The Reality?

 One of the things that keeps some Amway IBOs going is the "harsh reality". What I mean by that is for some IBOs, once you have been in Amway for a while, it can be hard to quit. You were possibly recruited with dreams of lifelong residual income and walking on all of the exotic beaches of the world. Retiring young and spending that time with your wife and family, and Amway friends. To quit means an IBO would have to face the reality that these dreams will not come true, at least not with the Amway business. The fact is that the Amway opportunity probably would not have delivered those dreams anyway. Even a diamond more than likely cannot afford those dreams. In fact, I would estimate that most diamonds, if they flaunt some excessive lifestyle, are near broke or in heavy debt as a diamond income cannot sustain a jet set lifestyle, save for a founder's double diamond or something similar. I believe the prominent WWDB triple diamond bankruptcy shed a lot of light into the finances of an upper-level pin and it wasn't as impressive as I would have thought.

The triple diamond who filed for chapter 7 bankruptcy made about half a million dollars annually from Amway. That's a great income and more than most people earn, but seriously, a half million dollars income is not going to allow you to buy mansions paid for in cash, or a fleet of sports cars. After paying taxes and business expenses, I'm not even sure someone with that kind of income even lives a worry-free life of leisure. And we're talking about a triple diamond, not your average run of the mill regular diamonds who I would safely assume, earns much less than a triple diamond.

But what really is the harsh reality? It's working hard only to drift between 100 and 500 PV. It's finally sponsoring a new IBO only to have a downline quit. It's talking to people about Amway and getting laughed at or getting rejected. It's your upline or sponsor pushing you to do more. Possibly your upline is one who questions your manhood if you aren't working hard enough. It's your upline or sponsor reminding you that a winner doesn't miss functions, especially the major ones. It's staying up late for team meetings or night owls when you need a good night's rest to do your job the next day. It's driving the miles to show a plan, only to have your prospect not show up. It's having to be deceptive about what you are doing. It's skipping functions with family and friends so you can be core to the business.

As IBOs, do you see any of this? I saw some of this during my involvement. While I have not been an IBO in some years now, I still see many testimonies and comments by more current and even some active IBOs to indicate that a lot of this still goes on. While Amway defenders will deny it, I see no reason why any of this would have changed over the years since Amway has made no significant changes to stop abusive uplines. If Amway did make any changes, they are not immediately apparent and the continuous string of comments and testimonies do not confirm that any clean up has been done.

For active IBOs or prospects, these are the harsh realities that may be attached with the Amway opportunity. Much of it is because of motivational groups such as WWDB, but if you are seeing these traits in your group, ask the tough questions. If you happen to decide that the Amway opportunity is not for you, take heart! There are other ways to achieve your financial goals and dreams and there are more efficient ways out there. Sometimes, quitting something that isn't working is a wise business decisions and sometimes you can lose more by not quitting. Good luck in whatever you decide.

A Con Game?

 Great Thread posted at scam.com:

http://www.scam.com/showthread.php?t=142975

It is stunning to realize the enormity of this con. Multi-million and billion dollar companies, stock exchange listed companies, companies that put on the facade of being a good corporate neighbor and innocent "business" (cough) next door.

Nework marketing is a flawed and unsustainable business model that effectively is fed and supported by those on the bottom. Those on the bottom work a job to fund their product purchases. Those spoils of war then are divided up by the upline and sponsor company. Those on the bottom, who use funds from their jobs (rather than product sales) to sustain the "business", are an ever expanding rotating door of new recruits.

Although the products may be of high quality and slickly packaged, and give the impression that you are a marketeer of these sundry goods...the reality is much different. You are required to buy monthly quotas for personal use and recruit your ass off to gain entry into the promised land. The product you are really selling is a dubious "business opportunity"...your real market is "opportunity seekers".

A real business markets and sell goods and services. They are sustained by real retail sales. They order only what they know they can sell. From what I see all these mlms push recruiting as the ticket to the good life. Products and retailing mean nothing.

Another major difference is a real business owner holds title to his business...something he can sell. In mlm, you own nothing but your small product inventory.

The nature of this false and flawed business model will always have in its wake a vast turnover at the bottom of the pyramid structure. Its the nature of the beast and can be no other way, all math aside. The many "losers and the quitters" and dreamers who hang in there waiting for their ship to come in are those who support the top and sponsor company. There will always be a relentless drive to recruit at the bottom as it has nothing to do with true product retailing to support the business but finding and recruiting opportunity seekers. The emphasis is always on finding new recruits rather than selling product. And indeed, many of these mlm businesses put restrictions on the associate's ability to retail the product...which subtly strengthens its true goal of recruiting as the primary revenue stream...not product sales.

These "businesses" (cough again) are predatory and prey on the many by appealing to dreams of luxury and a life of ease, especially those with troubles in their life. The start money is low to get into the "business", which is unlike a real business that takes more sizable seed money, some knowledge and guidance and a real business plan.

Those few that actually make sizable incomes from these schemes must live with the knowledge that their life is supported by the broken dreams, efforts and losses of those on the bottom. They conveniently set aside any feelings of culpability after stepping on the bodies of their fellow man so they can proclaim that they worked hard and made it.

