Tuesday, June 8, 2021

Motivation?

 It seems to me that the Amway business became a never ending series of meetings and rah rah speeches designed to motivate the rank and file IBOS.  I suppose that so much motivation is needed because the vast majority of IBOS are losing money chasing the Amway dream.  But a nice story told by the diamond can get a low ranked IBO to hang in there and attend a few more functions and listen to more audios.  Of course those actions benefit upline more than the IBO.   If IBOS were to just walk away, diamond income would be affected,


But what motivates business people?  How about net profits and having more money at the end of the month than when you started.  I know that would have excited my to be cash positive in Amway.  But because nearly all IBOS are losing money, upline must devise ways to trick people in signing up and then staying on board.  Let me illustrate this:

When being recruited, I was told about how Amway was low overhead and that profits could be made quickly in addition to saving money by using Amway products.  Then after you get in, you’re told that business owners commonly lose money fir a number of years until the business it built.  It becomes an eloquent game of bait and switch for the upline and downline.   Sell them on quick profits and savings and then tell them about being a real business owner with real expenses.  It works because the upline are taught to trust and believe in upline.

The claim is that upline has your best interest at heart.  But I guess one more lie told by upline escapes many rank and file IBOS once they put their hope and trust in the upline.  And it works because people want to believe that 2-5 years of hard work will lead to retirement and financial freedom.  Sadly it usually ends in business losses and additional debt.  All the motivation anyone really needs is more money at the end of the month.  

A Typical Experience?

 One thing that I tried to uncover as a new IBO in Amway was what a typical day in the life of an IBO entails.  Nobody could really answer me with a straight answer.  I got all kinds of roundabout answers and I was told that I needed to listen to standing orders and attend all meetings are functions.  That was how I was going to learn how to grow my business an become successful.  I used to think what the heck, why can't someone answer such a simple question?

Maybe nobody could answer it because the typical answer is that most IBOs do nothing and quit?   Or maybe most IBOs never attend a meeting, never sell a single product and never sponsor a single down line?

I recall being taught to prospect for downline.  How to use the curiosity approach and how to go about getting people interested in seeing the plan.   It sure seemed as if the emphasis of the Amway teaching was recruiting downline.   Isn't Amway a retail based business where selling products should be the key?   We weren't told not to sell products but it certainly wasn't a focus of the teaching.   Interesting that selling products were an afterthought.  Instead we were taught to self consume products, to a point where we qualified for a PV bonus based only on self consumption.  

For many people, the typical experience is to attend an endless string of meetings, staying up late to attend teaching sessions and "night owls" and learning which products we can use that were considered "high PV" such as nutrilite vitamins like double x and other products that were considered "core products".  The odd thing was that Amway almost seemed like a way of life rather than a actual business.  I used to wonder why there were no standing orders of people who made their success by selling a mountain of Amway products.  

In a way, the typical Amway experience, in my opinion, is that Amway is very much like a part time job where you pay Amway for the right to sell their products at your time and expense.  There's very few actual business principles that are taught and again, the main focus is to get more people into the Amway business, regardless of their (or yours) prospects of actually making a profit.


Sunday, June 6, 2021

Success Is Right Around The Corner?

 One thing taught my upline that actually hooked me for a while and what I suspect hooks many current IBOs is the notion that you should not quit because success is "right around the corner".  It makes it sound as if you could quit just before you could become successful.  But when you think about it logically, the Amway business is not like a slot machine where the next pull of the handle could literally make you rich.   Amway is a business and unless your business is constantly growing and sponsoring new people, then more than likely, success is not right around the corner and might never be around the corner.  

I believe this is just an upline ploy to keep IBOs and prospects who are on the fence about continued participation from quitting.   Right?  You make them feel as if there's a chance that you could quit shortly before you hear that one thing or experience that one function that will propel you to a diamond level business.   Doesn't it make you wonder what in the world is one thing that could so inspire you to suddenly sponsor people if you haven't been able to for a long time?

In my informed opinion, Amway takes a certain skill set which includes lying or telling half truths (lying) and misrepresenting how lucrative Amway is and how easy it is to run an Amway business and succeed.  The upline is typically sharp enough to say it is simple but not easy.  Simple meaning it's like spelling "cat" with a kid's building blocks as opposed to easy like stealing candy from a baby.   And apparently, this type of teaching is quite effective as I recall so many of my crossline IBOs who were dedicated to Amway and the systems for years despite attending all meetings and functions without any real success or actually sponsoring a downline.   Instead, upline creates superficial degrees of success such as saying that the most important person to get to the function is yourself.  

