Amway - Winners and Losers?

One of the things that my upline taught, and I believe is still taught today in various groups is that winners join Amway and losers do not. Or that you were a winner because you were doing something to better your financial future and those who didn't were losers. or broke minded. Of course the upline who said this had no knowledge about those who were not in Amway. Some of them may already have been financially sound or may have been doing something to better their financial future. I'm not sure why these uplines, who promote "positive", had to resort to calling people losers simpy because they did not agree that Amway was the greatest thing since sliced bread.

In many games or sporting events, there will be someone or a team that wins the game and someone or a team that loses the game. Losing a game doesn't make you a loser and certainly, a team that wins the game would not say the losing team were losers. Can you imagine a pro football team's coach taking the podium after a game and saying his team won because the other team was a bunch or broke minded gutless losers? That would never happen, yet we see that frequently in the Amway/IBO world. The owner of Amway, Rich DeVos had once said in a recorded message that just because people do not agree with you (paraphrased) about Amway, does not make them losers and that IBOs should not call people losers.

In all of this, people's jobs are also criticized. That a job stand for "just over broke" or "jackass of the boss" and other blurbs. Many IBO's goals and dreams consist of ditching their job so they can sleep all day and live a life of luxury. Ironically, it is most IBO's jobs that continue to produce income so they can pay their bills and feed their family. It is also an IBO's job that funds their Amway and AMO expenses such as product purchases and functions and voicemail, etc. Without having a job, most people could not even join Amway or pay for any tools. Sadly, most IBOs won't make any money in Amway either, and will have to continue to work at their jobs. I do not believe that someone earning an honest living working a job is a loser. Ironically, the folks calling people losers are often not even netting a profit from their Amway business!

Yes, in this business or the sports world, there will be winners and there will be losers. The question is whether you are the one who is allowed to be the judge of who is and who isn't. I would also suggest that IBOs are completely shutting down potential future business by their behavior. What if I went to a store to purchase something but the item was not available on that particular day, so I don't purchase anything and leave. As I leave, the store owner says I am a loser for not buying something there. Will I go back? Very unlikely. If an IBO truly sees themselves as a store owner, all prospects should be seen as potential business, whether future or present. If your upline tells you that people not interested are losers, you should hand him a mirror.

Amway - The System Works - If You Are Selling The System

When I was an IBO in WWDB, I was told outright lies from speakers on stage about the system and the system profits. I was first told that WWDB was a non profit organization, which was false. I also mentioned to my sponsor that non profit organizations still generate income in some cases, and can still pay their CEOs a whopping salary. This falsehood/lie was quickly withdrawn and the story later became WWDB was a for profit company, but nobody made profits. They claimed that any surplus was reinvested into WWDB to make future events cheaper. We also know today that this is a lie.

Another lie told by WWDB leaders was that nobody made profits from tools. This was eventually exposed in the information/internet age. IBOs these days simply "forgot" about these issues and nobody was ever made to explain or account for the lies and everything was basically swept under the rug. To this day, despite accreditation, I do not believe there is transparency about the tools. If there were, it probably would have been exposed by an IBO or a former IBO. It was also discovered that some diamonds and bigger pins made most of their money from selling tools. And it makes sense because these folks are traveling the country without the ability to work their business, at least locally and thus it would make perfect sense that their groups may become broken.

In my opinion, the telltale sign however, was the recent flat growth or even decline of Amway sales in North America. Less sales likely means less IBOs and less IBOs means less IBOs buying tools and attending functions. It also means less energy drinks consumed. The possible resulting fallout? A prominent WWDB diamond in bankruptcy proceedings. While Amway defenders cite that is was flipping houses that caused the problem, but it is quite possible that in the past, the tools income may have been enough to cover failed ventures. We also see diamonds selling off homes/mansions. Sure to a degree it may simply be downsizing, but the real estate market is down right now so selling is a tough venture right now.

While the lid has not yet been completely blown off the pot, it appears that the tool sales are down and that it certainly would appear that tool sales are a vital and yet declining part of a diamond's income. I guess the system works well for those who sell and profit from the system, but sales are down and it appears that diamonds are being forced to tighten their belts. I'm shedding crocodile tears for them as we speak.