There simply is no parallel between a network marketing model as a "business" and how a "normal?" business really works. I understand this because I own a real business that retails real product.

Network marketing is simply the greatest con game of all time. They should all be shut down.

Is Amway A Job?

 I find it ironic that many Amway diamonds will put down jobs as if you should be embarrassed to have one. They talk about employees being slaves who have to worship an alarm clock and a boss. That your life is so miserable in a job, and you will end up broke at the end of your career after working for 30-40 years. They get people to despise their jobs and their boss and offer the Amway opportunity as a viable solution. Join Amway, 2-5 years of effort and then your job becomes optional, or so they say.

Ironically, the Amway opportunity is basically a job. You sell products and you sell the opportunity to others. That is the key to success according to many LOS's. The flaw is that too many IBOs get fooled into thinking they need to be their own best customer. As an IBO, you are Amway's customer. Anything you purchase results in a profit for Amway, but not necessarily for your business. Have you ever heard of a car salesman buying a new car each month to earn a commission? Or a vacuum cleaner salesman buys a new vacuum each month to increase volume? These concepts sound ridiculous, yet most IBOs run most of their own volume. Some IBOs don't have any customers and end up buying their PV bonus.

While some will argue that they are independent business owners, these nice folks are more like commissioned salespeople with no fringe benefits from Amway. Amway has minimal advertising for their products; thus, volume moves person to person, and mainly word of mouth. In my opinion, the least efficient means of getting goods to the consumer. When you factor in that the Amway goods are not really cheaper than a retailer like Walmart, you can see why some groups focus on self-consumption, because there is no market demand for many of these goods and services, The demand is artificial because the IBOs themselves consume most of the Amway goods and services.

The really damaging aspect of all this is the upline leaders who tout their system of cds, functions, books and voicemail as the key to success. While these materials may have some value, it doesn't equate to success in Amway, and in most cases, the cost of these materials are the reason why so many IBOs end up with a net loss, instead of the extra cash they are seeking. Part of the reason why these materials do not work is because you are dealing with a very inefficient delivery system, coupled with uncompetitive prices (in many cases) and a bad reputation. If the opportunity were "all that", people would be seeking IBOs to sign up instead of IBOs having to lie or trick people into attending recruitment meetings.

Unsuspecting people think the Amway opportunity is a business, but it is more like a job than you think. It is my hope that this article will get you to think about it.

Retired At Age 19?

 One of the humorous things I read is when an Amway IBO says he or she is 19 years old and will be "retired" at the age of 24 because of the Amway business. I personally don't know of anyone who has retired primarily on residual Amway income, as many seem to claim. I am not suggesting that nobody has ever done this, but I suspect that there are so few people who may have done it that it is not noteworthy. Even the Crown Ambassadors appear to not only be working but have very busy schedules where they are constantly on the run. In recent years, some crown ambassadors have passed away while still on the job. Why don't we see any Amway retirees? I know retired teachers, police, fire fighters and such. I don't know of any Amway retirees.  

I know some may argue that diamonds are actually "retired" but just do what they enjoy.  Seriously?  Do you know people who retire to enjoy life but still fight crime or answer calls to put out fires because they enjoyed it?   I heard more than one Amway diamond say that if you enjoyed your job, you would do it for free.  Using that same line of reasoning, how many diamonds would be working those functions or running big meetings for free?  We know that significant income is made at these functions or open meetings.  None of the diamonds do it out of the goodness of their hearts as far as I know.  They do it because they get paid. The same as the guy with a job.  Let that one sink in for a bit. 

The poor retention rate of Amway IBOs would suggest that even a sizable Amway business could fall apart rather quickly without a constant replacement of IBOs. It is for this reason that I suspect that Amway folks never retire. They need to keep working or their businesses will fall apart. If you are a diamond, one downline platinum falling out of qualification could drop you to emerald status. Diamonds are not forever, especially in Amway. They may carry the diamond pin, and could be speaking at functions, but they might be a former diamond with a small downline group.   A former diamond still wears a diamond pin and is recognized as such, after all.

I ask this of IBOs. Is your upline diamond, or someone in between you and the diamond retired because of (primarily) Amway income? Do you as an IBO have a projected date when you will "walk away" from the business and retire? When I was an IBO, I always wondered why nobody "walked away" from their business after they went diamond. I believe the answer is crystal clear. Because IBO turnover is so high, if a diamond were to walk away from the business, he would probably fall out of qualification in less than a year. The bonuses would disappear, and the diamond would probably have to look for a job. There are many examples of diamonds who have quit, and in some cases, went back to work.

Many unsuspecting prospects may be lured into the Amway business with the hope of an early retirement. Amway recruiters may mention that control of time and money is the key to success, but ironically, for most who sign up, will end up with less time and money than if they did not join at all. For many people. especially young people, it might be a good idea to seek financial advice from a professional and to make long term investment goals. Am investment of about $200 a month can net you close to a million bucks after 30 to 40 years.

