Based on my experience in Amway, my blogging experience, and observation of other people who give financial advice such as real estate gurus who teach you to buy property with no money down, or others such as Robert Kiyosaki for that matter, all show testimonials of sucessful people. Obviously they do not show you the vast majority of people who try their systems and fail.
It is my informed opinion that whether it is Amway, WWDB, BWW, N21, real estate or the cashflow business, the vast majority of people who try these systems do not make any kind of significant income. Sure, some do, and those are shown as the possibilities. But if you watch infomercials, you will see in small print on the bottom of the screen, "unique experience", you results may vary. I believe that a similar message used to be at the end of Amway diamond recordings as well.
These systems in general do not work for various reasons. Many people simply do not have the acumen to work the system. Or the system has too many variables for the system to work, or the system calls for things beyond your control. For example, success in Amway generally requires you to sponsor others, something that is beyond the control of most people. Add in the lazy and people who are hoipng for a quick score and it is understandable that most will fail. But these systems are often set up where the majority simply cannot all succeed. Nowhere is that more true than the Amway business where the pyramidal compensation plan nearly guarantees failure for the lower level IBOs.
So what can someone do? Well, it may no be as sexy or attractive but a part time job and investing and saving might be something to think about. Even a part time business where you focus on selling products for a profit might work. It just seems prudent to avoid these "systems" as the primary beneficiary of these "systems" are the ones who directly profit from them.
Thursday, December 31, 2009
Wednesday, December 30, 2009
Amway - Whose Dreams Are Being Fulfilled?
One of the issues I have with the Amway plan is that the newest IBO, possibly the one who does the most "Work", receives the smallest compensation. Amway pays about 32% of their income back in the form of bonuses. An IBO who does 100 PV receives a 3% bonus and somewhere, uplines and sponsors receive the rest. Some of the upline may not have even met the IBO who actually did the work. Is that really fair and is that a level playing field? What do some of these uplines do to deserve the lion's share of the bonus you worked to get? Yes, the upline diamond may show the plan in an open meeting, which may help you, but then again, you pay for entrance into that meeting.
Many uplines will talk about dreams and fulfilling your dreams. But if an IBO would stop and think for a moment, you can easily see that you are building the dreams of your upline, and not your own. You receive a tiny portion of the bonus for the volume that you move, and then in addition, if you are on the system, then you are also paying upline in the form of tool purchases for the priviledge of giving them bonuses with your product purchases.
It is why your upline diamonds can parade around on stage with designer suits and show you their fancy cars and mansions and other toys. It is because they are cashing in on your efforts. You are making their dreams come true. Your dedication to moving volume and purchasing standing orders are fulfilling dreams. The upline dreams. Yes, someday you can hope to have your own group of downline to exploit for your own benefit, but unless you are adding members to your group, you will never achieve the kinds of dreams that uplines talk about. In the meantime though, you are definitely helping someone upline achieve their dreams with every function you attend. Ironically, the upline leaders will tell you to never quit, even if they don't know your personal circumstances.
Here's a challenge for IBOs and/or prospects who are being recruited into the Amway business. 100 PV will cost around $300 a month and dedication to the tools system will cost you around $200 a month on average. Would you not be better off simply writing a check to your upline for $100 and not even joining? Would you not be better off staying home and watching television instead of joining? If you read all of the information available on this blog and still decide to join, goo d luck to you, but remember this: Whose dreams are being fulfilled by your participation?
Yours or your upline?
Many uplines will talk about dreams and fulfilling your dreams. But if an IBO would stop and think for a moment, you can easily see that you are building the dreams of your upline, and not your own. You receive a tiny portion of the bonus for the volume that you move, and then in addition, if you are on the system, then you are also paying upline in the form of tool purchases for the priviledge of giving them bonuses with your product purchases.
It is why your upline diamonds can parade around on stage with designer suits and show you their fancy cars and mansions and other toys. It is because they are cashing in on your efforts. You are making their dreams come true. Your dedication to moving volume and purchasing standing orders are fulfilling dreams. The upline dreams. Yes, someday you can hope to have your own group of downline to exploit for your own benefit, but unless you are adding members to your group, you will never achieve the kinds of dreams that uplines talk about. In the meantime though, you are definitely helping someone upline achieve their dreams with every function you attend. Ironically, the upline leaders will tell you to never quit, even if they don't know your personal circumstances.
