What Does It Look Like?

 In my opinion, Amway is a pyramid. They are not illegal, but still a pyramid. The reason why they remain legal, apparently is because they do not pay anyone for recruiting downline and they claim to sell products to actual customers. But most everyone has been or knows someone who was recruited by a zealous Amway IBO. The emphasis of most active IBOs is on recruiting and much of the teaching by upline is on techniques to recruit and/or how to talk to people without tipping their hat to reveal the Amway name. Most IBOs are not very good at this and they stick out like sore thumbs in many cases. It's also comical when uplines teach crazy antics, like how some IBOs use to deny that Amway and Quixtar were even remotely connected, or if anyone remembers the "perfect water" fiasco a number of years back.

One of the reasons IBOs use to justify their involvement in the pyramid is that they can earn more than their sponsor. While that is true, it is only because everyone below the emerald or diamond level is basically expendable, or a slave in the pyramid. There are many IBOs who achieve fairly high levels who quit or had upline wreck their businesses. Thus, even platinums are expendable to upline. In fact, an upline might make more money by removing the platinum. For new IBOs or recruits, do you really believe that you are going to ever surpass your current upline diamond or higher? If you believe that, you are sadly mistaken.

And for those who dream of achieving diamond and walking the beaches of the world. How do you think you can ever achieve that? You don't get something for nothing unless someone gets nothing for something. In order for you to receive income for little or no efforts, your downline IBOs must keep purchasing products and replacing IBOs who quit. If your downlines cannot keep up with the attrition rate, your business will collapse in a hurry. Come to think of it, if a diamond can walk away and collect a large income forever, why hasn't anyone done it? I mean we still see crown ambassadors still busy working functions and I don't know of any who walked away to spend their lives jet setting on the beaches of the world.

The sad reality is that you see new faces at meetings and functions, just as often as you see familiar faces disappear. With that kind of attrition rate, you may have to work even harder at the higher levels just to keep your business status quo. In Egypt, the slaves built the pyramids. Do you have enough slaves? What many Egyptologists find amazing is how the Egyptians were able to motivate the slaves to keep on going, doing backbreaking work all of their lives. The same can be said of a diamond level business (or higher)

Feeling Sorry?

 One of the things I recall as an Amway IBO myself was thinking how sorry I felt for people who were not IBOs because we were all going to be rich and everyone else was a loser. Our upline used to tell us that we were winners - and if you weren't a winner, then obviously, you are a loser. Many times, the term "broke" was attached to the term loser. That was my mindset back then, but having been out of the system more than 25 years, I can look back and laugh, realizing that the losers were the ones buying stuff they don't need, stalking people at malls and bookstores, and wasting their time and money on tapes (cds), books and functions. 

What goes unnoticed in many cases, is how much time and money really goes down the drain for IBOs who work the system. Your life revolves around the business if you are dedicated and hard core. You are always looking for prospects and people to show the plan to, and you have to rearrange your schedules, or outright skip social or family gatherings because of the never-ending number of meetings and functions, many of which teach you nothing about running a profitable business. When I first left the Amway business, I was sort of angry at the time and effort that was wasted, along with the cash I threw down the crapper.  Because uplines teach most IBOs to accept failure as their own fault. most people simply quit, blame themselves and walk away.  I decided to start blogging to help others avoid falling into the same trap that I did. 

But after I did finally cut ties with the business and the people associated with it, I got back into a routine of sorts. I focused on my job and after some years of gaining experience and working my way up the corporate ladder, I received some promotions, and I retired at the age of 55 with a decent retirement income and my house paid off.  So, while I did have to work a dreaded job to be able to retire, pretty much all IBOs are also working a job or business PLUS having to expend their time and money to run their Amway business which has little to no chance of providing a long term stable and significant income. And if I may add, it is the systems such as WWDB or N21 that usually end up costing the IBOs the most money because of things like the functions and tools.   

