A funny story told by my Amway uplines, and apparently still told today is the story of the crabs in a pot. That crabs will prevent other crabs who want to escape the pot by pulling them back in or pulling them down. The story goes that people in the working world also do this, by stepping on others to get ahead. I've never actually seen for myself if crabs actually pull each other down if one of them tries to escape a pot, but I suppose it might be true. I do know of some people who will do anything to get ahead and they can be ruthless. Some of the most ruthless are Amway diamonds, who might tell you to spend your last dollar on a cd/audio or to attend a function because your business could benefit. Or to have you family skip a meal because that Amway training material is so vital.
But the people who are willing to sacrifice others to get ahead do not appear to the the majority, but the exception. Many people are willing to work a career job and maybe over time, they move up the corporate ladder. Many people do this without having to "pull people down" in order to succeed. I believe this crab in the pot is just another ploy by uplines to get IBOs to think that their friends and family, by warning them of the potential perils of Amway, are just crabs pulling you back into the pot. It simply isn't true. Think about it, why are there so many negative stories and experiences floating around out there about Amway and the tool systems? Why is there a lack of new success continuously emerging fro Amway? Why do diamonds quit or walk away from the business under unfriendly terms? Where are all the people who retired and walk the beaches of the world? Why do crown ambassadors keep working, seemingly until they pass away?
Maybe the success you think there is in Amway simply doesn't exist. Let me repeat. Maybe the success you were led to believe exists in Amway, just isn't there. Amway's been around more than 50 years. Why can't anyone name a dozen or so people who built their Amway business once, and built it right, then walked away, collecting significant residual income since? I wonder why Amway doesn't advertise this as a benefit of being an IBO?
Speaking of crabs in a pot. Ever wonder why all these virtuous diamonds break away from their beloved mentors to form their own groups? Ever wonder why there are countless issues of diamonds suing diamonds over tool income? If the money coming in is uncountable, why can't these diamonds come to a peaceful agreement? Why use lawyers which many diamonds talk about as evil because lawsuits are often about getting something for nothing.
Maybe it is the diamonds themselves who are crabs in the pot, all pulling each other down whenever one of them is on the verge of success?
Thursday, February 28, 2019
Wednesday, February 27, 2019
The Reality Of Amway?
One of the things that keeps some Amway IBOs going is the "harsh reality". What I mean by that is for some IBOs, once you have been in Amway for a while, it can be hard to quit. You were possibly recruited with dreams of lifelong residual income and walking on all of the exotic beaches of the world. Retiring young and spending that time with your wife and family, and Amway friends. To quit means an IBO would have to face the reality that these dreams will not come true, at least not with the Amway business. The fact is that the Amway opportunity probably would not have delivered those dreams anyway. Even a diamond more than likely cannot afford those dreams. In fact I would estimate that most diamonds, if they flaunt some excessive lifestyle, are near broke or in heavy debt as a diamond income cannot sustain a jet set lifestyle, save for a founders double diamond or something similar. I believe the prominent WWDB triple diamond bankruptcy shed a lot of light into the finances of an upper level pin and it wasn't as impressive as I would have thought.
The triple diamond who filed for chapter 7 bankruptcy made about half a million dollars annually from Amway. That's a great income and more than most people earn, but seriously, a half million dollars income is not going to allow you ti buy mansions paid for in cash, or a fleet of sports cars. After paying taxes and business expenses, I'm not even sure someone with that kind of income even lives a worry free life of leisure. And we're talking about a triple diamond, not your average run of the mill regular diamonds who I would safely assume, earns much less than a triple diamond.
But what really is the harsh reality? It's working hard only to drift between 100 and 500 PV. It's finally sponsoring a new IBO only to have a downline quit. It's talking to people about Amway and getting laughed at or getting rejected. It's your upline or sponsor pushing you to do more. Possibly your upline is one who questions your manhood if you aren't working hard enough. It's your upline or sponsor reminding you that a winner doesn't miss functions, especially the major ones. It's staying up late for team meetings or night owls when you need a good night's rest to do your job the next day. It's driving the miles to show a plan, only to have your prospect not show up. It's having to be deceptive about what you are doing. It's skipping functions with family and friends so you can be core to the business.
As IBOs, do you see any of this? I saw some of this during my involvement. While I have not been an IBO in some years now, I still see many testimonies and comments by more current and even some active IBOs to indicate that a lot of this still goes on. While Amway defenders will deny it, I see no reason why any of this would have changed over the years since Amway has made no significant changes to stop abusive uplines. If Amway did make any changes, they are not immediately apparent and the continuous string of comments and testimonies do not confirm that any clean up has been done.
For active IBOs or prospects, these are the harsh realities that may be attached with the Amway opportunity. Much of it is because of motivational groups such as WWDB, but if you are seeing these traits in your group, ask the tough questions. If you happen to decide that the Amway opportunity is not for you, take heart! There are other ways to achieve your financial goals and dreams and there are more efficient ways out there. Sometimes, quitting something that isn't working is a wise business decisions and sometimes you can lose more by not quitting. Good luck in whatever you decide.
The triple diamond who filed for chapter 7 bankruptcy made about half a million dollars annually from Amway. That's a great income and more than most people earn, but seriously, a half million dollars income is not going to allow you ti buy mansions paid for in cash, or a fleet of sports cars. After paying taxes and business expenses, I'm not even sure someone with that kind of income even lives a worry free life of leisure. And we're talking about a triple diamond, not your average run of the mill regular diamonds who I would safely assume, earns much less than a triple diamond.
But what really is the harsh reality? It's working hard only to drift between 100 and 500 PV. It's finally sponsoring a new IBO only to have a downline quit. It's talking to people about Amway and getting laughed at or getting rejected. It's your upline or sponsor pushing you to do more. Possibly your upline is one who questions your manhood if you aren't working hard enough. It's your upline or sponsor reminding you that a winner doesn't miss functions, especially the major ones. It's staying up late for team meetings or night owls when you need a good night's rest to do your job the next day. It's driving the miles to show a plan, only to have your prospect not show up. It's having to be deceptive about what you are doing. It's skipping functions with family and friends so you can be core to the business.
As IBOs, do you see any of this? I saw some of this during my involvement. While I have not been an IBO in some years now, I still see many testimonies and comments by more current and even some active IBOs to indicate that a lot of this still goes on. While Amway defenders will deny it, I see no reason why any of this would have changed over the years since Amway has made no significant changes to stop abusive uplines. If Amway did make any changes, they are not immediately apparent and the continuous string of comments and testimonies do not confirm that any clean up has been done.
For active IBOs or prospects, these are the harsh realities that may be attached with the Amway opportunity. Much of it is because of motivational groups such as WWDB, but if you are seeing these traits in your group, ask the tough questions. If you happen to decide that the Amway opportunity is not for you, take heart! There are other ways to achieve your financial goals and dreams and there are more efficient ways out there. Sometimes, quitting something that isn't working is a wise business decisions and sometimes you can lose more by not quitting. Good luck in whatever you decide.
Tuesday, February 26, 2019
Amway And Taxes?
I always get a kick when IBOs talk about how they get bigger tax refunds because of their Amway business. To me, a bigger tax refund is most likely the result of suffering losses in Amway. If you did not have a job and taxes withheld from your paycheck, and your only revenue was from Amway, you could only break even at best with no tax return, unless Amway corporation was withholding taxes for you. Most IBOs have jobs and their bigger tax refund is very likely because they reduced their tax liability by losing money in their Amway business.
