Get Rich Quick?

 One of the things my upline used to say was that Amway is not "get rich quick". I suppose they say this because most people would more likely think scam if they promoted it that way. But when you stop and think about it, 2-5 years, build it right and you have will-able, residual income for life while walking the beaches of the world? That's not get rich quick? Or is it more of a disclaimer so that the opportunity doesn't sound "too good to be true"? One thing is for sure, even if uplines tell you that it's not get rich quick, it's obvious that IBOs think they will eventually get rich, even if it's not "quick". Sadly, they are wrong.

What most IBOs don't figure out quickly enough, is that they are unlikely to even make a profit, let alone getting rich in Amway. How many of these people exist? Where are all of these retired Amway IBOs who built a business in 2-5 years and then walked away from their business and will be collecting a significant residual income for many years to come afterwards? I don't know of a single person who has done this and none of the Amway defenders and zealots I have encountered over the years have been unable to supply this information either. It's like some kind of myth or urban legend that people have actually retired from Amway on residual income. We also know that due to attrition, it is virtually impossible to maintain a profitable Amway business. People quit the business daily, thus even what looks like a solid business can be gone in a very short amount of time. I compare retired Amway diamonds with residual income walking the beaches is like legend of bigfoot/sasquatch. Everyone has heard about them, but nobody has ever produced tangible evidence that they exist.

I can acknowledge that Amway is a business opportunity and will definitely take some work to be able to achieve something. But thinking realistically, what business could you actually be able to walk away in 5 years and not work again? More than likely that business doesn't exist, whether it's Amway or not. Say you opened a conventional business. There wouldn't be many scenarios where you could walk away after a number of years. The business would still require work and maintenance. But for some reason, people are misled to believe that you can do this in Amway where there is a high attrition rate and where your business can only expand by person to person.

Sadly, many of the people who are attracted to the Amway opportunity are often young people looking to get more out of life. They are often ambitious but may lack a means to gain wealth, thus the appeal of the opportunity is there. Unfortunately, these nice young people are more likely to end up channeling their hard earned dollars into standing orders and functions which will almost guarantee that they end up with a net loss. The bottom line is that not only is Amway not get rich quick. The more likely scenario is that your involvement with Amway will very likely be not getting rich at all. A net loss is the most likely result. I challenge anyone to try and prove me wrong on this point.

Residual Income?

 Do the work once and reap the rewards for life. Lifelong willable passive/residual income. These are some of the things that attracted me to the Amway opportunity. That I could do the work, and have the option of sitting back, enjoying a fabulous lifestyle of riches and never have to work again. I could wake up at noon if I chose to, and/or I could stay out late hanging out with my "free" Amway buddies.

It sounds great on the surface, however, when you analyze an Amway diamond's income and look at things carefully, you can see where this lifestyle is just not possible. Even if a diamond earned $250,000 a year from Amway and the tools income, after considering taxes, business expenses and other necessities such as medical insurance and retirement savings, you don't have enough left to live what is often portrayed as a "diamond" lifestyle. Also, keep in mind that a lot of a diamond's income is received in the form of an annual bonus so a diamond's monthly income might be relatively small.

One could also wonder why there aren't any diamonds (that I know of) who have actually walked away from their businesses and continue to collect any significant income from Amway. With more than half of all IBOs not staying in business for a year and about 95% of the rest of the IBOs being gone several years later, it would be an insurmountable task to keep your income rolling in with that poor retention rate. As far as I know, an IBO also need to have a minimal amount of side volume in order to qualify for certain significant payments/bonuses. That is a lot of volume to move when IBOs are quitting the business daily, and these days, it seems as though there are fewer IBOs getting involved, at least in the US and Canada.

It is for that reason, I believe these crown ambassadors and higher level pins are still working. Once you stop, it is very likely that there is no tool income, and once your downline starts to suffer attrition, then you Amway income and bonuses will eventually dry up as well. I believe there is no true residual income in Amway. Sure, build a big business and walk away. You may continue to receive some income for a while, but eventually, it will disappear. It is like building a sandcastle on the beach. The bigger you build it, the longer it will last, but it is for certain that the tide will eventually wash the sand away, just as time and attrition will eat away your Amway business. If you are popular and charismatic enough to attract a large downline, once you leave, so will your downline.

As far as I am concerned, I believe the residual income claims from Amway is just a long running myth used to attract recruits. I don't know of anyone who built a large Amway business and then walked away, and is still collecting a significant income. Do you?

Joecool's Challenge?

 I often hear stories and testimonies about how some people (usually Amway newbies) have this incredible belief in Amway, their sponsors and their LOS, such as WWDB or Network 21. Being that many, possibly most IBOs are sponsored by a friend or family member, means that there is an inherent trust in the sponsor or upline. If that were not true, then we would likely see many more complaints about Amway and/or the uplines and lines of sponsorship.