So, I will ask the question. Who's the real loser? The person diligently working and saving for their future or the person chasing a dream that is unlikely to materialize? Factoring in the expenditure of time also makes the systems even more costly than it appears on the surface. I feel sorry for IBOs.  They end up in a vicious cycle or meetings and functions and negative cash flow but they are fed lies that they are somehow successful in spite of obvious facts.  That's what the systems and the upline does to otherwise hard working and reasonable people.  It's sad.

Losers?

 One of the things I heard as an Amway IBO and still hear today, is that people who do not view Amway as favorable, or decided to quit and walk away from the Amway opportunity are "broke" or "losers" or "broke losers". As an IBO I remember one of the upline saying that IBOs are winners, and therefore, if you are not an IBO, you must be a loser. I still see that today. I'm not sure why that kind of teaching still exists, especially when most people who work for minimum wage earn more than most IBOs.

I suppose it's a form of subtle pressure used by upline to prevent people from quitting, as nobody wants to be labeled a loser. It creates an "us" versus "them" attitude. One of Amway's co-founders, Rich DeVos, stated quite clearly in a speech that IBOs should not use the term loser just because someone doesn't agree that Amway is the greatest. And I agree.

Many people who are not IBOs are very successful, and many people are simply not suited for or want to run a "side" business. Some people are not in need of an extra income and some people do not want to sacrifice family time. IBOs should respect other people's wishes if they are turned down when offering the opportunity to others. Also, because of previous unethical behaviors of IBOs, many people simply do not wish to get involved in an opportunity where such behavior exists. Sure, not all IBOs act that way, but enough of them still exists. And what's more, it appears that not much, if anything has been done about it.

But here's the biggest reason, in my opinion, why IBOs should not be calling anyone derogatory names just because the prospect does not wish to join Amway or purchase goods. There's no reason to burn bridges with a potential customer or future IBO. Let's say I entered a store but for whatever reason, decided not to make a purchase that day. As I exit the store, the store owner calls me a loser or broke, or not having guts. What is the chance that I would want to do business with that store or store owner ever again? Furthermore, many or most Amway business owners conduct business person to person and face to face. If I insult people who don't initially do business with me, then I am doing a lousy job of PR, and chances are by business will fail. Yet that is exactly what many IBOs do.

IBOs and upline leaders should read this and think twice before using the term loser or broke loser. You could be burning bridges with potential future customers or IBOs.  Not to mention that many IBOs themselves are actually "broke" which is why they joined Amway in the first place.  I can only imagine that many prospects are probably better off than the Amway IBOs who approach them.  LOL

The Evolution Of Amway Teaching?

 One of the things that is very clear. Many Amway recruits are shown fancy cars and toys, along with luxurious vacations and trappings and other extravagant luxuries, allegedly only available if you're an Amway diamond.  This is a way to get prospects excited and interested in signing up for the Amway opportunity. Many sign up, and soon enough, the excitement fades and they quit. Either that or the IBO sees monthly losses and no prospects of improvement and quits. Many do little or nothing. But what many people do not understand or realize is that there is a reason for this. Many do little or nothing, I suspect because the business is much harder to build than advertised.  And those who put forth effort ultimately fail because the system as taught, is designed that way.  For there to be a few high pins and the rest of the rank and file struggling and losing money.

Because Amway has a stigma in the US (and growing in other locations), finding prospects is a daunting task. Add in the high prices of Amway products and you have major challenges that IBOs simply cannot overcome. Most simply quit and fade away into society. Some, like me were lied to and abused, with upline leaders (WWDB)who were never held accountable for their actions. Thus, I blog so others may share my experiences, and anyone can decide if they wish to climb insurmountable challenges for a less than 1% chance of financial success.