It might be a good idea for IBOs to consult with a tax professional because they are likely assuming that anything associated with their Amway business is a legitimate tax deduction. In the past, many IBOs who were audited by the IRS had tax deductions disallowed because the deductions claimed by the IBOs were not seen as legitimate deductions by the IRS. Look at functions for example. They can be seen as a social event rather than a business convention. Did your business grow as a result of that function? Did your sales increase? For many IBOs, the answer is "no" and that could mean that your deduction is not a legitimate one. When you hear a standing order about some guy who was down and out but never quit and later went diamond. A nice and touching story, but did your sales increase as a result of that cd? If not, it may not be a legitimate deduction. The IRS is not in the business of handing out deductions because the expense was related to your Amway business. More than likely, you need to show that your expenses somehow helped to increase your business. As I said, it is probably wise for IBOs to seek tax advice from a tax professional rather than blindly following your upline's advice.
But IBOs, please do not try to fool everyone into thinking that you have a profitable Amway business if you are reconciling your taxes at the end of the year and then getting a larger tax refund as a result of your Amway business profits. You are more than likely gaining a bigger tax refund because your lost money running your Amway business and the business losses reduces your tax liability from the income you earned from your job. If you were making some money in Amway, after subtracting expenses, you would have to pay more taxes, at least in the US. The more you make, the more Uncle Sam takes. All too often I have seen IBOs brag about their profits from their Amway business and in the same breath, they talk about getting a bigger tax refund. It doesn't add up.
It might be a good idea for IBOs to consult with a tax professional because they are likely assuming that anything associated with their Amway business is a legitimate tax deduction. In the past, many IBOs who were audited by the IRS had tax deductions disallowed because the deductions claimed by the IBOs were not seen as legitimate deductions by the IRS. Look at functions for example. They can be seen as a social event rather than a business convention. Did your business grow as a result of that function? Did your sales increase? For many IBOs, the answer is "no" and that could mean that your deduction is not a legitimate one. When you hear a standing order about some guy who was down and out but never quit and later went diamond. A nice and touching story, but did your sales increase as a result of that cd? If not, it may not be a legitimate deduction. The IRS is not in the business of handing out deductions because the expense was related to your Amway business. More than likely, you need to show that your expenses somehow helped to increase your business. As I said, it is probably wise for IBOs to seek tax advice from a tax professional rather than blindly following your upline's advice.
But IBOs, please do not try to fool everyone into thinking that you have a profitable Amway business if you are reconciling your taxes at the end of the year and then getting a larger tax refund as a result of your Amway business profits. You are more than likely gaining a bigger tax refund because your lost money running your Amway business and the business losses reduces your tax liability from the income you earned from your job. If you were making some money in Amway, after subtracting expenses, you would have to pay more taxes, at least in the US. The more you make, the more Uncle Sam takes. All too often I have seen IBOs brag about their profits from their Amway business and in the same breath, they talk about getting a bigger tax refund. It doesn't add up.
Monday, February 25, 2019
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.
I am assuming that this is still the case for many IBOs. 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.
But hey, 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? 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 power ball 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 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. 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.
2. Even if you find someone who is retired and golfing everyday 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 experienced 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?
I am assuming that this is still the case for many IBOs. 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.
But hey, 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? 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 power ball 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 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. 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.
2. Even if you find someone who is retired and golfing everyday 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 experienced 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?
Friday, February 22, 2019
The System?
Based on my experience in Amway, my blogging experience, and observation of other people who give financial advice such as real estate gurus who teach you to buy property with no money down, or others such as Robert Kiyosaki for that matter, commonly show testimonials of successful people. In the end, this is as effective as showing all the people who won the lottery. Focus attention on the people who won but ignore the millions of people who failed trying to accomplish the same thing. Obviously they do not show you the vast majority of people who try their systems and fail.
It is my informed opinion that whether it is Amway, WWDB, BWW, N21, real estate or the cash flow business, the vast majority of people who try these systems do not make any kind of significant income. Sure, some do, and those are shown as the possibilities. But if you watch infomercials for these "systems", you will see in small print on the bottom of the screen, "unique experience", your results may vary. I believe that a similar message is used at the end of Amway diamond recordings and audios as well. The diamonds basically present only the best case scenario to prospects while ignoring the most likely results.
These systems in general do not work for various reasons. Many people simply do not have the acumen to work the system. Or the system has too many variables for the system to work, or the system calls for things beyond your control. For example, success in Amway generally requires you to sponsor others, something that is beyond the control of most people. Add in the lazy and people who are hoping for a quick score and it is understandable that most will fail. But these systems are often set up where the majority simply cannot all succeed. Nowhere is that more true than the Amway business where the pyramidal compensation plan nearly guarantees failure for the vast majority of lower level IBOs. The 6-4-2 plan shows 79 IBOs with 1 platinum. Thus, even with everyone in the groups earning a bonus, (practically impossible), you have 1 in 79 achieving platinum, which is the level where you allegedly begin to break even or make a small profit, depending on your level of commitment to the "system".
So what can someone do? Well, it may no be as sexy or attractive but a part time job and investing and saving might be something to think about. Even a part time business where you focus on selling products for a profit might work. It just seems prudent to avoid these "systems" as the primary beneficiary of these "systems" are the ones who directly profit from them - the upline diamonds.
It is my informed opinion that whether it is Amway, WWDB, BWW, N21, real estate or the cash flow business, the vast majority of people who try these systems do not make any kind of significant income. Sure, some do, and those are shown as the possibilities. But if you watch infomercials for these "systems", you will see in small print on the bottom of the screen, "unique experience", your results may vary. I believe that a similar message is used at the end of Amway diamond recordings and audios as well. The diamonds basically present only the best case scenario to prospects while ignoring the most likely results.
These systems in general do not work for various reasons. Many people simply do not have the acumen to work the system. Or the system has too many variables for the system to work, or the system calls for things beyond your control. For example, success in Amway generally requires you to sponsor others, something that is beyond the control of most people. Add in the lazy and people who are hoping for a quick score and it is understandable that most will fail. But these systems are often set up where the majority simply cannot all succeed. Nowhere is that more true than the Amway business where the pyramidal compensation plan nearly guarantees failure for the vast majority of lower level IBOs. The 6-4-2 plan shows 79 IBOs with 1 platinum. Thus, even with everyone in the groups earning a bonus, (practically impossible), you have 1 in 79 achieving platinum, which is the level where you allegedly begin to break even or make a small profit, depending on your level of commitment to the "system".
So what can someone do? Well, it may no be as sexy or attractive but a part time job and investing and saving might be something to think about. Even a part time business where you focus on selling products for a profit might work. It just seems prudent to avoid these "systems" as the primary beneficiary of these "systems" are the ones who directly profit from them - the upline diamonds.
Wednesday, February 20, 2019
The "Business" Mentality?
One of the things many Amway IBOs "think" they possess, but in reality they are far from it, is "Business Mentality". It is not necessarily the fault of the IBOs. Many are sponsored into Amway by trusted friends and lacking business experience, they will "submit" to upline as they are advised and will try to learn about the Amway business. The problem is that many upline leaders teach self serving business practices such as hard core dedication to their tools system, from which they often handsomely profit. And these leader profit from your sysem purchases no matter how much money you make or lose. Let's examine some of the questionable practices.
"Buy from yourself". If you have a business owner mentality, you only buy from yourself if it's beneficial to your business. Many IBOs talk about ridiculous things like a McDonald's owner would never eat at Burger King. That's baloney. Just because I own a McDonald's doesn't mean I am eating Big Macs the rest of my life. You cannot spend yourself to prosperity. If I sold pens for $1.00 and my cost was .50, and my competitor had a special on the same pens at 3 for $1.00, I'm buying them from my competition. Also, buying from yourself makes you a customer, not a business owner. This is a big misconception made my IBOs.
