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.
Friday, September 28, 2012
Tuesday, September 25, 2012
Amway Diamonds Pay Cash For Everything?
When I was an IBO, I was always taught that diamonds pay cash for everything. That one day, after following the foolproof WWDB system, that I too, would be strolling on the beaches of the world, with cash rolling into my bank account with no worries in the world. We were told that diamonds pay cash for all purchases, even homes and other large ticket items. As evidence, the diamonds would show slideshows of mansions and sports cars, golf club memberships and other lavish items. All paid for in cash we were told. I have reason to believe that WWDB still teaches this except that it is probably a bunch of lies.
First of all, in looking back, the group really had no way of knowing what was paid for or not. We just assumed that diamond paid so much money that everything the diamonds spoke of were true. However, there have been events, some very recent that exposed some of the apparent lies told by these diamonds. There were two (2) diamonds whose home foreclosures became public knowledge and a prominent triple diamond who was involved in bankruptcy proceedings. Now your home cannot be foreclosed if it's paid for in cach right? Technically, nobody would care whether a diamond's home was mortgaged or paid for, but when diamonds parade in front of a crowd bragging about wealth, and then telling the audience that they too will achieve the same success by following the system and upline advice, well that's a bit misleading in my opinion. So many people in the audience are practically crying because they want what the diamonds are flaunting, except that possibly, many of these diamonds don't even have what they are selling.
A average diamond might make about $150,000 (according to Amway) and let's just say another $150,000 from selling support materials. When you factor in taxes and business expenses such as travel to and from functions, what's left over certainly is not going to allow you tp purchase million dollar mansions. Some higher up pins might make a bit more, but still, purchasing mansions and other luxuries in cash is a stretch. It would be my guess that most diamonds indeed have a mortgage on their homes and may even have car payments. That's not a crime but it is unethical to lie about your income in order to recruit new downlines.
For IBOs and other newbies, if your uplines are bragging about paying for homes and other things in cash, ask them to show proof of these claims. I can show you pictures of multi million dollar mansions and sports cars, it doesn't mean that I paid for them in cash. But then again, admitting to having a mortgage or having monthly car payments are quite as attractive or exciting as paying for these things in cash.
First of all, in looking back, the group really had no way of knowing what was paid for or not. We just assumed that diamond paid so much money that everything the diamonds spoke of were true. However, there have been events, some very recent that exposed some of the apparent lies told by these diamonds. There were two (2) diamonds whose home foreclosures became public knowledge and a prominent triple diamond who was involved in bankruptcy proceedings. Now your home cannot be foreclosed if it's paid for in cach right? Technically, nobody would care whether a diamond's home was mortgaged or paid for, but when diamonds parade in front of a crowd bragging about wealth, and then telling the audience that they too will achieve the same success by following the system and upline advice, well that's a bit misleading in my opinion. So many people in the audience are practically crying because they want what the diamonds are flaunting, except that possibly, many of these diamonds don't even have what they are selling.
A average diamond might make about $150,000 (according to Amway) and let's just say another $150,000 from selling support materials. When you factor in taxes and business expenses such as travel to and from functions, what's left over certainly is not going to allow you tp purchase million dollar mansions. Some higher up pins might make a bit more, but still, purchasing mansions and other luxuries in cash is a stretch. It would be my guess that most diamonds indeed have a mortgage on their homes and may even have car payments. That's not a crime but it is unethical to lie about your income in order to recruit new downlines.
For IBOs and other newbies, if your uplines are bragging about paying for homes and other things in cash, ask them to show proof of these claims. I can show you pictures of multi million dollar mansions and sports cars, it doesn't mean that I paid for them in cash. But then again, admitting to having a mortgage or having monthly car payments are quite as attractive or exciting as paying for these things in cash.
Monday, September 24, 2012
What Amway Prospects Should Know
One thing that I was unaware of as an IBO was that our uplines were profiting from our tools purchases. I was in WWDB at the time and I was told very clearly that nobody made money from the tools and in fact, I was also told that WWDB was a non profit organization. Both of these statements were bold lies told by WWDB leaders and they have never been held accountable. We were told that upline cared about us and our success, thus they spent their own money to fly to functions to teach us how to succeed.
Eventually, the internet amd other media made it impossible to cover up these lies and uplines funally admitted that they profitted from tools. However, it looks like they downplayed the magnitude of the tools profits. I believe some upline may have made most of their income fro tools, especially leaders who may have fallen out of qualification. Now the upline admits they make some profits from tools, but there is still a great deal of secrecy in the tools business. What makes the whole thing ironic is that the uplines allegeldy are not supposed to entice Amway prospects into joining by using the tools money as a draw, but at the same time, they are told that tools are vital to their success.
