Dead Or Broke By Age 65?

As an IBO, one thing I constantly heard was that 98% of people will be dead or broke by the age of 65. I recently googled this subject and while it appears that tragically, in the US, almost 10-11% of senior citizens live in poverty. I do find that a sad statistic, but it is a far cry from uplines who convince their downline IBOs that everyone will be dead or broke at retirement age. Here are some excerpts from my research:

http://seniorjournal.com/NEWS/SeniorStats/2008/20080826-USSeniorCitizensInPoverty.htm

" ● For people 65 and older and those 18 to 64, the poverty rate remained statistically unchanged at 9.7 percent and 10.9 percent, respectively. For children younger than 18, the poverty rate increased from 17.4 percent in 2006 to 18.0 percent in 2007."

One reason also given was that people are living longer, thus their resources dry up and they end up having to live on social security or some kind of government assistance. While it's true that there are quite a number of people in this situation, the question is how can becoming an Amwa IBO change this?

Since most IBOs never earn a net profit, I fail to see how you could avoid becoming a statistic by joining Amway. The average IBO, including crown ambassadors, and excluding IBOs who "do nothing" earn an average of $115 a month gross income. Dedicated IBOs who attend functions and purchase other training materials are nearly guaranteed to end up with a net loss.

I know many retired people and most have their homes paid off, and they live rather comfortably. My mother is 68 years old, with no mortgage and she received social security income along with a pension. She also has investments that she draws on when she needs to. She travels several times a year with friends who are also retired and living approximately the same lifestyle. While there are some struggling seniors, many are comfortable in their golden years.

So why do uplines use this tactic? I believe they want to scare people into thinking their best hope is to join Amway and earn residual income. Sadly, most people end up with less time and money as a result. By writing this post, I am hoping that people will plan for their golden years. Save and invest, and perhaps work for a company that has a retirement plan or pension to supplement your retirement years. Now I cannot tell you what the "best" way to prepare for your retirement years, but it is my hope that this post will provoke some thought.

Good luck!

My Experience At 4000 PV

I wanted to give people a glimpse into what it was like at the 4000 PV level and what my experience was. Although Amway and WWDB apologists will claim this doesn't happen, or that it doesn't happen anymore, I have reasons to believe that very little has changed in WWDB since I was an IBO. The only major difference was that we did call in and product pick up back then. Apparently, some WWDB leaders still talk about buying homes in cash and teaching the same old stuff.

How many hours per week did I work? I would say up to 30 hours a week was spent on business related issues. Granted, product pick up consumed an entire afternoon and evening, generally on Thursdays. I would have to call in my order to the platinum and then pick up the stuff on Thursday afternoon. Then I had to rush home and distribute the stuff to my downline. My upline platinum was not good at filling orders so it was a real pain. I'd say pick up and associated paperwork costed me maybe 8 hours a week. One good benefit today is that Amway issues the bonuses. In the old days, you as an upline had to do so. (This is an area where I agree that Amway made good progress) I did hear though, that WWDB still has call in and pick up for standing orders and such. If this is true, then they undid the progress that Amway had made. Also, as a up and coming leader, my platinum expected me to absorb some of the cost of returned tools, such as absorbing losses if someone on standing order quit. (Brad Duncan cut a true north tape at the time that basically said IBOs absorb the cost of standing orders for downlines who quit)

As a 4000 pin, I had to show the plan or attend plans for my frontline, if the platinum was showing the plan. I'd say 4 nights per week we showed the plan for a downline or a downline in depth. Of course after the plan, we might "hang out" with downline and have some night owl teaching. Some people call this association or whatever. Depending on the length of the drive, this might take 3-4 hours 4 nights per week. Sometimes it was shorter when you had no shows.

We counseled with downline and upline. I spent some individual time with my upline and also with downline who wanted one on one time to get ideas on how to improve their Amway business. We looked over their group parameters and of course, tools flow. There was a WWDB counseling sheet for this purpose. Looking back, I"m not sure what this really accomplished except for the big pins to know which leaders are selling the most tools.

Then we had open meetings and functions. One local function each month and generally one or two open meetings where a diamond or emerald would show the plan. Of course, my sponsor (platinum) did not feel right unless he augmented our function with his own night owl meetings. We also had three long distance functions on the mainland. These functions were (at the time) called Leadership, Family Reunion and Free Enterprise day. Being from Hawaii, these functions costed me, as a single, at least $1,000 or more for each trip because it was airfare during peak travel times, hotel, rental cars and the function ticket. I hate to think what couples paid.

Because of my status as up and coming leader, I had the privilege of attending special meetings where our diamond would teach or show house plans. I even had the honor or driving the diamond to a house plan. Damn, how can anyone live without such an honor?

For my troubles, I had a business at 4000 PV, with eagle parameters. I was considered a "mover and shaker". Lots of people knew me and my sponsor wanted so badly to break a downline platinum. He sat down with me one afternoon and told me I could really push to platinum and ruby easily if I would only ditch my girlfriend (fiancee' at the time). He told me that he would ditch his wife if the upline diamond told him to do so. He said a single (ruby or higher) could easily attract a lot of eligible women. It was after that meeting when I decided to quit.