Yes, there may be "some" people who retired early due to (primarily) Amway income. But I don't know any. And not a single Amway defender has ever been able to name one. It reminds me of bigfoot/sasquatch. Many reports and allegations are there that these creatures exist but there is no real evidence to support that such a creature actually exists. 

Trust Upline?

 One of the disturbing things I have noticed about Amway IBOs and IBO leaders is how they will tell downline to trust them. To trust them as they have already blazed a trail. No need to re-invent the wheel. Just ride the coattails of your upline to success. The system is proven. Many IBOs take this to heart and put forth tremendous effort. Then when they fail, upline will shun them and tell them that the failure is their own. That they are personally responsible for failure. 

This lack of accountability by upline leaders is astounding, especially given the fact that the leaders are profiting off the efforts of their downline, as well as selling them training materials that upline claims is foolproof.  It's more disturbing when groups and group leaders talk about how their uplines have a high level of integrity, which is BS in my opinion.  These leaders have the gall to tell the group to make sacrifices, put off time with their families and to spend their discretionary money on ineffective training.  In other words, it appears that these integrity laden leaders are simply defrauding their downline and will never suffer consequences. 

Now when speaking of being defrauded, I am (generally) not talking about IBOs who sign up and do nothing or never place an order. I do believe that the fact that many IBOs sign up and do nothing brings concerns about how these IBOs were recruited, but I do not recall ever seeing many IBOs do nothing and then complain that Amway was a scam or anything like that. 

I have found, however, that many people who are critical of Amway and the systems, put forth much effort, did everything they were told, and did not find the success that upline promoted, or in some cases, guaranteed. My former sponsor was still active, last I heard and has been in Amway for over 25+ years. I do not believe he has ever gone beyond platinum, and I know that he was never a Q12 platinum. Some Amway apologists might see being a platinum as a bonus, but when you are hard core sold out to the systems, platinum is a break even or make a small profit business. Factor in that time spent by husband and wife and these folks are breaking even or making a fraction of minimum wage. Is this the dream that will allow you to buy mansions with a cash payment? 

What is also disturbing is how people will tout the system as responsible for any success but hide the vast majority that the system doesn't help. Sure, some will succeed in Amway, but for every success, there are hundreds if not thousands who fail. And if you consider diamond as the benchmark of success, the failures could be in the millions. As I said, some succeed, but very few in relation to the number who try. Going diamond is probably less common in the US than winning the lottery. 

Succeed and the systems and upline take credit but fail or quit and it is your own responsibility. Are these the kinds of leaders or mentors you want advice from? I will pass.

Why People Believe?

 Many IBOs cannot be convinced that Amway is not the best opportunity in the world, because they want to believe the lies/deception that is often used when they are recruited. They want to believe that 2-5 years of part time effort will result in lifelong residual income and that they will be traveling to the beaches of the world while cash keeps rolling in. They want to believe that they can ditch their (often) less than adequate jobs. They want to believe that a part time soap business will make all of this possible. The people (upline) who claim to have everyone's best interest at heart will sell them a proven system of success and all they need to do is follow the steps to success.

Many people sign up for Amway and do absolutely nothing. They may not ever order or try products. But these folks do not complain about Amway and the expenses they may incur are minimal. Most do not even bother to seek a refund on their starter kit. It makes me wonder why these folks even bother to sign up. Although, there are stories of people being pestered into registering. Anyway, the part where this business gets dicey is when people register and do put in an earnest effort, only to end up with financial losses. Sometimes the losses are in the tens of thousands of dollars or more. You get squeezed for a couple of hundreds of dollars a month and after a few years of effort, you can find yourself drowning in debt, even after doing everything your upline advised. The fact that uplines don't disclose their business financials speaks volumes. Former uplines who have come forward have shown that most of their income was from hawking standing orders and seminars, and not from Amway sales as they would imply.

I bought into the hype at one time. I believed the lies. I believed my upline that no profit was made from tools. At the time I was an IBO, I too, wanted to believe that I could work part time for 2-5 years and ditch my job. That I would retire at the age of 35 and live in luxury forever. I wanted to believe that. But having reached the 4000 PV level, the precipice of platinum, I also realized that I had no profit. I sat down and did the math and realized that they would be little profit at platinum. I came to the realization that a second job would have suited me better. I finally quit when I realized this, along with my upline wanting total control of my life. But I hung in as long as I did because I wanted to believe that Amway would be the vehicle that delivered my financial freedom.

Having dropped out of Amway, my life quickly got back to normal. Friends that I had avoided returned to my life. My disposable income increased, and my cash flow was positive once again, now that I was no longer obligated to purchase tools. I also noticed years later that the same old leaders on stage were still working as hard as ever, and none of them had taken the option to retire and walk the beaches of the world. Perhaps these leaders also want to - or have to believe in Amway because they have already invested too much time and effort to call it quits and start something else. I wanted to believe, but the fact is that people were not succeeding. People were not getting free. What I saw was home foreclosures, bankruptcies and financial struggles made worse for people because of Amway and the tool systems. And apparently, these same issues apply to the diamonds. Do your research and you will likely find the same conclusion that I did. That Amway is an impossible dream.