I wonder how many prospects or IBOs would be fired up about buying tools if they knew that their uplines might not currently be qualified at the level they claim to be, and knowing that the uplines will make a ton of money whether or not you make a cent as an IBO? Also, some uplines are shameless is pushing the tools on downline. Sure they might cut the newest guy a break and loan them some cds, but once that IBO decides to start building downline, they are likely to be told that a real business owner buys their own tools, or that a business owner needs to be a leader and purchase extra tools for their downline.
How would you feel uf your upline is touting themselves as a financial genious but in the background, their homes are foreclosed or they have financial difficulties? What if your upline touts their morals and you find out they are divorced or getting a divorce? What if your upline said Amway saves marriages? Your upline certainly won't say they are perfect, but conversely, they should be held to the highest standards if they are using their status to be able to sell tools and make large profits.
Many prospects and IBOs don't know this, but I hope they take it to heart.
Eventually, the internet amd other media made it impossible to cover up these lies and uplines funally admitted that they profitted from tools. However, it looks like they downplayed the magnitude of the tools profits. I believe some upline may have made most of their income fro tools, especially leaders who may have fallen out of qualification. Now the upline admits they make some profits from tools, but there is still a great deal of secrecy in the tools business. What makes the whole thing ironic is that the uplines allegeldy are not supposed to entice Amway prospects into joining by using the tools money as a draw, but at the same time, they are told that tools are vital to their success.
I wonder how many prospects or IBOs would be fired up about buying tools if they knew that their uplines might not currently be qualified at the level they claim to be, and knowing that the uplines will make a ton of money whether or not you make a cent as an IBO? Also, some uplines are shameless is pushing the tools on downline. Sure they might cut the newest guy a break and loan them some cds, but once that IBO decides to start building downline, they are likely to be told that a real business owner buys their own tools, or that a business owner needs to be a leader and purchase extra tools for their downline.
How would you feel uf your upline is touting themselves as a financial genious but in the background, their homes are foreclosed or they have financial difficulties? What if your upline touts their morals and you find out they are divorced or getting a divorce? What if your upline said Amway saves marriages? Your upline certainly won't say they are perfect, but conversely, they should be held to the highest standards if they are using their status to be able to sell tools and make large profits.
Many prospects and IBOs don't know this, but I hope they take it to heart.
Friday, September 21, 2012
Why Amway Diamonds Appear Wealthy?
One of the things that many IBOs do not understand is where the upline profits actually come from. They think they will obtain passive residual income but most do not understand how it works or where the money comes from. What most people see instead, is a photocopy of an upline's check, or they may see upline driving a nice car or something like that. They do not understand how the business works and the fact that there are two businesses at work. The Amway opportunity and the tools business. Frankly, most IBOs would be much better off giving their upline a check for $50 each month and never getting involved in the Amway opportunity.
Upline earns some income from the movement of products. Amway returns about 32% of their gross in the form of bonuses. Most (active business building) IBOs earn 3% while uplines split up the remaining 29% of the bonus. Not such a great deal when you think about it. Also, most IBOs overspend on Amway products. They are not simply replacing what they normally buy. If they did, then there would be tons of former IBOs continuing to move 100 PV or more. Instead, when an IBO quits, they either buy nothing from Amway anymore, or they may use a few products here and there. The opportunity and the way it is promoted simply creates an artificial need for Amway products. If the products were so great, why then after 50 years of business, that IBOs sell less than 5% of their goods to non IBOs, making IBOs the primary and possibly the only consumer of Amway products?
Then you have the tools business where IBOs don't even get a measly 3% of the profits. Uplines keep all of the tool profits. While this may seem acceptable on the surface, keep in mind that the tools do not work. There is no unbiased evidence that I know of that suggests that the tools create a natural progression of IBOs. I cannot name more than a few new diamonds in the US since I left the business in 1997 or 1998. And even if there were some new diamonds, I believe there were even more who quit or left Amway for other reasons. One might wonder why a diamond would quit in the first place if there really was residual passive income involved.
So where does upline profits come from? Simple, it comes directly out of the pockets of downline. If IBOs actually sold products, then some profits would come from sales and customers. Instead, most Amway sales are simply made from upline to downline. And vritually ALL sales in the tools business comes from upline to downline. Thus many IBOs spend $500 to $600 a month on products and get back $10 if they reach 100 PV. Then you factor in the $150 to $250 monthly that IBOs typically spend on tools. Suddenly that cheap or no risk oppportunity doesn't sound so cheap. And try working it for several years and IBOs can easily rack up tens of thousands of dollars of expenses.