What many leaders do is evolve their teachings. They start to teach their IBOs that the Amway opportunity may have made them nicer people, better fathers or husbands and other nice to hear stories because it covers up the fact that these IBOs are not making money. Sometimes I wonder how someone can be a better person by deceiving others about the business opportunity, or how you can be a better father or husband when Amway meetings become a priority over your family and friends. Or how you can be a nicer person and leave threatening messages on forums with those who disagree about Amway being a great business opportunity?

Rather than justifying your involvement or looking at side benefits, IBOs should be looking at their bottom line. If your Amway "Business" is not generating enough money to pay for your voicemail and other expenses and leaving you with a net profit, then what exactly is your upline teaching you that is worth the ongoing expense? If you are like most, you are told that Amway has little to no overhead and has little risk. Well, that becomes untrue after months pass by and you have spent hundreds if not thousands on support materials that do not deliver you a net profit. Additionally, your upline is making a nice income by selling you those support materials and advising you to buy more.

Are you new or a tenured IBO? Has your teaching from upline evolved away from making money as the bottom line? If so, what do you do next? I would run in the opposite direction.

Not Working Hard Enough?

 I believe there's a gigantic myth that people who ultimately fail in Amway simply didn't work hard enough, or didn't put in enough time, and ended up quitting too early. Based on personal experience and observations of others, I truly believe that to be NOT true. Now I agree that many IBOs do little or nothing, but generally, these folks don't complain and their losses are generally limited to the sign up fee or kit. Most do not seek refunds, file complaints and simply chalk up the loss as a learning experience.  

I myself, put in some months of very dedicated work towards building a business. I had a decent sized group and was headed for platinum. But the fact of the matter is that even though my group was growing, I wasn't making a net profit. I seriously doubt that any of my downline made a net profit, primarily because of the business and tools expenses. I drove the miles, I showed the plan and I attended all the meetings and functions. I did what I was advised by my upline. My net profit at 4000 PV was little to nothing with a net loss when all the business expenses were factored i such as gas money, functions, standing orders, etc.  

My upline also did a lot of work, and he put in the hours, drove the miles and attended everything. He told me his net profit was not any of my business. (If you hear that, it's a huge red flag). I suspect my upline and sponsor also broke even or lost money despite working very hard and doing what they were advised to. I later read the assessment made by the Wisconsin attorney general Bruce Craig, who examined the tax returns of (I believe it was platinums/direct distributors) of IBOs in his state and they averaged a net annual loss of $900. While the study is a bit dated, the business has not really changed except that there are more expenses and tools associated with the business today, than back when the study occured.  

I also question the validity of Amway defenders who claim that people did not work hard enough or did not run their business properly. I seriously doubt that anyone has done a comprehenseive study of people who actually made an effort to build an Amway business, to determine why they may not have the success they desired. However, I can make my own conclusions. Many IBOs are taught to buy from themselves with little sales. They're taught to buy tools, even when they aren't making progress in the business. People who are struggling in Amway are often told that they need to sponsor more people, show more plans. (A struggling business opens new stores to improve business?).

In my opinion, hard work and success in Amway have little relationship. Sure, there is work needed. But working hard doesn't assure you of anything. You need to be able to develop a following. Just working hard has nothing to do with long term sustainable success. There are plenty of examples of hard workers who lost money. What I believe happens, is that IBOs get excited, get started and contact people and show plans. But Amway has the reputation of "pyramid" or "scam" and people quickly get discouraged and stop building the business. Those who try to sell Amway goods find that a month's supply of multi vitamins ($80) double x is a tough sell, or $50 cases of bottled water. They also get discouraged and quit.  

Only those who can somehow recruit and replace those quit end up having a chance to grow their group large enough to sell them tools, which then makes selling Amway products less important. But I don't buy for a minute that people simply do not succeed in Amway primarily because they don't work hard or smart enough. I challenge anyone to prove that a lack of work is the reason for Amway failure. The system is designed for only a few to succeed. Examine the 6-4-2, there is 1 platinum and 78 downline, and that's assuming everyone "did some work".

IBOs fail in vast quantities, but not because they don't do any work.

