In my opinion, Amway is a pyramid. They are not illegal, but still a pyramid. The reason why they remain legal, apparently is because they do not pay anyone for recruiting downline. But most everyone has been, or knows someone who was recruited by a zealous Amway IBO. The emphasis of most active IBOs is on recruiting and much of the teaching by upline is on techniques to recruit and/or how to talk to people without tipping their hat to reveal the Amway name. Most IBOs are not very good at this and they stick out like sore thumbs in many cases. It's also comical when uplines teachh crazy antics, like how some IBOs use to deny that Amway and Quixtar were even remotely connected.
One of the reasons IBOs use to justify their involvement in the pyramid is that they can earn more than their sponsor. While that is true, it is only because everyone below the emerald or diamond level is basically expendable, or a slave in the pyramid. There are many many IBOs who achieve fairly high levels who quit, or had upline wreck their businesses. Thus even platinums are expendable to upline. In fact an upline might make more money by removing the platinum. For new IBOs or recruits, do you really believe that you are going to ever surpass your current upline diamond or higher? If you believe that, you are sadly mistaken.
And for those who dream of achieving diamond and walking the beaches of the world. How do you think you can ever achieve that? You don't get something for nothing unless someone gets nothing for something. In order for you to receive income for little or no efforts, your downline IBOs must keep purchasing products and replacing IBOs who quit. If your downlines cannot keep up with the attrition rate, your business will collapse in a hurry. Come to think of it, if a diamond can walk away and collect a large income forever, why hasn't anyone done it? I mean we still see crown ambassadors still busy working functions and I don't know of any who walked away to spend their lives jet setting on the beaches of the world.
The sad reality is that you see new faces at meetings and functions, just as often as you see familiar faces disappear. With that kind of attrition rate, you may have to work even harder at the higher levels just to keep your business status quo. In Egypt, the slaves built the pyramids. Do you have enough slaves? What many Egypologists find amazing is how the Egyptians were able to motivate the slaves to keep on going, doing backbreaking work all of their lives. The same can be said of a diamond level business (or higher)
Friday, January 31, 2014
Thursday, January 30, 2014
The Amway Routine?
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.
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.
Monday, January 27, 2014
What Is Amway Success?
Success is subjective. Someone making ten dollars might be considered successful, for others, nothing less than a barrel of cash will suffice. One other important point is that there are undoubtably some very successful people in Amway. I am sure that some Amway diamonds are quite well off and enjoy some of the finer things in life. But the reality is that these successes are very very rare and many of these success apparently are not sustainable as many people are led to believe.
But the bigger issue in the Amway opportunity is where the success comes from. Sure, many people want to "go diamond" and live in luxury while barrels of cash roll in. But what is unknown to many, is that the few who enjoy the lifestyle and trappings do so at the expense of their downline. The downline move the volume and the downline purchases the system materials, both of which is profitable for the upline. Because Amway products, admittedly are not commonly sold to people who are not IBOs, then anyone can conclude that upline success comes from the pockets of the downline. Most downline would be better off writing a check for $100 each month to their upline and not participating in the business or buying products at all.
This in itself would not be such an issue if the system actually churned out new successes frequently AND if the downline were not led to believe that the system is the key to their success. But less than one half of one percent of IBOs ever reach platinum and out of those who do, only a tiny fraction of one percent ever attain the diamond level. But the business has tens of millions of people who tried and could never achieve what was promoted. Lack of effort may be a factor, but when that many people try and fail, it's evident that the system is flawed as well.
To summarize, it is possible for someone to achieve a level of success in Amway, but it is so difficult and so rare that IBOs probably have a better chance of winning the lottery or being struck by lightning than they do of achieving a significant level in the Amway business. Some people are successful, but it is usually at the expense of their downline. The catch is that uplines will teach their faithful downline IBOs that attending a function or buying a standing order is success, regardless of whether an IBO is earning a profit. So many IBOs think they're successful but they are simply fooling themselves with the help of their upline.
Success is undeniable, but sadly for the vast majority of IBOs, it is also unattainable, at least in the Amway opportunity.
But the bigger issue in the Amway opportunity is where the success comes from. Sure, many people want to "go diamond" and live in luxury while barrels of cash roll in. But what is unknown to many, is that the few who enjoy the lifestyle and trappings do so at the expense of their downline. The downline move the volume and the downline purchases the system materials, both of which is profitable for the upline. Because Amway products, admittedly are not commonly sold to people who are not IBOs, then anyone can conclude that upline success comes from the pockets of the downline. Most downline would be better off writing a check for $100 each month to their upline and not participating in the business or buying products at all.
