Tuesday, July 15, 2014

The Amway Job

Amway IBOs like to call themselves "Independent Business Owners". But when you sit down and think about this for a minute, I believe that the Amway opportunity is more like a job. As an IBO, you are basically acting as a commissioned salesperson without any benefits coming from the Amway corporation. It's great for Amway as they only pay you for products that are moved. If you work very hard but sell little or nothing, Amway pays you little or nothing. Even if you work hard but move less than 100 PV, Amway pays you nothing.

The Amway corporation can sit back, and simply issue bonuses to downline IBOs. It is the IBOs themselves who recruit others, train others and move the products. Many IBOs are fiercely loyal to Amway products even when they could get the exact same product or a similar product, in many cases, at a fraction of the cost at a big box retailer, or even a local retailer. Take a look at Amway's flagship vitamin (double x). Do you really need to pay $75 or more for a one month supply of multi vitamins? That isn't t say Amway has no products of value, but overall, you can get much more product at less cost by shopping at a retail outlet. Amway must add the cost of IBO bonuses to their prices, therefore their prices are abound to be higher than competing products.

Uplines get you to see the world differently. That you do not equate an hourly wage with your business. But if IBOs did think of their earnings that way, they would easily see that they are working to lose money or to make pennies an hour. For the larger majority of IBOs, working minimum wage would be far more lucrative than spending countless hours and money chasing an Amway dream that is very unlikely to materialize. Uplines also get you to think you are "investing" in your business by purchasing tools, but in reality, you are just a customer of your upline's tool business. Some of you upline might me making most of their income selling cds and function tickets. Tool profits are higher than the profits on Amway so the math is simlpe.

You dedicate yourself to attending meetings, working the phones, meeting with uplines and downlines. You drive a lot of miles. But what many IBOs do not notice is that the priority in building a business should be a focus on getting more customers and expanding sales. But because Amway products can be hard to sell, most IBOs are focused on expanding their business by recruiting others. An endless chain of recruitment, which is why many people think of Amway as a pyramid scheme. Whether it's legal or not as is, is not my call.

But the bottom line in my view, is that Amway is more like a job than an independent business. Call it what you will, but in either case, business or job, it doesn't pay well (or at all) for most.

26 comments:

Anonymous said...

Not to mention, the big pins promote independence and choice, yet these very people will attempt to run your life in ways your boss wouldn't dream of. IBOs who "submit" to the "mentor" had best prepare for every aspect of their life to be scrutinized & put under a microscope. This includes how they spend evenings, weekends, vacations (or lack thereof), and their money. Every piece of information that is shared with a high level leader will be used in this manner.

Instead of signing the IBO agreement, new amway distributors should be read their Miranda rights!

Joecool said...

Thanks for the comment. You are dead on. I remember being told that to succeed, you need to "submit" to upline. They slowly take control of your life if you allow it. My sponsor who was a platinum said he would have dumped his wife if the upline diamond had told him. He told me to ditch my fiancee' because I could build the business faster. That's when reality set in for me and I quit. Life has been good ever since then.

Anonymous said...

Stop talking bad about Amway!!! A pyramid scheme is your job~Owner, President, Vise President, Manager, Employees AKA Modern Slaves. I don't know what Amway you were in but all the diamonds I know are traveling and living the life and don't have to work for anyone else. I don't care if it takes me 10 years to become a diamond than work for 49 years when I'm 67 to retire.

Joecool said...

If your diamonds are traveling and living the life, it's because they are making bank from the cds and function tickets you purchase. I would bet that many diamonds are broke and in debt showing off that diamond lifestyle.

Anonymous said...

You forgot the books. Since I started Amway I purchased books, CDs, and tickets. It's called the " learning process". Example when you want to go to college you have to purchase books and pay for college. Nothing in life is free. Guess what by purchasing all the above I'm making 2000 extra monthly besides my work check so it's all good. I started 1yr & 5 months ago in two months I'll be platinum 3000-4000 monthly. Goodbye job. I "learned" now that money works for me & not work for money. So you are telling me if I keep going I'm going to be broke and in debt "oh no". The diamonds & their families just came back from Brazil I'm sorry but they are broke & debt "Lol". They have a nice way of showing it. The difference between a diamond people and me is that they saw the business first. "Stop hating" because they have time & money only by joining Amway.

