Tuesday, June 20, 2023

Boiling A Frog (Amway Story)?

 I heard a story about how someone boils a frog in some Amway function many years ago.  The story goes that they slowly warm up the water until the frog is relaxed and then when the frog is relaxed and muscles all soft, you turn up the heat and boil the frog. Amway leaders once told this story to describe how we as people, become complacent in life and how we can get into a rut. We relax and slowly, the bills add up and next thing you know, you're working harder than ever, but living in debt. And by then it's probably too late and you can never catch up - unless you join Amway of course. Amway is the answer to life's financial problems.  The irony of course, is that most people are much worse off (in the end) than if they never joined Amway at all.

That's because we live in a society where keeping up with the Joneses and consumerism with no delayed gratification is prevalent in US society. Your friend buys a new car, and you not only want a new car, you, probably want a better one than what your friend bought.  It's very common in the US, which is why so many Americans are living in debt, paycheck to paycheck. That doesn't make anyone a bad person, but it makes you a paycheck away from financial disaster. Many people who join Amway are young and possibly working at more entry level types of jobs and far away from conventional retirement.

I recently went to a retirement planning seminar and saw that many people don't or won't even have $100K saved up for retirement. It's a sad state of affairs and one that isn't likely to change anytime soon. I hope our readers here keep that in mind and plan accordingly. And ask yourself honestly, is Amway going to help that situation or not? Losing money certainly doesn't help your bottom line.  It certainly isn't going to help your retirement plans if you aren't profitable in Amway, and the vast majority of IBOs are not.

But what does this have to do with Amway? Well, what Amway leaders are doing is boiling frogs. Or, if you will, boiling their downline. They get you to relax and trust them and then suddenly, you need to be a serious business owner, attending ALL seminars and buying ALL tools. They'll also lure you into commitment by showing you pictures of their alleged diamond lifestyle. They might show you a copy of someone's bonus check, but they won't show you a profit loss statement. They'll show you a picture of a Ferrari, but won't show you the ownership papers. They'll show you a mansion, but not the mortgage papers they signed. I believe the diamonds show an illusion of wealth.  Who knows what a diamond's worth actually is?  I say this because portraying an uber wealthy lifestyle is not cheap.

The diamonds will likely make you think they are financially free, living on their terms with no financial worries in the world when the reality may reveal a very different picture. When you consider that a diamond who might earn $500,000 a year is worshipped. But when you factor in taxes, business expenses, medical insurance, etc, what's left is not a jet set lifestyle, but one closer to middle class, where you need to keep working. You could argue about how hard a diamond's "job" is, but having to be somewhere at particular time to earn money is not financial freedom. And if a diamond's bonus checks were to stop, they would be in deep trouble soon after. In other words, not much different than someone with a 9-5 job.  Also, a regular (non Q12) diamond likely earns maybe $150,000 to $200,000, with some augmentation from tools income.  But after taxes and business expenses, you aren't flying your family of 4 to functions first class, nor are you buying homes in cash, unless that diamond has income and resources that are not Amway related.

So IBOs are actually the frogs being boiled, one function or one cd at a time. They just don't realize it.

1 comment:

Anonymous said...

Some Amway Diamonds are wealthy because they have made investments that are totally separate from the Amway business. If you put money in an IRA or a 401K or in some blue-chip stocks and bonds or in small real estate acquisitions, you will probably have a nice nest egg no matter what else you may be doing. This was certainly the case with the Puryears, and Dexter Yager.

The Big Lie in Amway is to claim that the success of these Diamonds was due totally to their Amway business, and nothing else.