Tuesday, May 31, 2011

This Oughta Be Very Interesting!

A friend of mine has just registered to become an IBO in Amway. He is going to be a member of WWDB. I politely declined his invitation to see the plan but he said he is willing to keep me posted on his progress because he is hoping that by demonstrating success, he can get me interested in Amway. He doesn't know that I am "Joecool".

Now I'm not going to try to convince him to quit or discourage him from building a business. I am just going to observe his progress and see where this goes. I guess I will get a close look at whether or not things have actually changed in WWDB or not. I suspect that everything is exactly the same as the old days, except for the online ordering aspect of the business. Standing orders and functions apparently remain the same, along with most of the teachings such as "never quit" and never miss a function".

I'm looking forward to some very interesting blog posts in the near future. Stay tuned..........

**Update: I already received a message about a 3 acre mansion his upline diamond bought in Hawaii and "paid for in cash".

Amway After A Few Months?

I send this message to inform IBOs tha they should be aware of their circumstances in business. What I mean is when you are a new IBO, it is common for you to buy/sell your 100 PV, and perhaps listen to some cds. If you basically did what your sponsor or upline advised, you made your 100 PV bonus level and you will receive a bonus from Amway for about $10. If you did as advised by your upline/sponsor, then you likely made a namelist and started contacting some potential business partners aka prospects. You're probably a bit excited because things are going as you expected. You did your part and a bonus is on it's way to your doorstep. Heck, you may have even sponsored a friend or relative because of your newly found excitement and enthusiasm.

But what happens after a few months? If you are still doing 100 PV and have no downline, then what are the chances that you will ever achieve anything? Your excitement is wearing off and now the Amway opportunity is becoming "work". You are also starting to notice that it is starting to get expensive to continue to purchase products, many of which you never purchased before. For example, were you buying cases of energy drinks and "high end" vitamins before Amway? Did you buy $50 cases of bottled water before Amway? Supposedly their laundry soap and other cleaners are highly concentrated, therefore your consumables are the nutrition/vitamin products.

Even if you managed to find some downline, are they duplicating what you do? Are they also moving volume and sponsoring downline? If not, what are your chances of fulfilling the 6-4-2 plan or some similar version of it. When I saw the plan, I thought it was reasonable and I was on my way to platinum. What I discovered though, is that as you progress, upline has greater expectations of you and that includes more tool purchases. (I was in WWDB). In the end, my recommended tool purchases ate up any profits I had and at the 4000 level, I was just about breaking even, which means I was at a loss when factoring in my time spent and other miscellaneous expenses such as gas money.

Where are you at? If you're been in for more than a year, are you on schedule to become platinum or are you at 200 PV with one downline? Maybe you have a small group with 600 PV? You still aren't close to a net profit. For the vast majority of people, success is not right around the corner. What's around the corner for most is more time lost, more money expended, and no progress. If your group is now growing each and every month, you are sliding backwards. If you don't constantly have new IBOs coming into the group, you are probably stagnant. With about half of IBOs dropping out each year, keeping a group together is a tremendous task.

IBOs, where are you at after a few months? Where are you at after a year? If you haven't gone platinum, it is nearly a certainty that it will never happen, despite what your upline might say. The facts are there, it's a matter of whether you want to believe it or not.

Friday, May 27, 2011

The "Proven" System?

Many uplines and IBOs will talk about their system. More often than not, the various systems such as WWDB or Network 21 will tout themselves as the best, fastest growing, proven, and most profitable. I know that was promoted when I was an IBO and I believe it is still promoted this way. There are many comments on the internet from IBOs and recently former IBOs that indicate that this is true. But let's take a look at these claims.

How does one determine the best? You really can't. The best is an opinion unless there are established criteria on what constitutes the best. Of course, every upline will think their group is the best, but what can factually be derived from that claim? If you are an IBO or prospect of Amway, try asking that question. Based on what do you make the claim of being the "best" group or system?

Fastest growing can be proven or disproved. But for the most part, we know that Amway isn't growing by leaps and bounds in North America. During the Quixtar tenure, it appeared that Amway sales in NA either stagnated or even shrank. Amway supporters cite overall Amway sales going up, but it's reasonable to conclude that the increase in sales is primarily in foreign countries. For some odd reason, Amway no longer reports North American sales, but simply lumps everyhing into a global sales figure.

As for any system to be making claims of proven, all these systems have basically done is proven that they are dismal failures. Based on Amway's own figures, we can deduce that less than half of one percent of IBOs ever reach the platinum level. The platinum level is approximately where you might see a small profit if that platinum is CORE. There is some documentation indicating that platinums might lose money at that level. While the study is dated, the expenses associated with being a platinum have gone up significantly since that study (Wisconsin Attorney General) so it can be very possible that platinums continue to see a net loss these days. It's also very visible that there are fewer diamonds in north America today than a dozen years ago. Diamonds have quit and some were terminated. It appears that most new diamonds come from foreign countries where Amway has not ye suffered reputation issues.