Upline is also clever enough to lift up and edify people who may have skipped their brother's wedding to attend an Amway function, or someone who rescheduled their kid's birthday party in order to attend a meeting.  I recall having missed out on many social events and activities in the name of building Amway but it really didn't help.  And ironically, Amway was promoted as a part time business but somehow, upline twisted that into Amway is #1 no matter what's going on in your life.   One saying was that you never miss a meeting or function unless it's to attend a funeral (your own funeral).

It's amazing how upline utilizes clever psychology to keep IBOs and prospects emotionally attached to Amway.  But if you view it objectively, you can actually see the forest from the trees.  

Wednesday, June 2, 2021

Who's The Man?

 If you're objective, you're likely to understand this post and if you've had too much Amway "kool aid", you might not get it.  If you're a prospect or on the fence about Amway, think long and hard about this post.   Your upline diamonds and other higher ups like to brag about their income and their allegedly lavish lifestyles but if ever asked to verify their claims you'll hear about how it's none of your business or you'll be shown a photo copy of a check or some other anecdotal. but not verifiable evidence of wealth.  Why do you suppose that it?  

Have you ever heard of the term owning a nice hat but no cattle?   It sort of means that you can look flashy but you don't have the goods.  The diamonds will show you flashy slideshows of vacations. most likely the ones that Amway pays for but not necessarily a bunch of other non Amway sponsored trips.  Or you might see pictures of jet skis, fancy cars, mansions and other kinds of bling.  If I posted picture of a mansion and a Porsche and other trappings like that and said I paid for them in cash, the Amway defenders would be calling me a liar (or worse).   But at the same time the diamonds do exactly that and not a single downline questions them or asks for verification of claims.  

But here's food for thought and it makes a ton of sense to me and probably to other reasonable people.  Joecool is comfortably retired, and I retired at the age of 55.  Prior to covid, I was traveling around the world having a great time.   But I don't brag about this to others and I don't try to profit from my claims of being young and retired and basically financially free.   I mention this here because I honestly believe that many diamonds cannot actually afford the "diamond lifestyle".   Let me explain;

Some years ago, Amway published the average income of a (non Q12) diamond) and it was about $150,000.   Since then, there have been no significant differences to the Amway compensation plan, yet I was hearing that diamonds make an average of 600k these days.  So I looked it up and that figure is for Q12 diamonds.  A Q12 diamond is one who qualifies as a diamond for all 12 months in the Amway fiscal year (unless it was changed recently), and a Q12 diamond is a rare exception and not the norm.  Therefore, I can only conclude that the rest of the diamonds likely earn around $150,000 a year, which I believe is still shown in "the plan".   Sure, there's some tool and function money which augments the income but can you live a life of absolute first class and luxury on $200k to $300k gross income?     I highly doubt it unless you you have other sources of income or resources to tap into.

Why do diamonds want you to think they are "the man"?  Because telling you that diamond allows you to live a middle class lifestyle (with a few luxuries) without a job isn't really sexy or likely to attract recruits.   Like it or not, that's what I believe is the truth.  


Sunday, May 30, 2021

Upline "Mentors"?

 I find it humorous that Amway IBOs refer to their diamonds as "mentors".  A mentor is someone who takes your personal well being and success as their personal mission to help you succeed.  I guess you could say that your diamond is your mentor but true mentors don't typically get paid for their advice and time spent.  When you think about it, a diamond is more like a paid consultant who gets paid with zero accountability.  The diamond cashes in even if you fail and go broke trying to build your Amway business.  

If you are considered a "serious" business owner, you are expected to purchase standing order, voicemail and to be in attendance at all meetings and functions.   And even if you do everything your diamond advises and still fail, you will be told you didn't do it just right or that you didn't try hard enough.  Amway IBOs who dedicate themselves to the system can spend hundreds or thousands of dollars a month on tools and functions.   In general, tools and functions are non income producing expenditures but your wise "mentors" expect you to spend most or all of your disposable income on these tools and functions regardless of whether you make a cent or not.  

Your diamond will make some excuse that you are investing in your business.  That's ironic because at the recruitment meetings, they'll tell you that Amway is low overhead and therefore, you should be able to profit very quickly.   That might be true if not for the endless supply or tools and functions that your diamond expects you to purchase, regardless of whether their advice is helping you to profit or not.  There is zero accountability on the diamond when faithful IBOs follow advice that only leads to net losses instead of profits.   The diamonds really must have an ability to have no conscience because there are countless stories of prospects and faithful IBOs going broke following upline diamond advice.

The sad sad thing is that if any asks the diamond to show evidence that they are as rich as they claim, they will be told it's none of your business or the subject will be changed without an answer being provided.  And that's because I strongly believe that diamonds (at least most diamonds) do not have the kind of income that they want you to believe they have.  They'll show you slideshows of Peter Island or other Amway paid trips and things but you'll rarely see a bunch of other trips or goodies that the diamond actually bought themselves with their excess income from Amway.  That's because it's all an illusion and a show they put on to entice prospects to join.  