"Ignore facts if you have a dream". This is probably the biggest heap of baloney taught by some upline. I have seen this spouted in particular by IBOs downline from WWDB and BWW leaders. A business owner studies the facts, not ignores them. Any REAL business owner wants to know how much he is bringing in and how much is going out. That's how you detect the heartbeat of your business. A site visitor, on this site, recently posted a profit/loss statement from her real business. Naturally, IBOs were at a loss to discuss it because it was foreign material to them.
"Submit to upline" Another load of hogwash. Why should someone submit to upline simply because they "sponsored me" or whatever? A real business owner would think independently and make business decisions based on facts and numbers, not on the advice of someone upline who hasn't taken the time to assess each IBO on a personal level to be able to give advice on an IBO's "Independent Business", or worse, advice on their personal lives". What credentials does your sponsor have to be able to give you business or life advice? What if I'm 50 years old and got sponsored by my son? He's suddenly in a position to give advice to you father?
"Dedication to the system". Silly advice as well. What dedication does the system have for an IBO? If an IBO succeeds (which is very rare), the system takes credit, but for the more than 99% of people who never make a significant income, it is their own fault if they don't make it. Amway apologists will defend this by saying that many may not have signed up wanting a significant income. While that may be partially true, tell me where people show "plans" designed for the guy who wants an extra $100 a month? The plans shown are always (AFAIK) to go platinum or diamond.
IBOs and information seekers, does any of this sound familiar? Is this a part of your experience? If so, I encourage you to ask questions here and get more information before proceeding with any more "business" activity.
"Buy from yourself". If you have a business owner mentality, you only buy from yourself if it's beneficial to your business. Many IBOs talk about ridiculous things like a McDonald's owner would never eat at Burger King. That's baloney. Just because I own a McDonald's doesn't mean I am eating Big Macs the rest of my life. You cannot spend yourself to prosperity. If I sold pens for $1.00 and my cost was .50, and my competitor had a special on the same pens at 3 for $1.00, I'm buying them from my competition. Also, buying from yourself makes you a customer, not a business owner. This is a big misconception made my IBOs.
"Ignore facts if you have a dream". This is probably the biggest heap of baloney taught by some upline. I have seen this spouted in particular by IBOs downline from WWDB and BWW leaders. A business owner studies the facts, not ignores them. Any REAL business owner wants to know how much he is bringing in and how much is going out. That's how you detect the heartbeat of your business. A site visitor, on this site, recently posted a profit/loss statement from her real business. Naturally, IBOs were at a loss to discuss it because it was foreign material to them.
"Submit to upline" Another load of hogwash. Why should someone submit to upline simply because they "sponsored me" or whatever? A real business owner would think independently and make business decisions based on facts and numbers, not on the advice of someone upline who hasn't taken the time to assess each IBO on a personal level to be able to give advice on an IBO's "Independent Business", or worse, advice on their personal lives". What credentials does your sponsor have to be able to give you business or life advice? What if I'm 50 years old and got sponsored by my son? He's suddenly in a position to give advice to you father?
"Dedication to the system". Silly advice as well. What dedication does the system have for an IBO? If an IBO succeeds (which is very rare), the system takes credit, but for the more than 99% of people who never make a significant income, it is their own fault if they don't make it. Amway apologists will defend this by saying that many may not have signed up wanting a significant income. While that may be partially true, tell me where people show "plans" designed for the guy who wants an extra $100 a month? The plans shown are always (AFAIK) to go platinum or diamond.
IBOs and information seekers, does any of this sound familiar? Is this a part of your experience? If so, I encourage you to ask questions here and get more information before proceeding with any more "business" activity.
Tuesday, February 19, 2019
How "Rich" Is Your Diamond?
One of the things so many Amway IBOs and others do is assume that their upline diamond is rich beyond belief. At meetings, the speaker would be introduced as being in the top one tenth of one percent income bracket. While it may or may not be true, nobody ever questioned it, they just assumed it was true because people saw pictures of mansions and copies of 5 year old bonus checks. Even I never went and studied how the diamond bonuses worked. Most people just assumed that the money would be huge at the diamond level. But looking back, I can recall some things that make me believe that the diamonds were cutting corners and needed their platinums working free at meetings and functions in order to maximize profits.
The diamonds in our group often did not stay in hotels when visiting for meetings, but in the home of another diamond or some lucky downline platinum. The diamonds rarely rented a car. Instead, a downline platinum or higher would be lucky enough to be the unpaid and uncompensated chauffeur for the weekend. The platinums basically were the doormen and ushers at the functions and in many cases, probably didn't even get to hear the speakers since they were busy working. Their reward for their troubles was "spending time" with their uplines.
The downline are like unpaid volunteers. For example, ever see diamonds actually renting a moving van and hiring movers? I believe most of them had downline groupies who did the work for free, just for the honor of being near their upline. Just my opinion, but if these folks had mountains of cash, why wouldn't you hire movers so your downline didn't have to use up a valuable Saturday or Sunday to do that work? That's like owning a chain of stores but having all of their stores closed. No products sold, no new recruits prospected. If Ray Kroc moved his residence, would all the nearby McDonald's owners close their stores to help him move?
Another things IBOs and prospects should note is that pictures of mansions, sports cars and jet skis doesn't mean someone is wealthy. Someone could have all those things on credit or rented after all. And many people who truly are wealthy, do not show off their wealth. It is possible that many diamonds live mundane middle class lives on their income but need to portray wealth to lure in new IBOs. While your upline diamonds may act and look rich, how would you really know? I can take a homeless guy, clean him up an put him in a suit and a sports car and he would probably look like a diamond.
If your uplines are implying that they are so wealthy ask them to verify some of the claims. I'm not talking about their personal income, but in business, verifying business income is very common. If you are being invited into the business and a business system such as WWDB, BWW or N21, you have every right to check your upline's credentials. Avoidance of the truth, or an answer such as "none of your business" should be a red flag. It is your business if you are being asked to join, invest your time and money, and follow upline advice.
The diamonds in our group often did not stay in hotels when visiting for meetings, but in the home of another diamond or some lucky downline platinum. The diamonds rarely rented a car. Instead, a downline platinum or higher would be lucky enough to be the unpaid and uncompensated chauffeur for the weekend. The platinums basically were the doormen and ushers at the functions and in many cases, probably didn't even get to hear the speakers since they were busy working. Their reward for their troubles was "spending time" with their uplines.
The downline are like unpaid volunteers. For example, ever see diamonds actually renting a moving van and hiring movers? I believe most of them had downline groupies who did the work for free, just for the honor of being near their upline. Just my opinion, but if these folks had mountains of cash, why wouldn't you hire movers so your downline didn't have to use up a valuable Saturday or Sunday to do that work? That's like owning a chain of stores but having all of their stores closed. No products sold, no new recruits prospected. If Ray Kroc moved his residence, would all the nearby McDonald's owners close their stores to help him move?
Another things IBOs and prospects should note is that pictures of mansions, sports cars and jet skis doesn't mean someone is wealthy. Someone could have all those things on credit or rented after all. And many people who truly are wealthy, do not show off their wealth. It is possible that many diamonds live mundane middle class lives on their income but need to portray wealth to lure in new IBOs. While your upline diamonds may act and look rich, how would you really know? I can take a homeless guy, clean him up an put him in a suit and a sports car and he would probably look like a diamond.
If your uplines are implying that they are so wealthy ask them to verify some of the claims. I'm not talking about their personal income, but in business, verifying business income is very common. If you are being invited into the business and a business system such as WWDB, BWW or N21, you have every right to check your upline's credentials. Avoidance of the truth, or an answer such as "none of your business" should be a red flag. It is your business if you are being asked to join, invest your time and money, and follow upline advice.
Friday, February 15, 2019
Amway And Dreams?
