Other than Amway, I cannot think of any business where sales people or IBOs feel a need to justify their lack of success. I hear all kinds of crazy things such as how Amway saved a marriage or how an IBO has become a better person as a result of the Amway business. Now if your involvement in Amway did indeed save your marriage or made you a better person, that is a great side benefit. But the Amway opportunity is supposed to be a business and a business exists to make a profit. This is something that IBOs seem to overlook when they are involved.
I believe these "side benefits" are mentioned by upline as a diversion away from the fact that these IBOs aren't making any money. My upline used to say you get in for money but you stay in for friendships. They may also use the line that the Amway opportunity is not get rich quick. I believe that is because the upline wants you to stay in and expect you to purchase tools for a while.
But a very important question is why IBOs need to constantly justify their lack of success? Is it a good idea to be involved in an opportunity where you aren't turning a profit and need to justify the lack of success? Many IBOs blame themselves despite the fact that your upline may have asked for your trust and blind loyalty. You do what you are told but the upline leaders never take responsibility for an IBO's failure. It like playing a game of heads I win and tails you lose.
If you are new in the business, nobody expects you to be making a fortune overnite, but certainly a business that promote low or no overhead and a low start up cost, why shouldn't you be able to turn a profit within a few months?
Why do IBOs have to resort to rationalizing themselves with claims of concentration and/or quality? Apparently the general public doesn't agree, based on the lost sales to non IBOs. Seems the only ones who see a benefit in regular consumption of Amway goods are IBOs, who are hoping to reap financial rewards for doing so. Either your business is growing or it's not. No amount of justifying or rationalizing will change your bottom line. I just hope more IBOs and prospects will see this before it is too late.
Thursday, October 29, 2009
Wednesday, October 28, 2009
Amway - What Level Playing Field?
One of the things my upline always seemed to be talking about was how Amway was a level playing field and that was because everyone starts at zero. While on the surface, that may sound reasonable, but when you dig deeper, you may find that it is not a level playing field and that the deck is stacked greatly in favor of your upline.
One of the points in the Amway plan was to eliminate the middle man in the distribution of products thus allowing an IBO to gain a bigger piece of the profits. While this may sound reasonable, what actually happens is an IBO is a prt of a system with even more middlemen taking a cut out of an IBO's efforts. If an IBO were to simply buy and re-sell a product, that IBO would get all of the profit. In Amway, the corporation pays about 31-33% back to the IBO force in commissions and bonuses. But a new IBO would get only a 3% commission (100 PV) and his sponsor and uplines would enjoy 28 - 30% of the commissions. The new IBO did the work, but got only a tiny percentage of the bonus. What's fair about that?
An IBO can eventually get a bigger piece of the commission by sponsoring downline and moving more volume. However, the newly sponsored IBOs end up in the same unfair position that the sponsoring IBO was previously in. Also, until you are at the 2500 or 4000 level, you probably won't even generate enough income to cover your business and system expenses. Also, because of Amway's reputation, especially in the US and Canada, it is very difficult to sponsor others. Most IBOs never sponsor a downline.
The playing field is not level. Upline may want you to think it is, but a closer looks reveals that it is heavily stacked in favor of the tenured uplines.
One of the points in the Amway plan was to eliminate the middle man in the distribution of products thus allowing an IBO to gain a bigger piece of the profits. While this may sound reasonable, what actually happens is an IBO is a prt of a system with even more middlemen taking a cut out of an IBO's efforts. If an IBO were to simply buy and re-sell a product, that IBO would get all of the profit. In Amway, the corporation pays about 31-33% back to the IBO force in commissions and bonuses. But a new IBO would get only a 3% commission (100 PV) and his sponsor and uplines would enjoy 28 - 30% of the commissions. The new IBO did the work, but got only a tiny percentage of the bonus. What's fair about that?
An IBO can eventually get a bigger piece of the commission by sponsoring downline and moving more volume. However, the newly sponsored IBOs end up in the same unfair position that the sponsoring IBO was previously in. Also, until you are at the 2500 or 4000 level, you probably won't even generate enough income to cover your business and system expenses. Also, because of Amway's reputation, especially in the US and Canada, it is very difficult to sponsor others. Most IBOs never sponsor a downline.