There might be some uber rich diamonds but if there are. it's not because of the massive income from Amway.  It's very likely that the diamond augments their income from tools and functions or has other investments elsewhere.   Do the math and you'll easily see the truth.


Saturday, May 29, 2021

Living The Good Life?

 I recall as a rank and file IBO (as a newbie), I thought how awesome it would be to have financial freedom, do what you want, when you want, and cost is no object.   That's certainly what was implied about the diamond lifestyle.  No worries, retired at age 29 and nothing to do but to figure out where you want to play each day right?   At least that's the illusion the diamonds want you to see.   It gives you something to hope for and hope is what the diamonds sell via audios/cds, functions and meetings.

I remember when I was out with my upline a number of times, we drove past our diamond while we were out showing the plan.   The diamond was dressed in a suit and I recall asking my sponsor why the diamond didn't simply walk away from Amway to enjoy a quiet life of wealth.  The answer was that the diamond cared about his downline thus he spent many evenings helping his downline show the plan and build the business.  While that might have been true, I later realized that the diamond was out conducting his Amway business, just like I was.   Because he probably had to.  

If you belong to a group in Amway or if you were around a group for a few months, you probably noticed that people doing little or nothing and quitting or people dropping out after a few months of trying was quite common.  And with that being a simple fact in Amway, you can easily see that there is no life long residual income and walking away from Amway to enjoy a quiet life of luxury.  when the majority of IBOs do little or nothing and quitting, it takes tremendous effort to maintain a viable group that produces enough PV to keep the diamond in qualification.  Also, if people drop out, them they are not paying for voicemail, meetings, audios/cds and functions.  The drop outs must be quickly replaced in order for a diamond to maintain their income plus the income augmentation from the tools and functions. 

Another little thing that might go unnoticed in the Amway common 6-4-2 or 9-4-2 plan is that a large portion of a diamond's income is received in the form of an annual bonus and not a large monthly bonus check.   During my blogging career, now spanning close to 20 years, I had befriended a former emerald who said her annual bonus had to be budgeted for the year because the monthly income was quite small.  I believe that to be true of most diamonds, save for the old and long tenured diamonds with large groups.  

So at least to me, it appears that a diamond is very much like a working stiff who works 9-5.  But the diamond works odd hours and often the night shift because most people have day jobs and can't do business during the day.  You can argue that the "work" that a diamond does isn't as difficult as a 40 hour per week job, but you could also argue that having a regular consistent paycheck along with medical insurance and benefits can bring you some peace of mind.  I'm sure there are many diamonds living on the edge, especially if they try to keep up with the Joneses and portray the diamond lifestyle.


Friday, May 28, 2021

If Amway Is So Great?

 This is a question that IBOs need to honestly ask themselves and be objective in their answers, not emotional.   If Amway is so great?     Why are the results similar to a lottery (a few winners and masses of losers) if Amway is so great?   If the system worked the way the diamonds advertised, wouldn't there be a constant churn of new platinums, diamonds and higher ups?  Right?   People would constantly be progressing and there would be countless numbers of diamonds.   Some years back I sent a question a friend who worked at a hotel where the diamonds held a diamond club convention and the answer was that approximately 160 families were in attendance.  Why is the count so low?  I suppose that many diamonds many have had better things to do but if the vacation is [aid for by Amway and these folks are "free", why wouldn't they attend?   You know the answer.

Also, why are IBOs told to purchase an endless supply of training materials is the system?   I was told as an IBO that Amway is "simple".  Simple doesn't mean easy but at the same time, you don't need to be a rocket scientist to build Amway is what I'm told.   But the pitch is that you can't miss any meetings or functions (or your business will backslide 6 months) because you need to be accountable.  But I've seen IBOs attend all meeting and functions for months and years and never sponsor a single downline and never progress beyond their personal PV.  It's a sad situation.

Even my personal sponsor went 7500 PV and was considered a "gold" direct (at the time) but never got beyond that and eventually started backsliding once I left.   He was in the business a few years ago but I'm not sure of the status now.   But I can say that I retired comfortably a few years ago while my sponsor is still working.  I'm financially free.  While I don't own any aircraft, I travel a lot and occasionally, will splurge for first class.   If Amway is so great, where are all the young retirees?   Instead I see diamonds quitting and/or dying on the job.  

During covid 19, businesses that are ecommerce like Amazon went thru the roof.  But Amway doesn't appear to have done so well.  I wonder why?  Is it because Amway is more about recruiting downline that actually selling a decent product at a competitive price?   If Amway was what the diamonds advertise it as, Amway would have gone thru the roof like Amazon and some other online retailers.  But they did not.   So my question worth repeating is;  what's so great about Amway?