Diamond Wealth Beyond Belief?

  One of the things so many Amway IBOs and others do is assume that their upline diamond is rich beyond belief. At meetings, the speaker would be introduced as being in the top one tenth of one percent income bracket. While it may or may not be true, nobody ever questioned it, they just assumed it was true because people saw pictures of mansions and copies of 5-year-old bonus checks. Even I never went and studied how the diamond bonuses worked. Most people just assumed that the money would be huge at the diamond level. But looking back, I can recall some things that make me believe that the diamonds were cutting corners and needed their platinums working free at meetings and functions in order to maximize profits.

The upline diamonds in our group often did not stay in hotels when visiting for meetings, but in the home of another diamond or some "lucky" downline platinum. The diamonds rarely rented a car. Instead, a downline platinum or higher would be lucky enough to be the unpaid and uncompensated chauffeur for the weekend. The platinums basically were the doormen and ushers at the functions and in many cases, probably didn't even get to hear the speakers since they were busy working. Their reward for their troubles was "spending time" with their uplines.

The downline basically are unpaid volunteers. For example, ever see diamonds actually renting a moving van and hiring movers? I believe most of them had downline groupies who did the work for free, just for the honor of being near their upline. Just my opinion, but if these folks had mountains of cash, why wouldn't you hire movers, so your downline didn't have to use up a valuable Saturday or Sunday to do that work? That's like owning a chain of stores but having all of their stores closed. No products sold, no new recruits prospected. If Ray Kroc moved his residence, would all the nearby McDonald's owners close their stores to help him move?

Another things IBOs and prospects should note is that pictures of mansions, sports cars and jet skis doesn't mean someone is wealthy. Someone could have all those things on credit or rented after all.  Not to mention these luxuries could simply be pictures.  I have pictures of me sitting in a Nissan GTR.  But I don't own one.   And many people who truly are wealthy, do not show off their wealth. It is possible that many diamonds live mundane middle-class lives on their income but need to portray wealth to lure in new IBOs. While your upline diamonds may act and appear to be rich, how would you really know? I can take a homeless guy, clean him up and put him in a suit and a sports car and he would probably look like a diamond.

If your uplines are implying that they are so wealthy, ask them to verify some of the claims. I'm not talking about their personal income, but in business, verifying business income is very common. If you are being invited into the business and a business system such as WWDB, BWW or N21, you have every right to check your upline's credentials. Avoidance of the truth, or an answer such as "none of your business" should be a red flag. It is your business if you are being asked to join, invest your time and money, and follow upline advice.  Is your upline wealthy beyond belief, or the stark reality a 180 degree contrast to what diamonds portray on stage?

Outearn Your Sponsor?

 One of the silly defenses that Amway supporters use to defend their business is that it must not be a pyramid or it must be legitimate because you have the opportunity to earn more than your sponsor. While many downlines in fact do earn more than their sponsors, it's likely because about half of all IBOs don't stay for even a year and factoring the business expenses for those who are on tools, the reality of suffering business losses also causes many people to exit the business. It's not that hard to earn more than people who quit. But even at that, someone who quits is often better off than IBOs who continue.

An IBO at the 100 PV level will earn about $10 in bonus income from Amway. If they are attending functions, buying standing orders and voicemail, they will operate at a loss. Thus, unless their business grows each month (highly unlikely, even if they do as upline advises) then they will suffer losses each month and those who quit will be better off. It is why I have stated that doing nothing or staying home and watching television can honestly be better options than joining Amway and the systems such as WWDB, N21 or BWW. It is why reasonable people can conclude that working for minimum wage, even a few hours a week makes you better off than joining Amway and the systems.

The defense that someone can outearn their upline is silly. The true benchmark of this statement would be for a new guy to start a business, and in 2-5 years, outearn a long tenured diamond. It will never happen because upline has direct influence over the fortunes of their downline, even at the diamond level. It is why you have seen diamonds quit or split from their upline to start their own training systems. They cannot affect change from downline, without upline consent, thus the breaking away from their "mentors" or leaders. At times there have even been lawsuits over the tools income. Do people really sue their mentors? Don't diamonds teach you that suing people is wrong? That you don't get something for nothing? Yet they want you to believe you can build your business "right" and then sit back while the cash rolls in like crazy.

You can surely outearn your sponsor. All it takes is for your sponsor to quit. However, your sponsor quitting might mean you don't outearn your sponsor. See my example above. Taking losses is not outearning someone. Keep in mind that everyone in Amway is equal. You are all unpaid commissioned Amway salespeople, bound to Amway's terms and agreements. You don't own your downline. You don't really own much as an independent business owner. You can outearn your sponsor, but that means squidly diddly when your sponsor makes nothing or takes a loss. Come back and chirp when you outearn your upline diamond. Do I hear crickets chirping now? :-)

My Views?

