Walking Away From Amway And Other Myths?

I was watching a show on Discovery channel the other night about Sasquatch. It was followed by a show about evidence of UFOs. It made me start to think about these phenomena. It seems like everyone has heard about or knows something about Sasquatch (Big foot) and/or UFOs. There are many documentaries showing pictures and evidence of both, but to date, there is no bonafide evidence that these things exist. You'd think that a body or bones of a Sasquatch would turn up somewhere, sooner or later, or we would find compelling evidence of a spaceship from another galaxy.

It sounds just like stories of people who built a diamondship, then "walked away" from their businesses, retired in the lap of luxury and did nothing while the money kept rolling in. I heard numerous scenarios about this happening, but looking back, all the diamonds kept working and since Joecool left the business, the diamond either kept working, or quit or got terminated. But I never heard anyone name some higher up Amway pin who built a business, and then walked away from it to travel the beaches of the world while hundreds of thousands of dollars kept rolling in. Many have heard about it but nobody seems to be able to name any of these folks. I mean after over 50 years in existence, you'd think some of these folks would exist, especially when it seems to be a selling point of the business for many AMOs.

It is my opinion that Sasquatch, UFOs and retired Amways diamonds (with significant Amway income) are non existent. If these folks existed, there should be at least some shred of evidence of it. The lack of evidence indicates to me that it is either non existent or so rare that nobody can display bonafide proof. I mean there aren't any T-Rexs roaming the earth anymore but fossil evidence proves that they existed at one time.

Keeping in mind that the Amway business has a high attrition rate, coupled with low sales to non IBOs and you can easily conclude that residual and significant income is nearly impossible. An Amway business that is left alone will deteriorate like a sandcastle does as the waves wash it away. You (in theory) could possible walk away from an Amway business for a while and collect some income, but you won't be collecting enough income to live the "diamond lifestyle" as portrayed by diamonds in their functions and open meetings. I'm not even sure that active diamonds can comfortably afford that lifestyle even when building their businesses. There is ample evidence to support my claim. Diamonds losing homes to foreclosure, former diamonds revealing secrets about their income. If you really believe you can walk away from your Amway business and collect untold wealth, I have a bridge in Brooklyn to sell you. :-)

The Reality Of The Amway Opportunity?

One of the things that attracts many IBOs to the Amway opportunity is the idea that they can work part time, 2-5 years and gain a "shortcut" to ongoing and voluminous wealth. Many of the prospects don't have the kind of income or resources that they would like, so the possibility of a shortcut to these trappings sounds like a good idea. They sign up and get started, and then the realities of the business sets in.

100 PV, is the defacto minimum quota for business building IBOs. It costs about $300 to purchase 100 PV worth of products. How many young and single people or couples for that matter, use and/or need $300 worth of household products each month? How many of these same people can actually afford to expend that much cash on household products? The pitch is to change where you shop but how many people were buying these kinds of good prior to Amway? My guess is none. I know I purchased many items, including vitamins, and I didn't need or use before Amway. But my desire to be teachable and to be an example to my downline kept me buying the goods, and trying to pawn off some stuff on friends and relatives to lessen my PV burden.

I also found that getting people to see the plan was no easy task. While my business was growing, it took more and more effort to recruit downline and I can see where many IBOs would reach the saturation point where there simply aren't anymore viable recruits and they might need to resort to cold contacting in order to generate potential prospects. This is probably why there are stories of IBOs stalking people in bookstores, malls and supermarkets. Even when people saw the plan, there wasn't a high percentage of new people signing up. It is why building and maintaining a business is a nearly impossible task, and it is why I believe there aren't people who retire, walk away from their Amway businesses and enjoy six figure residual incomes for life.

The more likely scenario is an IBO signing up, buy and using the products and tools and slowly but surely build up debt. There are countless stories of ex IBOs who got fired up, started building the business and fouond that in a relatively short period of time, found themselves in thousands or tens of thousands of dollars in debt. All the while upline was encouraging them to buy more tools and attend more function, even when they were not profitable. In my opinion, this is confirmation that uplines care more about their tools profits that they do about downline success. I sat in functions where upline would teach about reducing debt, but in the same breath, say it was okay to go deeper in debt if it was to purchase more tools. Self serving advice.

It is why I believe this opportunity, along with the tools system, will nearly guarantee IBO failure. It is sad, but it is also a reality.