That where upline profits come from folks. Do the math, most IBOs truly would be better off giving upline a check for $50 a month and doing nothing else.
Upline earns some income from the movement of products. Amway returns about 32% of their gross in the form of bonuses. Most (active business building) IBOs earn 3% while uplines split up the remaining 29% of the bonus. Not such a great deal when you think about it. Also, most IBOs overspend on Amway products. They are not simply replacing what they normally buy. If they did, then there would be tons of former IBOs continuing to move 100 PV or more. Instead, when an IBO quits, they either buy nothing from Amway anymore, or they may use a few products here and there. The opportunity and the way it is promoted simply creates an artificial need for Amway products. If the products were so great, why then after 50 years of business, that IBOs sell less than 5% of their goods to non IBOs, making IBOs the primary and possibly the only consumer of Amway products?
Then you have the tools business where IBOs don't even get a measly 3% of the profits. Uplines keep all of the tool profits. While this may seem acceptable on the surface, keep in mind that the tools do not work. There is no unbiased evidence that I know of that suggests that the tools create a natural progression of IBOs. I cannot name more than a few new diamonds in the US since I left the business in 1997 or 1998. And even if there were some new diamonds, I believe there were even more who quit or left Amway for other reasons. One might wonder why a diamond would quit in the first place if there really was residual passive income involved.
So where does upline profits come from? Simple, it comes directly out of the pockets of downline. If IBOs actually sold products, then some profits would come from sales and customers. Instead, most Amway sales are simply made from upline to downline. And vritually ALL sales in the tools business comes from upline to downline. Thus many IBOs spend $500 to $600 a month on products and get back $10 if they reach 100 PV. Then you factor in the $150 to $250 monthly that IBOs typically spend on tools. Suddenly that cheap or no risk oppportunity doesn't sound so cheap. And try working it for several years and IBOs can easily rack up tens of thousands of dollars of expenses.
That where upline profits come from folks. Do the math, most IBOs truly would be better off giving upline a check for $50 a month and doing nothing else.
Thursday, September 20, 2012
All Is All?
One of the things Amway defenders will spout is how tools are optional in the Amway business. While Amway says this, many Amway AMO leaders do not. One of the things I remember hearing was how an IBO "needed" to attend "all" functions. So many IBOs asked the upline questions such as what if by brothers is getting married and the wedding is on the sAme day as a function? Or what if my kid has a soccer game or an event that was scheduled on the same day as a function? The answer from upline was simple. "All means all".
So upline may teach you that God is #1, spouse is #2, kids #3, job #4 and Amway is a distant #5. That's what they said but that isn't what they meant. Anytime there was a conflict with anything, I heard the same thing: "all means all". Meaning that one needed to attend all functions. Amway defenders are quick to jump in and claim this doesn't happen or that they have never heard it, yet I continue to see stories and testimonies indicating that this is still happening in most of not all AMO groups. Sure some upline might be more lenient than others, but in the end, it seems that most uplines want their downlines to attend all functions, regardless of whether an IBO is profitable or not.
I recall even an IBO who had worked hard and was not profitable. He was given the same answer about "all means all". Some upline want you to believe that hard work equals success, but in Amway, hard work doesn't guarantee success. And I believe it is because an Amway IBO is basically a commissioned salesperson amd in that kind of business, hard work can go unrewarded. It is not a matter of working hard, and even working hard and smart can go unrewarded at times. It is because Amway's prodcuts are difficult to sell and Amway IBOs previously unthethical behavior makes it hard to find people who are interested in Amway. Thus even finding someone willing to see the Amway sales plan is a great challenge.
What does your upline say about attending meetings and functions? Do they advise you to pick and choose the ones you can afford or do they tell you that you should attend "all". Do they look at your business profitability before advising you to do they ask you to trust their guidance and leadership? Do they also advise you to buy other tools in the same manner? That is advising you to be on voicemail or standing order without knowing about your business parameters? Do they really want your auccess or their own? Keep in mind that some upline make much more money from tools than from Amway. What say you now?
So upline may teach you that God is #1, spouse is #2, kids #3, job #4 and Amway is a distant #5. That's what they said but that isn't what they meant. Anytime there was a conflict with anything, I heard the same thing: "all means all". Meaning that one needed to attend all functions. Amway defenders are quick to jump in and claim this doesn't happen or that they have never heard it, yet I continue to see stories and testimonies indicating that this is still happening in most of not all AMO groups. Sure some upline might be more lenient than others, but in the end, it seems that most uplines want their downlines to attend all functions, regardless of whether an IBO is profitable or not.