The playing field is not level. Upline may want you to think it is, but a closer looks reveals that it is heavily stacked in favor of the tenured uplines.
Monday, October 26, 2009
Amway - A Comparable "System"?
Many IBOs and Amway supporters adhere to the idea that their system works. As far as I know, there is zero unbiased evidence that the system works. The system generally consists of a website, voicemail, standing orders and seminars or functions, as well as meetings to show the plan, etc. While Amway supporters will claim that nearly everyone who succeeds is on the system, they won't mention how everyone who succeeds also has hundreds if not thousands of downlines who do not succeed, even with earnest effort in building the business using the stsem.
Edward O. Thorpe was a math professor at M.I.T. who studied and wrote a theory on Blackjack, and found that it was mathematically possible for a blackjack player to have an edge over the house in a game of blackjack. Casinos scoffed at the theory and said it was just that. A theory with no real life application. Well, Mr. Thorpe started playing small and found that his theory was correct. He was counting cards in blackjack and making consistent money. His book eventually became a best seller. The casinos were ticked off and started kicking out people who were obviously winning and counting cards. Counting cards is not illegal but casinos can refuse to allow a player on their premises. But what casinos did not notice right away, was that their profits were skyrocketing because so many people knew the theory but could not or were not capable of executing the card counting system.
But hey, the system works so everyone should count cards for a living right? Afterall, it is proven by math that the cards will eventually favor a player and in the long run, you can make huge profits from playing blackjack. Of course not, it is ridiculous for people to think that card counting is a good way to make a buck. Not everyone has the bankroll, the skill, and the patience to succeed in card counting. Most people are better off not even trying this.
In my informed opinion, this card counting system is just like WWDB, BWW, LTD, N21 or other Amway systems. For one thing, card counting is a proven system. The Amway systems are not. But it can be viewed as similar in that very few people can use the system and make it work. Even when hundreds of thousands may try it, very few will succeed in both Amway and card counting. In both "systems", those who do not succeed can lose thousands of dollars. In both systems, doing things right can still result in losses.
In both systems, it is "possible" to succeed, but it is highly unlikely. The vast majority of people simply do not possess the knowledge, skills and abilities to make the systems work for them. You also need some money, some patience, and some luck in order to be a long term success. This article is not about comparing the Amway systems to gambling, it is about a person's ability to make the system work. The difference is that nobody promotes card counting as a good way to make a buck. The same holds true about Amway and their systems. It is not a good system to make money.
Edward O. Thorpe was a math professor at M.I.T. who studied and wrote a theory on Blackjack, and found that it was mathematically possible for a blackjack player to have an edge over the house in a game of blackjack. Casinos scoffed at the theory and said it was just that. A theory with no real life application. Well, Mr. Thorpe started playing small and found that his theory was correct. He was counting cards in blackjack and making consistent money. His book eventually became a best seller. The casinos were ticked off and started kicking out people who were obviously winning and counting cards. Counting cards is not illegal but casinos can refuse to allow a player on their premises. But what casinos did not notice right away, was that their profits were skyrocketing because so many people knew the theory but could not or were not capable of executing the card counting system.
But hey, the system works so everyone should count cards for a living right? Afterall, it is proven by math that the cards will eventually favor a player and in the long run, you can make huge profits from playing blackjack. Of course not, it is ridiculous for people to think that card counting is a good way to make a buck. Not everyone has the bankroll, the skill, and the patience to succeed in card counting. Most people are better off not even trying this.
In my informed opinion, this card counting system is just like WWDB, BWW, LTD, N21 or other Amway systems. For one thing, card counting is a proven system. The Amway systems are not. But it can be viewed as similar in that very few people can use the system and make it work. Even when hundreds of thousands may try it, very few will succeed in both Amway and card counting. In both "systems", those who do not succeed can lose thousands of dollars. In both systems, doing things right can still result in losses.
In both systems, it is "possible" to succeed, but it is highly unlikely. The vast majority of people simply do not possess the knowledge, skills and abilities to make the systems work for them. You also need some money, some patience, and some luck in order to be a long term success. This article is not about comparing the Amway systems to gambling, it is about a person's ability to make the system work. The difference is that nobody promotes card counting as a good way to make a buck. The same holds true about Amway and their systems. It is not a good system to make money.
