The point of this blog post is to illustrate that the Amway opportunity is simply not sustainable and that the market is basically saturated in North America. I know Amway recently released some propaganda on the average IBO income being up, but once again, a clear explanation of how they derived the numbers was not given. For all we know, they have have simply excluded more IBOs by declaring them as "inactive", thus driving up the "average" income. Anytime I hear the word Amway, it frequently draws funny looks from people. I know that Amway proponents will claim that Amway is not saturated, but in real life, you aren't going to have people lining up to join. It is why there are countless stories of people being lied to or tricked into attending recruitment meetings.
So in reviewing the common 6-4-2 plan, there are 79 IBOs and one becomes a platinum. And that is with the generous assumption that all of these IBOs are moving 100 PV consistently each month. Factor in some folks who do little or nothing and some who order infrequently and anyone can reasonably conclude that a platinum business will commonly have well over 100 downline IBOs. Now with that being said, what if everyone in the entire world suddenly had an epiphany and decided to join Amway?Well, the structure of most platinum businesses won't change. You will still likely have more than 100 downline in each platinum group. The platinum will make some money and most downline, especially those on the system of cds and functions will lose money. Thus less than 1% of the IBO population can realistically be a platinum at any given time. Whether it is now or whether the entire planet signs up for Amway, there will always be less than 1% of the IBO population at the platinum level. That is how the system is set up. The only exceptions to this rule would be for IBOs to sell enough PV to make up for a lack of downline. But there is ample testimony and evidence to indicate that many IBOs simply self consume their PV because they cannot or do not like selling. Some AMO (Away Motivational Organizations) groups teach IBOs to almost exclusively self consume their own volume. My former LOS, WWDB did not emphasize selling, but focused on recruiting. And why not? The reality is you cannot go emerald or diamond without many downlines.
So even if every person on earth joined Amway, there would still be less than 1% of IBOs at the platinum level and very likely that less than 1% of IBOs would be at a net profit. Some proponents argue that many IBOs sign up and do nothing or sign up and don't order products. So what? They are still IBOs and even if you didn't count them in averages. What I have posted above explains why the success rate (platinum) still cannot amount to much more than a fraction of 1% even at the best case scenario.
Still thinking about registering for Amway? Do your research and you may want to think about this article.
2 comments:
Every MLM racket is nothing but legalized theft. In the case of Amway, the corporation in Ada, Michigan farms out the actual theft to smaller independent AMOs (Network 21, WWG, BWW, etc.) while raking in a large share of the proceeds for itself. In this sense they operate like big cartel drug dealers, who supply the merchandise to local street gangs for distribution and sale in their smaller territories.
In the case of hard drugs, the thing that keeps the operation in business is the demand by addicts for the product. Without addicts, every big drug cartel would collapse. In the case of Amway, the thing that keeps the racket alive is the insane and mindless devotion of low-level IBOs. In a real sense, these IBOs are "addicted" to the irrational dreaming and fantasizing that every Amway AMO promotes. That's what keeps them hooked.
If someone is running a business and making a nice profit from it, then his personal enthusiasm for it will grow and grow. That means that something external (PROFIT) is causing something internal (ENTHUSIASM) to happen.
In Amway, the situation is reversed. There is no profit or very little profit for the ordinary low-level IBO. Therefore the internal enthusiasm for the business has to be generated artificially through rah-rah meetings, useless "functions" where all that you do is scream and shout, and by being ordered around and browbeaten by your up-line.
It's like being in the army. What keeps you in line and moving are the orders from the officers, and the artificially generated enthusiasm of singing and shouting and marching.
In a real business, the business owner likes what he's doing and is gratified by the growing income he gets. In a fake business like Amway, the IBO has to be brainwashed into thinking that he is already gratified and happy, even when he is losing money every month.
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