But an important facet of being an IBO (as taught my upline "mentors") is to have a dream. Don't let "naysayers" steal your dream, is what many IBOs are told. But what is that dream?  Is a dream (a long-term attainable goal) or a wish such as winning the Powerball lottery? Many prospects and IBOs want to succeed. They are willing to work hard, and are very dedicated, I would say that these folks usually will end up failing, not for lack of effort, but for a flawed MLM/Amway system that cannot possibly reward more than a few. The famed 6-4-2, 6-4-3 or some other variation of the plan will illustrate that only 1 in 100 or so can be "platinum". And that's with nobody quitting. Factor in attrition and "do nothings" and it might be 1 in 200 who can reach platinum. Even if the whole world signed up for Amway, that fact doesn't change.

Do you really believe in Amway and your line of sponsorship such as WWDB or Network 21? If you truly believe in Amway and your mentors, I challenge you to do one of these things. If you can't or won't, then I question your level of commitment. I question your belief. I'm not here to steal your dream. I am just challenging you.

Take your 6-4-2 or 9-4-2 or 6-4-3 plan to a loan officer at a bank and show them the plan. (Hey, it will help you be CORE and show the plan)  Ask the loan officer for their opinion of the plan and see if you can get a business loan based on the Amway plan. If not that, try seeking the advice of a real millionaire (Someone who has a net worth of a million bucks) and see if they think the 6-4-2 or other Amway (version) plans can work and whether they think Amway is a good idea. Heck, try asking your church Pastor. My church Pastor said Amway had too many false hopes and promises to be considered a viable business option.

How strong is your belief in Amway? Strong enough to take my challenge? Or will you ignore this and go on fooling yourself?

Vertical Alignment?

 Check out this blog, written by a WWDB IBO named Shaun. Shaun seems like a nice guy and all, but I think his way of thinking may have been negatively affected by upline teaching. He is saying the superbowl isn't that important and that he will be spending time with family. And I agree! In the big picture of things, the superbowl is just a game. Sure, one of the biggest events of the year, but when it's said and done, it still is just a game. I mean if you had to choose between an important family matter and a game, there's not much choice.

See "Shaun's" post: http://expeditionoftruths.com/2011/02/06/super-bowl-what/

An excerpt: Sports are there for our enjoyment and there is nothing wrong with that, but when it comes between spending quality time with my wife or soon to be kid, that’s where I’ll draw a line. I think if people cared more about their family life instead of the damn football maybe there would be less divorce, maybe there would be less fighting, maybe less family pain? Who knows, I don’t have the answers but I can tell you it would be a start that’s for sure

The interesting aspect of this blog post you see, is that Shaun's upline leaders were the same ones I had as an IBO. We were told things like never miss a function, unless it was for a funeral - your funeral. Or we should attend ALL meetings and functions. All means all, what don't you understand about that? Some folks ended up missing or cancelling important family events to be able to attend Amway functions. IBOs skip church and important church events for Amway meetings.

I wonder what will happen if Shaun's anniverssary falls on the same weekend as a major function? What about a child's birthday? Or your's kid's hockey games? I have a strange feeling that it's perfectly okay to reschedule or miss something like that if it's for an Amway function or meeting. I wonder what Shaun will tell his upline or downline when they have family events conflicting with an Amway/WWDB function? If you truly value your family as he is saying, then you would miss the Amway WWDB function if there is a conflict with family matters. Not reschedule them. I have heard many IBOs justify missing church or cancelling or rescheduling family outings because of business meetings. Where's the vertical alignment then?

So what really matters? Your family or that next Amway/WWDB function?

Same Old Amway?

 A close friend of mine and former downline (when I was an IBO) told me that his daughter recently joined Amway and WWDB. Despite his informed warnings and objections, she joined anyway, and insists that things are different in Amway today. That gave me some food for thought. What is different between Amway of today and the Amway I was in? The products are basically the same, perhaps with some new packaging. The concepts are the same. Buy your own stuff and try to get others to do the same. And recruit like crazy.  That part of the business hasn't changed at all.

But what also hasn't changed is the same old Amway reputation that greatly hinders the ability to sell products and/or to recruit others and to show the plan. Seems as if people joining and quitting without doing much is still the same. There is still a strong emphasis on the consumption of tools and functions by the rank and file IBOs, and why not? The diamonds make nice profits from the sale of business support materials and unlike the Amway compensation plan, the rank and file IBOs get no compensation for the tools.  This is a no brainer for spline and the source of the reason for IBO failures, in most cases of IBOs who dedicate themselves to the "system".

