Friday, March 30, 2012

IBOs Are Altruistic?

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. Seems that IBOs only "help" people who are either in the business or those who are looking at getting into the business.

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. Additionally, many business building IBOs purchase tools which more often than not result in those IBOs ending up with a net loss. How does that help anyone? What's worse is that upline's answer for a failing business is usually to buy even more tools!

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 an IBO 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. How does that help the 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. How does that help anyone?

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!

Wednesday, March 28, 2012

Amway And Quitters?

Never quit! That's what some uplines will teach new IBOs. They will make anecdotal comparisons about sports champions never quitting. For example, Tiger Woods will never quit in a golf tournament. While this may be true, the golf tournament will end and Tiger will play another day in another tournament. A football player may not quit, but the game will end and they will play another game on another day. The same thing happens in many sports. It's silly to compare a sport to a business in this manner.

When someone says never quit, they mean don't stop trying, but it doesn't necessarily mean never quit Amway or never quit the tools systems. Many business owners at one time, have found themselves in a losing position. At times a business owner may have to make a business decision to close his current business due to lack of business, rent/lease is too high, etc. It doesn't mean that the owner is a quitter. This very same owner may open a new and very different business. That new and different business might be very prosperous.

It appears to me, that some uplines use the catch phrase of never quit, and puts a negative label on those who quit Amway, as a means to apply subtle pressure to IBOs. I believe it is because an IBO who quits will not continue to be a customer of their lucrative tools systems. More likely an upline could care less if you succeed or not, as long as you continue to purchase tools. It's why they want people to never quit. Do they assess your business or is this a blanket statement to a large audience?

IBOs and prospects need to take a critical look at their businesses. Take a look at your income versus your expenditures. Are you netting a profit or are you seeing losses month after month? Another vital factor is whether you are suffering a loss almost exclusively because of the expenses associated with the standing orders and functions? Some uplines will encourage IBOs to ignore facts, or they will try to install hope with talk about success being around the corner, but these teachings are more likely self serving, to get IBOs to continue to buy tools, whether or not it is in the best interest of that IBO. You are an independent business owner and as such, need to make your own decision about taking on expenses if you do not have enough revenue to cover those expenses.

This message is to provide an insight into the strategy that some uplines will employ. Don't fall for it.

Tuesday, March 27, 2012

Feeling Sorry For IBOs?

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. I feel sorry for IBOs.

Friday, March 23, 2012

What's It Like To Be An IBO?

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.

Thursday, March 22, 2012

IBOs Don't Work Hard Enough?

One of the things IBOs are taught is to blame themselves for is not working the business hard enough or not doing things right, even if they do exactly as upline advised. Actually, nothing could be further from the truth. It's just that uplines want to be absolved from any responsibility so they teach downline that failure in Amway is their own (The downline's) fault. Upline is also quick to take credit for any success, of course.

But the reason is why hard work doesn't equal success is because an Amway IBO is basically a commissioned sales person. In commissioned sales, one can work hard for no reward and at times, little effort may reap large rewards. But in Amway, with a spotty reputation, Amway IBOs are given a handicap that most simply cannot overcome. Getting new people to recruitment meetings is hard enough, not even factoring in the abililty to sponsor others. When factoring in these tidbits, it's easy to see why uplines teach buy from yourself and selling is not important. It deflects the fact that selling is nearly impossible with less than competitive prices (in general)

The work involved is very simple. Sell products and get other IBOs in your downline to be able to leverage your volume. Many IBOs work hard and attend all of the functions and do all of the steps as outlined by upline, but very few reap rewards and most quit when they realize that the system doesn't work. It is sad that on top of losing money, that IBOs are also taught to blame themselves for their demise. Where is the upline when IBOs bust their butts working har and get no rewards? On top of that, to make it worse, uplines profit from selling training and motivation to their downlines. Why aren't they held acountable?

I've read comments by some Amway defenders wanting to sue Amway critics for a potential loss of business. But most critics, like myself are simply stating our experiences and opinions. Many of which are true and still happening today. So I will ask, what about the millions of former IBOs who may have lost billions of dollars because of false claims which led them to believe that they would get rich following upline advice? Maybe former IBOs should unite and file claims against unethical upline leaders who led them astray?

