Success Is Right Around The Corner?

When I was an Amway IBO, I heard the saying over and over. Never quit, success might be right around the corner. There were countless stories by diamonds and emeralds of how they were on the verge of quitting, but stuck it out and somehow "made it". I also heard stories about why people should not quit because even if you were told "no" a thousand times, the next prospect might say "yes" and turn your entire business around. This mindset is almost like a gambler who thinks the next hand or the next roll of the dice will suddenly start the beginning of a good run.

I believe these are all heartfelt stories. However, I believe that many stories are embellished and made to order. Or in other words, made to fit a standing order. If you listen carefully to many of the standing orders, you will notice that the higher pins were consistently sponsoring people and generally achieved the platinum level in 18 months or less. There are exceptions of course, but the majority of stories I heard seem to have had the same theme. Those who were destined for success achieved some significant level in less than 2 years.

But for IBOs and new recruits, if you aren't constantly bringing in new people to the open meetings, and sponsoring new people, then you are very unlikely to ever achieve much in Amway. Statistically, less than one half of one percent ever reach platinum. Thus if you are unable to grow your organization or group, then you are unlikely to be that one who "makes it". Success is not around the corner as some uplines will have you believe. If you take 100 "no's" and then someone finally says "yes" then chances are that person who said yes, will "do nothing", or do little and wind up quitting. Chances are that person won't sponsor anyone or show anyone the plan. Chances are that person won't even be in the business a year later.

It might be a good idea for IBOs to take a step back and take an unbiased look at their business and their business activities. Is your group growing consistently? Is your volume increasing each month? Are you able to get people interested in seeing the plan on a consistent basis? If you answered "no" to any of these points, then you are unlikely to progress and achieve in the Amway business.

One important thing for people to note is that there are many ways to achieve your financial goals and dreams. Amway is probably not the best vehicle for most. The numbers speak for themselves. If less than one half of one percent ever reach platinum, where allegedly, IBOs finally see a profit, then I would say your chances of success are better elsewhere, even if that is a second job. The average "active" IBO earns about $200 a month according to Amway. Considering all IBOs, then the average income is probably about $100 a month. You can earn much more than that working 4-5 hours a week at minimum wage.

Is success right around the corner? I doubt it.

Seeing Amway With Rose Colored Glasses?

One of the things Amway IBOs get attracted to is how uplines will promote traditional family values. They may talk about the "Leave it to Beaver" days where the man works a job and the wife takes care of the home and drops the kids off at school. While some of these values are great, they are not reality in today's world. The speakers at some Amway meetings may recruit others by saying you can have this out of the box lifestyle if you will only build your Amway business. This gets the wives or girlfriends excited as they would love to not have to work a 9-5 job.

Ironically, an IBO's desire for more time and money, more often than not, will result in less time and money for an IBO and the IBO's family. They will take time off to show the plan, attending countless numbers of meetings and to attend functions. They also have other meetings and night owls, and open meetings where they recruit prospects. They are taught to "delay" gratification, but many do not realize that they are permanently delaying gratification by participating in the "systems". Sadly, the vast majority of people in Amway, will never receive any monetary gratification. More likely, losses will be the net result.

An IBO's belief is often compartmentalized into thinking that showing the plan, listening to standing orders, submitting to upline's advice and attending all functions will result in guaranteed success within 2-5 years. Anyone who speaks a differing opinion of this is "negative" and should be avoided. Sadly, those who put forth such dedication and invest in the system are rarely rewarded with success. Even those who achieve the platinum level may often find that the net profit they realize is less than a minimum wage job with the same number of hours put forth. And maintaining a platinum level is a daunting task. Is this the success you seek?

My former sponsor achieved the platinum level in less than two years, but he never achieved Q12 status, and he never went beyond the platinum level. He has been involved for nearly 20 years now, and last I heard, is below the platinum level. All of that work and effort and I wonder if he even has a net profit of $1.00 for all of his efforts? I suspect he's got net losses of money and time for all of his efforts. It's a waste of your life, a waste of your time.

Yet, many IBOs continue to see the world through rose colored glasses, thinking that they will succeed if only they will never quit. They disregard the fact that 2-5 years has come and gone. They do not see that their bottom line is nowhere near what they were led to believe. But they believe that Amway will be their financial savior, even though there are facts and red flags pointing to the obvious reality that they will never achieve what they initially set out to achieve.

I hope my blog will get a few IBOs to take off the rose colored glasses for just a second.

The Business Mentality?

One of the things Amway IBOs "think" they possess, but in reality they are far from it, is "Business Mentality". It is not necessarily the fault of the IBOs. Many are sponsored into Amway by trusted friends or family lacking business experience. They will "submit" to upline as they are advised and will try to learn about the Amway business. The problem is that many upline leaders teach self serving business practices such as hard core dedication to their tools system, from which they often handsomely profit. Let's examine some of the questionable practices.

