One of the pitches used to attract people to the Amway business was to earn enough just to get out of debt. After all, many Americans these days have credit cards maxed out and racking up more and more consumer debt. But the tough question is whether joining Amway will help the situation or only make it worse? In general, Amway products have higher prices than retailers such as WalMart or Costco. Anyone who denies this is either being deceptive or is truly misguided. You can try to argue about Amway's quality of products. Some products are good, but overall, consumers simply don't find enough value in them. Seems that IBOs don't even buy Amway products unless they are pursuing their dreams of going diamond. Once that dream ends, so ends their loyalty to Amway products.
Sadly, for most business building IBOs, the business opportunity and its connected teaching system such as WWDB, BWW, or N21 simply creates more debt for IBOs. Think about it, an IBO will already be spending about $300 a month to earn their defacto 100 PV requirement. If that IBO subscribes to voicemail and no other tools, that IBO will already have a net loss for the month. Factor in ongoing expenditures such as standing orders, functions, open meetings, regional functions, books and other miscellaneous expenses and you have an IBO heading towards tens of thousands of dollars deeper into the debt hole. Most IBOs don't see what's happening because the debt is incurred a few hundred dollars a month, but most IBOs think it's okay because they are convinced that they will recoup the losses and earn a huge surplus in the long run. Unfortunately, only a tiny fraction of 1% of IBOs will ever earn a decent profit from the Amway opportunity. Most will realize they are making their finances worse and end up quitting.
In the few cases where a diamond's financial were exposed, these diamonds were in hock. Even a prominent triple diamond was not earning enough to sustain the lifestyle he and others promoted on stage. It is my guess that these diamonds in financial difficulty is more likely the norm than the exception. Do the math. If a triple diamond earns about a million dollars from Amway and the tools profits, can that income sustain a jet set lifestyle portrayed in functions like dream night? I mean it is a great income, but everything is relative. Someone earning say $70,000 a year can live a comfortable lifestyle without debt. But diamonds portray a lifestyle of excess and almost arrogance. It's no wonder some of them have financial problems.
In the end, IBOs are drowning in debt as a whole. The system nearly ensures that the group of IBOs collectively will end up with a net loss with one or two at the top earning a profit. One's dedication to tools determines how much an IBO will lose. The more dedication, the bigger the losses. If your upline teaches you to get out of debt, that's good. but if they teach you to get out of debt, except for functions and standing orders, take that as a huge red flag.
Thursday, September 27, 2018
Wednesday, September 26, 2018
Upline Wants My Success?
One of the things my upline leaders used to always talk about was how they wanted everyone to succeed. Looking back, I believe they were lying and simply wanted the faithful downline to keep spending money on tools whether they succeeded or not. Now I am not claiming that every single upline leader does this, but primarily the ones who run "systems", such as WWDB, N21, BWW, LTD and some others.
When I stopped and really thought about it, pretty much every piece of advice I received, I had to pay for. Voicemails, standing orders, functions, open meetings. I know these are supposedly optional, but in reality, they are a defacto requirement. Anyone with a "dream" is going to buy the tools because the leaders will tell you that you cannot succeed without tools. Ironically, the same leaders will blame individuals and cite personal responsibility for the failure of downline IBOs, even the ones who did everything they were told.
The leaders are edified and touted as having great business and financial acumen, thus not following their advice would seem foolish. Yet Amway defenders will try to claim that IBOs should discern the good and the bad and operate independently. It's a redundancy that many people do not see. Sure, a downline should not jump off a cliff because upline said they would pad their fall with a pile of cash, but many IBOs put in an earnest effort in Amway, only to fail because of the handicaps and reputation issues that Amway has. These IBOs are told they were lazy or quit too soon, or did not try hard enough. Yet the very few who manage to break thru are edified along with the system while ignoring the multitudes who do not make it.
The bottom line for IBOs and prospects to know, is that I believe most IBO leaders do not know you or care about you and your success. They are more interested in selling you websites, voicemail, standing orders and functions. They know that people will come and go and they are perfectly happy replacing quitters with new people, as long as the system tools keep flowing. I believe some of the US diamonds are now hurting as Amway is apparently shrinking in the US. I read recently of Amway downsizing some of their operations, seemingly confirming that US sales are down. Also to note, Upline leaders would have to share tool profits with new emeralds and diamonds, which is why I believe they do not want new success.
I believe that Amway, other MLM businesses, Kiyosaki, or real estate gurus all have very limited or rare success with their financial systems. Infomercials usually have a disclaimer that success is a "UNIQUE" experience. Amway is no different. But I believe in all of these cases, more money is generated in selling the system than by actually running the system. If not, success stories would be rampant and people would line up to sign up instead of having to be deceived into even hearing the pitch.
When I stopped and really thought about it, pretty much every piece of advice I received, I had to pay for. Voicemails, standing orders, functions, open meetings. I know these are supposedly optional, but in reality, they are a defacto requirement. Anyone with a "dream" is going to buy the tools because the leaders will tell you that you cannot succeed without tools. Ironically, the same leaders will blame individuals and cite personal responsibility for the failure of downline IBOs, even the ones who did everything they were told.
The leaders are edified and touted as having great business and financial acumen, thus not following their advice would seem foolish. Yet Amway defenders will try to claim that IBOs should discern the good and the bad and operate independently. It's a redundancy that many people do not see. Sure, a downline should not jump off a cliff because upline said they would pad their fall with a pile of cash, but many IBOs put in an earnest effort in Amway, only to fail because of the handicaps and reputation issues that Amway has. These IBOs are told they were lazy or quit too soon, or did not try hard enough. Yet the very few who manage to break thru are edified along with the system while ignoring the multitudes who do not make it.
