Your Dreams Don't Have To Include Amway?

One of the things that many IBOs are badly misguided on is the concept of dreams and fighting for dreams. A dream is basically a long term goal. Someone might dream about playing in the National Football League. To accomplish that dream, one might play high school and/or college level football. For most, the dream will end unsuccessfully. No matter how much someone wants to play in the NFL, only so many people are proficient enough to be able to make the team. Even fewer are elite players that become stars. So while you might fight for your dreams, there is also an alternate reality.

In the Amway business, via the "systems" such as WWDB or Network 21, the leaders will often sell hopes and dreams to the downline. That the downline can be retired at the age of 29, walking the beaches of the world while the income just rolls in forever and ever. These kinds of "dreams" would be the same as hoping to win the powerball lottery. You may have seen a few who did it but the chance of you duplicating it is very unlikely. Slim to none is your chance in reality.

Another things uplines will often do is tell anecdotal stories about crabs keeping each other in a bucket when one tries to escape, or about monkeys preventing each other from grabbing bananas at the top of the pole. While the stories may be interesting and even true, it doesn't necessarily apply to the Amway business. While it is true that an IBO may have friends and family who are skeptical about Amway, it is with good reason. Many people have gone through the Amway business with no success. Many people have lost money doing everyting they were advised to do by upline. There is a track record of financial disasters associated with Amway and the attached "systems". It's not like there's a long list of people who have walked away from Amway with the cash rolling in and not a care in the world. Ever wonder why none of the crown ambassadors have exercised the option to "walk away"?

I think people should have dreams. I think people should pursue their dreams. I also think people need to know that certain dreams can come true. There also needs to be a degree of reality in their dreams. There will always be some inspirational person such as a "Rudy" who overcame great odds to accomplish a dream, but the untold reality is that there were probably many many young men who dreamed of playing for Notre Dame that year. Likely, no one else accomplished the unlikely dream like a Rudy. What I am saying is that earning a nice income and having the option of early retirement can be acomplished in many ways. You might be choosing to use Amway to accomplish your financial dreams and that is your right. But the reality is that very few people have made all their financial dreams come true due to the Amway opportunity, as compared to the tens of millions who have tried.

Keep fighting for your dreams, but keep in mind that you might need a plan B and a dose of reality.

Go Platinum In Amway - Less Than A 1% Chance?

Many people consider the platinum level in Amway as a significant achievement in Amway. While it may be nice to achieve that level and gain recognition from the Amway corporation, I will point out that there was a study done in Wisconsin where the attorney general analyzed and found that platinums on average, lost money. The study is somewhat dated, but I will also point out that today, there are MORE expenses associated with running an Amway business than before. (Voicemail, books, functions, standing orders, shipping). I would guess that it's possible that platinums lose more today than when the Wisconsin study was done.

A typical platinum group often has 100 ore more downline IBOs. Also, there are many many IBOs who sign up and do little or nothing. Thus a logical conclusion is that less than 1% of IBOs can reach that level. It is also, apparently rare to maintain that level. My former upline diamond had 7 frontline platinums in his heyday. Actually, 6 of them were ruby level. None of them hold the platinum level today. So you have a less than 1% chance of reaching platinum and then you are unlikely to be able to maintain that level.

What serious prospective business owner would even consider opening a business where you have such a tiny chance of success? Even those who achieve platinum are likely to lose that level. If platinums cannot maintain their level, then it's easy to see why there are former diamonds as well. It seems that people are willing to take a chance on an Amway business because the start up cost is low. But what is the point of doing all of that when the chance of making money is negligible?

To compound the problem, many IBOs spend a lot of time and money building an Amway business that is unlikely to give them any return on their investment. I'd guess that the average serious IBO would spend $250 a month of more on tools. That money invested over a number of years in mutual funds would give you a much better chance of achieving some dreams. Even putting the money in the bank would make you better off than the vast majority of IBOs. A serious business owner would want to know their realistic chance of making money. For some strange reason, prospects and IBOs seem to ignore this reality.