Joecool said...

Amway is not college. And you don't make any money buying cds, books and tickets. I call BS on your story. Nobody has more time and money "only by joining Amway".

Anonymous said...

I never said Amway is a college. I said as an example when you want to learn about something you have to pay for stuff to "LEARN". LOL why would you say my comment is BS stop hating. Plus I guess I have to be specific. Amway gives you the opportunity to buy their products we use in daily basis, and recommend people to do the same do you see the logic. My 13yr old did, Its that easy that's how you get a check. Again you buy books, CDs, and tickets to "LEARN". Remember this you have to invest on your business to grow. I'm glad I did I'm almost platinum. That's how all businesses grow you think money grows out their @**. I'm sorry if you quit it does not work for quitters.

Joecool said...

Yes, you used college as an example. It's a bad example. Amway is nothing like college. If I read an English book I learn about English. If I read some book recommended by upline, I don't learn how to sell Amway or gain recruits. If the cds and functions work, why are there hardly any new diamonds in the US these days? I was almost platinum and did everything I was told but I didn't make any money. It all went into the tools.

Your story doesn't add up.

Anonymous said...

Exactly you said it, when you want to learn about something you first learn. Who said that by reading you can sell Amway. Amway is not selling you can if you want more $. Amway is about joining, buying products you use to take a shower or brush your teeth, & recommend to people who do the same. All it is to change store buy from where they are going to pay you. Books, CDs, & events teach you how to be better with people, talk to people & ect. By the I'm going to a convention this Oct & guess what 5 new diamonds. If I were you stop thinking of how many diamonds you know & start thinking of other ways to make $ than only a JOB. LOL by the way you are right Amway is not like college bcuz college teaches you how to work for $ & Amway teaches you how $ works for you. I learned this from a book you first LEARN & then remove the "L" EARN $$$. Why would I defend amway if it was not true? Your story does not add up almost platinum and no $ all will go on tools. How much was a CD $100 each? My comments is not a story is reality. Here is something I learned by reading "If you focus on results, you will never change, If you focus on change, you will get results. Amway all the way!!!

Joecool said...

Amway is not a buyer's club and should not be promoted as such. Amway says so. The reason is because if you're just buying our own stuff and not selling, you can be running an illegal pyramid.

What 5 new diamonds? I bet they're not from WWDB.

Mt story is on this blog. Our upline expected us to buy standing order and an extra 7-9 tapes/cds each week.

If you focus on changing what? Most people lost money on Amway in the past and nothing has changed.

Seriously, have you made any money (net)? And how much are you spending on the system each month? What about your downline? I'm honestly interested in knowing.

Anonymous said...

I have 3 lines open in my organization one of 50 the 2nd of 20 & the 3rd of 5 which is 75 people total consuming 100 pts or more. Im 25% right now if my organization keeps consuming 100 pts for 6 months I become platinum which I have 2 more months ��. This is what I spend a month on tools we have a meeting every week $5 (4 wks in a month=20), 10cds & a book for $50 each month & seminar each month $25 lets say $100 a month. Let me explain to you about the change sometimes we have to change our habits and how we spend our time. Remember this... time us like $ either you invested or wasted. So I hope this answers your questions. Yes 5 new diamonds this Oct in Kansas's city. Oh and I make right now $1,500 monthly ��.

Joecool said...

Thanks for the explanation. Based on what you are telling me, the amount you spend on tools is just about equal to the amount of bonus your group generates. That means you might be making a small profit but nearly all of your group is operating at a loss.

Nobody says you can't make money in Amway. Obviously some can and do make good money but they do so with their downlines losing money. For that reason, Amway sucks.

Anonymous said...