 So many IBO's and site visitors here drop by and ask why I am "bashing" Amway or MLM. The fact is that I do not always talk about Amway or MLM in general. This blog is primarily about the training systems such as WWDB or Network 21 and at times, zany IBO behavior such as lying or tricking people into attending meetings. Occasionally, I get a classic forum troll dropping by to leave disparaging comments, almost in a "drive by" manner.  LOL

Amway in itself is benign. It's a business opportunity (a poor one in my opinion), but what makes Amway into a financial trap is when these training systems come in and convince new IBO's that they cannot succeed without their training. In the end, the cost of these training systems is the cause of financial losses by IBO's. Amway products are generally priced higher than competitive products, thus they are difficult to sell, save for sympathetic family and friends. Without the movement of products, the IBO's play a money shuffling game where the money flows from the lower level IBO's to the higher level IBO's in the form of product bonuses and the purchase of tools and seminars.

The only way an IBO can eventually prosper is to sponsor enough downline so the downline can absorb the losses and pass bonuses up the chain. Being that many IBO's do nothing and many IBO's can't sponsor anyone, it's easy to see why so many IBO's lose money, get discouraged and quit. Many IBO's use the line that you can earn more than your sponsor, making the business legit. In MLM, many people earn more than their sponsors because many IBO's do nothing and quit. If IBO's would see where their dollars are going, they might get wise to the scheme.

Think about it. If you buy $300 worth of Amway products and get back $10 in the form of a 3% bonus (100 PV), the rest of the $$$ bonus you helped generate goes somewhere upline. In addition, if you are attending functions and buying cd's, etc, then you are also funneling money upline in that manner. In the meantime, your upline diamond is showing off a new sports car or telling you about some fabulous vacation which you helped to finance. If IBO's would truly be business owners with a business mentality, they would track and analyze where their dollars go and not blindly follow upline, they would recognize the scheme as well.

If you talk to your upline and they won't answer your questions honestly and candidly, you should wonder why they should be qualified to give you financial advice and advice about YOUR business if they cannot demonstrate they have actually succeeded in accomplishing what they are selling you. If you attend functions and buy cd's where the diamond brags about buying a home in cash, has anyone ever verified these claims? Of if the diamond says they earn $50,000 a month, has anyone checked to see if it's true?

I doubt that diamonds live as well as they portray when a diamond lifestyle is full of expenses. Do the math. If a diamond grosses $250K and has kids and a stay-at-home mom, what kind of net income do they have. What about traveling to functions, medical insurance, and other business expenses. My guess is that diamonds live middle class lifestyles, save for some exceptional diamonds. I do not believe diamonds or Amway can save marriages or do any other extraordinary feats either. Diamonds are more likely like anyone else than not.

That's Joecool's take and I'm sticking with it.

Missing The Point?

 There are still a handful of Amway defenders who continue to defend Amway as if it's the greatest thing since sliced bread. No doubt that Amway works wonders for their owners, who are billionaires, and a select few leaders who make handsome profits from selling tools (standing orders, functions, voicemail) as well as Amway bonuses. But the main point seems to get lost.

The main point is that, even if the Amway owners and some Amway leaders make a nice income from Amway, it doesn't change the fact that the masses lose a lot of money attempting to build an Amway empire. What's more, many of these leaders earn money directly from the pockets of their trusting and faithful downline. The downline is taught to trust the leaders and to do what is advised. Often, that advice is to buy more and more tools regardless of how an IBO's business is progressing, or even their profit/loss numbers. There is no business analysis or a look at profits and losses and a return on investment. IBOs are taught to be happy, avoid negative, and keep consuming those tools and attending functions.

Failures in Amway appear to be rampant, but leaders absolve themselves of blame by claiming that the failures are the result of laziness, not enough effort, not doing things right, or lack of follow through on the part of the IBO. Sadly, many IBOs believe this and blame themselves, even if they did work hard and follow upline's sage advice. I believe that over the years, billions of dollars have been lost by millions of IBOs who chase the dream sold by upline. Because many IBOs are sponsored by friends and family, those who quit tend to fade away without much fanfare, leaving Amway and the upline leaders clear of any responsibility.

Too many IBOs miss that point. Hard work and following upline advice doesn't necessarily lead to success, and in fact, more people end up at a loss than those who gain a positive experience in the Amway business. I challenge IBOs to analyze their efforts and their income versus expenses. You are more likely to be expending more on support materials than the amount of income that is received. That's the real point and too many IBOs miss it. Losing money is not success.

Trust Upline?

 One of the things that was emphasized in my days as an IBO was to trust your upline. They said they had my best interests at heart and that they would never intentionally lead me astray as they wanted my success. At the time I believed them but looking back, I see that it was a charade and the upline really wanted their own success at my expense. For many groups, I believe this is still true although some upline leaders may have backed off just a bit since the heyday of the AMOs, which was the mid to late 90's.

Upline's profits from tools are spoken about today, although I believe most IBOs do not know exactly how they can qualify, nor do they know how much they would receive when they qualify. Back when I was an IBO, uplines stood on stage and proclaimed that NOBODY made a profit from the sale of tools. None of these leaders were ever made to account for their lies and with some revisionist history, the whole episode was covered up.

