Joecool will be gone for about a week to attend super bowl 56. It's a long time goal of mine to attend a super bowl in person so here I got. And guess what? I don't need Amway to achieve that. Yeah, it's costing a small fortune but I think it will be worth it. See you all in a week or so.
Today's article is called "Pyramids"?
Let me start out by saying that Amway is very likely a perfectly legal company as far as I know, and therefore I am not saying or implying that Amway is illegal. But I believe that the way Amway businesses are run with AMO guidance, are run like illegal 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. But this makes me wonder why IBOs are recruiting like their lives depended on it.
Unless you have a very very rare group where actual product sales to non IBOs in sufficient to cover the costs of running you 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 break even and possibly start to make a real profit. But 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.
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. 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. Good luck in whatever you decide
Congrats on going to the Super Bowl! And even further congratulations on not needing Amway to accomplish that!
ReplyDeleteReminds me of a guy who was in my AMO back when I was in. Not sure if he's still around. But, I remember he had a passion for travel and he would take long trips each Summer to far-flung places. He would send pictures back to his Upline who shared them with others. He traveled alone and didn't need to be cooped up with the thought of being with Diamonds going around to the "beaches of the World".
But his Emerald and above were not happy. They were not happy that he wasn't "all in" and that he wasn't at the weekly Thursday night hotel ballroom business briefing; but instead, he was several thousands of miles away.
I remember when he came back from one trip and he was as happy as could be. Some people were congratulating him on going to places they could ever dream of going. Others though had the side-eye going...almost as if, "you know you should have been here with the team instead of going away." I remember seeing that to this day. Some were Upline. Others were Crossline. I couldn't believe this.
I hope he's no longer in Amway. The enjoyment on his face after his trip was way more genuine than the amount of nights we had to act fake nice just to get through a three-plus hour briefing.
The demand for Amway products by ordinary retail customers is so small that it makes no sense whatsoever to try to make a profit on sales. IT JUST CAN'T BE DONE. As yourself this: if Amway products were available on the shelves at brick-and-mortar stores, how well would they do in competition with big-name brands? And why should they do any better when an individual IBO tries to push them on friends and relatives?
ReplyDeleteThere is no independent, repeat-customer base for Amway products. That's why you hear all the endless bullshit about "Buy from your own store!" It's an attempt to cover up this simple fact of life.