The Cult?

 Many outsiders see Amway members as being cult like in nature. I also believe that many Amway groups are like cults. The only major difference I can see is that Amway members are free to quit and free to come and go.  But there are many similarities to a cult following which I will outline.

Groups are often told not to associate with non members. If your friends and family do not like Amway or are not positive about Amway, they are to be shunned. Members are told not to put anything but positive into their minds, thus IBOs are told not to watch television or read newspapers. thus, depriving an IBO of basic information about their communities or their cities. It makes them apathetic.  Most of the information or stimulation that an IBO receives is Amway propaganda and that other forms of information are seen as negative and should be avoided. 

IBOs are often advised or told to submit to their upline leaders. Just follow the trail already blazed by upline. Don't reinvent the wheel. Just copy or duplicate your upline. IBOs tend to dress alike, act alike and say the same things, but they are discouraged from speaking to crossline IBOs, which I find ridiculous for business associates.  In a twist of irony, IBOs are encouraged to buy audios and/or attend functions where crossline diamonds are speaking.

Downlines are trained to edify the diamonds. Standing ovations, adoration and complete submission to these "great" leaders. IBOs are often told to "counsel" with these great leaders. A 50 year old successful married businessman would have to "submit" and listen to the single and 30 year old diamond, because the diamond has accomplished what everyone wants - to be a diamond. (Doesn't this sound like the funny farm?)  Even in lesser ranked IBOs, your upline is your upline, oftentimes simply because of the fact that he or she signed up before you.  Amazing isn't it?

Downlines are also constantly on the hunt for new cult members (recruiting). They go through all kinds of trials and tribulations to do so, even attending out of town seminars to learn this skill. The IBOs also channel significant amounts of money to upline leaders in the form of tools purchases, or in some cases, special functions run exclusively by their upline.   

So are Amway groups such as BWW, N21, LTD or WWDB cults? I don't know, but I can say pretty confidently that they certainly exhibit traits that can be compared to a cult.

Duplication Is Not A Copy Machine?

 One of the things my upline used to teach, and apparently is still taught today, it to duplicate or copy your way to success. In fact, we were told to always check upline because things we did needed to be duplicatable for your group. For example, flying first class to a function was not duplicatable, thus not allowed. I believe this is why some IBOs mistakenly think they are franchise owners. Looking back, it would seem that diamonds are exempt from this rule.  If it's not duplicatable as upline says, why do they fly first class, or why do they claim to do so?  The hypocrisy of upline at times, is astonishing.

At functions, everyone seemed to have a catalog shirt or suit. Everyone used the products and spoke phrases or strategies off the tapes, or standing orders. This is where the term "tapespeak" came from. The recruiting approach was also similar for many, and people in the US became aware of the techniques and I believe this is a contributor to the apparent decline in Amway North America.  It's funny for me as a former IBO, because you can see what's coming from a mile away or more.  And the IBO responses are a source of humor  :).

While IBOs can certainly duplicate certain things such as dressing alike and using the same tools such as voicemail to run their business, they cannot duplicate the conditions or the market that a higher pin may have had in order to achieve their success. That is why I believe so many IBOs fall short of their business goals. In fact, if duplication was truly the answer to IBO success, then why aren't there more pins breaking? Why do diamonds and other big pins quit the business if the answer was duplication?   It's because duplication is just a catch phrase used by upline that may sound reasonable, but does not work in the real world of business.  The results of decades sides with my argument.

I think the bottom line is clear. Duplication doesn't work.  You can copy and duplicate your upline all you want.  But you cannot duplicate everything, which means there are too many variables and aspects of your upline diamond's business that simply cannot be duplicated or copied to any realistic measure of success.  Duplication is not a copy machine, so you might think you are copying or duplicating, but you're not.  Also, if your upline diamond is no longer qualified and you are unaware of this, you then are duplicating something that is not nearly as successful as you were led to believe.