It is because uplines are in the business of selling tools and distributorships. They are not truly interested in your long term sustainable success. If you don't believe me, try to stop purchasing standing orders and function tickets and see how much longer you are edified and given help from upline. Seriously, would a real business owner be interested in a less than 1% chance of success?

Opposing Views On Amway Not Welcome By IBOs?

One of the things I find curious and humorous at the same time is how people who defend Amway often will not allow opposing viewpoints on their Amway propaganda blogs and forums. They will post an article and allow no comments or will not allow comments unless they are positive and paint a rosy picture about Amway. Amway's biggest defender IBOFightback, banned me from his truth about amway blog recently for no reason. In fact I posted only a handful of comments there in years and the comments were truthful and not attacks, yet he felt my presence needed to be excluded from his blog perhaps because the truth itself is negative about Amway. I suppose though, that David Steadson's (IBOFB) lack of credibility (in my book) makes the banning a minor issue. His website is filled with pro Amway folks who back up Amway, even bad practices at times. I guess when you see the world through rose colored glasses. you don't see the reality.

I also had an exchange not too long ago with an IBO via email. He also runs a pro Amway blog but hasn't been active recently. He doesn't allow comments on his blog unless they praise Amway. I just don't understand why the need to put spin on the truth. It is a fact that the average Amway IBO earns very little and that most IBOs make little or nothing. Many who participate in the training sessions end up losing money. Those are tidbits that match up with my experience. It is usually former IBOs who can verify this claim. Seems that current IBOs do not admit they are losing money. As an IBO, I was taught "fake it till you make it". That suggests that you appear successful until you actually go diamond or whatever. In the end, a pig with lipstick on it is still a pig.

Joecool allows opposing views on this blog. Even some comments that are critical of me are allowed. I even had some (I presume) IBOs who left threats on this blog. I suspect that one or some of them also sent me threats via email. Still, I allow most comments on here. I do not allow racist or extremely hateful comments, or comments with spam. I have nothing to hide when it comes to my views on Amway. So what do Amway apologists and IBOs have to hide? Would it be damaging to have the truth on your blog or forum? Is the internet already inundated with negative Amway information and comments?

I believe Amway is partly to blame. The AMO's (Amway Motivational Organiztions) such as Network 21, WWDB or BWW are the ones who say and do unethical things. Amway is the only entity who can take action against these groups but it appears that substantial action is lacking and therefore, these groups continue to teach bad business practices which filter down to many IBOs and contributes to Amway having a bad reputation. I guess Amway is sleeping in the bed they made. Until some bad practices are stopped or corrected, there will continue to be people who had a bad experience in Amway. It is what it is. Amway started an accreditation program to curb abuse but that practice appears of the surface to be a paper tiger (no teeth).

Amway Wolves In Sheep's Clothing?

The really insidious part about some of the LOS leaders, such as the ones I had in WWDB, is that they apparently are cutthroat ruthless businessmen with nice suits, and disguised as your mentors and friends. They get you to trust them, and they will tell you that they have your best interest at heart, or that they would never purposely lead you astray. On the surface, you may think this is true, but look at their actions and you can easily discern that some of these uplines are absolutely ruthless businessmen who would take every cent from you if they could. I was in WWDB and I have good reasons to believe that they are still doing this, based on a WWDB IBO blog. On this blog, I see much of the same teachings today, that I heard as an IBO and some of the same claims such as buying homes in cash, Amway saves marriages, etc. It's scary.

As an IBO, the diamonds would tell you to never miss a function, ever. The only good reason for missing a function was for your own funeral. I recall some crossline IBOs rearranging pre-planned anniverssary parties, weddings, and other special family events in the name of being core and attending all functions. Some IBOs actually did quit their jobs to attend functions and they very well may have done so because some uplines taught this. IBOs were also encouraged and told to go into debt to attend a function. This was okay because it was an investment into your business.