One of the things that Amway uplines talk about is fulfilling dreams. They want to show IBOs and prospects "what is possible". But what is possible is like showing off the winners of lotteries because the reality of the Amway business is many will lose so a few can win. A simple analysis of the 6-4-2 plan or whatever version your group uses will reveal that the lower layers of IBOs are losing money, and they lose more if they are subscribing to various tools such as voicemail, standing order, and attending functions and meetings. It is nearly impossible, save for an exceptional sales person who can move Amway products (highly priced, average in quality) who might squeak out a small profit.
So whose dream are fulfilled? Based on projected income from Amway bonuses and income from selling the tools, I would have to say that only the dreams of your upline get fulfilled by your hardcore dedication to the tools system. Even someone at 1000 to 2500 PV will be losing money if they are hardcore sold out to the system. Of course some of this might depend on where you live and how far you must travel to attend functions. But in general, many Amway IBOs are being advised to "reinvest" any of their bonuses into tools and functions. Ironically, reinvesting into the tools is why these IBOs end up with a net loss.
Another sad chain of events is that upline will ask for your trust. That they have your best interest at heart and want your trust. Do as they advise and you are assured of success. Then if you do everything you are told, your upline will blame you for failure or teach you to blame yourself for a lck of effort. Uplines as far as I know have never been accountable for advice that they pass downline. But they are quick to take credit for the limited success that is grinded out of the system. It is puzzling to see shameless apologists like IBOFB continue to defend and promote an opportunity where the vast majority end up with a net loss. In some cases where downline have sold out to the system, the losses can mount into tens of thousands of dollars over a short period of time.
Last month and into this month, there will be a function called Dream Night. A function where you might see slide shows of mansions, yachts, sports cars, exclusive vacations and other trappings of wealth. The diamonds may say do as we say and you can have what we have. What goes unnoticed in all this is that the diamonds may not in fact own or have some or all of the goodies shown in the slide shows. They might not have the income you think. Some may have financial difficulties but one thing seems clear to me. That downline's dedication and tool purchases help the upline diamond's to fulfill their own dreams.
So whose dream are fulfilled? Based on projected income from Amway bonuses and income from selling the tools, I would have to say that only the dreams of your upline get fulfilled by your hardcore dedication to the tools system. Even someone at 1000 to 2500 PV will be losing money if they are hardcore sold out to the system. Of course some of this might depend on where you live and how far you must travel to attend functions. But in general, many Amway IBOs are being advised to "reinvest" any of their bonuses into tools and functions. Ironically, reinvesting into the tools is why these IBOs end up with a net loss.
Another sad chain of events is that upline will ask for your trust. That they have your best interest at heart and want your trust. Do as they advise and you are assured of success. Then if you do everything you are told, your upline will blame you for failure or teach you to blame yourself for a lck of effort. Uplines as far as I know have never been accountable for advice that they pass downline. But they are quick to take credit for the limited success that is grinded out of the system. It is puzzling to see shameless apologists like IBOFB continue to defend and promote an opportunity where the vast majority end up with a net loss. In some cases where downline have sold out to the system, the losses can mount into tens of thousands of dollars over a short period of time.
Last month and into this month, there will be a function called Dream Night. A function where you might see slide shows of mansions, yachts, sports cars, exclusive vacations and other trappings of wealth. The diamonds may say do as we say and you can have what we have. What goes unnoticed in all this is that the diamonds may not in fact own or have some or all of the goodies shown in the slide shows. They might not have the income you think. Some may have financial difficulties but one thing seems clear to me. That downline's dedication and tool purchases help the upline diamond's to fulfill their own dreams.
Thursday, February 14, 2019
Get Rich Quick?
One thing many Amway IBOs will talk about is how they were told that they would have to work hard and that they would not get rich quick in the Amway business. That Amway was not a get rich quick scheme. I do believe this, but what many Amway IBOs and Amway enthusiasts will not mention is that somewhere in the plan or when they were recruited, they were either directly told or implied that they would eventually "get rich" by joining Amway, whether it was "quick" or not. Some IBOs are told that Amway is "get rich slow", which is also a lie because the vast majority of IBOs make nothing or lose money. Those numbers can be verified by looking at Amway's income disclosures.
If people were told that they would not get rich/wealthy and that they would have to work hard and that they would have to overcome the name reputation, how many people would join? As evidence to prove my point, many IBOs and former IBOs know about a major function occurring around this time of the year called "Winter Conference" or "Dream Night". A handful of diamonds would host a dinner and they would show slideshows of extravagant wealth. Since in my days, IBOs were told there was NO PROFIT IN TOOLS, it was implied that all the luxurious trappings were a result of Amway income.
The slide show was shown while the song "I wanna be rich" was playing in the background. There were pictures of jet skis, yachts, boats, jets, fancy cars, golf courses and designer suits and mansions. The audience was told that diamonds paid for everything in cash. The diamonds would stand on stage and tell the audience that they will work 24/7 but it was so worth it to go diamond. That you could catch up on sleep when you are a diamond. That the IBOs in the audience needed to hurry up and join them so they would have more playmates.
Looking back, it was a nice function. It got people to dream of having all of this material wealth. Sadly, I don't think a single one of the audience I was in ever got close to achieving that kind of success. In fact, the LOS I was in, WWDB, didn't have many new diamonds since I left Amway and in fact I think some diamonds have disappeared! Maybe they became negative losers?
Yes, when you are prospected in Amway, the speaker may tell you that Amway is not get rich quick.
What they don't tell you is that you probably won't become rich at all. They also don't tell you that you are more likely to lose money than to make a cent of profit.
If people were told that they would not get rich/wealthy and that they would have to work hard and that they would have to overcome the name reputation, how many people would join? As evidence to prove my point, many IBOs and former IBOs know about a major function occurring around this time of the year called "Winter Conference" or "Dream Night". A handful of diamonds would host a dinner and they would show slideshows of extravagant wealth. Since in my days, IBOs were told there was NO PROFIT IN TOOLS, it was implied that all the luxurious trappings were a result of Amway income.
The slide show was shown while the song "I wanna be rich" was playing in the background. There were pictures of jet skis, yachts, boats, jets, fancy cars, golf courses and designer suits and mansions. The audience was told that diamonds paid for everything in cash. The diamonds would stand on stage and tell the audience that they will work 24/7 but it was so worth it to go diamond. That you could catch up on sleep when you are a diamond. That the IBOs in the audience needed to hurry up and join them so they would have more playmates.
Looking back, it was a nice function. It got people to dream of having all of this material wealth. Sadly, I don't think a single one of the audience I was in ever got close to achieving that kind of success. In fact, the LOS I was in, WWDB, didn't have many new diamonds since I left Amway and in fact I think some diamonds have disappeared! Maybe they became negative losers?
Yes, when you are prospected in Amway, the speaker may tell you that Amway is not get rich quick.
What they don't tell you is that you probably won't become rich at all. They also don't tell you that you are more likely to lose money than to make a cent of profit.
Wednesday, February 13, 2019
Facts About The Opportunity?
So many people get duped into thinking that they will somehow get 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 less 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. Update: Now Amway lists the average earnings at nearly $600k, but that is for Q12 diamonds (qualify diamond for all 12 months in Amway fiscal year). Q12 diamonds are the exception and not the normal in Amway. Amway no longer mentions "regular" diamonds but I have no reason to believe that the average diamond in Amway increased or decreased significantly.
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. And how do you grow and maintain a group when most of your group won't be able to sponsor anyone despite all of the training?
3. Most Amway products are purchased by IBOs and not necessarily sold to customers. Name a real business that sustains itself by having it's own workers or sales force purchase most of the goods. MLM is probably the only business where this occurs. Understandably, it explains why 99%+ Amwayers lose money.
4. For most IBOs, the cost of functions, 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. Because Amway doesn't say which diamonds are currently qualified, you easily could have "former" diamonds who are still speaking at functions who make more on tools and functions than from Amway.