Can You Really Trust Your Amway Upline?

Based on my observations of diamond's behaviors over the years, I have come to the conclusion that many of these men in nice suits and flashy smiles are in reality, cut throat ruthless businessmen. I would not be surprised if some of them would literally steal candy from a baby. During my tenure in Amway, I heard many instances of "never miss a meeting" and "do whatever it takes". These kinds of thins were said to downline IBOss without regard to the IBOs likelihood of success in Amway. One diamond even suggested that a family could skip a meal because something heard on a tape could turn your (Amway) business around for the better.

Sadly, the result of this was incredible IBO turnover, bankruptcies, home foreclosures, and IBOs overspending to meet upline goals, regardless of an IBO's profitability. It is my guess that these IBOs have all quit since my time in the business. I would also guess that even the most abused IBOs never bothered to file complaints because the group was taught that failure was IBO responsibility, no matter how much effort was put in.

The wonderful diamonds will parade around on stage, showing off displays of wealth such as mansions, jets, sports cars and fabulous vacations. All of this was supposedly attainable by the rank and file IBOs if they will only do what the upline diamonds advise them to do. It is all a lie. Since I left Amway and WWDB, I believe more diamonds have quit or moved onto other ventures than new diamonds have emerged. What's more, seems there are countless numbers of lawsuits pitting diamonds versus diamonds. I believe these lawsuits are born out of greed over tool money. Tools income is still a dark secret to many. While some leaders may speak about platinums earning a share of some tool income, how much and the qualifications appear to be shrouded in secrecy. Something that Amway accreditation was to fix. But it looks like the AMOs have skirted the parameters of the spirit of accreditation. Sad, but not surprising.

What is really hard to swallow is knowing that many IBOs, young, motivated and eager to achieve, are often needing and/or wanting more income. Thus they are open to the possibility that the Amway opportunity afford them that "break" that they needed. Upline will use this as a means to suck them into the system, telling them that the tools (voicemail, books, standing order, functions) will nearly guarantee their success when the opposite is true. The tools nearly guarantee failure for the vast majority of IBOs. The tools only guarantee profit for those who sell the tools. What is troubling is that these uplines do this while trying to pass on the impression that they are mentors to their downline. What the unsuspecting downline doesn't know is that some of these upline mentors would steal the shirt off their backs, literally. If you are new, your upline may loan you or even give you some tools to appear sincere. But once you sponsor someone or decide to build a business, the bar will be raised and you will be expected to be a leader and buy your own tools.

Beware, many diamond leaders are simply cut throat businessmen wearing a nice suit and a nice smile. Don't be fooled.

What Could Be Better Than Amway?

One of the silly comments I often receive on this site is that Joecool should offer suggestions about what might be better than Amway since I make comments against the Amway opportunity. First of all, I would like to make clear that most of my point of contention is against the tools companies and not Amway itself. Having said that, I believe Amway can and should have done more to prevent IBO abuse by upline and tool selling companies. But I believe Amway has not because the uplines are the ones who recruit new IBOs and teach (defacto) 100 PV quotas to new IBOs, thus keeping Amway sales consistent. Uplines also teach product loyalty.

But what can be better than Amway? Well, since most IBOs earn less than $25 a month, there are many things better than Amway. Working part time for a wage would be more benefioial to most people who get involved in Amway. Buying and selling items for a profit on Ebay is likely to get you more income than selling Amway products. Heck, a lemonade stand on the roadside is likely to get you more income than an Amway business.

What makes the Amway business financially dangerous to many, is not Amway and Amway products, but the involvement in Amway training such as voicemail, standing orders, functions and other materials. This training is promoted as the key to Amway success, but as far as I know, there is ZERO unbiased documented evidence that any of this materials work. In my old LOS, Worldwide Dream Builders, or WWDB, the same leaders I saw 12 years ago are still there and there are no new diamonds that I know of. I would guess that there were "some" new diamonds, but there are also many diamonds who are no longer in business. Kind of makes me wonder why diamonds would quit or resign from Amway if they could "walk away" and continue to collect "residual income". Perhaps this residual income is a myth prepetuated by your LOS. Afterall, Amway doesn't mention anything about residual income and income from your business would come from Amway.