Here's a challenge for IBOs and/or prospects who are being recruited into the Amway business. 100 PV will cost around $300 a month and dedication to the tools system will cost you around $200 a month on average. Would you not be better off simply writing a check to your upline for $100 and not even joining? Would you not be better off staying home and watching television instead of joining? If you read all of the information available on this blog and still decide to join, goo d luck to you, but remember this: Whose dreams are being fulfilled by your participation?
Yours or your upline?
Tuesday, December 29, 2009
Amway - Avoid All Negatives?
One of the things that I was taught as an IBO, and I believe is still taught to IBOs is that you should avoid negative. Don't fill your head with negative thoughts. Only filter in positive by reading inspiring AMO approved books, listen to feel good standing orders and attend functions where you can gain positive association. Don't watch the news or other television as you may see negative. With this kind of teaching, I can easily see why some groups in Amway have been called cults or cultlike.
Basically, what upline is teaching you to do is become apathetic. Don't pay attention to the news, don't keep up with current events. Only listen to cds cut by Amway diamonds. Yet some of these same folks want you tell you who to vote for or influence you on various decisions. Deprive you of information and then influence you on important decisions. Did I mention that some groups in Amway have been called cults or cultlike?
There have been studioes showing that people need some "stress" in their lives. Obviously, too much stress can lead to health problemd, but having zero stress can be detrimental as well. If you lived in a sterile environment all of your life, exposure to the real world could prove fatal to you as your body could not fight off weak germs. Not being able to feel any pain could also be damaging to your body as minor injuries can become life threatening infections if not cared for.
While avoiding negatives in your life may seem like sound advice, I would take this with a grain of salt. Sure, you don't want to be overwhelmed with negatives, but the complete absence of any negative will make it hard to be able to do any critical thinking of your own. Critical thinking is important to your decision making process. If you are truly a business owner, you will have to make some important decisions to run an effective business. Avoiding negative and shutting off your critical thinking may not be in your best interest.
Do you really think that living in a sterile Amway business only environment is the way to go?
Basically, what upline is teaching you to do is become apathetic. Don't pay attention to the news, don't keep up with current events. Only listen to cds cut by Amway diamonds. Yet some of these same folks want you tell you who to vote for or influence you on various decisions. Deprive you of information and then influence you on important decisions. Did I mention that some groups in Amway have been called cults or cultlike?
There have been studioes showing that people need some "stress" in their lives. Obviously, too much stress can lead to health problemd, but having zero stress can be detrimental as well. If you lived in a sterile environment all of your life, exposure to the real world could prove fatal to you as your body could not fight off weak germs. Not being able to feel any pain could also be damaging to your body as minor injuries can become life threatening infections if not cared for.
While avoiding negatives in your life may seem like sound advice, I would take this with a grain of salt. Sure, you don't want to be overwhelmed with negatives, but the complete absence of any negative will make it hard to be able to do any critical thinking of your own. Critical thinking is important to your decision making process. If you are truly a business owner, you will have to make some important decisions to run an effective business. Avoiding negative and shutting off your critical thinking may not be in your best interest.
Do you really think that living in a sterile Amway business only environment is the way to go?
Sunday, December 27, 2009
Amway - How To Make Critics Go Away?
To this day, Amway has many critics and supporters. Many supporters become critics if they leave the Amway business. Some Amway apologists are claiming victory recently as they say there are few new internet critics. But yet, it doesn't appear that Amway is suddenly growing by leaps and bounds. The name Amway doesn't bring visions of sugarplums in most people's heads.
What does the Amway name bring? People often think of "pyramid" or "scam". Some people are negative about the Amway opportunity and they don't even know why. Many people however, were involved in Amway at one time, or knows someone who had a bad experience. While many people's experience may have little to do with the Amway corporation, surely the motivational groups such as N21, BWW, or WWDB has had an impact on people's experience with Amway. Getting tricked into attending meetings or being lied to will lead to a bad experience. So will ridiculous snake oil campaigns like perfect water.
But has Amway done anything significant about IBO abuses? Surely they must know something about this. Someone from Amway routinely visits my blog to see what I am writing. But as far as I know, even the most abusive uplines have gone unpunished.