I recall even an IBO who had worked hard and was not profitable. He was given the same answer about "all means all". Some upline want you to believe that hard work equals success, but in Amway, hard work doesn't guarantee success. And I believe it is because an Amway IBO is basically a commissioned salesperson amd in that kind of business, hard work can go unrewarded. It is not a matter of working hard, and even working hard and smart can go unrewarded at times. It is because Amway's prodcuts are difficult to sell and Amway IBOs previously unthethical behavior makes it hard to find people who are interested in Amway. Thus even finding someone willing to see the Amway sales plan is a great challenge.
What does your upline say about attending meetings and functions? Do they advise you to pick and choose the ones you can afford or do they tell you that you should attend "all". Do they look at your business profitability before advising you to do they ask you to trust their guidance and leadership? Do they also advise you to buy other tools in the same manner? That is advising you to be on voicemail or standing order without knowing about your business parameters? Do they really want your auccess or their own? Keep in mind that some upline make much more money from tools than from Amway. What say you now?
Wednesday, September 19, 2012
What Is A Business Owner Mentality?
One of the catch phrases that IBOs spout quite often is that you need a "business mentality". Those of us who have an "employee mentality" simply cannot cut the mustard in Amway. I find this ironic since the vast majority of Amway IBOs have a job. A job that they NEED in order to pay for their Amway business. A job that pays for their voicemail, cds, functions and books, in addition to the cost of the Amway products. Basically, most IBOs would be out of business almost immediately without their job income to support their Amway business.
Apparently, a business mentality, as taught by AMO leaders, is one that doesn't expect quick profits, despite upline's claim that the Amway business has low risk and low overhead. A business mentality is also one where you reinvest any or all profits back into buying support materials. A business owner doesn't expect to make a profit for 5 years. Many of these claims are taught by unethical uplines and unfortunately, many IBOs accept the teaching and buy into it. They lure in prospects by talking about low risk and the ability to profit right away, but the teaching later changes to reinvesting money into their business and not expecting profit for several years. A bait and switch of sorts.
Now it is true that a business owner might have to think and view things differently than an employee. For example, an employee might do a great job from 9-5 but after 5:00 pm, that employee may be headed home to care for his or her family, or to participate in some exercise or recreation. The business owner might be inclined to stay after hours to finish a job because he or she may have invested much, and will want to make sure that the business succeeds. However, Amway is promoted as part time, do as much or as little as you want, on your own time, when you have time.
It is my suspicion that uplines want their downline IBOs to adopt a business owner mentality, not because they want downline to succeed, but because it instills a dedication to the tools purchases and it also takes an IBO's focus off profits for a few years. Thus IBOs think they are successful (without profit) if they are listening to standing order, attending all the functions and showing the plan. It is a gimmick used to retain IBOs who are not profitable. If IBOs were actually making money, there would be little need to continue to motivate them with an endless supply of cds and functions. But because most IBOs lose money or make little, the average IBO must be taught that a "business owner" commonly loses money for a number of years, or that they must continue to reinvest their profits in order to succeed.
In posting this, I say to IBOs, just make a profit by selling goods. That is all the motivation you need. Keep track of your bottom line and look at the return on your investment of time and money. That is the action of a real business owner and the real "business owner mentality". Which are you?
Apparently, a business mentality, as taught by AMO leaders, is one that doesn't expect quick profits, despite upline's claim that the Amway business has low risk and low overhead. A business mentality is also one where you reinvest any or all profits back into buying support materials. A business owner doesn't expect to make a profit for 5 years. Many of these claims are taught by unethical uplines and unfortunately, many IBOs accept the teaching and buy into it. They lure in prospects by talking about low risk and the ability to profit right away, but the teaching later changes to reinvesting money into their business and not expecting profit for several years. A bait and switch of sorts.
Now it is true that a business owner might have to think and view things differently than an employee. For example, an employee might do a great job from 9-5 but after 5:00 pm, that employee may be headed home to care for his or her family, or to participate in some exercise or recreation. The business owner might be inclined to stay after hours to finish a job because he or she may have invested much, and will want to make sure that the business succeeds. However, Amway is promoted as part time, do as much or as little as you want, on your own time, when you have time.
It is my suspicion that uplines want their downline IBOs to adopt a business owner mentality, not because they want downline to succeed, but because it instills a dedication to the tools purchases and it also takes an IBO's focus off profits for a few years. Thus IBOs think they are successful (without profit) if they are listening to standing order, attending all the functions and showing the plan. It is a gimmick used to retain IBOs who are not profitable. If IBOs were actually making money, there would be little need to continue to motivate them with an endless supply of cds and functions. But because most IBOs lose money or make little, the average IBO must be taught that a "business owner" commonly loses money for a number of years, or that they must continue to reinvest their profits in order to succeed.