"Buy from yourself". If you have a business owner mentality, you only buy from yourself if it's beneficial to your business. Many IBOs talk about ridiculous things like a McDonald's owner would never eat at Burger King. That's totally false. Just because I own a McDonald's doesn't mean I am eating Big Macs the rest of my life. You cannot spend yourself to prosperity. If I sold pens for $1.00 and my cost was .50, and my competitor had a special on the same pens at 3 for $1.00, I'm buying them from my competition. Also, buying from yourself makes you a customer, not a business owner.

"Ignore facts if you have a dream". This is probably the biggest heap of bull crap taught by some upline. I have seen this spouted in particular by IBOs downline from WWDB and BWW leaders. A business owner studies the facts, not ignores them. Any REAL business owner wants to know how much he is bringing in and how much is going out. That's how you detect the heartbeat of your business. A site visitor named Gina on this site, posted a profit/loss statement from her real business. Naturally, IBOs were at a loss to discuss it because it was foreign material to them.

"Submit to upline" Another load of hogwash. Why should someone submit to upline simply because they "sponsored me" or joined before me or whatever? A real business owner would think independently and make business decisions based on facts and numbers, not on the advice of someone upline who hasn't taken the time to assess each IBO on a personal level to be able to give advice on an IBO's "Independent Business", or worse, advice on their personal lives".

"Dedication to the system". Silly advice as well. What dedication does the system have for an IBO? If an IBO succeeds (which is very rare), the system takes credit, but for the more than 99% of people who never make a significant income, it is their own fault if they don't make it. Amway apologists will defend this by saying that many may not have signed up wanting a significant income. While that may be partially true, tell me where people show "plans" designed for the guy who wants an extra $100 a month? The plans shown are always (AFAIK) to go platinum or diamond.

IBOs and information seekers, does any of this sound familiar? Is this a part of your experience? If so, I encourage you to ask questions here and get more information before proceeding with any more "business" activity.

Working Hard In Amway?

One of the things that many Amway defenders will cite is that the people who don't succeed didn't work hard enough or didn't put in enough effort. While I agree that one must work hard to succeed in many endeavors, I will also state my informed opinion that working hard and success in Amway may not be related. I say this because I have seen so many testimonies of people who worked the Amway business hard and achieved little or no results. I put in tremendous effort when I was building my business only to see negligible results.

Part of the problem is that many uplines emphasize recruiting as their focus, even though there is no direct compensation for doing so. In fact, recruiting downline often comes with much expenses such as gas, babysitters, and the false belief that an IBO needs standing orders and seminars to learn this. Also, Amway has a spotty reputation in the US, thus making recruiting potential downline a very difficult task. Also, the focus on recruiting often takes away the emphasis on product sales, which is where you actually earn money for some of your efforts. No business can survive without sales. Amway is no different, even if you upline pushes "buy from yourself".

An important part of any business is to find customers to buy your goods. Because IBOs already spend much of their time recruiting and not selling, they are already at a disadvantage over many other businesses. Add in the seemingly un-competetive prices of Amway and Amway partner store products and you give IBOs yet another disadvantage over most other businesses. If there were better value in these goods and services, then IBOs who sell instead of recruit would be much more common. Also, the Amway compensation plan often rewards uplines rather than the IBOs who actually do the work of moving the volume. If I'm a rank and file IBO and move 100 PV, I earn about $10 in Amway bonuses. My 100 PV generates about $100 in Amway bonuses, thus somewhere upline gets the other $90 for no reason other than they signed up before me. How is that fair?

I also believe that the Amway business is so outdated and inefficient. While you may have a website to sell your goods, you have restrictions that severely limit the ability of an IBO to drive traffic to their website. The person to person touch may sound nice and flowery, but it is the most inefficient way to make sales. It is why people pay millions to advertise during the Superbowl, because you may have several hundred million people watching the advertisement and can drive up your name recognition and sales.

While working hard is definitely important to succeeding in any venture, I don't believe there is any bonafide correlation that working hard equates success in the Amway business for the reasons I have outlined in this post.

Your Job Is A Pyramid?

One of ths things I take issue with is how Amway uplines will create an us versus them mentality in the business. Thus friends and family who care about you suddenly become "negative" and association with them should be limited. In some cases, people are discouraged from excellence in their jobs or professions because it takes the focus off of their Amway business. What I was told was to do my job, but my radar should always be on for new prospects. Some cross line IBOs turned down promotions at work because they did not want to have to work longer hours or take the focus off of their Amway businesses.

In some cases, the speaker at open meetings or functions will put down people's jobs. A commonly used acronym was J-O-B = "Just Over Broke". Some leaders also would say that my job was a pyramid because you will never earn more than the boss. A completely ridiculous comparison because someone's job has no relationship with how people view the Amway business (i.e. an Amway pyramid) and in a job, every employee gets paid and has a net gain at the end of the month. Not true in Amway. If IBOs only use KATE for example, an IBO at 100 PV or less will already be at a loss, and that is not considering any other expenses that IBO may have. And while a job may have a corporate hierarchy, or chain of command, the business owner and CEO or manager earns their salary from customers, not directly from the pockets of their employees.

