When people see the Amway plan, it sort of makes sense. You need to find six people to go direct, in 2-5 years and you have residual and willable income for life. You are then financially free and can spend your days walking on exotic beaches while checks keep coming in. This is what lures many prospects to take a better look and maybe even test the waters and give Amway a shot. After all, who wouldn't be interested in financial freedom and the ability to fulfill some of your ultimate dreams? Only a fool would turn down such an opportunity, right?
While Amway looks good on paper, too many things derail this plan for financial freedom and untold wealth. Over the years I've been blogging, I've challenged Amway supporters to name a couple of people who are financially free and walking the beaches while income rolls in. Very predictably, nobody has identified a single person who achieved some high level in Amway and is sitting back relaxing while money keeps coming. We even see crown ambassadors passing away while still working the business.So why can't IBOs achieve what they aspire to? Because in my opinion, the odds are stacked against them. Sure, a rare individual might go diamond but the occurrence is very rare and almost as rare as winning the lottery, even though Amway is not a game of chance. I will go and list the reasons why IBOs are playing a game they can't win, even though they think they can. That is the sad part, that the upline is motivating downline to "never quit" even though they will "never succeed".
The system is set up for very few to succeed. Even in the common 6-4-2 plan where everyone did enough to earn a bonus, there is one person at the highest level with 78 downline who earn less. In real life, most IBOs do little or nothing. At Amway.com, you can see income disclosures that show how few people reach the higher levels. It's a tiny fraction of 1% that reach the higher levels. Even reaching platinum is a lofty achievement and platinums might not even see a net profit due to business expenses.
Business expenses such as product packs, catalogs, cds, books, voicemail and functions add up to significant expenses in the course of a month. If you're hoping to achieve financial freedom, you'll be expected to participate in the teaching system and more than likely, these expenses will be the reason for your business losses. Beware of upline who encourage you to go in debt to purchase training.
The products in general are not competitive. Sure, the Amway IBOs may give you some pitch about products being concentrated or of high quality but let's face it, consumers don't care about high quality soaps and household cleaners. There is nothing wrong with the similar products that you can purchase at Target or WalMart at a fraction of the cost. When your products can't compete on a level playing field, on what basis do you expect to sell these products? For that reason, many IBOs become "self consumers" and wind up with no actual customers.
Amway's reputation is soured. Most people know or know someone who had a bad experience with Amway. Due to past IBO behavior, people have developed a negative view of Amway. People being tricked or lied to in the past may have contributed to this issue. Add that to the fact that so few people actually make money turns this business into an almost insurmountable challenge. Even those who achieve often find themselves out of qualification shortly after.
For these reasons, my conclusion is that the Amway opportunity is a game that IBOs simply cannot win, even for those who learn from upline and put forth tremendous effort. And the longer you play. the bigger your losses become. Do your due diligence before undertaking any business opportunity.
1 comment:
It's true that Amway looks good on paper (or more likely, on a chalkboard in somebody's garage with a lot of little circles on it). But the sheer struggle of trying to put together a solid 6-4-2 down-line is now almost useless. Amway's public reputation is in the toilet, and has now become a watchword for scams and ripoffs. IBOs have to lie to get potential recruits to come to a meeting, and saying the name "Amway" is like saying "Dracula" in a blood bank.
The biggest things is this: You CAN"T SELL THE PRODUCTS! There is really no public demand for Amway stuff outside of the closed circle of IBOs and the up-line and down-line network. Without retail sales to somebody, a business doesn't work. It doesn't matter how much you scream and shout at "Dream Night" or "Free Enterprise Day."
A lot of the problem is due to the various Lines-of-Support subsystems that are parasitical on the Amway plan. Organizations like WWG, BWW, Network 21, and Team Leadership are in business solely to sell training materials to IBOs. They really have no interest in whether an IBO sells Amway products to the general public. In fact, they teach IBOs nothing at all about selling, and laugh at the entire idea. They tell you that your job is to recruit new members, and nothing else.
Quite predictably, this means that the vast majority of IBOs in Amway will make NOTHING AT ALL. This isn't an opinion -- it's a fact. Amway's official literature states that close to 99% of Amway IBOs do not make any profit at all.
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