In any case, hard work doesn't equate success in Amway and I dare anyone to try to prove me wrong.

Tuesday, March 20, 2012

Getting Rich In Amway And Walking The Beaches?

So many IBOs apparently get involved in Amway because they are under the impression that one day they will get rich. That much is clear. The uplines are smart enough, though, to say the right thing such as Amway is not gt rich quick. By doing this, the new IBOs or prospects can think they are in a legitimate business because they have been told it is not a get rich quick scheme. In fact they may even be told that Amway is hard work. But the bottom line is that they must have been told they will eventually get rich or that they willl make it if they will only follow the system.

By saying that Amway is not get rich quick, the upline can also hook you into the tools systems for several years. They will say you need tools, just as a carpenter needs a saw and a hammer. But an Amway IBO's role is simple. Sell products, buy products, sponsor downline. You wouldn't need a 500 page manual and a bunch of cds to learn how to turn on a television would you? Yet so many people get sucked into functions and standing orders under the false idea that these are investments into your business. But still, people will do this because they have been sold on the idea that they will eventually get rich in Amway. 2-5 years to achieve financial freedom seems like a get rich (quick) scheme to me.

I may be repeating some of these questions ad nauseum but it should reveal an answer that IBOs and prospects need. Where are the people who built their business right in 2-5 years and chose the option of walking away and njoying financial freedom while the money keeps rolling in? In over 50 years of existence, I don't know of anyone, save for Amway's owners, who can walk away and have significant income. Also, If this were an IBO benefit, why doesn't Amway list this as a benefit? Maybe it doesn't exist? Maybe it's just a myth?

Do you really believe that all the diamonds could be anywhere in the world with anyone they choose, but they simply choose to be at your function because they love you? Isn't it more likely that all those diamonds at your function are there because they love your money (from ticket sales)? Seriously, if all the diamonds could be walking the beaches of the world with unlimited money rolling in, I'm sure some of them would choose that option instead of being in Edmonton or Portland for a Dream Night in January.

If you believe you truly will get rich in Amway, remember that Amway says the average active IBO earns $115 a month. If you do get rich in Amway one day, you;ll have many downline losing money in order for you to be successful. Can you get rich in Amway? For most I seriously doubt it. You are more likely to fill your garage with stuff and lose money from attending functions than the possibility of getting rich in a person to person business.

Monday, March 19, 2012

Amway - The Least Efficient Way To Move Products?

I recently published some pro-Amway comments about how there's nobody between Amway and its IBOs. When I heard the pitch, pretty much the same thing was said. That Amway could pay IBOs bonuses because they "eliminated the middleman". On the surface, this might sound correct, but not when you take a closer look at it. Sure, you may not have a traditional middleman, but you have layers and layers of upline and downline, all of you get a cut from the sale of product, provided they qualify for the bonus.

Many big companies advertise their products such as Coca Cola or Budweiser. These products become household names and practically everyone in the US knows of these brands. Not so for Amway. In fact, the name Amway is often associated with pyramid, or scam because of bad or unethical behavior on the part of IBOs. Amway pays for some advertising these days, but I wonder what they return on investment is for their advertising dollars?

Amway recently reported a sales increase, but I wonder if that was because of actual growth or maybe it was because they simply had a price increase? I wish Amway was more open about some of the numbers they release but that is another issue. The increased sales by Amway however, means nothing to individual IBOs. Amway's growth is not related to individual IBO's profitability. It makes me wonder why so many IBOs brag about the Amway sales when their individual sales might be zero.

So IBOs are basically left going person to person, word of mouth to inform people about their products. In my opinion, the least efficient means of moving product from Amway to the customer. Because so many past IBOs were desperate to sponsor downline in order to achieve a level or to leverage their sales, less than ethical practices were often employed. People tricked into attending meetings, people lied to or deceived about the opportunity. The damage in reputation is enormous. For these reasons, Amway is a tough sell in North America. I believe this would explain why there seems to be more growth in Amway sales in foreign countries. I believe this is because people in foreign countries are not yet familiar with being tricked into attending a meeting, or lied to as past practice in North America.

Do you want to sell products in the least efficient manner? If so, consider joining Amway?