This in itself would not be such an issue if the system actually churned out new successes frequently AND if the downline were not led to believe that the system is the key to their success. But less than one half of one percent of IBOs ever reach platinum and out of those who do, only a tiny fraction of one percent ever attain the diamond level. But the business has tens of millions of people who tried and could never achieve what was promoted. Lack of effort may be a factor, but when that many people try and fail, it's evident that the system is flawed as well.
To summarize, it is possible for someone to achieve a level of success in Amway, but it is so difficult and so rare that IBOs probably have a better chance of winning the lottery or being struck by lightning than they do of achieving a significant level in the Amway business. Some people are successful, but it is usually at the expense of their downline. The catch is that uplines will teach their faithful downline IBOs that attending a function or buying a standing order is success, regardless of whether an IBO is earning a profit. So many IBOs think they're successful but they are simply fooling themselves with the help of their upline.
Success is undeniable, but sadly for the vast majority of IBOs, it is also unattainable, at least in the Amway opportunity.
Saturday, January 25, 2014
Amway "Commissioned" Salesmen?
Amway business owners often refer to themselves as "IBOs" or an independent business owner. They often mistakenly associate themselves with the corporation, as if they were part owners, when the reality is that these IBOs are just commissioned sales people with no fringe benefits. It's a great deal for Amway as an IBO must pay to register with AMway. The IBO must move products at their own expense (Even buying their own brochures from Amway) and if they don't move a minimum amount of volume, they still get nothing from Amway. Amway has all the advantages. IBOs pay to join Amway and then the IBOs at their own expense move some products. Amway only pays if product gets sold or at least self consumed by IBO.s Basically any company could thrive under those conditions.
Because IBOs are often taught product loyalty from their upline, an IBO often purchases much more than they sell, and some IBOs sell nothing. Some upline teach self consumption where an IBO just purchases enough to meet the minimu volume requirement to earn a bonus. Some IBOs have explained how they skirted the system which requires some outside sales to actual customers. Amway probably doesn't care (and I don't blame them) if IBOs skirt the sales rules. Amway still makes the sales and the IBOs are stuck with the cost of 100 PV (or more).
When you really break everything down, an IBO is just a commission only sales person with no benefits (from Amway) and most IBOs make little or nothing, and the vast majority of IBOs who attend functions and pay for other tools end up with net losses because their bonuses cannot cover the expenses that they incur in running their businesses. Most people do not recognize this at first when they get involved and think they are simply "investing" in a business and their financial future. I fell for this when I was an IBO, but even as a growing "mover and shaker" IBO, I was not making the income that upline told me about. When I started to question them, their response was that the money will be there if I keep going. I asked why the money wasn't there as they advertised? They gave me no good answer and I started to realize the scam. I got out shortly after that, but sadly, my sponsor is still active more than 20 years later and I believe he is losing a ton of money.
So while the Amway folks will promote the business as glamorous and may show you a great lifestyle and financial freedom, these are the rare upper tier of IBOs. They rely on hoards of downline buying products and tools to support their lifestyles. But what many prospects and and current IBOs don't realize is that thay are simply commissioned Amwa sales people and nothing more. People just don't realize that these diamonds are no better or worse than the general public. They do not walk on water and in fact, if IBOs reall knew what a diamonds financials were like, they might be shocked. Diamonds (I suspect) are often living from check to check (like many people) and may be living in debt (i.e. Greg Duncan's bankruptcy). But it's not what diamonds portray. Diamonds portray a fabulous lifestyle but who knows what their lives are really like? Nobody knows because diamonds will show off slideshows of their lifestyles but they won't reveal their actual financials. It's because that information is likely not very flattering.
Because IBOs are often taught product loyalty from their upline, an IBO often purchases much more than they sell, and some IBOs sell nothing. Some upline teach self consumption where an IBO just purchases enough to meet the minimu volume requirement to earn a bonus. Some IBOs have explained how they skirted the system which requires some outside sales to actual customers. Amway probably doesn't care (and I don't blame them) if IBOs skirt the sales rules. Amway still makes the sales and the IBOs are stuck with the cost of 100 PV (or more).
When you really break everything down, an IBO is just a commission only sales person with no benefits (from Amway) and most IBOs make little or nothing, and the vast majority of IBOs who attend functions and pay for other tools end up with net losses because their bonuses cannot cover the expenses that they incur in running their businesses. Most people do not recognize this at first when they get involved and think they are simply "investing" in a business and their financial future. I fell for this when I was an IBO, but even as a growing "mover and shaker" IBO, I was not making the income that upline told me about. When I started to question them, their response was that the money will be there if I keep going. I asked why the money wasn't there as they advertised? They gave me no good answer and I started to realize the scam. I got out shortly after that, but sadly, my sponsor is still active more than 20 years later and I believe he is losing a ton of money.