What is really discouraging is that so many eager and motivated people get caught up thinking their financial dreams and goals will be achieved by their involvement with the Amway opportunity. Sadly, most will end up losing money because of the very training that was supposed to bring them success! Even the fiercest of Amway defenders have no documented proof of success. It appears that Amway success is elusive even to the most dedicated of IBOs.

So what's better than the Amway opportunity? Seems just about anything. In fact if you are involved in the training system, donating $100 a month to charity and doing nothing else would make you better off financially than particpating in Amway and the related training. Doing nothing would make you better off. Watching football games would also likely make you better off financially than Amway and the training systems. My recommendation (but you must make your own decision) is to simply find part time work and invest your extra income wisely. It isn't quick or flashy, but you are likely to benefit long term. Of course, your mileage may vary. Good luck on whatever you choose to do.

Why Amway Success Is Unlikely?

So many eager young people join Amway with the hopes that they will retire early, live a life of luxury and basically enjoy life with no worries. Most of the people who join Amway are very likely to be motivated, hard working and wanting more out of life. Their intentions are great but it leads to the question of why do so few people actually get anywhere in Amway and why are there so few new diamonds, at least in the US and Canada?

I think part of the problem is that the folks who recruit new prospects into Amway often imply that everyone has a chance to be a diamond and they also imply that it's not that difficult. I heard comments once that going platinum was so easy that someone's dog could do it. It's obviously not true when less than one percent of IBOs ever reach the platinum level and even those who do often are unable to maintain that level of volume.

Now let's break it down to numbers. A platinum group is often typically 100 to 150 IBOs. Of course not all of them are busy moving products or recruiting downline. A diamond group is six platinum groups plus some side volume, thus a diamond group is likely to have 750 to 1000 IBOs. Being a platinum can be compared to being the manager of a company and a diamond is like being a CEO of a big organization. In a job, you can work your way up and eventually become a manager or CEO. Some IBOs think they can never achieve those goals at work, but they mistakenly think they can surpass their sponsors in Amway so it's a better deal. But even if you earn more than your sponsor, does that mean you will eventually reach platinum or diamond? I think a better gauge of success would be those who go diamond. Diamond is often portrayed as the pinnacle of success and is the target shown in "the plan".

However, as I stated, going diamond would also be like achieving the level of CEO in a company. There is only so much room at the top. That is true. While there can be many diamonds, you would still need to have about 100 to 150 downline to achieve platinum and you would still need six platinum downline groups equating about 750 to 1000 downline IBOs to be diamond, plus your personal group. Thus a diamond is like a CEO who creates his own company. Factor in that half your group is likely to quit each year, thus you must replace hundreds of IBOs every year to maintain the minimum qualification of platinum or diamond. Add the in name "Amway" that makes some people cringe and maintaining a group is a daunting task. Imagine being a CEO of a company that loses half of their employees every year. That's what a diamond "lifestyle" includes.

It is my informed opinion that a diamond lifestyle is one of hectic schedules, constantly working to help your groups maintain volume and bringing in new IBOs, plus sponsoring and maintaining your own personal group of 2500 PV volume. If you cannot maintain 2500 PV personal volume, I believe you would not qualify for some of the bonuses paid by Amway. Also, because the rest of the workers normally works 8-5 or so, a diamond is out working the night shift and odd hours trying to keep the group intact. Also, factor in the travel to functions for speaking engagements and a constant churning of meetings and you have little time to actually work your business and spend time with family. Sadly, many people join to gain more time and money and they often end up with less time and less money because of their involvement with the constant meetings and functions.

So can someone succeed in Amway? Certainly it has been done, but I believe that many diamonds are possibly busier working odd hours than someone with a job with regular hours. The diamond lifestyle may be shown as fabulous, but I believe the reality is not as nice a picture

Why Amway IBOs Fail?

So many IBOs quit and fail, I think the Amway corporation might need a calculator to keep track. And of the IBOs who work and try hard, most of those IBOs also end up in failure and losing money. After years of blogging about Amway, I believe it is because the uplines and the tools they sell to help IBOs are ineffective. When I was an IBO, I don't recall many tools that contained information teaching me how to run a business or how to run an Amway business. There was no talk about tracking income and expenses. In fact, our group was advised to ignore the facts. The scary thing about this is that it is evident that some groups are still teaching this.