Some uplines will laugh about people's jobs, stating that they wake up at the "crack of noon". What these same uplines may not tell you is that they wake up at noon because they are up at 3:00 in the morning doing nite owls for their groups and looking for recruits. These same uplines possibly can't do much with their downlines during the weekdays since their downlines mostly tend to have 9-5 jobs. So a diamond's job is basically working the night shift and weekends.

So if you are of the opinion that nobody should criticize the Amway opportunity or IBO behavior, maybe uplines and IBOs should not criticize family and friends who disagree with or are not interested in the opportunity, and maybe the same uplines and IBOs should not criticize people who choose to work jobs. Don't most IBOs rely on their jobs as their Amway income is not sufficient to even pay for their Amway business related expenses?

Why I Dislike Amway

Once upon a time I was an Amway IBO. This was back in the 1990's. My first brush with Amway was being invited to a "beer bust" while I was in college. I remember showing up to the party only to see my friends in te house wearing suits and with a white board set up. I recall thinking WTF?? Anyway, so as to not be rude to our friends, I stayed and saw the plan and left afterwards thinking what a dirty trick it was to invite us to a beer party to show us the plan. It sucked.

Some years later an old friend of mine contacted me and wanted to explain a business proposition to me. He showed me the Amway plan and of course, I only had a bad experience with it. I told my friend to call me later if he actually makes any money off it. About a year and a half later, my friend calls me and tells me he is now a platinum. So it got my interest as he said it was not hard and he could easily guide me to do the same. So I bit an joined. I actually moved up the ranks, reaching the 4000 PV level. But I also realized that moving up was exciting but my net profit was still practically zero. And along with zero profit, my upline expectations went up. I was supposed to "submit" and do what they say. And there were extra meetings and functions.

That's when I realized that the whole game is a scam. Yeah, I figured that the diamonds had it good, but for everyone else, it was a scam. Sure, you can out gain your sponsor and sometimes, a person even breaks through and goes diamond. But it's quite rare and people who achieve diamond can easily lose it, as evidenced by all the former diamonds.

But what I realized that for the rank and file and even the platinums, it's a scam. You are basically selling false hopes and dreams. You get some young and motivated people to join but the reality is that an excess of 99% of them will fail and most of t hem wll lose money, some lose significant money. But for most, they never even had a chance when they signed up. That's because to perpetuate the scam, prospects are told only the best case scenario and not what's likely. They aren't told that most people do nothing or that most cannot sponsor anyone. Products are difficult to sell and that a neutral price comparison would be damaging to Amway.

Instead, we were told to be open minded, don't talk to family and friends abut the Amway opportunity, listen only to upline (who have a conflict of interest), and to never quit. This is all great advice for the upline diamonds who greatly benefit from this advice. Especially since they profit from almost everything you do. They tell you lies about being a nicer person or strengthening your marriage through Amway but once you are signed up, it's rarely about how much money you are making. They want you to enjoy riches vicariously by living your upline's dreams. They often think their diamond walks on water when in reality, they are just lying and deceiving downline in order to sell they tools and functions.

Your diamonds might be living their dreams, but they do so by taking advantage of their downline while pretending to be their trusted advisors and mentors. And that's one of many reasons why I dislike Amway.

Investing In Your Amway Business?

One of the things that many Amway IBOs do is to purchase cds, books, voicemail, websites, seminar tickets, etc. These materials are supposed be an "investment" to help an IBO to succeed. But it's apparent to me that the people who sell these materials are far more successful than those who use them. What makes these materials potentially harmful to an IBO's resources is that many IBOs are told that these "tools" are an "investment" into their business. I believe that these tools are simply a drain on an IBO's bank account and not truly an investment. An investment into your business should be for something that helps to grow your business. For example, advertising can be a useful investment as it gets information out to your potential customers and to create product awareness.

If you owned a tradional business, you would have to come up with a lot more money than you would need for opening an Amway business. That is true, but a traditional business will likely come with a building and possibly some real estate and/or equipment. This is a tangible investment. If your business doesn't work out, you can still sell the land and/or building and equipment, or transfer the lease to another business owner and recoup some of your initial investment. Contrast this with former IBOs who end up selling their Amway tools on ebay or craigslist for pennies on the dollar. I'm not even sure they have any takers. People claim you can sell you business, but there is a cumbersome process involved, which includes offering your Amway business upline. But why would upline purchase your Amway business? Your upline would inherit your Amway business if you left Amway.

Also, in a traditional business, you may have to make other "investments" such as perhaps purchasing a company van or other equipment that will help your business to be efficient and/or to move product. These materials, while they may depreciate, still carry value and can be liquidated if your business is sold. What can an IBO sell to offset losses if they stop their Amway business? Sell their white board and easel I suppose, or they can try to sell their excess inventory if any, but generally, an IBO's business doesn't gain any equity. You don't own your downline. You don't own anything really, except your spot in the Amway hierarchy, which is basically worthless.

The way I see it, the purchase of tools is an investment. An investment into your upline's business. The more you purchase, the more your upline prospers. And the cherry on the sundae is that your upline advises you to purchase tools because they have your "best interest at heart". More like your upline has their own best interest at heart.
Think about this with an open mind and you will see what I see.