Our group was also strongly encouraged to buy extra cds every week. To be core, you needed to listen to a cd each day and you cannot listen to the same one each day right? Couples were told to buy their own seperate standing orders. Brad Duncen even had a true north tape (cd) that said sponsors were to eat the standing orders for downlines who quit because it was too much trouble to call upline who calls upline who calls upline to cancel a standing order. Oddly enough, they didn't mind upline calling upline calling upline to add a standing order.

In the end, I was lucky enough to have been progressing up the pin ranks so my losses were not that devastating. I ended up losing in my early months of the business but mostly broke even when I was at 4000 PV. Sadly though, my crossline did not fare so well. I know of one couple who declared bankruptcy. I don't know how much their WWDB involvement contributed to bankruptcy, but I am certain it was a major factor and I know of two couples who had homes foreclosed, and I believe that their allegiance to WWDB was a factor in those foreclosures. But I guess hey, two WWDB diamonds had homes foreclosed so maybe they were duplicating?

Do not be fooled. The diamonds may have a nice smile and a nice suit, but they are ruthless businessmen who will take your last dime if you allow them to.

Amway And Tools?

One of the things my upline always pushed on us was the tools system. While the tools are optional, they are not promoted that way. They were promoted as vital, necessary, almost as if you were insane to try and build an Amway business without tools. Basically the tools were a defacto requirement. My upline always claimed that nobody ever "made it" without tools. Some Amway defenders like IBOFightback insist that the tools work, and that IBOs who were on the system proved it with higher levels of success and product volume.

IBOs participating in the system (voicemail, book of the month, standing orders, functions, etc) do more PV. I believe this is true, but it is true, only because once the upline can convince you to participate in the system, then that same IBO is also convinced that they should or must do 100 PV as part of the deal. People who aren't convinced that the system is vital, subsequently do not purchase or sell as much PV because they have not been convinced that moving PV will make them successful.

Critics and Amway supporters have debated this issue for years, but clearly, the evidence supports my position. Why? Because if there was a true demand for Amway products because of their quality and/or value, then there wouldn't be such a steep dropoff in movement of volume when an IBO becomes a former IBO. Many, probably most former IBOs never buy a single Amway product once they leave the business. If the products had true quality and value as Amway supporters claim, why don't people continue to purchase 100 PV per month when they quit? Because they never wanted or needed all of that product in the first place?

If someone is convinced that Amway will be their financial savior and that by using tools and moving 100 PV will result in longterm financial security and residual income as claimed by upline, then that is what they will do in hopes of achieving the end goal. When that goal or dream doesn't materialize, the former IBOs realize that the tools and products no longer have the value they once thought thet had. How many former IBOs will buy standing order or attend functions? If these materials really made you nicer, or saved marriages, why don't any former IBOs keep buying them? Why do they resort to selling them for pennies on the dollar on Ebay or Craigslist?

Bottom line is that the tools don't work. They only work for the uplines who directly profit from the sale of tools, plus the artificial demand in product sales created by those IBOs who are convinced that Amway wil make them rich. Once the reality sets in that Amway will not make them rich, and that the tools are simply draining their resources, then the demand or tools and Amway products disappears almost instantly. There is no unbiased evidence that I know of to suggest that these tools work, and basically, the miserable amount of new diamonds emerging in the US seems to confirm this fact.

How To Profit In Amway?

I have been reading some ongoing debates about whether the system income for higher pins is more than their Amway bonuses. I believe the systems such as BWW, WWDB, N21 or LTD, does generate more profit for upline than the sale of Amway products. How the system income is divided though, is still a mystery as it doesn't appear that there are bonafide written contracts explaining how tools income is split up among the higher pins.

But it's very easy to determine that more income is made from the system than from Amway. If you move $100 worth of Amway products, Amway will pay about $33 back in the form of bonuses. These bonuses will be split among the Amway IBOs (middlemen), depending on your level. On the other hand, if your group bought say 20 cds at $5.00each, the system will profit about $90 as cds cost about 50 cents each to produce in bulk. Some Amway apologists will cite the fact that some groups sell cds for $2.50 or $3.00. While this is true, there is a "member's fee" which must be paid. And when you add in the member's fee, the profit for the system is the same or possibly higher!