Haven't you ever heard that everything good starts from the bottom. Amway business is like a plant you need seeds in order to grow guess what just like downlines you need water and sun your tools. Everyone who starts Amway starts as a downline 3%, I did...and in 2 month's ill be making 3000-4000 monthly and bye bye job. Unless you know someone who started as a diamond and correct me. People like you actually make me more stronger and makes me want to become to the next level faster so thanks to all the negative people. Stop feeling sorry for the dowlines, soon they will become platinum just like me, you know why bcuz they believe in themselves and in me just like one day I believed in my upline. For Your info one of my downlines became platinum first them me so stop feeling bad for them. I'm not saying is easy bcuz you have to put time and work. Just like a JOB the only difference is that I'm retiring in 2 months not until I'm 67. I also had downlines that quit on me but guess what that did not made me quit it made me stronger now I have 75 people in my organization. Amway more than 50 yrs in business, its in 100 countries people becoming in higher levels but it sucks if you say so. Keep up the negativity I want to become saphire soon. lol

Joecool said...

1 out of 250 make platinum so no, you don't just start at 3% and work your way up. If you are saying you'll be making 3-4000 in a few months, that means you're not making that now.

Joecool said...

The attrition in Amway nearly assures that your group will fall apart unless you nearly spend full time hours recruiting new IBOs. And then you can never stop or your group will fall apart. There are many easier and more efficient ways to earn 3 - 4000 a month. Come back in a few month and report yout progress if you don
t mind.

Anonymous said...

50 in leg 1, 20 in leg 2, 5 in leg 1 all doing 100 pts. Let's assume that's true for a second (it's not bc no group has everyone doing even pv).

5000 leg = 4% of 11k bv = $440
2000 leg = 10% of 4500 bv = $450
500 leg = 19% of 1100 bv = $199
TOTAL - $1189/month

Dont lie I know how this works. You are eons away from $3-4k/month. You will get a platinum bonus 1 time. Have fun now though because the revolving door starts right about now.

Anonymous said...

$50 for 10 cds and a book? What's your monthly subscription that gets you reduced cd prices? Plus, how much do you spend on gas doing meetings? How many meetings are you doing weekly? Your upline doesn't have team meetings? You're painting a rosy picture but lying by omission is still lying.

Anonymous said...

My downline went platinum so don't feel sorry lol. As if doesn't have downline losing money!!! You can't even see the circular nature of your own logic. You don't defend that lower level ibos lose money but justify it by saying they can choose to be successful. How? By exacerbating the problem and getting others to lose money!! The more platinums you break, the more people you have who are losing money.

Every person who makes money in Amway requires 25-50 who are losing. Your greed (not ambition) has blinded you.

Anonymous said...

The only difference is they started first? Nice cliche now explain all the people who started before them and are still broke. Ibos are the most oversimplistic, misguided people I've ever seen.

Anonymous said...

Yes, they are both pyramids in structure. The main difference being that in a regular business everyone gets paid while in Amway 1-2 people per platinum business make money and 50 people go broke.

Good job.

Anonymous said...

Modern slaves? Wow, what an arrogant misguided statement. Dexter used to say, "tell me how a slave plantation is different than a bunch of people at a factory who all live in the same neighborhood?"

Oh, you mean other than working there is a choice and you get paid and you don't get beat with a whip?

Other than that, same I guess.

Anonymous said...

Tell me how many people you know who quit their job at platinum. There is a reason for that. Better check upline on those cardinal rules and nevers.

Anonymous said...

1. How long have you been in?

2. What's your highest pv level in a month?

3. What was your pv last month?

4. How many legs last month did at least 100 pv?

Anonymous said...

How did you start 2 years ago when in the above post you admit to being 18 years old? You say you'll be 67 in 49 years. Amway doesn't allow anyone under 18 to sponsor. You're a LIAR.

Anonymous said...

What will your projected volume outside of the 2 Platinum legs be and what do you expect to earn monthly at Sapphire?

Joecool said...

Monthly subscription is another $50 a month. But don't forget those major functions!