So many people get duped into thinking that they will somehow get extremely wealthy by becoming an Amway IBO. Many recruiters will tell stories about how they were once broke, but signed up, endured challenges and now they are diamonds enjoying untold wealth and luxuries. People get caught up in "dreams" and are often encouraged to ignore the facts. People running businesses should pay close attention to the facts because it tells you much about your business and your likelihood of success. But what are some facts about the Amway business that many people don't know about? I have outlined a few important ones for those who harbor dreams of going diamond.
1. The average diamond, according to Amway, earns about than $150,000 a year. Yes, some of this may be supplemented with money from the sale of tools, but after taxes and business expenses such as travel to and from the many functions that a diamond attends would leave a diamond living an ordinary middle class lifestyle, not one with mansions and sports cars as portrayed in many functions or meetings. Yes, a Q12 diamond would have more earnings, but a Q12 diamond is the exception, and not the rule. (Amway.com says a Q12 diamond makes over 500K but a Q12 Diamond is the rare exception)
2. Most IBOs are NEVER able to sponsor a single downline. Pretty hard to develop six (6) downline platinums when most people cannot sponsor anyone. Even finding people willing to just see the plan can be time consuming and challenging.
3. Most Amway products are purchased by IBOs and not sold to customers. Name a real business that sustains itself by having it's own workers or salesforce purchase most of the goods. MLM is probably the only business where this occurs. Understandably, it explains why 99%+ of "system" Amwayers make nothing or lose money.
4. For most IBOs, the cost of functions, books, voicemail, and standing orders and other support materials represent the reason why most business building IBOs lose money and it also represents a significant profit for some of the diamonds who sell the materials. BTW, who needs voicemail these days?
5. Not working hard is not necessarily the reason for someone's failure. But conversely, working hard does not equate success in Amway. I would guess that out of those who work hard, it is still a fraction of 1% of hard working IBOs that even attain a significant profit. Doing nothing won't get you anywhere, but in this business, working hard often gets you nowhere as well. It is my informed opinion that the cost of the support materials is the direct reason why so many IBOs lose money, even out of those who work very hard.
I could go on and on, but these are a handful of facts that IBOs and information seekers should be aware of. I welcome differing thoughts and opinions.
6 comments:
The driving force in Amway (and all the LOS subsystems) is the Platinums.
They do a great deal of the organizational work, as well as the policing of down-line IBOs to make sure they are following Amway's rules. The Platinums don't necessarily make a lot of money, as Joe Cool and others have pointed out. But they are caught in Amway's web, and can't get out without confessing that they have made a massive mistake that has cost them years of wasted effort. So naturally they are the ones with real ideological commitment to the Amway "Plan," and they are the ones who drive down-line to WORK, WORK, and WORK. Amway and its subsystems depend on Platinums exactly as the military depends on a cadre of committed NCO "lifers." A tough sergeant keeps his platoon in line through discipline and fear -- a Platinum keeps the down-line obedient via all sorts of stupid rules and regulations and meetings.
It's clear from Amway's own admission that nearly 99% of IBOs will make no money in the business. So how do you keep people in it when they are losing their shirts? Simple -- you have the Platinums. They are the preachers, the rhetoric-spouters, the energizers, the ass-kickers. They are the one who keep the stupid "dream" alive in the hearts of dumb Ambots who aren't going to make a penny.
Yes, the platinums are the key to a diamond's success. They get minimal amount of cash, they get a "discount" on the cds and no other cut of the tool money. But they show the most plans, teach the downline and recruit to keep the group viable.
At 4000, I was close and could see what it was going to be like as a platinum. I know one thing that was needed was for me to fly to show plans to long distance groups if needed. And it's also for this reason that platinums can break even or even lose money.
But it's a level where quitting is near impossible because of the time and money invested.
A person who has been a Platinum for a long time is like an older drill sergeant in the Army. His best years are gone, he is stuck in a rigid military organization, and he isn't going to be promoted to a higher rank. His position is fixed in cement.
Amway will keep the Platinum on because he arranges functions, gives "the Plan" regularly, keeps down-line obedient, and does much of the incidental dirty work that Amway requires. And of course he brings in money for the higher-ups. Amway uses him -- just like a boss at a J.O.B. uses his employees.
It's amazing that people in Amway are too stupid to see this.
I recently left Amway after little success but my upline has been trying to lure me back as he will be Platinum soon. He keeps telling me that I will make Platinum sooner than he did if I just stay in.I have to admit that he has been very nice and very caring. I know that what I do can help him and vice versa. As we go on, you feel connected so that you don't want to let your upline down.
Platinum is the level where you're at the "break even" point in Amway. Imagine that, you're approximately in the top one fourth of one percent and you break even. Doesn't that paint a picture of Amway and the Amway business?
To Anonymous at 11:43 AM:
Your up-line may be nice, but he's still lying to you.
"Feeling connected" in Amway is being essentially enslaved without realizing the fact. Your up-line wants you back because without your money he probably can't make Platinum.
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