If you buy a major function ticket for $100, the cost of that function might be in the neighborhood of $25 to $30 per attendee, so the system may generate $70 profit on a $100 sale. I believe the smaller functions such as open meetings, books and voicemail have smaller profit margins, but still overall, it's easy to conclue that the profit from the system is greater than profits generated by moving Amway products.

The only question is how much each individual earns. I have "heard" that platinums get a discount on the sale of standing orders and cds, but I have never heard of a platinum sharing any profit for functions, voicemail, or any of the other materials. This is puzzling to me as I believe the platinums do the most work in the system.

So for the lower level IBOs, if you move $300 in Amway sales (Approximately 100 PV), you will receive about $10 or 3% while upline enjoys the rest of the $90+ in bonuses from Amway. And then when you purchase and move tools volume, you receive nothing and some of your uplines enjoy all of the profit. While I don't see any problem in upline making a profit for selling training materials, I see a problem in the fact that the tools don't work. So few IBOs progress to levels where an actual profit is earned. Amway supporters will point out the new platinums emerging each year, but do not mention the platinums who do not re-qualify.

Based on my observations, I can only conclude (quite easily) that there is substantially more profit from the sale of support materials for upline to enjoy, and I can also conclude that the support materials are ineffective in training downline IBOs so they can progress to higher levels of the business.

What's "Likely" In Amway?

One thing Amway promoters and enthusiasts like to do is to paint a best case scenario when promoting Amway. I can't blame a promoter for wanting to show the best case scenario, but in my informed opinion, it's a matter of whether there is deception or outright lies in displaying that best case scenario. For example, when other "financial" gurus air their infomercials, they have a disclaimer to explain that success testimonials are a "unique" experience. Many Amway promoters apparently do the opposite and make it seem as if financial success in Amway is the norm and not the exception. But what is the more common or likely experience for an IBO?

I am not going to discuss the IBOs who sign up and do nothing, even if this may be common. (That's because there may also be reasons for this, such as deception or harrassment used by the recruiters). IBOs who sign up and do nothing do not tend to complain about their results.

I believe that for many, they will see the plan, usually the 6-4-2 plan which is to show how you can become a platinum and then diamond. The speaker may slide in how all you need is six of these groups and you will be a diamond and make hundreds of thousands of dollars and walk the beaches of the world. You can be job optional and wake up at noon, etc.

The reality for many is to sign up full of excitement, and thinking that certainly, some of their friends and family will agree that this is viable. So the new IBO will buy or consume 100 PV and may try to sell a few items. Eventually, this same IBO will talk to family and friends and many of their friends and family will show sour faces as they already had, or know someone who had a questionable or bad experience with an Amway IBO. I myself got tricked into a meeting at one time. They may listen to the standing orders and attend the meetings with the intent of succeeding as per the plan.

But after a few months, not many people are interested in registering, not many want to buy the products and it becomes increasingly harder to make contacts and to get new people to see the plan. The expenses start to add up. You have products such as laundry detergent or LOC that you don't need to replace but you have your defacto 100 PV quota, so you end up buying other things to reach that all important 3% bonus bracket. By now, you have a cache of household products and goods that you never really used prior to Amway, you notice that your checking account is shrinking as the products and the other expenses such as voicemail and functions are starting to add up.

You finally quit, in some cases with the now former IBO feeling embarrassed or ashamed that they even got involved in all this. They disappear and all of their former "lifelong" IBO friends could care less. They won't bother to complain about their experience, but may feel the need to vent if someone discusses Amway again.

In the final analysis, the bad experience and financial losses likely came at the hands of an AMO such as Network21, WWDB or BWW, but the attachment of a bad experience will be tied to Amway. This is a more likely experience than someone quitting their job to walk the beaches of the world.