I had reached 4000 PV. I was making very little or losing some money because of the tools and functions. I did not see prospects of making money even at platinum and now my upline wanted control of my life. I told my group the truth and all of them quit except 1 or 2 of them who were brainwashed enough to stay involved. That was my story and I have no regrets about my decision to quit. I truly hope this story helps a prospect or a current IBO.

I Wanna Be Rich!

Below, I have posted the lyrics to the song "I Wanna Be Rich". It was a song performed by a group called "Calloway". It was often played at Amway or WWDB functions. Ironically, I believe the group that performed this song was deemed a "one hit wonder". I guess they had one hit song and never hit the top 40 again. I wonder how many diamonds are one hit wonders, making the qualification and never seeing diamond club again? I wonder how many diamonds wish they were "rich"? This past month, many groups experienced a function called Dream Night where the diamonds show off slide shows of mansions, cars and other displayed of wealth. But I wonder how many diamonds can actually sustain that lifestyle with their Amway income? I suspect the answer is little to none. But enjoy the song. It's quite fun!

http://www.youtube.com/watch?v=Ztk9t_m1FpY

Cash, cold, that's what I need
Big bill collectors they ring my phone
They bother me when I'm not at home
Ain't go no time to be fooling round
Feet hit the floor, then I get head on down, you see

Chorus:
I want money lots and lots of money
I want the pie in the sky
I want money lots and lots of money
So don't be asking me why

I wanna be rich oh
I wanna be rich oh
I wanna be rich oh
I wanna be rich, full of love, peace and happiness

I want my cake wanna eat it too
I want the stars and the silver moon
I spend my money on lottery
My favourite number is 1 2 3, you see

Chorus:

Every way rich
Love, peace and happiness

I want all the things that lovers do
A pocket full of dreams come true
Even things you cannot find
Want you by my side to keep you satisfied and rich

Here is what we're gonna do
Say oh I say uh uh
Whoooaaa Whoaaaaa
Got to be baby
I just wanna to be rich
I just wanna be, just wanna be
Cause baby

Chorus

I wanna be rich
You know what I mean baby
I wanna be rich
Everyday and everyway
I wanna be rich, full of love, peace and happiness
Play, honey, there's lots and lots for everyone
Be rich, I wanna be rich

Taking Action Can Curb Criticism

One thing that is certain, based on my blogging experience is that Amway 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. Thus your realistic chance of reaching platinum is much less than 1% when factoring in people who sign up and do nothing or people who sign up and quickly walk away.

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. This is easy to ascertain when looking at the groups as a whole.

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.

Do Any "Systems" Work?

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. They hightlight a few "successful" people and put a disclaimer in such as "unique experience" for folks who actually made some money. They do not claim that the income however, is long term sustainable.

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 may, 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. That the system may work for some people, but "your results may vary".

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

Amway Is Not "Get Rich Quick"?

One of the things upline used to say was that Amway is not "get rich quick". I suppose they say this because most people would more likely think scam if they promoted it that way. But when you stop and think about it, 2-5 years, build it right and you have willable, residual income for like while walking the beaches of the world? That's not get rich quick? Or is ot more of a disclaimer so that the opportunity doesn't sound "too good to be true"? One thing is for sure, even if uplines tell you that it's not get rich quick, it's obvious that IBOs think they will eventually get rich, even if it's not quick.

What most IBOs don't figure out quickly enough, is that they are unlikely to even make a profit, let alone getting rich in Amway. How many of these peoplle exist? Wherea re all of these retired Amway IBOs who built a business in 2-5 years and then walked away from their business and will be collecting a significant residual income for many years to come afterwards? I don't know of a single person who has done this and none of the Amway defenders and zealots I have encountered over the years has been able to supply this information either.

I can acknowledge that Amway is a business opportunity and will definitely take some work to be able to achieve something. But thinking realistically, what business could you actually be able to walk away in 5 years and not work again? More than likely that business doesn't exist, whether it's Amway or not. Say you opened a conventional business. There wouldn't be many scenarios where you could walk away after a number of years. The business would still require work and maintenance. But form some reason, people are mislead to believe that you can do this in Amway where there is a high attrition rate and where your business can only expand by person to person.

Sadly, many of the people who are attracted to the Amway opportunity are often young people looking to get more out of life. They are often ambitious but may lack a means to gain wealth, thus the appeal of the opportunity is there. Unfortunately, these nice young people are more likely to end up channeling their hard earned dollars into standing orders and functions which will almost guarantee that they end up with a net loss. The bottom line is that not only is Amway not get rich quick. The more likely scenario is that your involvement with Amway will very likely be not getting rich at all. A net loss is the most likely result. I challenge anyone to try and prove me wrong on this point.

Who's The Real Loser?

One of the things I recall as an IBO 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 ten 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 neverending 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 cahs I threw down the crapper.

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 am scheduled to be retired before the age of 60 with a decent retirement income and will likely have my home paid off by then. 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.

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.