So while the Amway folks will promote the business as glamorous and may show you a great lifestyle and financial freedom, these are the rare upper tier of IBOs. They rely on hoards of downline buying products and tools to support their lifestyles. But what many prospects and and current IBOs don't realize is that thay are simply commissioned Amwa sales people and nothing more. People just don't realize that these diamonds are no better or worse than the general public. They do not walk on water and in fact, if IBOs reall knew what a diamonds financials were like, they might be shocked. Diamonds (I suspect) are often living from check to check (like many people) and may be living in debt (i.e. Greg Duncan's bankruptcy). But it's not what diamonds portray. Diamonds portray a fabulous lifestyle but who knows what their lives are really like? Nobody knows because diamonds will show off slideshows of their lifestyles but they won't reveal their actual financials. It's because that information is likely not very flattering.
Wednesday, January 22, 2014
Is Amway A "Good" Business?
I have seen so many IBO's talk about all the virtues of the Amway business. They'll tell you about the billions of dollars in sales that Amway had, or they'll mention how Amway won an award for their laundry detergent in timbuktu, or they'll mention that Amway's owners are billionaires. They might speak of how Amway is expanding in other countries or how Amway sponsors the Amway arena, or that the owner of Amway owns an NBA team. They will even speak of partner stores and that Disney or Best Buy are partners and they would not partner up with a scam. Many IBO's don't know that Amway also partnered with Enron and Worldcom at one time.
While some of these accolades are great for Amway, many IBO's don't realize that they are independent distributors and they are not Amway the corporation. Amway made billions, but Joe IBO made ten bucks. Amway won an award but Joe IBO didn't. Some IBO's cannot seem to seperate themselves from the corporation of Amway. Now I'm not saying Amway's own success is not something to be proud of, but IBO's can't seem to separate themseves from the corporations as if Amway's owners making millions or billions does anything for them. It's like saying I own a share of microsft so it's so great if Bill Gates is worth 50 billion.
One thing IBO's are apparently taught but seem to miss the point on, is that Amway's success is not theirs. I believe that uplines teach this because the reality is not pretty. Most IBO's are making pennies on the hour, or more likely taking losses (if they are on tools) for their efforts. I also believe that IBOs have to use these methods because talking about their own income would be far from glamorous. Instead, new IBO's will talk about how their upline diamond makes millions, but has anyone ever seen actual proof such as a tax refund or a profit loss statement? Diamonds might make some decent money but with expenses, and not having the benefits from a job, I believe diamonds likely live a very ordinary middle class lifetyle (if even that) unless they have other businesses or investments, or unless they are at higher levels or at the founder's levels. If not, these diamonds are liekly living from function to function from check to check, and likely in debt like many others.
Now I want to say that you can make money in Amway - if you actually sell products. But aside from that, you're more likely ro make money in Amway by sponsoring a lot of people and selling them cds, books, voicemail and function tickets.
While some of these accolades are great for Amway, many IBO's don't realize that they are independent distributors and they are not Amway the corporation. Amway made billions, but Joe IBO made ten bucks. Amway won an award but Joe IBO didn't. Some IBO's cannot seem to seperate themselves from the corporation of Amway. Now I'm not saying Amway's own success is not something to be proud of, but IBO's can't seem to separate themseves from the corporations as if Amway's owners making millions or billions does anything for them. It's like saying I own a share of microsft so it's so great if Bill Gates is worth 50 billion.
One thing IBO's are apparently taught but seem to miss the point on, is that Amway's success is not theirs. I believe that uplines teach this because the reality is not pretty. Most IBO's are making pennies on the hour, or more likely taking losses (if they are on tools) for their efforts. I also believe that IBOs have to use these methods because talking about their own income would be far from glamorous. Instead, new IBO's will talk about how their upline diamond makes millions, but has anyone ever seen actual proof such as a tax refund or a profit loss statement? Diamonds might make some decent money but with expenses, and not having the benefits from a job, I believe diamonds likely live a very ordinary middle class lifetyle (if even that) unless they have other businesses or investments, or unless they are at higher levels or at the founder's levels. If not, these diamonds are liekly living from function to function from check to check, and likely in debt like many others.
Now I want to say that you can make money in Amway - if you actually sell products. But aside from that, you're more likely ro make money in Amway by sponsoring a lot of people and selling them cds, books, voicemail and function tickets.
Tuesday, January 21, 2014
Amway IBOs, The Real Losers?
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 and an endless series of meetings.
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 cash I threw down the crapper. Sometimes I wonder what I could have done with the extra time and money I would have had at my disposal.