Some groups also teach submission and faith in the upline. Some will say there is no need to reinvent the wheel, simply copy or duplicate your upline and you will be successful That makes me wonder why so many tools and functions are needed. Also, I find it odd that someone who has my best interest at heart and truly cared about my success, get compensated for every action he/she takes to "help" my business. Voicemail, standing orders, books and functions are all profit centers for some upline leaders and therefore, just about any meeting or material designed to help an IBO puts money in the pockets of upline. Some upline even went so far as to say you should check upline before purchasing a new car, or even before having children.

Despite the request for trust and faith in upline, I find it odd that uplines never take responsibility for the outcome of an IBO's fortunes. Many IBOs work hard and earnestly do all the recommended steps of CORE, only to fail. These IBOs are told they did not work hard enough or did not follow the steps properly. Uplines, as far as I know, have never taken responsibility for their downlines. They only take credit for downline success, but not failures.

I find a huge conflict of interest for an upline to profit from any help that he provides to downline, and then to tell downlines that training materials are vital to their business. I also see a problem when these same uplines take no responsibility when an IBO does the work but does not profit. Ironically, it is often the cost of the training materials that prevents the IBO from making a net profit. Now not all uplines are like this, but I am hopeful that some of the red flags mentioned here can be an alert for IBOs and information seekers.

How Likely Is Success?

 Many people consider the platinum level in Amway as a significant achievement in Amway. While it may be nice to achieve that level and gain recognition from the Amway corporation, I will point out that there was a study done in Wisconsin where the attorney general (a bit dated, but still applicable, IMO) analyzed and found that platinums on average, lost money. The study is somewhat dated, but I will also point out that today, there are MORE expenses associated with running an Amway business than before. (Voicemail, books, functions, standing orders, shipping). I would guess that it's possible that platinums lose more today than when the Wisconsin study was done.

A typical platinum group often has 100 ore more downline IBOs. Thus, a logical conclusion is that less than 1% of IBOs can reach that level. It is also, apparently rare to maintain that level. My former upline diamond had 7 frontline platinums in his heyday. Actually, 6 of them were ruby level. None of them hold the platinum level today.  So, you have a less than 1% chance of reaching platinum and then you are unlikely to be able to maintain that level.

What serious prospective business owner would even consider opening a business where you have such a tiny chance of success? Even those who achieve platinum are likely to lose that level. If platinums cannot maintain their level, then it's easy to see why there are former diamonds as well. It seems that people are willing to take a chance on an Amway business because the startup cost is low. But what is the point of doing all of that when the chance of making money is negligible?

To compound the problem, many IBOs spend a lot of time and money building an Amway business that is unlikely to give them any return on their investment. I'd guess that the average serious IBO would spend $250 a month of more on tools. That money invested over a number of years in mutual funds would give you a much better chance of achieving some dreams. Even putting the money in the bank would make you better off than the vast majority of IBOs. A serious business owner would want to know their realistic chance of making money. For some strange reason, prospects and IBOs seem to ignore this reality.

It is because uplines are in the business of selling tools and distributorships. They are not truly interested in your long-term sustainable success. If you don't believe me, try to stop purchasing standing orders and function tickets and see how much longer you are edified and given help from upline. Seriously, would a real business owner be interested in a less than 1% chance of success?

A Tough Business?

 There are some folks who try to sell the Amway opportunity as one that works in a good or bad economy. The pitch might be that people need household products such as soap or cleaners in a good or bad economy. While that may be true, in a tough economy, people will be looking for the bottom line, or the cheapest price. That is why Walmart is wildly successful. Walmart's slogan is "live better, save money". Being that Walmart sales exceed 500 billion dollars; it means that one day's sales exceed Amway's sales for more than a month. Clearly, price is important to consumers.

Amway apologists like to cite that not everyone buys a Porsche or a Lexus. While that is true, it is ridiculous to think Amway products are a Porsche or Lexus compared to other household products, and that consumers in general, even care less about issues like that. What do IBOs do? Brag that their laundry soap is better than their neighbors. 

Another silly tactic that some Amway IBOs employ is to drop names such as Robert Kiyosaki, or Warren Buffet promote MLM.  The fact of the matter is Robert Kiyosaki makes him money from Network Marketers, not from Network Marketing. Or he's selling the IBOs books and seminars. Warren Buffet and others apparently own MLM companies, thus they also profit FROM network marketers and not from distributing the good themselves. It's a silly argument and anyone with some discernment can see right through it. I even see rumors spread by some IBOs that various movie stars or celebrities are involved in Amway. The truth is that there are some celebrities that are involved with Amway, but typically, they are paid to endorse Amway rather than being rank and file IBOs.

That brings us to whether Amway is a viable business opportunity. Let me put a disclaimer that people who may try to sell goods without participating in the training system might have a chance to make a few dollars, but these folks are quite rare. Many people get drawn into going diamond and chasing a dream. It is why you see big functions and conventions of people chasing dreams that likely won't come to pass. The typical IBO doesn't do much, if anything at all. Out of those who actually put in effort, a fraction of 1% might go platinum and an even smaller fraction of 1% might make some money. Amway's own numbers and the plan shown by many IBOs confirm this. Amway says the average "active" IBO makes just over $200 a month. We also know that it takes about 100 IBOs or more to form a platinum group. We know that many IBOs do little or nothing. That already provides a clear picture that only a small percentage of IBOs can ever reach that platinum level where you might net a small profit, depending on your business expenses.