In posting this, I say to IBOs, just make a profit by selling goods. That is all the motivation you need. Keep track of your bottom line and look at the return on your investment of time and money. That is the action of a real business owner and the real "business owner mentality". Which are you?
Monday, September 17, 2012
Amway Or A J-O-B?
I recall many meetings and functions where the diamonds talked about how your job was making you "just over broke" or "jackass of the boss". They tried to put down jobs, as if working a job were some kind of cruel punishment for the masses. In reality, IBOs could not feed their families, pay their bills and they could not make the diamonds rich without their jobs. I remember seeing videos of people shooting their alarm clocks or a limosine pulling up to someone's place of employment and whisking off someone who recently went diamond or reaching some other pin level.
I suppose that for someone young, who may be in their 20's or 30's, the prospect of working another 30 years seems like a daunting task, thus a "shortcut" such as working 2-5 years sounds like a good alternative. It makes sense, until you actually start trying to build the business and find the name reputation and products difficult to sell. At some point, your investment into standing orders and functions starts to add up. You start to wonder if you made a mistake in trying to find a shortcut to financial freedom. You start to wonder if financial freedome even exists in the Ama-world. Why are the diamonds still working? Why don't any of them "walk away" and collect residual income for life while walking on the beaches of the world?
Luckily, you did not quit your job. While your current job may not equip you with financial freedom, you are likely able to pay your bills and put food on your dinner table. That is more than most people can say about the income they receive from Amway. I used to wonder how much money these diamonds actually make. While they may earn a nice income (if they are actually qualified), a diamond lifestyle can render them even more broke and in debt than the people they recruit into Amway. I believe many diamonds are living month to month, worrying about their finances because they portray a lifestyle that cannot be sustained on the kinds of incomes that Amway reports (i.e. $147,000 average diamond income). A recent triple diamond in bankrupt proceedings revealed that while they earn a nice income, they may not be able to sustain an excessive lifestyle, and certainly not without making a significant income from selling functions and other tools to downline.
Rather than getting excited about seeing a Mercedes Benz, ask your diamond how much they earn from Amway. Ask them why there aren't any diamonds taking advantage of residual income for life, thus walking away from the Amway business? While working a job and saving money may not sound that attractive, it is still a much better alternative than working a job while channeling your income into standing orders, voicemail and functions that do nothing except make your bank account lighter. Financial security and long term sustainablity takes hard work and discipline. Many who promote Amway trick prospects into thinking that Amway is a shortcut to get rich. It isn't, save for the owners of Amway and a few old time Diamonds who control the systems. The facts are there, you just need top recognize them.
I suppose that for someone young, who may be in their 20's or 30's, the prospect of working another 30 years seems like a daunting task, thus a "shortcut" such as working 2-5 years sounds like a good alternative. It makes sense, until you actually start trying to build the business and find the name reputation and products difficult to sell. At some point, your investment into standing orders and functions starts to add up. You start to wonder if you made a mistake in trying to find a shortcut to financial freedom. You start to wonder if financial freedome even exists in the Ama-world. Why are the diamonds still working? Why don't any of them "walk away" and collect residual income for life while walking on the beaches of the world?
Luckily, you did not quit your job. While your current job may not equip you with financial freedom, you are likely able to pay your bills and put food on your dinner table. That is more than most people can say about the income they receive from Amway. I used to wonder how much money these diamonds actually make. While they may earn a nice income (if they are actually qualified), a diamond lifestyle can render them even more broke and in debt than the people they recruit into Amway. I believe many diamonds are living month to month, worrying about their finances because they portray a lifestyle that cannot be sustained on the kinds of incomes that Amway reports (i.e. $147,000 average diamond income). A recent triple diamond in bankrupt proceedings revealed that while they earn a nice income, they may not be able to sustain an excessive lifestyle, and certainly not without making a significant income from selling functions and other tools to downline.
Rather than getting excited about seeing a Mercedes Benz, ask your diamond how much they earn from Amway. Ask them why there aren't any diamonds taking advantage of residual income for life, thus walking away from the Amway business? While working a job and saving money may not sound that attractive, it is still a much better alternative than working a job while channeling your income into standing orders, voicemail and functions that do nothing except make your bank account lighter. Financial security and long term sustainablity takes hard work and discipline. Many who promote Amway trick prospects into thinking that Amway is a shortcut to get rich. It isn't, save for the owners of Amway and a few old time Diamonds who control the systems. The facts are there, you just need top recognize them.
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