Thursday, June 19, 2025

Amway The Negative Sum Game?

 In my informed opinion, the Amway opportunity as taught and run by the AMOs such as WWDB or Network 21 is a negative sum game.  In other words, the IBOs have X amount of dollars but the system's expenses such as standing orders, function tickets and other training related expenses eat up the resources of the IBOs and it's a a constant and massive drain of the IBO's resources.  This is in contrast to a perhaps poker game where maybe 7 players each bring $100 to the game.  At the end of the day, there might be several winners and losers but when the game ends, $700 still sits in the hands of the players, even if some of them might not have their original stake of $100.

In the IBO world of the AMOs, "serious" IBOs are expected to consume or possibly sell some products but generally, this process reduces the pool of resources that IBOs may possess, but because they receive goods for it, I don't view this aspect of the business as a negative sum game, although there could be debate as to whether these generic in nature products are worth the "premium" price that is often charged.

Now when you get into the tools and functions, this is where the IBO's resources are systematically drained with little to no tangible results.  Those who participate have their resources drained week after week, month after month and year after year if they "don't quit" which is what upline teaches.  In my previous example, a group of poker players might start out with $100 each, and a group of 7 players would have $700 and at the end of the game, they collectively leave with $700, which is a zero sum game.

In contrast, let's say a group of 7 IBOs all start the month with $500.  It they all consume/sell their defacto 100 PV quota, they likely have approximately $250 left after consuming 100 PV's worth of products.  Now, if these IBOs are dedicated to CORE, which is the teaching system these uplines use, then IBOs will spend money on standing order, books, audios, function tickets, meeting tickets, gas money, and possible voicemail.  At the end of the month, these same IBOs have likely zero dollars left.  Amway profits from the sale of products and the uplines profit from the sale of tools and function.  A zero sum game because at the end of the month, IBOs all have less money than they started with even if you disregard the expenses of moving/consuming 100 PV or more.  

Yes, there are times some exceptional IBOs might sponsor and grow their group enough to scrape out a net profit, but if you factor in the business expenses of their downline, then you once again have a net loss.  You could almost compare the AMOs to a casino and IBOs as gamblers.  There are occasional winners, some might even be big winners, but in the end, the house always wins.  In this case, it's the AMOs who win because they profit handsomely despite the fact that their system is so ineffective that the outcomes (IBO's success) seems more coincidental than anything.  Sort of like seeing those infomercials on money making systems where they trot out someone who might have experienced some degree of success, and you'll see a tiny caption on the bottom of your TV screen that says "unique experience, your experience may vary".

And for these reasons, Amway's motivational groups such as WWDB, BWW or Network 21 are running negative sum games where it is inevitable that the upline diamonds always win and the downline loses because the tools and functions expenses heaped upon IBOs systematically drains their resources week after week and month after month.  The lottery is a negative sum game as well, but the sad this about all this is that any significant success in Amway is similar to the odds of a lottery despite the fact that Amway the opportunity is supposed to be a legitimate business opportunity rather than a game of chance.

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