Makng claims of fastest growing is also one that can be proven. However, try asking your sponsor or upline for evidence of this claim. Also, is the growth occuring in your area? Are you from the US or Canada? Citing growth in Korea for example, is unlikely to mean anything for the vast majority of IBOs. And even if there is some growth, how does that translate as leverage or an advantage for you? Aks these questions and see what answer you receive, if any.

The system is proven for sure. But it's proven to be a failure. The numbers supplied by Amway clearly back up this claim.

Wednesday, May 25, 2011

Success Speaks Louder Than Words!

I heard a great comment from a commentator on a related Amway blog. Basically, he said if IBOs were so successful, people would just naturally be attracted. And that's true! Where I live, the local electric company is an attractive place to work with a good salary and benefits package. When there's a handful of openings, you might get as many as 6,000 people applying for these positions. When the federal government hires for the post office, you get thousands of applicants for a handful of jobs as well.

But IBOs have to justify their positions. The common ones are how Amway products are concentrated, or they have magical ingredients in their vitamins. It is my position that if these products were so good and the opportunity actually produced successful IBOs, there would be no need to be deceptive about the products or opportunity. The products could easily me marketed. In fact, cutsomers would be seeking IBOs to find the products and there would be lines of people waiting to see the opportunity.

Instead, IBOs themselves are the primary consumers of Amway products. Many IBOs are deceptive when inviting people to see the Amway plan. Some prospects are outright lied to when recruited for the Amway opprtunity. The curiosity approach is still used by many, because mentioning "Amway" is more likely to get you funny looks than interest. If what I am writing is not true, why do IBOs need to deceive people? Why don't some IBOs open their books and display the financial success they claim to have? Why so secretive? Why aren't there hoards of new diamonds and emeralds each month? Instead, you mainly hear of the Amway growth in foreign countries. Most likely because the Amway name and reputation has not yet been soiled as it has in the US and Canada.

In the US, I see primarily the same old diamonds who were in control of the functions and systems from more than 12 years ago. In fact, factoring in diamonds who quit or dropped out, I believe there are fewer diamonds now than when I was an IBO. Some of these diamonds also had some apparent financial difficulties. The opportunity is far from how it's promoted. Success spakes louder than words, and where North American Amway success is concerned, the silence is deafening!

Tuesday, May 24, 2011

Amway And The World Series Of Poker?

Every year at about this time of year, Binion's Horseshoe Casino in Las Vegas organizes the "World Series of Poker". Thousands of people fly to Las Vegas, pony up $10,000 and play in the main event. Most people expect to lose their money but they think of it as an experience. Some people hope to win, but ultimately, there can be only one champion. There will be a small group of people who actually take home more than their $10,000 entry fee, but the vast majority will lose money. Most people are aware of the tremendous odds against them winning at the final table, but they press on anyway.

The Amway opportunity, as promoted by the Amway Motivational Organizations (AMOs), operate in a similar manner. The main difference is that most prospective IBOs go into the venture expecting to win, and there is no assurance of there being a champion (new diamond). In the Amway opportunity, there is the real possibility of all the IBOs losing money. Sadly, as I said earlier, most participants go in expecting to win. Most participants do not realize the tremendous and overwhelming odds against them making a net profit, let alone achieving the legendary "diamond" status.

In both scenarios, the vast majority of participants lose money in order for a few to win. The difference is that poker players generally understand that they are likely to lose, whereas Amway participants are often mislead into thinking they are likely to succeed. Most Amway participants figure this out and quit. The difference here is that poker players generally do not quit playing poker. Most Amway participants want nothing to do with Amway or its products when they quit.

This can be confirmed by the fact that former IBOs generally do not continue to purchase Amway goods once they are out of the business. If they did, then Amway sales would continually increase even if their IBO force were to shrink. But that isn't the case. I recently read some Amway supporters bragging about an increase in IBO retention, but even if true, it doesn't appear to be translating into better sales or an increase in the number of new diamonds emerging from the systems.

If I'm not mistaken, I believe there were far more World Series of Poker Champions in the last ten years than new diamonds and emeralds in North America. (The World Series also has smaller events, thus there are many many more champions than new diamonds and emeralds)

Can An IBO "Choose" To Succeed?

Many IBOs seem to think that success in business or in other aspects of life is simply a choice. They mistakenly believe that you can actually choose to succeed or not. They apparently believe that persistence and choosing to win will eventually land them a premiere spot at diamond club. If that were truly the case, wouldn't we see hoards of new diamonds each and every year? Instead, we see one here and one there, and while there are a few new diamonds in the US every so often, we see others quitting, dropping out or leaving Amway for greener pastures. Make you wonder if the prize is worth pursuing in the first place.

But IBOs and information seekers should understand quite clearly. You cannot simply "choose" to win or succeed. In a football game, both sides can believe and choose to win, but still, only one can be the victor. In Amway, it is common for a platinum to have 100 to 200 downline. Thus to be a platinum, you need to be in the top one half of one percent of IBOs. To be a diamond, you will need to be in the top 600 to 1200 IBOs, not counting the masses of IBOs who register and do nothing or register and do a little and quit. Only one in about ten to twenty thousand will ever reach diamond in North America.