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. When you stop and look around, how many of these Amway bigshots are "retired"? It seems that the diamonds work up until the day they die. They are not walking the beaches of the world with cash rolling in like crazy.
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.
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 cash I threw down the crapper. Sometimes I wonder what I could have done with the extra time and money I would have had at my disposal.
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. When you stop and look around, how many of these Amway bigshots are "retired"? It seems that the diamonds work up until the day they die. They are not walking the beaches of the world with cash rolling in like crazy.
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.
Thursday, January 16, 2014
Amway WWDB Lies?
Joecool was an IBO in WWDB back in the late 1990's. I got into the business because a close friend had gotten in and went direct. He told me it was "easy" and that he could guide me and mentor me to do the same thing. I didn't really know too much about Amway but I trusted my friend and believed he could lead me to the riches he talked about. I had a bad experience with Amway prior to that where I was invited to a cocktail party/beer bust only to find out it was a board plan. It kind of pissed me off and left a bad taste in my mouth.
But my friend was a direct and I cound use his experience to do the same. It sounded like a good deal on the surface. I saw "the plan" and decided to sign up. I signed up and went all in. Based on my sponsor's advice, I got on standing order and book of the month club. I also dedicated myself to attending the functions. I didn't realize how much these functions would cost but it was supposed to be worth it. Afterall, nobody succeeded wuthout tools (a lie). My sponsor told me that nobody succeeded without tools and that Greg Duncan, a multi millionaire, said that tools are vital but you can try to succeed without them. (Mr Duncan was bankrupt in 2009 or so). Being a newbie, how could you not follow that advice?
At the functions, I was also told that WWDB was a non profit organization (a lie) and that profits were used to make future functions cheaper (a lie). In fact, some of the WWDB leaders stood on stage and proclaimed that NOBODY MADE MONEY ON TOOLS AND FUNCTIONS (a big lie). Eventually, WWDB leaders admitted they made money on tools but were never held accuntable for their lies and they never really explained how you qualify and how much you earn from tools.
Some WWDB leaders spoke and taught how long you could skip your mortgage before foreclosure, all so you could attend that next function. They were so nice to even teach how long the electric company might allow you to skip paying before you got cut off. They even recommened you quit your job if you could not get time of to attend a function. They said you could just get another job.
They also LIED and said that WWDB IBO's had a 2% divorce rate as compared to 50% for the rest of the country. Talk about bullshit. The WWDB diamonds alone had a greater that 2% divorce rate, not to mention thst npbody that I know of is actualy tracking divorce among WWDB IBO's. Nobody really cares but when WWDB leader LIE and make these claims, nobody questions them.
I wonder if these charlatans even own the mansions, cars and jetskis they show off on slideshows at the functions where they pretend to be financailly free with money to spare? Ever wonder why these diamonds never "walk away" from their business? Maybe they can't afford to?
But my friend was a direct and I cound use his experience to do the same. It sounded like a good deal on the surface. I saw "the plan" and decided to sign up. I signed up and went all in. Based on my sponsor's advice, I got on standing order and book of the month club. I also dedicated myself to attending the functions. I didn't realize how much these functions would cost but it was supposed to be worth it. Afterall, nobody succeeded wuthout tools (a lie). My sponsor told me that nobody succeeded without tools and that Greg Duncan, a multi millionaire, said that tools are vital but you can try to succeed without them. (Mr Duncan was bankrupt in 2009 or so). Being a newbie, how could you not follow that advice?
At the functions, I was also told that WWDB was a non profit organization (a lie) and that profits were used to make future functions cheaper (a lie). In fact, some of the WWDB leaders stood on stage and proclaimed that NOBODY MADE MONEY ON TOOLS AND FUNCTIONS (a big lie). Eventually, WWDB leaders admitted they made money on tools but were never held accuntable for their lies and they never really explained how you qualify and how much you earn from tools.
Some WWDB leaders spoke and taught how long you could skip your mortgage before foreclosure, all so you could attend that next function. They were so nice to even teach how long the electric company might allow you to skip paying before you got cut off. They even recommened you quit your job if you could not get time of to attend a function. They said you could just get another job.
They also LIED and said that WWDB IBO's had a 2% divorce rate as compared to 50% for the rest of the country. Talk about bullshit. The WWDB diamonds alone had a greater that 2% divorce rate, not to mention thst npbody that I know of is actualy tracking divorce among WWDB IBO's. Nobody really cares but when WWDB leader LIE and make these claims, nobody questions them.
I wonder if these charlatans even own the mansions, cars and jetskis they show off on slideshows at the functions where they pretend to be financailly free with money to spare? Ever wonder why these diamonds never "walk away" from their business? Maybe they can't afford to?
Subscribe to:
Posts (Atom)