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, unlike many pro Amway supporters.
1. The average diamond, according to Amway, earns less 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. Update: Now Amway lists the average earnings at nearly $600k, but that is for Q12 diamonds (qualify diamond for all 12 months in Amway fiscal year). Q12 diamonds are the exception and not the normal in Amway. Amway no longer mentions "regular" diamonds but I have no reason to believe that the average diamond in Amway increased or decreased significantly.
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. And how do you grow and maintain a group when most of your group won't be able to sponsor anyone despite all of the training?
3. Most Amway products are purchased by IBOs and not necessarily sold to customers. Name a real business that sustains itself by having it's own workers or sales force purchase most of the goods. MLM is probably the only business where this occurs. Understandably, it explains why 99%+ Amwayers lose money.
4. For most IBOs, the cost of functions, 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. Because Amway doesn't say which diamonds are currently qualified, you easily could have "former" diamonds who are still speaking at functions who make more on tools and functions than from Amway.
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, unlike many pro Amway supporters.
Tuesday, February 12, 2019
Amway Or Minimum Wage?
Some big companies and some private entrepreneurs have been accused of being "sweat shop owners". This is when they exploit their workers, often in foreign countries by having them work for a very small wage for long hours and under poor working conditions. For example, a foreign operation may have a warehouse full of women and children working all day in some factory for a few bucks a day. The owners of these operations can rake in the dough as they save a ton of money in labor costs. There are some big American corporations that have been accused of this.
Some uplines operate just like sweat shop owners, but in many cases, they are worse then sweat shop owners because even exploited workers earn something. At the end of the month, they have a net gain, even if it might be small. In the case of many Amway IBOs, they spend money on Amway products, and uplines take the lion's share of the rebate/bonus that is generated by those sales, and then in turn, these same uplines try to get many of their downline to also become customers of their system of cds, books, voicemail and seminars or functions. In many, probably most cases, uplines will make just as much if not more income from the system, than from Amway. Most downline IBOs would be far more profitable if they simply worked a part time minimum wage job instead of building an Amway Empire.
These same upline will also teach fierce loyalty to the system. Never miss a function. Make sacrifices to buy more books or cds/audios, and make sure you are always looking for people to sponsor to add to the system. Joining the system almost guarantees that you will suffer a net loss in the Amway business. It is why I continue to write about what IBOs and prospects should look for when they are being recruited or indoctrinated into these systems. It is why there are so many defenders of Amway, most of whom are losing money, but think they are still successful because it is what upline teaches. If only the IBOs and prospects could just step back and look at things objectively instead of blindly believing what their upline teaches them.
I know most IBOs won't believe this, but I will say it anyway. IBOs on the system are probably worse off than sweat shop employees because they are paying their upline to do their work. At least sweat shop employees get a small salary. Upline will teach you that it is an honor to drive them around, or to do tasks for them. They claim that you benefit by "associating" with them but you are no more associating with them than the cleaning lady does when she is working. I saw this firsthand and have no doubt that some or all of it exists today. Many platinums works are free doormen and ushers at meetings and functions. Upline benefits by maximizing profits from functions. It is pure downline exploitation and I hope eventually that more and more IBOs will recognize this. It is clear for those who are willing to look at it objectively.
For most, a part time minimum wage is a much better proposition than Amway.
Some uplines operate just like sweat shop owners, but in many cases, they are worse then sweat shop owners because even exploited workers earn something. At the end of the month, they have a net gain, even if it might be small. In the case of many Amway IBOs, they spend money on Amway products, and uplines take the lion's share of the rebate/bonus that is generated by those sales, and then in turn, these same uplines try to get many of their downline to also become customers of their system of cds, books, voicemail and seminars or functions. In many, probably most cases, uplines will make just as much if not more income from the system, than from Amway. Most downline IBOs would be far more profitable if they simply worked a part time minimum wage job instead of building an Amway Empire.
These same upline will also teach fierce loyalty to the system. Never miss a function. Make sacrifices to buy more books or cds/audios, and make sure you are always looking for people to sponsor to add to the system. Joining the system almost guarantees that you will suffer a net loss in the Amway business. It is why I continue to write about what IBOs and prospects should look for when they are being recruited or indoctrinated into these systems. It is why there are so many defenders of Amway, most of whom are losing money, but think they are still successful because it is what upline teaches. If only the IBOs and prospects could just step back and look at things objectively instead of blindly believing what their upline teaches them.
I know most IBOs won't believe this, but I will say it anyway. IBOs on the system are probably worse off than sweat shop employees because they are paying their upline to do their work. At least sweat shop employees get a small salary. Upline will teach you that it is an honor to drive them around, or to do tasks for them. They claim that you benefit by "associating" with them but you are no more associating with them than the cleaning lady does when she is working. I saw this firsthand and have no doubt that some or all of it exists today. Many platinums works are free doormen and ushers at meetings and functions. Upline benefits by maximizing profits from functions. It is pure downline exploitation and I hope eventually that more and more IBOs will recognize this. It is clear for those who are willing to look at it objectively.
For most, a part time minimum wage is a much better proposition than Amway.
Monday, February 11, 2019
Your Car Salesman Upline?
When I saw the Amway plan, it made perfect sense at the time, because the diamond who made the presentation made everything seem sensible. Make money and/or save money. On the surface, you would have to be nuts to not want to make or save some money. But it is the reality that is the problem. The reality is for business building IBOs is financial damage or financial disaster from the ongoing costs of the system expenses. I saw crosslines go bankrupt and more than one couple lost their homes to foreclosure by "doing whatever it takes" to get to the next function.
Our group (WWDB) edified people who bought extraordinary amounts of extra tapes/cds, extra function tickets and made superhuman efforts to get to functions. Looking back, I remember an IBO who was edified for coming all the way to a family reunion function in Portland Oregon when he was diagnosed with terminal cancer. The speaker said he could have been miserable spending time at home but here he was making a difference in people's lives. WTF? I wrote a post earlier this month about how IBOs think they are saving the world and helping people when in reality, the masses of IBOs are only "helping" their diamonds to attain material wealth by purchasing function tickets, voicemail, standing orders and other materials.
I would agree that some training and information can be helpful for new IBOs but I do not see any value in a never ending supply of cds and and endless number of meetings and functions. The very thing (support materials) that uplines claim is your key to success is the very thing that nearly guarantees business building IBOs to financial struggles. Our upline wanted IBOs to be out of debt, which is good, but they would also say in the same breath that it was okay to go into hock if it was to attend functions or to purchase additional support materials. WTH? Sadly, many IBOs do not see through this self serving advice.
Most people, including myself are very wary when we deal with car salesmen. We are wary because we know that the salesman is out to make money off of us and will try to sell us every option in the book. Thus we negotiate and reject the car options that we don't really need to or. Guess what? Your uplines are like car salesmen except that they sell you different options such as premier club, standing order, book of the month, function tickets, voicemail, open meeting tickets. Just like a car buying customer, taking all the options maximizes the car salesman's commission and the car dealer's profit. Buying all the support materials increases your upline's profits. Imagine the car salesman telling you that the extended warranty was vital to owning the car. You'd think twice about buying it. (If the car is so good, why do I need an extended warranty?) But uplines will tell you that functions are vital to your Amway business and many IBOs buy it hook line and sinker. I hope this analogy will encourage IBOs to think of support materials as options on the car. You don't need any options to make the car work. Just as you don't really need support materials to buy and sell Amway products, and to get some downline to do the same.
We are wary of car salesmen. In my opinion, downline and prospects should be just as wary of uplines who promote tools as "vital" to your success in Amway. Keep in mind that a sponsor is obligated to help train any downline, regardless of whether they are on the system or not.
