. Everyone's heard about it and some claim to have seen it, but nobody has proven its existence.