Many IBOs and prospects are lured into the business by displays of wealth and not because of bonafide and verified business credentials. A friend of mine sold his franchise business a few years ago and part of what he provided to the prospective buyer was the last three years of his tax returns, personal and business returns. But try asking an upline to even see a business profit loss statement or a schedule C business tax return and you are likely to be told it is none of your business. Instead, upline may show off a photocopy of a bonus check which may be an annual or a once in a lifetime bonus. Or upline may show off a sports car as evidence that they are successful. Sadly, some of these uplines might be broke, they may owe back taxes to the IRS and/or they may even be in debt but simply showing off wealth.

Some uplines have the nerve to discourage young people from furthering their education because they would rather they channel their money into Amway and tools. Some people are told to make family sacrifices to attend more functions or to buy more standing orders. I will grant that not all uplines do this but based on my experience, I would say more uplines do this than not. They will apply subtle pressure on new IBOs and the newbies probably don't know much about Amway or business so they basically have to choice but to trust a diamond who has allegedly achieved the pinnavle of success in Amway. Then uplines will often betray their disciples by saying that failure is the personal responsibility of teh IBO. That advice needs to be discerned by the new IBO and bad advice should be discarded, as if a new IBO would know what is good or bad advice.

I aso see experienced IBOs who don't seem to know how taxes work. I see IBOs who were given the impression that Amway is easy and that they will work once and enjoy the fruits of their labor forever. Oddly, I don't know of a single IBO who did the work once and sat back collecting residual income forever. I find it odd that even tenured crown ambassadors continue to keep busy work schedules. I suppose they could just enjoy this lifestyle but still I find it odd that nobody I know of could specifically name an IBO who achieved diamond and higher and sat back collecting income while enjoying the beaches of the world.

Seems that IBO turnover and failure is more common than not in the AMO world. It also appears that incoming IBOs are like fuel to a fire. Without continuous recruitment and replacement of IBOs who quit, the organization would eventually fall apart along with the bonuses that the higher ups enjoy. It is my informed opinion that many IBOs fail because they aren't taught sound business principles. Despite the constant flow of cds, voice messages and functions and meetings, it doesn't seem as if any practical information is passed from upline to downline. Only messages of never quitting and continuing to dedicate themselves to the system. The result is inevitable and the expected result is failure.

Pigs Don't Know Pigs Stink?

I recently came across some comments on a blog indicating that they had recently heard comments about "Pigs don't know pigs stink". This stems from a tape recorded by a diamond named Dave Severn. The slogan was quite popular when I was an IBO and I'm sure that some IBOs still toss around the phrase. It was basically used to describe people who wren't in Amway. THey worked hard at their jobs but they were "broke" and weren't getting anywhere. At least the IBOs (who were also broke) were doing something about their financial situation (Amway!). So the ignorant rest of the population didn't know any better, thus the term pigs don't know pigs stink.

Having been out of the business and having done a great deal of research about Amway and the Amway groups such as WWDB and BWW, I can say the exact same thing about IBOs. IBOs don't know IBOs stink. Of course I don't mean that literally, but business building IBOs order their products each month. The pay for their standing orders and attend all the functions. They try to recruit new prospects and they use all the catchy phrases taught by their upline or off a cd. They are very likely losing money each and every month, all the while thinking they are becoming successful and better or nicer people. At the end of the year, they sometimes suffer massive losses in the thousands because purchasing all of the tools and training materials add up to a tidy sum of cash after a while.

At the functions, they smile and act positive, even when they are losing their shirts. Upline will edify their dedication and teach them two very important, but self serving advice. They will teach IBOs to never quit, and that if IBOs quit or fail, it is always their own fault, even if they did everything upline taught them. In this manner, upline removes any responsibility for the IBO's failure. Ironically, upline is quick to accept responsbility for any success (even if there is little). All the while, IBOs are attending all the meetings, doing all the steps they have been taught. They act alike and in many cases, look alike. Most of them also share a common result. They are losing money, and many are losing lots of it. They are simply taught to ignore the losses and to remain positive. Most people eventually figure it out and walk away from Amway. Most will never mention their involvement again and because many are sponsored by friends and family, will never file any formal complaint or dicuss their displeasure.

The IBOs continue to associate with their positive and active fellow IBOs, all the while their bank accounts are shrinking and transfering funds to upline. Pigs don't know pigs stink indeed.

P.S. I had a recent site visitor leaving ad hominems on this website. He obviously doesn't realize he stinks. LOL (76.102.109.229)