Our group (WWDB) edified people who bought extraordinary amounts of extra tapes/cds, extra function tickets and made superhuman efforts to get to functions. Looking back, I remember an IBO who was edified for coming all the way to a family reunion function in Portland Oregon when he was diagnosed with terminal cancer. The speaker said he could have been miserable spending time at home but here he was making a difference in people's lives. WTF? I wrote a post earlier this month about how IBOs think they are saving the world and helping people when in reality, the masses of IBOs are only "helping" their diamonds to attain material wealth by purchasing function tickets, voicemail, standing orders and other materials.
I would agree that some training and information can be helpful for new IBOs but I do not see any value in a never ending supply of cds and and endless number of meetings and functions. The very thing (support materials) that uplines claim is your key to success is the very thing that nearly guarantees business building IBOs to financial struggles. Our upline wanted IBOs to be out of debt, which is good, but they would also say in the same breath that it was okay to go into hock if it was to attend functions or to purchase additional support materials. WTH? Sadly, many IBOs do not see through this self serving advice.
Most people, including myself are very wary when we deal with car salesmen. We are wary because we know that the salesman is out to make money off of us and will try to sell us every option in the book. Thus we negotiate and reject the car options that we don't really need to or. Guess what? Your uplines are like car salesmen except that they sell you different options such as premier club, standing order, book of the month, function tickets, voicemail, open meeting tickets. Just like a car buying customer, taking all the options maximizes the car salesman's commission and the car dealer's profit. Buying all the support materials increases your upline's profits. Imagine the car salesman telling you that the extended warranty was vital to owning the car. You'd think twice about buying it. (If the car is so good, why do I need an extended warranty?) But uplines will tell you that functions are vital to your Amway business and many IBOs buy it hook line and sinker. I hope this analogy will encourage IBOs to think of support materials as options on the car. You don't need any options to make the car work. Just as you don't really need support materials to buy and sell Amway products, and to get some downline to do the same.
We are wary of car salesmen. In my opinion, downline and prospects should be just as wary of uplines who promote tools as "vital" to your success in Amway. Keep in mind that a sponsor is obligated to help train any downline, regardless of whether they are on the system or not.
Thursday, February 7, 2019
Believing The Amway Illusion?
One of the things my Amway upline taught us ad nauseum was that we needed to have faith in our business and in our upline. That we needed to believe that we were going to be successful. IBOs are told that they should act successful even if they are still working their way up the ranks in the business. It is why they ask (require) IBOs to wear suits and business attire to all meetings and functions. This is one of the weird quirks about the business in my opinion. I live in Hawaii and I remember a function they held in the middle of July in a high school auditorium and there was no air conditioning. I think my suit needed special cleaning because it was completely saturated with perspiration.
Anyway, with this part of the year, soon there will be thousands of IBOs shuffling off to a function called dream night, or in some cases, winter conference. The tickets are about $75 to $80 and includes a dinner. What IBOs are often unaware of is that many venues will allow you to run these conferences for $25 to $35 per person. The rest of that ticket prices goes directly into your upline's pockets. Anyway, the dream night function will feature slide shows of mansions, yachts, jet skis, sports cars, fabulous vacations and other trappings of wealth.
What many IBOs don't realize is that this display of wealth is just that. There is no bonafide evidence to indicate that these diamonds actually own all of those toys and goodies. The diamonds probably won't verbally confirm it either, because these toys and goodies may not really be owned by them. It could be rented, or maybe some upline crown ambassador may own the mansion, but IBOs will assume that these trappings of wealth are common once you reach diamond. As an IBO, I never actually knew how much a diamond really earned. I just assumed it was a lot because we were shown all of these goodies and just assumed all diamonds had these kinds of lifestyles.
If I posted a picture of a mansion and a jet and said I owe it all to my earnings as a blogger, people would cry foul, that I am lying or making things up. And they would be right. Well, I would guess that many diamonds are doing the very same thing if they appear on stage and implying that they have jets and mansions. As I said, someone may own a mansion and a jet, but to imply that this is a part of the typical diamond lifestyle is a stretch. The evidence is there. Some diamonds have lost their homes to foreclosure. My old LOS diamonds (WWDB) taught us that diamonds pay cash for everything, including homes. Now confirmed as a blatant lie. Who knows what else they may have misrepresented?
I ask IBOs and prospects who may be attending dream night, to watch with a critical eye. What is being implied with the display of wealth? Analyze if those goodies can be purchased with a diamond income ($150,000 plus some tool income). Ask yourself if this lifestyle is truly sustainable? Ask yourself if you can live with yourself if deception is a part of earning your diamond lifestyle?
Anyway, with this part of the year, soon there will be thousands of IBOs shuffling off to a function called dream night, or in some cases, winter conference. The tickets are about $75 to $80 and includes a dinner. What IBOs are often unaware of is that many venues will allow you to run these conferences for $25 to $35 per person. The rest of that ticket prices goes directly into your upline's pockets. Anyway, the dream night function will feature slide shows of mansions, yachts, jet skis, sports cars, fabulous vacations and other trappings of wealth.
What many IBOs don't realize is that this display of wealth is just that. There is no bonafide evidence to indicate that these diamonds actually own all of those toys and goodies. The diamonds probably won't verbally confirm it either, because these toys and goodies may not really be owned by them. It could be rented, or maybe some upline crown ambassador may own the mansion, but IBOs will assume that these trappings of wealth are common once you reach diamond. As an IBO, I never actually knew how much a diamond really earned. I just assumed it was a lot because we were shown all of these goodies and just assumed all diamonds had these kinds of lifestyles.
If I posted a picture of a mansion and a jet and said I owe it all to my earnings as a blogger, people would cry foul, that I am lying or making things up. And they would be right. Well, I would guess that many diamonds are doing the very same thing if they appear on stage and implying that they have jets and mansions. As I said, someone may own a mansion and a jet, but to imply that this is a part of the typical diamond lifestyle is a stretch. The evidence is there. Some diamonds have lost their homes to foreclosure. My old LOS diamonds (WWDB) taught us that diamonds pay cash for everything, including homes. Now confirmed as a blatant lie. Who knows what else they may have misrepresented?
I ask IBOs and prospects who may be attending dream night, to watch with a critical eye. What is being implied with the display of wealth? Analyze if those goodies can be purchased with a diamond income ($150,000 plus some tool income). Ask yourself if this lifestyle is truly sustainable? Ask yourself if you can live with yourself if deception is a part of earning your diamond lifestyle?
Wednesday, February 6, 2019
Walking Away From Amway? (Retirement)
One of the things that many Amway IBOs mistakenly believe is that they will build their Amway business and then they will have the ability to "walk away" from the business while the income continues to flow in. I believe if there was such an incredible benefit such as lifelong residual income that could be achieved from Amway, I'm fairly certain that Amway would advertise this as a benefit of being an IBO. But Amway does not. It is very likely that your LOS such as WWDB or BWW or one of the others will promote this benefit while telling you that your best chance to achieve it is by subscribing to their "system".
One thing that goes unnoticed all too often is that there seems to be nobody who is actually retired and living off the efforts of having built a big Amway business once upon a time. Seems that even the crown ambassadors still have busy lifestyles running from function to function and participating in other business related activities. While many of these leaders may claim they love their downlines or some other bunk, it is my belief that these leaders keep working their Amway businesses for one reason only. That is they need to keep working in order to keep the income flowing in.
The diamond lifestyle that is often portrayed may seem like a great goal or dream to achieve, but the fact of the matter is that a "diamond lifestyle" cannot be sustained on diamond income. The average diamond, according to Amway, earns about $150,000 a year (Amway now says 600k but that is for Q12 diamonds which is quite rare. Most diamonds are not Q12). While that may seem like a great amount of income, it's not nearly enough to sustain the kind of lifestyle portrayed by diamonds. Even if that income is supplemented by income from the sale of tools, you can't fly your family around the country first class to do all kinds of functions and still end up with much leftover to own fancy homes and cars.