Factoring in the Amway (crappy) reputation and you have a very tough business opportunity. Now Amway itself may have done good things (politically) but IBOs themselves have ruined the Amway name. They have lied or tricked people into attending recruitment meetings, or they have called people broke or losers.  Amway is a very tough business to succeed in, regardless of your level of effort.

IBO Expenses?

 Many uplines will use slightly deceptive recruitment tactics when getting new people to see or register into the Amway business. One of the common things was how joining Amway has very little risk, no or very little overhead. This is true, if an IBO is not involved in any of the system related training. However, it is the goal of many if not most uplines to get as many IBOs involved in the system as possible. This is probably because selling standing orders, voicemails and seminars has a higher profit margin for some uplines than the actual movement of Amway volume. So, some newbies might join thinking Amway won't cost them much, only to find out that 100 PV might run them more than $300. They may not be aware that standing orders and functions never end and can add an additional cost of up to several hundreds of dollars more. Uplines will then justify the expense by saying the IBO is investing in his/her business.

New IBOs, and especially IBOs who are single should seriously think about the cost of being a business building IBO before joining. Many or most prospects don't know that building an Amway business using system tools and "coaching" can cost them up to$500 or more each month. A single person more than likely cannot possibly consume 100 PV worth or products on a monthly basis unless they almost exclusively consume XS drinks and Nutrilite vitamins. And secondly, how many singles or prospects were consuming cases of energy drinks and vitamins ($300 monthly) before being presented with the Amway business? How many people were willing to fork out hundreds of dollars for a weekend function that may require airfare and hotel stay? I don't think too many people like this exist. But I believe they do so because they have been sold a dream of financial freedom, of early retirement and not having to work a job anymore. But the evidence would suggest that once the dream disappears or reality sets in, how many (former) IBOs continue to purchase Amway products and attend seminars?

I know of many former IBOs and I don't know of any who purchase Amway products on a regular basis and I don't know of ANYONE who has ever forked out money to attend an Amway/AMO function after they stopped being an IBO. Amway's numbers bear out this claim as there is very little sales to people who are not IBOs. The IBO salesforce is responsible for consuming the lion's share of Amway's products and services. I myself have purchased an Amway product or two since I left the business. But I did so only to humor friends who were still in the business. They have all since quit. It is very reasonable to conclude that once the desire to build the business stops, the desire to purchase Amway products also stops.

Most eager young and motivated people who sign up often do not realize that these IBO expenses exist. While Amway acknowledges that these tools and systems expenses are optional, the uplines who promote the tools may suggest that it is insanity to attempt to build an Amway business without the tools or strongly encourage new IBOs to partake. A common statement was that we "needed" to be at the next function no matter what. Missing it would set your business back six months. New IBOs and prospects don't know better so they will often conform. Sadly, there is ZERO unbiased evidence that the tools and seminars do anything to increase IBO volume and/or the sponsorship rate. In my informed and experienced opinion, the tools are ineffective and the vast majority if IBOs would be better off handing their upline a monthly check for $100 and not building the business or buying any products.

IBOs and information seekers should be aware of these potential IBO expenses and determine if the expenses would be worth your while. Keep in mind that someone upline profits handsomely from the tools, even if you do not make a cent from your Amway business. You should have your best interest at heart, no matter what your upline tells you.

Amway Makes Me Nicer?

 Many Amway IBOs "think" they have become nicer people as a result of their association with other IBOs and because a part of the system they are with advises them to read self-help books. They are also taught that as a side benefit of the Amway business, that they are nicer people. Of course, many IBOs mistakenly think that they started a business not to make money, but to become "nicer".  This notion is absurd.  A business exists to make a profit.  If not, you don't have a business.  

I certainly agree that some people can benefit from positive books and association with others, but for many, it is not a genuine "nicer" person, but simply a phony persona that is put on in order to recruit potential Amway downlines. That is how my former sponsor appeared to me. Because I had known him for a long time, the "nicer" looked as phony as phony can be. There are many examples of phony niceness that some IBOs profess. Even Amway's biggest defender was apparently called a "cyber bully" by an Amway corporate blogger and some others for making disparaging comments about those with opposing views. Others have resorted to calling people broke or losers simply because they did not agree that Amway was their savior.

On this very blog, there are comments, I assume by IBOs, that make implied, veiled, or subtle threats. Some of these comments are not subtle at all. In fact, in my blogging experience, it is usually the IBOs and Amway defenders that resort to name calling. I suspect that is because the facts are on the side of the Amway critics. For example, it is a fact that most IBOs never make a dime, even if you don't count the ones who "do nothing". If you look at system IBOs, then the vast majority never make enough to pay their voicemail expenses.