I have some suggestions to curb Amway criticism. Transparency. Why not inform prospects of how many diamonds are currently qualified? Why not say how many IBOs are active or registered? Why not report North American sales? Why not say what the typical IBO earns? It would prevent critics and supporters from extrapolating information and making their own possibly inaccurate conclusions. Of course Amway is a private company and therefore will probably release only information that is required by law. And that is their right. But if that is the case, then criticism will continue.
Like the AMO saying goes, insanity is doing the same thing over and over and expecting different results. With no apparent changes forthcoming from Amway, the valid criticism continues........
What does the Amway name bring? People often think of "pyramid" or "scam". Some people are negative about the Amway opportunity and they don't even know why. Many people however, were involved in Amway at one time, or knows someone who had a bad experience. While many people's experience may have little to do with the Amway corporation, surely the motivational groups such as N21, BWW, or WWDB has had an impact on people's experience with Amway. Getting tricked into attending meetings or being lied to will lead to a bad experience. So will ridiculous snake oil campaigns like perfect water.
But has Amway done anything significant about IBO abuses? Surely they must know something about this. Someone from Amway routinely visits my blog to see what I am writing. But as far as I know, even the most abusive uplines have gone unpunished.
I have some suggestions to curb Amway criticism. Transparency. Why not inform prospects of how many diamonds are currently qualified? Why not say how many IBOs are active or registered? Why not report North American sales? Why not say what the typical IBO earns? It would prevent critics and supporters from extrapolating information and making their own possibly inaccurate conclusions. Of course Amway is a private company and therefore will probably release only information that is required by law. And that is their right. But if that is the case, then criticism will continue.
Like the AMO saying goes, insanity is doing the same thing over and over and expecting different results. With no apparent changes forthcoming from Amway, the valid criticism continues........
Friday, December 25, 2009
Amway - Merry Christmas From Joecool
I hope all my readers and their families have a safe and wonderful Christmas Holiday!
Enjoy this day as we celebrate the birth of our Lord Jesus!
P.S. And a Happy New Year Too!
Enjoy this day as we celebrate the birth of our Lord Jesus!
P.S. And a Happy New Year Too!
Wednesday, December 23, 2009
Amway - Defenders Of Amway?
One thing that is certain, based on my blogging experience is that Amway/Quixtar is a highly debatable issue. There are some established critics of Amway, as well as established Amway defenders. The difference between the two however, differ significantly. Most critics point out flaws with the business opportunity and the ineffective training systems. Amway's biggest defenders have at times resorted to personal attacks and side tracking the discussions. One of Amway's biggest defenders was even called a "cyber bully" by an Amway corporate blogger. Many issues are very plain for all to see. I will elaborate on these issues.
The compensation plan is set up for many downline to support a few upline. Many IBOs at the platinum level report that they have approximately 100 downline. This supports the notion that only about 1% of IBOs ever reach platinum, and only a small fraction of 1% ever reach levels above platinum.
The tools systems are highly ineffective. Not counting people who do nothing, even the most dedicated of IBOs have a less than a 1% chance of achieving any significant income from Amway, even if they do what is advised by upline.
Uplines often abuse their downline financially. There is much evidence that some upline teach bad business practices, for which they are rewarded (tool profit). Some of this bad advice is to buy from yourself, channel any profits into buying more tools, and simply advising a failing IBO to continue to dedicate themselves to the system. Amway defenders make ridiculous claims that these abuses don't exist simply because of a lack of testimonies on the internet by former IBOs. We know that functions across the country may have hundreds of thousands of IBOs who hear the same bad advice, but because of shame or because they were sponsored by family and friends, they walk away and do not share their bad experiences.
Amway is apparently aware of some of these abuses, but there is no visible evidence that abuses have been dealt with in any significant manner. (See Postma Memo or Directly Speaking). Although some measures were taken such as accreditation, these measures appear to be cosmetic. The fact that Amway reported that there are about 4 IBOs to every one customer indicates that they must know that IBOs are not making enough sales to qualify for their bonuses. But I have yet to hear about an IBO who was denied a bonus for not meeting the sales requirement.
These are the real issues. If these issues are addressed, most critics, including myself, will go away. In my informed opinion, Amway doesn't need defenders, they need to look at taking corrective actions.