If I deposited $1000 in the bank and never touch the money, the bank would pay me a certain amount of interest each year, guaranteed. That is residual income. In Amway, you can basically earn income in two ways. You can sell products for a profit, but there are problems with this. First off, Amway products in general are more expensive than local retailers. It is why you hear so many justifications about quality and concentration, because you are hard pressed to argue cost. Secondly, you are severely restricted from advertising, thus selling can be difficult. The other way to generate more income is to build a downline in hopes that the downline will help you to leverage your volume. But then your downline will have the same problem that you had in moving products. That being said, even if you achieve some level such as emerald or diamond, your business will immediately begin to fall apart once you stop working because attrition will take its toll. It is why there are hoards of "former" platinums. If platinums are not sustainable, then neither is any other level.
There are many many instances of diamonds quitting, resigning, or falling out of qualification. People come and go in this business every day. Do you really think you can bank on retirement and residual income under these circumstances? If you believe that, I have some swamp land in Florida to sell you.
One thing that goes unnoticed all too often is that there seems to be nobody who is actually retired and living off the efforts of having built a big Amway business once upon a time. Seems that even the crown ambassadors still have busy lifestyles running from function to function and participating in other business related activities. While many of these leaders may claim they love their downlines or some other bunk, it is my belief that these leaders keep working their Amway businesses for one reason only. That is they need to keep working in order to keep the income flowing in.
The diamond lifestyle that is often portrayed may seem like a great goal or dream to achieve, but the fact of the matter is that a "diamond lifestyle" cannot be sustained on diamond income. The average diamond, according to Amway, earns about $150,000 a year (Amway now says 600k but that is for Q12 diamonds which is quite rare. Most diamonds are not Q12). While that may seem like a great amount of income, it's not nearly enough to sustain the kind of lifestyle portrayed by diamonds. Even if that income is supplemented by income from the sale of tools, you can't fly your family around the country first class to do all kinds of functions and still end up with much leftover to own fancy homes and cars.
If I deposited $1000 in the bank and never touch the money, the bank would pay me a certain amount of interest each year, guaranteed. That is residual income. In Amway, you can basically earn income in two ways. You can sell products for a profit, but there are problems with this. First off, Amway products in general are more expensive than local retailers. It is why you hear so many justifications about quality and concentration, because you are hard pressed to argue cost. Secondly, you are severely restricted from advertising, thus selling can be difficult. The other way to generate more income is to build a downline in hopes that the downline will help you to leverage your volume. But then your downline will have the same problem that you had in moving products. That being said, even if you achieve some level such as emerald or diamond, your business will immediately begin to fall apart once you stop working because attrition will take its toll. It is why there are hoards of "former" platinums. If platinums are not sustainable, then neither is any other level.
There are many many instances of diamonds quitting, resigning, or falling out of qualification. People come and go in this business every day. Do you really think you can bank on retirement and residual income under these circumstances? If you believe that, I have some swamp land in Florida to sell you.
Tuesday, February 5, 2019
Is Amway A Product Pyramid?
Let me start out by saying that Amway is a very likely a perfectly legal company, and therefore I am not saying or implying that Amway is illegal. But I believe however, that the way Amway businesses are run, are like pyramids. In most groups, you will have the lowest level IBOs efforts and tool purchases being responsible for the upline bonuses and tools income. Many many IBOs are fooled into thinking that the ability to surpass your upline or that you don't get paid to recruit downline makes this a good deal. This doesn't change the fact that the vast majority of IBOs lose money. The lottery is legal in most states but I'd say it's not a good investment for your money.
Unless you have a very very rare group where actual product sales to non IBOs are sufficient to cover the costs of running your business, functions and all, then it is true that the lower level IBO's jobs are likely the source of income for the uplines. How many groups are like that? None that I have ever seen or know of. In fact, how often do IBOs even sell enough products to cover their expenses for even one month out of the year? The groups that teach "buy from yourself" end up doing the most financial damage to their groups because the downline's expenses are then covered exclusively from the downlines jobs, bank accounts, or drive the downline into debt.
I've seen and discussed group structures in forums many times and I can only conclude that tool sales wipe out what little profits/bonuses some of the downlines might receive. Only when an IBO is able to sponsor enough downline to absorb the losses for them will they finally break even or make a little profit. I would guess that the 4000 PV level or platinum is where a dedicated CORE IBO would just about break even and possibly start to make a real profit. But if you are hard core dedicated, you can still lose money at these levels. We also know that most platinum groups have 100 or more IBOs in order to generate 7500 PV. Thus we can also conclude that less than 1% of IBOs make a net profit. The only way IBOs can earn a net profit at a lower level is to avoid purchasing tools and to avoid paying for functions. Those who get involved in a system such as WWDB or N21 almost guarantee that they will have a net loss because of the expenses associated with these systems.
Sure, my job may have a pyramid structure with the CEO making the most money. But the difference is that in a company, even the lowest paid employee still receives a paycheck and has money at the end of the month. The same claim cannot be made by IBOs. For these reasons, I believe Amway to be a legal pyramid, where money flows from downline to the upline. IBOs and information seekers are free to participate, but I challenge them to sit down and really analyze their ability to make a net profit. In most cases, the analysis won't be favorable. If you are in the US in particular, you may have great difficulty in even being able to discuss "Amway" without getting strange looks your way from others. Do you have to shy away from using the name Amway? Do you have to use the curiosity approach? If you do, ask yourself why. The answer is obvious.
Unless you have a very very rare group where actual product sales to non IBOs are sufficient to cover the costs of running your business, functions and all, then it is true that the lower level IBO's jobs are likely the source of income for the uplines. How many groups are like that? None that I have ever seen or know of. In fact, how often do IBOs even sell enough products to cover their expenses for even one month out of the year? The groups that teach "buy from yourself" end up doing the most financial damage to their groups because the downline's expenses are then covered exclusively from the downlines jobs, bank accounts, or drive the downline into debt.
I've seen and discussed group structures in forums many times and I can only conclude that tool sales wipe out what little profits/bonuses some of the downlines might receive. Only when an IBO is able to sponsor enough downline to absorb the losses for them will they finally break even or make a little profit. I would guess that the 4000 PV level or platinum is where a dedicated CORE IBO would just about break even and possibly start to make a real profit. But if you are hard core dedicated, you can still lose money at these levels. We also know that most platinum groups have 100 or more IBOs in order to generate 7500 PV. Thus we can also conclude that less than 1% of IBOs make a net profit. The only way IBOs can earn a net profit at a lower level is to avoid purchasing tools and to avoid paying for functions. Those who get involved in a system such as WWDB or N21 almost guarantee that they will have a net loss because of the expenses associated with these systems.
Sure, my job may have a pyramid structure with the CEO making the most money. But the difference is that in a company, even the lowest paid employee still receives a paycheck and has money at the end of the month. The same claim cannot be made by IBOs. For these reasons, I believe Amway to be a legal pyramid, where money flows from downline to the upline. IBOs and information seekers are free to participate, but I challenge them to sit down and really analyze their ability to make a net profit. In most cases, the analysis won't be favorable. If you are in the US in particular, you may have great difficulty in even being able to discuss "Amway" without getting strange looks your way from others. Do you have to shy away from using the name Amway? Do you have to use the curiosity approach? If you do, ask yourself why. The answer is obvious.
Monday, February 4, 2019
Do You Believe?
In the past, and I believe still today, some leaders in motivational groups talk about faith and belief. Speak it into existence. Some of this is the mantra among IBOs who believe they are going diamond. Never mind that statistically, your chance of winning the lottery might be better than going diamond in Amway. In fact, I am certain that there have been more power ball lottery winners than new Amway diamonds in the US and Canada in recent years. But an honest question for IBOs, prospects, and Amway supporters. Do you truly believe that this business works and that you will succeed?