Even the coveted diamond level appears to be a facade, especially seeing diamonds quit, resign and simply walk away from the business without the lifelong passive income. A triple diamond's bankruptcy revealed some financials which were public record because of the chapter 7 bankruptcy, and it wasn't all that impressive considering the size of his business plus longevity in the business.

So IBOs, are you a nicer person? Is it evident by your words and actions? It doesn't appear to be very clear to me.

The Super Bowl?

 One of the things I thankfully never missed because of my involvement with Amway was a Superbowl party. It truly is an event that I enjoy. We hang out with friends for the afternoon. Lots of great food and great fun! But as an IBO, I remember the upline always wanting everyone to make sacrifices in the name of the business. For example, my sponsor told me that he gave up on all of his hobbies in order to focus on Amway. That the delayed gratification would eventually pay off. Sadly, my former sponsor was still active in Amway, 28 year's worth, last I heard a few years ago.. I don't know if his hobbies are still on hold, but I remember people being edified for dumping their golf clubs, their tennis club memberships and other sacrifices.  At this point, I really don't know if my former sponsor is active in Amway.  I hope he saw the light and got on with his life.

I remember people would say how they would one day travel the world to play golf, or to fly and play tennis in world famous venues. That idle time spent with family and friends would not be missed but one day would pay off big when they had diamond groups. That one day, they too could stand on stage, tell about their selfless sacrifices and how it propelled them to diamond. They would look back and realize how small of a sacrifice it really was.

The reality is that IBOs often ended up sacrificing valuable time with their families, their kids, and their friends for nothing. Not a single IBO from my days in the business ever hit the emerald level. I saw kids who grew up with their parent missing important events in their lives in the name of Amway and the dream of financial freedom. The diamonds would say that when the kids are sleeping, you can be showing the plan. But sadly, time passes quickly and can never be replayed. I wonder how some parents, who finally quit after a number of years, were able to explain to their kids about the dreams and unfulfilled promises? I hope honesty was involved in these cases. I truly do.

Luckily for me, my involvement was about a year or less. My damage was minimal. But I feel for people who neglected family and friends to chase a dream that will never come. Hopefully, the family and friends of IBOs who quit will be patient and understanding. Maybe this article will help someone cope. Hopefully, the word will get out, so fewer people sell their souls to the upline. I hope everyone has a safe and happy Superbowl party and gets to and from their parties safely.

Why So Many Fail?

 Over the years, there must have been tens of millions of IBOs (or more) who had some experience or brush up with Amway. Obviously, not all of these folks got involved in a system or had the intention of trying to make millions of dollars. But looking at the business as a whole, the number of people who make a significant income from Amway is a tiny fraction of 1%. If a typical platinum has about 100 IBOs in a group, then you can conclude that platinum is in the top 1% of all IBOs. And we know that many IBOs quit and go through the business each year. The attrition rate can be staggering for bigger pins who need to keep working to replace those who quit.  So, do you really believe that the end game of Amway is to walk away from Amway to retire in luxury?   Implausible. in my point of view, not to mention that Amway doesn't even mention this as a benefit.

But the question that seems to be ignored is why so many IBOs end up failing? Now for the sake of this discussion, let's exclude IBOs who do nothing and quit. Let's talk about IBOs who make an earnest effort. Often, the serious IBOs will be on the system consisting of voicemail, standing order, functions, books and other meetings. These all come at a cost, therefore, IBOs need to make several hundred dollars a month just to break even. Amway reports that the average income of active IBOs is $202 a month. Therefore, the average business building IBO is operating at a loss.  Also, I might add that the $202 average includes the diamonds and EXCLUDES IBOs who did absolutely nothing.

Let's look at some of the reasons why Amway IBOs cannot succeed. In general, Amway product pricing is higher than local big box retailers. Amway pays bonuses, therefore the bonus payout is included in the price of the products. I suppose a platinum gets a good deal, being at the 25% level, but a platinum is in the top 1% of IBOs. The majority of the rest receive a paltry 3% (if they receive any bonus ay all) which leaves them at a loss when business expenses are factored in.

Past IBO abuse and past IBO behavior makes it nearly impossible, at least in North America, to find potential downline IBOs and customers. Seems everyone knows of someone who was tricked into an Amway meeting or was deceived about Amway in some manner. I believe Amway has seen a decline in sales in North America, with foreign countries being responsible for any current growth in business.

Another factor is that IBOs are taught by uplines to engage in too many activities that do not produce income. Attending meetings, listening to cds, reading books and other functions cost the IBO money. They do not result in more sales to customers. These non income producing activities seem to be the majority of an IBO's activities, thus it's easy to see why so many IBOs fail. While system leaders claim that their system works, there is no reasonable evidence to support this claim. Just the fact that new diamonds and emeralds are so rare these days suggest that the system, with their severely limited success is producing less success these days.

All told, an IBO's chance of succeeding in earning long term sustainable income is so tiny that IBOs seriously would be better off buying lottery tickets instead of buying tools such as standing orders and function tickets. At least buying lottery tickets would not use up 10-15 hours per week of your time, and your chance of winning is about the same. The system doesn't work, it is why most IBOs fail.