Amway - IBOs Are Sharp People!

One of the things taught to our group by upline was to recruit "sharp" people. And in general, I agree that many/most IBOs were sharp people. Most of them nice, motivated and wanting more in life. Certain Amway defenders wrongly claim that I am against Amway and IBOs to a degree where I am maniacal against them. I am not. I recall that most of my group and my crossline were mostly educated and had decent jobs. We all hoped to achieve the dream of walking away from our jobs and living in luxury. We got the idea that is was very reasonable and achievable if only we did as upline advised and immersed ourselves in the "system", which in my case, was WWDB. We were told that WWDB had much fruit on its tree and at the time I was an IBO, that appeared to be true.

However, we did not know that some WWDB leaders made significant income from selling us tools. You see, we were lied to and speakers at major functions told the audience that nobody made a cent from tools and that upline makes pennies only after you earn dollars. We know know that this is not true and that these speakers were lying. What's more, these leaders were never made accountable for their lies. They just revised history and acted like nothing happened. Sadly, many downline IBOs simply accepted the explanation and continued to buy tools. Currently, the WWDB tree is getting barren, with little "fruit". There are very few new diamonds from WWDB in the US, and some of their more apparently dynamic leaders have left WWDB to start their own systems. Thus it looks like WWDB is left with the same old tired speakers today, as the ones who were around prior to my involvement with Amway.

But what's puzzling, or maybe not, is why aren't there more successes if many, possibly most IBOs are "sharp" people? Surely large groups of smart and motivated people can accomplish much, but for whatever reason, they are unable to accomplish much in Amway and WWDB. In fact, many of these shapr people cannot sponsor a single downline and have difficulty in selling Amway products. After many years of blogging and analyzing the Amway opportunity, my conclusion is that Amway products are priced too highly and cannot compete with similar products on the open market. Sure, Amway defenders will cite quality or concentration as reasons why Amway is competitive, and in some cases, Amway is competitive, but the general public doesn't care, they just want cheap stuff and Walmart fulfills that need better than Amway. It leaves the majority of Amway sales being made to active business building IBOs. Apparently the artificial need to buy Amway goods disappears when the diamond dream disappears.

Also, the zany and sometimes deceptive behavior of past and some present IBOs gives the Amway name a bad reputation, making it difficult to get anyone to see the plan, and sponsoring becomes nearly impossible. It is for this reason, I believe Amway is growing in foreign countries and not in North America, where saturation has occured. When you factor in all of these variables, it is easy to conclude that large groups of sharp people fai is not because they are not capable, it is because the Amway opportunity comes with so many handicaps that even sharp people cannot overcome them. It is why so many former IBOs, including myself, ahve done quite well for themselves after leaving Amway. Did I learn some things about business while in Amway? yes, I did learn some things of value, but I also learned that I was lied to and deceived by WWDB leaders and for that reason, my blog continues......

Amway - The Residual Income Myth?

Do the work once and reap the rewards for life. Lifelong willable passive/residual income. These are some of the things that attracted me to the Amway opportunity. That I could do the work, and have the option of sitting back, enjoying a fabulous lifestyle of riches and never have to work again. I could wake up at noon if I chose to, and/or I could stay out late hanging out with my "free" Amway buddies.
It sounds great on the surface, however, when you analyze a diamond's income and look at things carefully, you can see where this lifestyle is just not possible. Even if a diamond earned $250,000 a year from Amway and the tools income, after considering taxes, business expenses and other necessities such as medical insurance and retirement savings, you don't have enough left to live what is often portrayed as a "diamond" lifestyle. Also, keep in mind that a lot of a diamond's income is received in the form of an annual bonus so a diamond's monthly income might be relatively small.

One could also wonder why there aren't any diamonds (that I know of) who have actually walked away from their businesses and continue to collect any significant income from Amway. With more than half of all IBOs not staying in business for a year and about 95% of the rest of the IBOs being gone several years later, it would be an insurmountable task to keep your income rolling in with that poor retention rate. As far as I know, an IBO also need to have a minimal amount of side volume in order to qualify for certain significant payments/bonuses. That is a lot of volume to move when IBOs are quitting the business daily, and these days, it seems as though there are fewer IBOs getting involved, at least in the US and Canada.