The compensation plan is set up for many downline to support a few upline. Many IBOs at the platinum level report that they have approximately 100 downline. This supports the notion that only about 1% of IBOs ever reach platinum, and only a small fraction of 1% ever reach levels above platinum.
The tools systems are highly ineffective. Not counting people who do nothing, even the most dedicated of IBOs have a less than a 1% chance of achieving any significant income from Amway, even if they do what is advised by upline.
Uplines often abuse their downline financially. There is much evidence that some upline teach bad business practices, for which they are rewarded (tool profit). Some of this bad advice is to buy from yourself, channel any profits into buying more tools, and simply advising a failing IBO to continue to dedicate themselves to the system. Amway defenders make ridiculous claims that these abuses don't exist simply because of a lack of testimonies on the internet by former IBOs. We know that functions across the country may have hundreds of thousands of IBOs who hear the same bad advice, but because of shame or because they were sponsored by family and friends, they walk away and do not share their bad experiences.
Amway is apparently aware of some of these abuses, but there is no visible evidence that abuses have been dealt with in any significant manner. (See Postma Memo or Directly Speaking). Although some measures were taken such as accreditation, these measures appear to be cosmetic. The fact that Amway reported that there are about 4 IBOs to every one customer indicates that they must know that IBOs are not making enough sales to qualify for their bonuses. But I have yet to hear about an IBO who was denied a bonus for not meeting the sales requirement.
These are the real issues. If these issues are addressed, most critics, including myself, will go away. In my informed opinion, Amway doesn't need defenders, they need to look at taking corrective actions.
Tuesday, December 22, 2009
Amway - Is Your Business A Joke?
I hear Amway supporters often mention that you will have a real business if you treat it like one. It is my observation that most IBOs do not treat their businesses like a real one. It is also my opinion that the Amway business itself is flawed and many IBOs, in their zeal to sponsor downline, do crazy things at times, such as tricking people into meetings.
Many IBOs do not bother to qualify their prospects. They will sponsor anyone who is breathing. It could be due to uplines making the business seem easy. For example, I have heard that going platinum is so easy that someone's dog can go platinum. Another mistake IBOs make is they do not look at the likelihood of an IBO succeeding. They will sponsor anyone, anywhere. Like real stores, opening a new one creates competition and I don't know of any IBOs who take this into consideration before recruiting a new prospect.
New recruits are also encouraged to partake in the teaching system, regardless of their expectations and business goals. This participation in the system is what often leads to IBO failure. They spend more on tools than what they generate in income. This heavily contributes to the poor retention rate among IBOs. Even IBOs who can progress and make some money will be simply channeling their profits to upline by their tools consumption. It is my informed guess that an IBO must reach the 4000 to platinum level before they start to break even. And If I might add, probably less than 1% of IBOs reach the platinum level so you are already facing overwhelming odds just to reach the break even point in Amway.
Here's the real test for an IBO. Walk into a bank. Speak to a loan officer and show the loan officer the 6-4-2 or 9-4-2 plan, whichever plan your group uses. And see if the loan officer will grant you a loan based on that plan. It is more likely that you be laughed out of the bank.
Do you have a real business or a joke? You decide.
Many IBOs do not bother to qualify their prospects. They will sponsor anyone who is breathing. It could be due to uplines making the business seem easy. For example, I have heard that going platinum is so easy that someone's dog can go platinum. Another mistake IBOs make is they do not look at the likelihood of an IBO succeeding. They will sponsor anyone, anywhere. Like real stores, opening a new one creates competition and I don't know of any IBOs who take this into consideration before recruiting a new prospect.
New recruits are also encouraged to partake in the teaching system, regardless of their expectations and business goals. This participation in the system is what often leads to IBO failure. They spend more on tools than what they generate in income. This heavily contributes to the poor retention rate among IBOs. Even IBOs who can progress and make some money will be simply channeling their profits to upline by their tools consumption. It is my informed guess that an IBO must reach the 4000 to platinum level before they start to break even. And If I might add, probably less than 1% of IBOs reach the platinum level so you are already facing overwhelming odds just to reach the break even point in Amway.
Here's the real test for an IBO. Walk into a bank. Speak to a loan officer and show the loan officer the 6-4-2 or 9-4-2 plan, whichever plan your group uses. And see if the loan officer will grant you a loan based on that plan. It is more likely that you be laughed out of the bank.
Do you have a real business or a joke? You decide.
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