Thursday, October 22, 2009
Amway - Beware Of Your Upline?
Over the years, I have encountered many IBOs and they often have a common theme. They trust their upline and in some cases, consider them mentors. Now in a business venture, it might be good to have a mentor or someone to guide you, but in the Amway opportunity, most of the upline mentors make money off those who they mentor. That is a major conflict of interest but IBOs simply fail to see it.
When an IBO sees the plan in a big meeting, the speaker will often be built up as a financial guru, and possibly as an expert on how to succeed in Amway. An IBO may headr something about the trail was already blazed by upline and you just need to follow the trail. Don't re-invent the wheel, just copy what upline did. But as I have said many times before, duplication sounds easy and looks good on paper, but in real life, the vast majority of IBOs run into problems that they simply cannot overcome, such as the bad reputation that the Amway name has in the US.
What is troubling however, is that IBOs are taught to trust upline and do as they say (defacto requirement), but they are also taught that failure is their own shortcomings, even when they do exactly what upline told them. It is also troubling that many uplines will tell their faithful followers that they need to purchase more and more tools (voicemail, cds, seminar tickets). In some cases, an upline may advise their downline to sacrifice basic family needs to buy these tools. Some IBOs were advised to skip meals to buy a cd, or skip paying the mortgage to be able to attend the next big function.
I might also add that as a newer IBO or prospect, you may have heard that "everyone starts at zero", or that it's a level playing field. It is not. As a new IBO, you will likely be in the 100 PV bracket. Since Amway pays out about 31% in bonuses, your upline(s) will split up about 28% in bonuses off your efforts while you get a 3%bonus. That doesn't sound very level to me.
So each IBO should look at things objectively and see if your upline is helping you or simply helping himself by giving you advice that ends up in profit for himself with little or nothing for you.
When an IBO sees the plan in a big meeting, the speaker will often be built up as a financial guru, and possibly as an expert on how to succeed in Amway. An IBO may headr something about the trail was already blazed by upline and you just need to follow the trail. Don't re-invent the wheel, just copy what upline did. But as I have said many times before, duplication sounds easy and looks good on paper, but in real life, the vast majority of IBOs run into problems that they simply cannot overcome, such as the bad reputation that the Amway name has in the US.
What is troubling however, is that IBOs are taught to trust upline and do as they say (defacto requirement), but they are also taught that failure is their own shortcomings, even when they do exactly what upline told them. It is also troubling that many uplines will tell their faithful followers that they need to purchase more and more tools (voicemail, cds, seminar tickets). In some cases, an upline may advise their downline to sacrifice basic family needs to buy these tools. Some IBOs were advised to skip meals to buy a cd, or skip paying the mortgage to be able to attend the next big function.
I might also add that as a newer IBO or prospect, you may have heard that "everyone starts at zero", or that it's a level playing field. It is not. As a new IBO, you will likely be in the 100 PV bracket. Since Amway pays out about 31% in bonuses, your upline(s) will split up about 28% in bonuses off your efforts while you get a 3%bonus. That doesn't sound very level to me.
So each IBO should look at things objectively and see if your upline is helping you or simply helping himself by giving you advice that ends up in profit for himself with little or nothing for you.
Wednesday, October 21, 2009
Amway - IBOs Help People?
When I was an IBO, I remember at many meetings, the speaker would talk about how IBOs are helping people by getting them in the business or at least showing them the plan. Looking back, I fail to see how inviting someone into a business where they are virtually assured of losing money (in the systems) is helping them. This is also how some IBOs think that they are suddenly "better" people because they think they are helping people by being an IBO.
On average, Amway products cost more than big retailers so a prospect is not necessarily helped by purchasing Amway products. For IBOs purchasing Amway products, they are taking away from their local economy by purchasing Amway goods, although I guess you could argue that the IBO is helping Amway to succeed.
IBOs who are actively building a business usually have many meetings to attend, and hard core IBOs are taught not to miss any meetings. Therefore and IBOO has less time to spend with his or her family. The IBO has less time to spend at church, and less time to help with any community projects. The IBO will probably miss someone's wedding or birthday celebration because of the hectic schedule of an IBO.