If you truly believe, would you feel confident walking into a bank and meeting a loan officer. Tell the loan officer that all you do is sponsor 6 who sponsor 4 who sponsor 2 and you will be a new platinum (silver). Then all you need is 6 of these groups and the money will roll in forever while you sit on a beach in the Bahamas while money rolls in by the barrel full. And then ask the loan officer for a business loan. If you think this suggestion is crazy, maybe you don't truly believe in the business. Surely a loan officer would have some financial acumen and would be able to determine the viability of the business prior to approving a loan.
Would you feel comfortable talking to your doctor about joining Amway because a diamond makes much more income with less effort? How about a business professor at your local university? Surely someone with an established expertise in business would see the value of an Amway business and join your efforts? Or would the professor laugh you out of his office? Do you truly believe in what you do? If so, do you use the curiosity approach or are you straight up with prospects and invite them to an Amway meeting? If it's the latter and not the former, maybe your belief isn't that strong?
How hard do you work at building your business? If you truly believe that going diamond is the answer to all of life's challenges and problems, why aren't you building it and working on it as if your very life depended on it? Maybe your belief isn't what you think it is? Are you adding people to your downline every week or month? If not, maybe your belief isn't what you think it is?
If you have some doubts about what you are doing, then it is probably because you see IBOs coming and going. Maybe you see monthly losses in your business. Maybe you see people quitting the business regularly. Maybe you see the same old leaders on stage giving the same rah rah speeches. Maybe you see the logic and the common sense in most of the articles posted on this blog. My blog isn't here to make anyone quit Amway. My blog is to provide information to information seekers and to assist people in making informed decisions if they seek information prior to joining Amway and a motivational group such as WWDB or BWW.
Do you truly believe in what you're doing? Joecool truly believes in what he blogs about.
If you truly believe, would you feel confident walking into a bank and meeting a loan officer. Tell the loan officer that all you do is sponsor 6 who sponsor 4 who sponsor 2 and you will be a new platinum (silver). Then all you need is 6 of these groups and the money will roll in forever while you sit on a beach in the Bahamas while money rolls in by the barrel full. And then ask the loan officer for a business loan. If you think this suggestion is crazy, maybe you don't truly believe in the business. Surely a loan officer would have some financial acumen and would be able to determine the viability of the business prior to approving a loan.
Would you feel comfortable talking to your doctor about joining Amway because a diamond makes much more income with less effort? How about a business professor at your local university? Surely someone with an established expertise in business would see the value of an Amway business and join your efforts? Or would the professor laugh you out of his office? Do you truly believe in what you do? If so, do you use the curiosity approach or are you straight up with prospects and invite them to an Amway meeting? If it's the latter and not the former, maybe your belief isn't that strong?
How hard do you work at building your business? If you truly believe that going diamond is the answer to all of life's challenges and problems, why aren't you building it and working on it as if your very life depended on it? Maybe your belief isn't what you think it is? Are you adding people to your downline every week or month? If not, maybe your belief isn't what you think it is?
If you have some doubts about what you are doing, then it is probably because you see IBOs coming and going. Maybe you see monthly losses in your business. Maybe you see people quitting the business regularly. Maybe you see the same old leaders on stage giving the same rah rah speeches. Maybe you see the logic and the common sense in most of the articles posted on this blog. My blog isn't here to make anyone quit Amway. My blog is to provide information to information seekers and to assist people in making informed decisions if they seek information prior to joining Amway and a motivational group such as WWDB or BWW.
Do you truly believe in what you're doing? Joecool truly believes in what he blogs about.
Friday, February 1, 2019
Independent Business Owners?
IBO = Independent business owner. I thought it was cool, but looking back at the bottom line, IBOs are just salesmen for Amway with no fringe benefits and no guaranteed salary. Or, a commission only salesman. Salesmen earn their income by selling goods and services, and earn a commission. Sadly, many IBOs sell very few items because they have been taught that you make your money by purchasing items from yourself.
On the surface, buying from yourself sounds sensible but you don't truly make a profit by purchasing your own goods, you simply empty your checking account. Any profit you think you have earned has actually come out of your own pockets. In any business, you must have a base of customers in order to have a steady income. If you are purchasing the majority of your goods, you are only making a profit for Amway the corporation, who makes, or in the case of partner stores, distributes the goods. The ones who actually produce the goods are the ones who profit. An IBO is just someone who sells the goods and who distributes them for a commission.
For most "real" business owners, building their business might mean advertising, creating special sales, and increasing the number of customers or by increasing the volume purchased by existing customers. An IBO who is "building the business" is rarely ever trying to attain more customers. In fact, some of Amway's regulations make it difficult to attain a mass of customers such as restrictions on advertising. Therefore, most IBOs who are "building" are simply seeking to add downline who will hopefully buy their PV and also attain more downline. In this manner, IBOs are increasing volume, and therefore their commissions by adding people to their downline. Ultimately, the upline is making their money by the efforts of their downline and often, from the jobs of their downline because there are usually not enough customers to sustain any significant level of sales. This basically makes the Amway opportunity a product pyramid.
In this day of social networking and power advertising, Amway apparently remains a dinosaur. While they do advertise some of their product line on TV, the salesmen or IBOs have little ability to market their products on a large scale. Instead it is word of mouth, individual to individual. It is highly ineffective. Do you know why it costs hundreds of thousands of dollars for a 30 second commercial in the super bowl? It's because tens of millions of people are watching. What do you think is more effective on increasing sales, a super bowl commercial or word of mouth advertising. Keep in mind that zany IBO behavior has already damaged the Amway name, thus giving you a disadvantage over other opportunities.
In the end, or the bottom line is that an IBO is just a salesman who receives no fringe benefits, and a relatively small commission. It's a great deal for Amway, but is it a great deal for an IBO?
On the surface, buying from yourself sounds sensible but you don't truly make a profit by purchasing your own goods, you simply empty your checking account. Any profit you think you have earned has actually come out of your own pockets. In any business, you must have a base of customers in order to have a steady income. If you are purchasing the majority of your goods, you are only making a profit for Amway the corporation, who makes, or in the case of partner stores, distributes the goods. The ones who actually produce the goods are the ones who profit. An IBO is just someone who sells the goods and who distributes them for a commission.
For most "real" business owners, building their business might mean advertising, creating special sales, and increasing the number of customers or by increasing the volume purchased by existing customers. An IBO who is "building the business" is rarely ever trying to attain more customers. In fact, some of Amway's regulations make it difficult to attain a mass of customers such as restrictions on advertising. Therefore, most IBOs who are "building" are simply seeking to add downline who will hopefully buy their PV and also attain more downline. In this manner, IBOs are increasing volume, and therefore their commissions by adding people to their downline. Ultimately, the upline is making their money by the efforts of their downline and often, from the jobs of their downline because there are usually not enough customers to sustain any significant level of sales. This basically makes the Amway opportunity a product pyramid.
In this day of social networking and power advertising, Amway apparently remains a dinosaur. While they do advertise some of their product line on TV, the salesmen or IBOs have little ability to market their products on a large scale. Instead it is word of mouth, individual to individual. It is highly ineffective. Do you know why it costs hundreds of thousands of dollars for a 30 second commercial in the super bowl? It's because tens of millions of people are watching. What do you think is more effective on increasing sales, a super bowl commercial or word of mouth advertising. Keep in mind that zany IBO behavior has already damaged the Amway name, thus giving you a disadvantage over other opportunities.
In the end, or the bottom line is that an IBO is just a salesman who receives no fringe benefits, and a relatively small commission. It's a great deal for Amway, but is it a great deal for an IBO?
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