It is for that reason, I believe these crown ambassadors and higher level pins are still working. Once you stop, it is very likely that there is no tool income, and once your downline starts to suffer attrition, then you Amway income and bonuses will eventually dry up as well. I believe there is no true residual income in Amway. Sure, build a big business and walk away. You may continue to receive some income for a while, but eventually, it will disappear. It is like building a sandcastle on the beach. The bigger you build it, the longer it will last, but it is for certain that the tide will eventually wash the sand away, just as time and attrition will eat away your Amway business. If you are popular and charismatic enough to attract a large downine, once you leave, so will your downline.

As far as I am concerned, I believe the residual income claims from Amway is just a long running myth used to attract recruits. I don't know of anyone who built a large Amway business and then walked away, and is still collecting a significant income. Do you?

Amway - What Is Your Amway Business Worth?

Many people see the Amway plan, sign up in the hopes that Amway income will help them fulfill their dreams and that they will walk away from their jobs and collect lifelong residual income while walking the beaches of the world. Sadly, most IBOs will never even sponsor a single downline. These IBOs may continue in the business for a while but will eventually quit when they see the writing on the wall. Many IBOs will do nothing. Some won't even order Amway products. But even IBOs who do put in an effort and apply the knowledge they learn from tools ususlly end up suffering financial losses because the tools. I would guess that many IBOs will never even make enough Amway money to cover the monthly cost of their voicemail, never mind the other materials that IBOs are often sold.

But wait, you're an "independent business owner". So instead of quitting, why not sell your Amway business? I wonder if any IBOs actually think about what their business is worth? I mean a diamond could sell their business and live large happily ever after right? Here's some food for thought. Why are there instance of diamonds quitting or resigning from Amway? Why would they just quit when they could either walk away and collect an income "forever" or sell the business?

I believe some diamonds quit and resign because their business is worth very little or nothing. I mean what do you own? You don't own your downline and you probably would not have much inventory to dispose of. All you basically own is the rights to combine downline volume with yours, provided your downline moves any volume at all. Most Amway businesses do not even generate a net profit. For IBOs who are seriously pondering on this very important message, try looking up this topic in Amway's rules. There are very complicated steps to be taken when selling your Amway business as each person upline must be offered ownership (To the best of my understanding). This process can go on for a long time and the attrition of your business could render it worthless before you can find a buyer, if you have a buyer at all. Also, if you quit, the downline in your group would be surrendered to the immediate upline anyway. So why would your upline want to buy your business?

So IBOs, I ask you. What is your business worth?

Amway - An Internet War Against Amway?

I was reading an article written by a well known Amway defender who was whining about how there seems to be an internet war against Amway, a war that they seem to be losing. He decries how a google search will turn up more hits on critical sites than positive ones. He hopes that eventually, Amway and/or the IBOAI leadership would read his article and take action. But why would they and who would they take action against? Microsoft and WalMart have many critics, but the braintrust of these companies don't spend time strategizing against their critics, nor do their employees set up blogs defending themselves or attacking their critics.

A very vital question that should be asked is what is the criticism against Amway and is it valid criticism? For example, a common thought is that Amway is a pyramid. Well, it would appear that in most groups, Amway works as a legal pyramid because the compensation structure works in a manner where the upline make much of their profit right out of the pockets of the downline. It is especially prevalent in groups that teach the "buy from yourself" method of doing business. Also, a new IBO gets a measly 3% bonus for reaching the minimum 100 PV level and layers of upline get the lion's share of the bonus, some of them for doing nothing. Sounds like a valid criticism to me. In the case of the tools system, it is also true that uplines make their money almost exclusively from their downline, save for a few guests who may attend functions or purchase other materials.