While all of this activity is happening, IBOs also have less money because the voicemail, standing order, functions and books and other expenses eat away at an IBO's resources. Thus IBOs have less to contribute to charity.
So an honest question. How do IBOs help people by building an Amway business? How are they better people by showing someone the plan?
Im my informed opinion, the nicer and better person is what upline teaches as a side note to distract an IBO from the FACT that they are losing money because of the defacto 100 PV and tools requirements. They also make it seem as if IBOs are "helping" people by showing them the business plan. When you think about it, perhaps just the opposite is happening. This is another tactic, IMO that uplines use to justify an IBO's lack of progress, much like how they tell downline that they are successful just by getting themselves to a function.
Beware!
On average, Amway products cost more than big retailers so a prospect is not necessarily helped by purchasing Amway products. For IBOs purchasing Amway products, they are taking away from their local economy by purchasing Amway goods, although I guess you could argue that the IBO is helping Amway to succeed.
IBOs who are actively building a business usually have many meetings to attend, and hard core IBOs are taught not to miss any meetings. Therefore and IBOO has less time to spend with his or her family. The IBO has less time to spend at church, and less time to help with any community projects. The IBO will probably miss someone's wedding or birthday celebration because of the hectic schedule of an IBO.
While all of this activity is happening, IBOs also have less money because the voicemail, standing order, functions and books and other expenses eat away at an IBO's resources. Thus IBOs have less to contribute to charity.
So an honest question. How do IBOs help people by building an Amway business? How are they better people by showing someone the plan?
Im my informed opinion, the nicer and better person is what upline teaches as a side note to distract an IBO from the FACT that they are losing money because of the defacto 100 PV and tools requirements. They also make it seem as if IBOs are "helping" people by showing them the business plan. When you think about it, perhaps just the opposite is happening. This is another tactic, IMO that uplines use to justify an IBO's lack of progress, much like how they tell downline that they are successful just by getting themselves to a function.
Beware!
Tuesday, October 20, 2009
Amway - Time And Money?
Time and money. When you control both, you are free. At least that's how the business was pitched to me as a prospect. It made sense at the time. If you have enough money, then you don;t have to have a job and go to work every day. Having enugh money allowed you to control your time. It sounded like a great deal to sleep late every day and not have any financial difficulties. It sounds so simple. Join Amway, 2-5 years and there you are.
But for most people, joining Amway (and the systems)ironically robs you of what you desire most. Time and money. For those wanting to build a business, you may be told you need to invest in your business, and while that may be true, I do not believe there is any bonafide evidence that can support the relationship between the investment of time and money into the Amway business and earning a significant income. Many people have invested years and thousands of dollars into the business only to end up with nothing. My sponsor was a physician who spent many days away from his practice (lost income) and his oldest child (son) probably didn't see him very much since he was out showing the plan every nite.
Diamonds give the appearance of being filthy rich with nothing to do but golf abd go shopping but we are now seeing evidence that diamonds may not be all that. Home foreclosures, bankruptcy, former diamonds speaking out, diamonds moving their groups out of Amway, diamonds possibly selling their homes and downsizing. I believe that there are possibly many - a - diamond who is in financial difficulty and they have not escaped the tough economy as they may have implied in a meeting.
Also, if diamonds were so free and filthy rich as they like to portray, why don't any of the bigger pins ever walk away from the business and live on the beaches of the world that they like to talk about? Why are they always attending and running functions? I am guessing tha most of them are working these functions - because they have to. I suspect that some of these diamonds are in debt trying to portray a lifestyle that they truly cannot afford.
If you are joining Amway to gain more time and money, I urge you to make sure you are keeping track to see if you are gaining time and money, but if you look carefully, you will probably find that what you desire more of, is what you actually have less of. That is, time and money.
But for most people, joining Amway (and the systems)ironically robs you of what you desire most. Time and money. For those wanting to build a business, you may be told you need to invest in your business, and while that may be true, I do not believe there is any bonafide evidence that can support the relationship between the investment of time and money into the Amway business and earning a significant income. Many people have invested years and thousands of dollars into the business only to end up with nothing. My sponsor was a physician who spent many days away from his practice (lost income) and his oldest child (son) probably didn't see him very much since he was out showing the plan every nite.