It sure seems as if the same old - old diamonds are around. The Duncans, Puryear, Leslie Wolgamott (Divorced from Brad - WWDB saves marriages?). Harimoto, Tsuruda, Danzik. Where are the new diamonds?   There might be a new diamond here and there but I left Amway in the 1990s and I don't know of many new diamonds except one named Mandy Yamamoto.   (There might be a few others) It might also be significant to note that Amway revenues have declined significantly from 11.8 billion in 2013 to 8.6 billion in 2017, with further declines after that.   I believe Amway had a slight uptick in 2019 but then Covid 19 came and that couldn't have helped.  And that is while the US economy had been doing very well. Perhaps people are seeing Amway for what it is? A poor business opportunity where your chance of failure is nearly 100%. And it's not because of a lack of effort or motivation. The Amway system as run by the AMOs is just set up for failure.  

A quick look at the common 6-4-2 plan is 79 IBOs. One platinum and a whole bunch who aren't. And this plan doesn't factor in that many people join and quit without doing much of anything. Thus there can only mathematically be a small fraction of 1% who make anything with a whole bunch of wannabes who never make it. And that is what Amway is. The same old sorry ass Amway opportunity where the diamonds sell you false hopes and dreams while their dreams come true from your tools and function purchases.

Some Amway Observations?

 Observation #1: In general, IBOs are less successful in life than others. That is why they are more open to the business and why they can be convinced that there is a shortcut to retirement and perpetual wealth. When I was an IBO, I was not where I wanted to be financially, as I was younger and at the earlier stages of my career. I would not be open to “options” right now, however, many people looking for more in life or a shortcut to retirement may be more susceptible to looking at options. It's just that the Amway opportunity, in my opinion, ir a poor option.

Observation #2: The biggest zealots/supporters appear to have the smallest businesses. They talk the talk - but no evidence of walk the walk. Also, any discussion about their personal success with the business is limited and shrouded in secrecy or they will make vague references about their level of success. They will say that their incomes are not relevant to the discussion or will point out a copy of someone's check or show a picture of a diamond's mansion, but will never disclose real financials like a REAL business owner would.

Observation #3: The business has a bad reputation and cannot be marketed to the general public without some degree of deception. It’s why there are so many testimonials of people tricked into attending meetings (including myself). Being straight forward with information will likely get you a resounding “No thanks”.

Observation #4: It would appear that much upline teaching is not focused on actually running a profitable business, but dedication to the system. It’s why so many IBOs don’t seem to know what a profit loss statement is, and don’t bother keeping one themselves. It’s also why the content of many BSMs is to purchase more BSMs. At functions, they will tell you to attend more functions and buy more standing orders, and on standing orders, they will tell you to never quit and to attend more functions.

Observation #5: IBOs in general don’t seem to have planned out their retirement. They are convinced that the Amway opportunity will provide for them when they reach their retirement years. They put down people who are working jobs and investing for their futures. They feel that purchasing function tickets is their investment for retirement. While a fraction of 1% might make some significant money in Quixtar, the vast majority do not. The fact that the majority may not have put forth a Herculean effort is irrelevant in my opinion. The bottom line is that the vast majority will not make an income from this opportunity. To ignore this fact is burying your head in the sand.

Ignore Facts At Your Own Peril?

I can't be sure, but this article might illustrate why the FTC came down on Amway and WWG (WWDB) and LTD: 

One of the crazy things that our Amway upline taught the group was that the facts don't matter when you have a dream. There is evidence that this is still taught today and in particular, I have heard that from IBOs who claim to associate with WWDB. IBOs are taught to ignore facts because the facts make their Amway businesses look like a joke. Spend $300 a month on products to gain a $10 rebate when you could have bought the same or similar products at WalMart for a fraction of the cost. Then many IBOs spend another $200 or more so they can be taught to ignore facts or that this is somehow a great deal.

Any real business owner would never ignore facts. A real business owner makes business decisions based on facts. IBOs are being duped into making business decisions based on emotions and hype. The Amway opportunity already is already saturated with handicaps and challenges, particularly in the US and Canada, where the reputations and previous antics of fellow IBOs has so stained Amway's name that it appears to be negatively affecting sales and preventing any meaningful growth. Despite what Amway apologists claim, Amway revenues are shrinking (about 25% decline from 2013 to 2017) and will continue to do so unless improvements and corrections are made, in my opinion. It's also possible that it is too late to right the ship at this point.

It is also why many IBOs talk about how Amway saves marriages, or Amway made them nicer people. Uplines will teach this because it takes a business owner's focus away from their bottom line, the profit or loss. Or IBOs are taught that a loss just means they are investing in their business, despite being told upfront that there is little or no investment needed and that a profit can be turned quickly in Amway. These uplines have gone on for years with no accountability placed upon them by either Amway or their downlines. Any "incidents" are simply ignored or history revised by uplines.

There is one blog on the internet, where a WWDB IBO is writing about buying homes in cash, and Amway IBOs having a 2% divorce rate compared to more than 50% in the rest of the world, yet you have Amway defenders claiming this isn't being taught, when clearly it is. Cover it up all you want, the evidence is right there but these folks aren't interested in the facts. I urge great caution to people who are ignoring facts to pursue an Amway dream.