It seems to me that the Amway business became a never ending series of meetings and rah rah speeches designed to motivate the rank and file IBOS. I suppose that so much motivation is needed because the vast majority of IBOS are losing money chasing the Amway dream. But a nice story told by the diamond can get a low ranked IBO to hang in there and attend a few more functions and listen to more audios. Of course those actions benefit upline more than the IBO. If IBOS were to just walk away, diamond income would be affected,
But what motivates business people? How about net profits and having more money at the end of the month than when you started. I know that would have excited my to be cash positive in Amway. But because nearly all IBOS are losing money, upline must devise ways to trick people in signing up and then staying on board. Let me illustrate this:
When being recruited, I was told about how Amway was low overhead and that profits could be made quickly in addition to saving money by using Amway products. Then after you get in, you’re told that business owners commonly lose money fir a number of years until the business it built. It becomes an eloquent game of bait and switch for the upline and downline. Sell them on quick profits and savings and then tell them about being a real business owner with real expenses. It works because the upline are taught to trust and believe in upline.
The claim is that upline has your best interest at heart. But I guess one more lie told by upline escapes many rank and file IBOS once they put their hope and trust in the upline. And it works because people want to believe that 2-5 years of hard work will lead to retirement and financial freedom. Sadly it usually ends in business losses and additional debt. All the motivation anyone really needs is more money at the end of the month.
"Motivation" is a big game today. There are "motivation experts," and books on how to motivate people, and special business courses for management types on how to "motivate" a work force.
ReplyDeleteNone of this existed a century ago. What happened? In the past, workers were "motivated" by two things: their salaries, and their personal pride in what they did. Today they have to be given pep talks and rah-rah speeches and training seminars where an artificial kind of pride is instilled in them. And when you are in a "business" where there isn't a real salary of any kind (like Amway and the other MLMs), motivation becomes super-important. Up-line has to spout bullshit endlessly, and make you buy hundreds of CDs and tapes, and force you to attend meeting after repetitive meeting.
How does the Amway up-line do it? Primarily by means of six things: hopes, dreams, a lot of greed, meaningless jargon, cultish solidarity, and a dash of evangelical religion. Mix these ingredients together and you have the typical Amway "function" in all its glory.
“Then after you get in, you’re told that business owners commonly lose money for a number of years until the business it built.”
ReplyDeleteThanks for bringing it up, that is a common myth amongst Amway business builders.Some fervent defenders of Amway seem to think that is true of business in general, including what they call “traditional business” (a blanked term for non MLM). That is emphatically not the case.
A one person work from home business should make money, enough of it to support the owner’s living, right away. Sometimes there is an loan to pay off, which could be investments into computer equipment (that could in part be liquidated if the business fails), but on a month on month basis it should make money almost from day one if it is ever going to work.
Now if that is the case for typical owner managed businesses, not for something specifically marketed as tried and tested proven, that can be run part time. For such a model it should be the case so much more.
If a business marketed like that is not generating cash in weeks, but instead burns it, it should be obvious that it is a scam.
Expecting an owner managed run from home business to make money right away is not a “get rich quick” expectation, it is a normal reasomable expectation.
Thinking after a few years you can live in a mansion and drive sports cars, all generated from part time income. And on your way there never get “distracted” by “negatives” such as income statements.
THAT is what ultra naive get rich quick thinking is.
Amway recruiters tell people that Amway has little to no overhead therefore you can profit right away then toss in the no profit for years when the recruits are losing money early on
ReplyDeleteI still honestly believe Amway has all parameters right to be in a business of your own. Low startup costs and very good products and all the business tax advantages. It is the so called support system which will fleece you in spending your money in functions and high priced tools. Perhaps to succeed in this type of business, it may be a necessary evil????? However after many wasted years I decided this was not for me.
ReplyDeleteTo Anonymous at 2:05 AM --
ReplyDeleteStealing is not a necessary evil. It is a crime. If it were possible to be in Amway without being linked to one of the AMO subsystems, what you say might be true in some cases. But nowadays in order to be an Amway IBO you have no choice. You must be in one of the subsystems. And once in, you will be bled dry by your up-line.
Responding to: Anonymous Anonymous said...
ReplyDeleteTo Anonymous at 2:05 AM --
Stealing is not a necessary evil. It is a crime. If it were possible to be in Amway without being linked to one of the AMO subsystems, what you say might be true in some cases. But nowadays in order to be an Amway IBO you have no choice. You must be in one of the subsystems. And once in, you will be bled dry by your up-line.
January 28, 2022 at 10:52 AM
You are exactly right. Plus, the moment after you become a "business owner" after signing up with Amway, the hits start to come fast in furious. I remember that right after I signed up with URA, immediately I had to sign up for my membership (app) and then buy my conference ticket for the next conference. The following weekend, I had to meet up with Upline to set up a Ditto to be charged at the first of each month (which was anywhere from $450 to $600 per month of stuff I didn't need nor use).
Life really comes at you fast. Our Crown Ambassador once said at a conference, "Look at each Platinum or Person (I forget) you sponsor and imagine each one being worth $500,000." Maybe after starting in the 1970s, he realized that's how much money a typical downline donated upline.
There's actually a HUGE amount of overhead in Amway. Monthly charges for your required PV purchases, your CommuniKate system, your CDs and tapes, your four annual "functions," and all the endless expenditures for entrance fees to weekly meetings, travel costs, gasoline... it just NEVER STOPS!
ReplyDeleteAmway freaks talk about "low startup costs." Yeah, sure. But they never mention that there is a monthly and annual overhead that will bleed you dry.