Diamonds give the appearance of being filthy rich with nothing to do but golf abd go shopping but we are now seeing evidence that diamonds may not be all that. Home foreclosures, bankruptcy, former diamonds speaking out, diamonds moving their groups out of Amway, diamonds possibly selling their homes and downsizing. I believe that there are possibly many - a - diamond who is in financial difficulty and they have not escaped the tough economy as they may have implied in a meeting.
Also, if diamonds were so free and filthy rich as they like to portray, why don't any of the bigger pins ever walk away from the business and live on the beaches of the world that they like to talk about? Why are they always attending and running functions? I am guessing tha most of them are working these functions - because they have to. I suspect that some of these diamonds are in debt trying to portray a lifestyle that they truly cannot afford.
If you are joining Amway to gain more time and money, I urge you to make sure you are keeping track to see if you are gaining time and money, but if you look carefully, you will probably find that what you desire more of, is what you actually have less of. That is, time and money.
Monday, October 19, 2009
Amway Apologists Are In Denial?
The battle continues between Amway critics and Amway apologists. The apologists like to cite new platinums, but do not mention that just as many, and possibly more platinums dropped out of qualification. They like to cite Amway's growth, but fail to mention how the growth is apparently in foreign countries and not in the US and Canada. Even if there are more platinums or growth, it doesn'e mean anything and I will go onto explain.
In a platinum group, there are in many cases, 100 downline IBOs. Most if not all of tehse downline are losing money or making nothing, and it is worse, especiialy if they are buying voicemail, standing order and other tools. An IBO who does nothing may still lose money on website fees, or at the minimum, registration fees. Yes, they might be refundable, but many IBOs are not aware of this, or are not interested in asking their sponsors, or simply write up the loss as a life lesson. Thus the more growth, or the more platinums, the more downline there are losing money.
I also understand that Amway is not a game of chance, but your odds of achieving a significant income can be compared to winning a lottery. Even those who put forth an earnest effort are rarely rewarded with upper echelon pin levels and "passive income" rolling in while you walk the nicest beaches of the world. Amway supporters are wanting to show what is "possible", but showing the best case scenario is deceiving and IBOs do not realize "what is likely" until they have already participated and wasted their hard earned cash on tools that do not work.
There doesn't appear to be any connection with the amount of effort an IBO puts in with progressive amounts of income. While you can argue that succeeding takes hard work, there are probably more cases of hard work resulting in financial losses or possibly financial devastation. I personally witnessed a crossline losing their home to foreclosure and a crossline winding up in bankruptcy, all while following upline advice to keep pouring money into tools even while these IBOs made no progress in terms of sponsoring downline.
The Amway Apologosts can continue to deny the shortcomings of the Amway opportunity, but for me, the results speak loud and clear.
In a platinum group, there are in many cases, 100 downline IBOs. Most if not all of tehse downline are losing money or making nothing, and it is worse, especiialy if they are buying voicemail, standing order and other tools. An IBO who does nothing may still lose money on website fees, or at the minimum, registration fees. Yes, they might be refundable, but many IBOs are not aware of this, or are not interested in asking their sponsors, or simply write up the loss as a life lesson. Thus the more growth, or the more platinums, the more downline there are losing money.
I also understand that Amway is not a game of chance, but your odds of achieving a significant income can be compared to winning a lottery. Even those who put forth an earnest effort are rarely rewarded with upper echelon pin levels and "passive income" rolling in while you walk the nicest beaches of the world. Amway supporters are wanting to show what is "possible", but showing the best case scenario is deceiving and IBOs do not realize "what is likely" until they have already participated and wasted their hard earned cash on tools that do not work.
There doesn't appear to be any connection with the amount of effort an IBO puts in with progressive amounts of income. While you can argue that succeeding takes hard work, there are probably more cases of hard work resulting in financial losses or possibly financial devastation. I personally witnessed a crossline losing their home to foreclosure and a crossline winding up in bankruptcy, all while following upline advice to keep pouring money into tools even while these IBOs made no progress in terms of sponsoring downline.
The Amway Apologosts can continue to deny the shortcomings of the Amway opportunity, but for me, the results speak loud and clear.
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