Another common criticism is that people had bad experiences or knew someone who had a bad experience in Amway. Well, since many IBOs don't make a cent, and the ones who participate in the system usually generate financial losses, it is easy to conclude that many would see that as a negative, especially if they were led to believe that Amway was simple/easy and would lead them to untold wealth with early retirement and lifelong residual income. Some IBOs in the past, myself included were outright lied to about the upline earning significant income from the tools. After quitting and discovering the lies, it left a bad taste in my mouth. Toss in uplines who want control of your life, such as teaching that you should ask permission to have children and you have more scarred former IBOs.

How many people have heard stories of being tricked into attending an Amway meeting? Or how many people were outright lied to to deceived in the recruitment process? Or how many people made up rosy stories about the Amway business to attract prospects? What about other made up fables used to attract and retain IBOs? I still see IBOs claiming that Amway or their LOS saves their marriage, or that they will be retiring their wife next month or buying homes in cash. All nice goals, but generally a pipedream and IBOs who experience this will probbaly sour on the whole experience when they quit.

But the apparent source of the criticism comes from the IBOs themselves. Thus it is the behavior of IBOs and those who adviuse the IBOs who are responsible for what some see as an internet war against Amway. It isn't the critics, it is the IBOs who are carrying out unethical behavior, much of it apprently taught to them by upline, that is responsible for the criticism of Amway. The infamoous IBOFightback thinks Amway should take action. Well, maybe Amway can start by monitoring their LOS leaders and by addressing valid criticism. If people weren't tricked into meetings or told that perfact water can cure cancer and save their marriages, some criticism would vanish into thin air along with the critics.

Amway - The Real Purpose Of Having Tools?

As an IBO, I was told that I "needed" to attend all functions. Attending all functions meant "all" is what I was told. Brad Duncan once had a tape in the true north series where he said that downline should not cancel standing orders even when IBOs quit, because there would then be an urgency to replace that person. I was in WWDB and while not everyone in WWDB may have taught this, our group was told that we should purchase 5-7additional tapes/cds in addition to standing order because we needed to listen to new material daily and because we should be passing out these materials as they will sponsor new people. To date, I do not know of anyone who passed out a tape or cd and had someone decide to join the Amway business as a result of listening to that tape or cd.

When I was in the business (In WWDB), our group was told that WWDB was a non profit organization. That was quickly retracted, but still, the WWDB leaders stood on stage in front of tens of thousands of IBOs and said nobody made a profit from tools. We now know that it was a lie. We also know that many of these leaders are still teaching, and as far as I know, not a single WWDB leader has ever been accountable for these lies. Some of these lies may have caused untold financial damage to downline. I'm certain I would have been less dedicated to tools if I had known that some uplines made most of their income from tools and that their advice was a conflict of interest. Some Amway defenders are currently talking about how some negative misinformation about Amway is hurting their business, but ironically, it would appear that most damage to Amway has been done by IBOs themselves, such as tricking people to meetings. As far as I know, not a single person has ever been held liable for the financial damages to downlines and former IBOs who lost money by being told lies about Amway.

Now I also would like to emphasize that I do not believe the tools work and do not produce any results. While Amway defenders will claim that most if not all new emeralds and diamonds are on the system, they fail to mention that there are also tens or hundreds of thousands of people who work the system without results. As far as I know, there is no bonafide unbiased evidence that suggests that the system produces any results. It is why IBOs end up later talking about being a nicer person of how their marriage was strenghthened by joining the system. While these are nice side benefits (if true), these reasons are not why you started a business. A business exists to make a profit, yet uplines make all kinds of excuses as to why IBOs did not profit, even placing the blame on the IBOs who trusted them.

It brings me to the real purpose of having tools. The REAL purpose of tools is to make profits for your upline. I believe the tools were invented as a way to motivate and train new and distance IBOs, but apparently, GREED eventually set in and many uplines started emphasizing tools, not because they wanted downline success, but because their tool businesses were wildly successful with thousands of captive downline dedicated to the system. I believe it is why I saw many IBOs who worked hard, never missed a meeting or function, did nto sponsor any downline, but were still told they needed more and more tools.

I believe the real purpose of having tools is so your upline's tools business can be profitable.