Sure, IBOs may cite some touching story like "Rudy". Basically a nobody who dreamed of playing for Notre Dame. He busted his butt and did whatever it took to make the team and the movie ends with him getting in a game, making a sack and being carried off the field by his teammates in a blaze of glory. A great and inspiring movie. But what you don't see is the possible tens of thousands of young men who had the same dream, may have worked every bit as hard but circumstances and situations prevented them from achieving the same limited success. Uplines want you to think these kinds of stories can happen to everyone, but the fact is that there is only a little room at the top. If stories like Rudy were common, then there would have been nothing special about it. An elite athlete like a Michael Jordan or a Tiger Woods only comes along once or twice in a lifetime. It is like achieving diamond. It happens but it is a rare occasion, especially in North America where Amway appears to be shrinking instead of growing.

In the Amway business, many prospects and IBOs are motivated and driven to succeed. Many of them are fine young men and women who want more in life. But the vast majority of those who try will not achieve their dreams via the Amway opportunity no matter how hard they work and no matter how badly they want it. The reason is because there are too many variables that are not in direct control of the IBO. The Amway reputation in North America is spotty at best so sponsoring downline is nearly impossible. And when you can sponsor, chances are your downline will do little or nothing. Many new IBOs will work hard, but quit because they are faced with the challenges I just mentioned. And even if you can overcome the overwhelming odds, you still need to keeping working hard constantly to maintain the business, all for an unstable average diamond income of $146,995, which doesn't consider taxes, medical insurance and other perks you may receive at a job. All told, I believe the diamond income is not all it's cracked up to be when you consider the charade you must play to display the diamond lifestyle. Do the math and you will be able to see for yourself.

In the end, it seems as though the prize isn't as great as it seems, and the trail to success is one that most cannot endure. And even if you achieve diamond, you can lose it quite easily as others have discovered. The bottom line is that you cannot simply choose to succeed in Amway or any other endeavor. Good luck if you decide to attempt it anyway.

Monday, May 23, 2011

False Prophets = False Profits?

There are parallels in this story to the way Amway leaders promote success and wealth.

http://news.yahoo.com/s/yblog_thelookout/20110523/ts_yblog_thelookout/doomsday-prophet-followers-flabbergasted-world-didnt-end

It's hard to feel bad for someone whose doomsday predictions caused so much anxiety, but 89-year-old Harold Camping's recent admission that he's "flabbergasted" the world didn't end last weekend sounds somewhat pitiful.

"It has been a really tough weekend," Camping said Sunday, after emerging from his Alameda, California home for the first time to talk to a reporter from the San Francisco Chronicle. "I'm looking for answers ... But now I have nothing else to say," he said, adding that he would make a full statement today.

Camping's PR aide, Tom Evans, told the L.A. Times that the group is "disappointed" that 200 million true believers weren't lifted up to heaven on Saturday while everyone else suffered and eventually died as a series of earthquakes and famine destroyed the Earth. "You can imagine we're pretty disappointed, but the word of God is still true," Evans said. "We obviously went too far, and that's something we need to learn from." The group posted 2,000 billboards around the country warning of the rapture, while Camping--an uncertified fundamentalist minister--spread the word on his radio show.

Camping's Family Radio, which airs on 66 U.S. stations, has apparently rebranded itself quickly. Business Insider notes that the station's website has scrubbed all mentions of the Judgment Day. The site previously featured a countdown clock to the May 21 rapture on its homepage.


But the false prediction might not be so easily effaced from the lives of Camping's followers. The L.A. Times writes that Keith Bauer, a 38-year-old tractor trailer driver, took a road trip with his family to see the Grand Canyon before the world ended.

"With maxed-out credit cards and a growing mountain of bills, he said, the rapture would have been a relief," the paper writes.

But Bauer is not angry at Camping for his false prediction. "Worst-case scenario for me, I got to see the country," he told the paper. "If I should be angry at anybody, it should be me."


Robert Fitzpatrick, who spent $140,000 of his life savings to advertise the rapture in New York, said he was dumbfounded when life went on as usual Saturday. (Just like people who are CORE but do not succeed in Amway)

"I do not understand why ...," he told Reuters while awaiting the event in Times Square. "I do not understand why nothing has happened."

An NPR reporter talked to two Camping followers on Sunday. "One man, his voice quavering, said he was still holding out hope that they were one day off. Another believer asserted that their prayers worked: God delayed judgment so that more people could be saved, but the end is 'imminent,'" she reported.

Evans, Camping's PR aide, told NPR he hopes Family Radio will reimburse followers who spent their savings in anticipation of the rapture, but that he can't guarantee it.

Protesters gathered outside Camping's radio headquarters to mock the false prophecy over the weekend. Some of them set aloft a toy cow with balloons to lampoon the idea that a select elite would ascend to heaven. Meanwhile, other religious groups tried to recruit disappointed Camping followers.