The bottom line for IBOs and prospects to know, is that I believe most IBO leaders do not know you or care about you and your success. They are more interested in selling you websites, voicemail, standing orders and functions. They know that people will come and go and they are perfectly happy replacing quitters with new people, as long as the system tools keep flowing. I believe some of the US diamonds are now hurting as Amway is apparently shrinking in the US. I read recently of Amway downsizing some of their operations, seemingly confirming that US sales are down. Also to note, Upline leaders would have to share tool profits with new emeralds and diamonds, which is why I believe they do not want new success.
I believe that Amway, other MLM businesses, Kiyosaki, or real estate gurus all have very limited or rare success with their financial systems. Infomercials usually have a disclaimer that success is a "UNIQUE" experience. Amway is no different. But I believe in all of these cases, more money is generated in selling the system than by actually running the system. If not, success stories would be rampant and people would line up to sign up instead of having to be deceived into even hearing the pitch.
Tuesday, September 25, 2018
Amway Success Is Obvious?
One of the things the Amway diamonds and other big pins like to do is to flaunt their wealth. They show up at meetings with fancy cars, they like to wear fancy designer suits and my former LOS, WWDB, even had and still has a function called "Dream Night". Dream Night is where the diamonds show off pictures of mansions, jets, cars and vacations and they claim that everyone will one day join them in their lives full of pleasure and excess. Despite these displays of wealth, there is much evidence to suggest that these diamonds may not be able to afford all of these goodies. In fact, I strongly suspect that many diamonds are living in debt because they cannot sustain these fairy tale lifestyles on their incomes, even adding up the Amway and tools income. Now I'm not claiming that all diamonds are in hock, but I would not be surprised if half of them were in debt.
Even lower level IBOs attempt to appear wealthy. They may dress nicely and whatnot, but in the parking lot at functions, you might see a more accurate glimpse of reality when you see what these IBOs are driving around. I remember seeing a bunch of broken down cars, some of them on their last legs at the local functions. Yet if you were to speak to some of these nice folks, you would be told they are doing great and that business is booming.
But my question is why isn't all of this Amway success obvious? Why do IBOs dance around the questions about how much they earn from Amway? Why do diamonds like to copy some once a year bonus and pretend that they earn that kind of income on a monthly basis? If a room were full of IBOs and only the ones with a NET profit were to stand up, only a small handful or less of all IBOs would be standing. Most of the rest probably don't even make enough to cover the cost of their voicemail.
Why can't an entire group of IBOs earn a net profit? The answer is simple. In the vast majority of groups, the cost of tools exceeds the group income that is earned from Amway. Do the math and it's easy to see. Unless your group refuses to purchase any tools and focuses on selling products, then you are more than likely to end up losing money. Success is not obvious, and the reason for that is quite obvious. In a group of say 100 dedicated IBOs, would likely comprise a platinum group. A minimum platinum would generate 7500 PV and about 22,500 BV. But let's round that up to 10,000 PV and 30,000 BV.
30,000 BV would generate about $7500 (25% of 30,000). $7500 divided by 100 IBOs = $75 each on average. Of course, most of that would go to the platinum and everyone else will get smaller amounts, typically about $10 for the rank and file who earned a bonus. Now if each of these hard working IBOs spend $150 each on voicemail, premiere club and functions each month, that expense is $15,000, They would be spending (as a group) twice as much on tolls as the bonuses they generate as a group. As the group grows, so does the gap between bonuses and expenses.
It's very obvious that Amway is a lose money proposition. I just did the math.
Even lower level IBOs attempt to appear wealthy. They may dress nicely and whatnot, but in the parking lot at functions, you might see a more accurate glimpse of reality when you see what these IBOs are driving around. I remember seeing a bunch of broken down cars, some of them on their last legs at the local functions. Yet if you were to speak to some of these nice folks, you would be told they are doing great and that business is booming.
But my question is why isn't all of this Amway success obvious? Why do IBOs dance around the questions about how much they earn from Amway? Why do diamonds like to copy some once a year bonus and pretend that they earn that kind of income on a monthly basis? If a room were full of IBOs and only the ones with a NET profit were to stand up, only a small handful or less of all IBOs would be standing. Most of the rest probably don't even make enough to cover the cost of their voicemail.
Why can't an entire group of IBOs earn a net profit? The answer is simple. In the vast majority of groups, the cost of tools exceeds the group income that is earned from Amway. Do the math and it's easy to see. Unless your group refuses to purchase any tools and focuses on selling products, then you are more than likely to end up losing money. Success is not obvious, and the reason for that is quite obvious. In a group of say 100 dedicated IBOs, would likely comprise a platinum group. A minimum platinum would generate 7500 PV and about 22,500 BV. But let's round that up to 10,000 PV and 30,000 BV.
30,000 BV would generate about $7500 (25% of 30,000). $7500 divided by 100 IBOs = $75 each on average. Of course, most of that would go to the platinum and everyone else will get smaller amounts, typically about $10 for the rank and file who earned a bonus. Now if each of these hard working IBOs spend $150 each on voicemail, premiere club and functions each month, that expense is $15,000, They would be spending (as a group) twice as much on tolls as the bonuses they generate as a group. As the group grows, so does the gap between bonuses and expenses.
It's very obvious that Amway is a lose money proposition. I just did the math.
Monday, September 24, 2018
When You Have A Dream, Ignore The Facts?
One of the crazy things that our upline taught the group was that the facts don't matter when you have a dream. There is evidence that this is still taught today and in particular, I have heard that from Amway IBOs who claim to associate with WWDB. IBOs are taught to ignore facts because the facts make their Amway businesses look like a joke. Spend $300 a month on products to gain a $10 rebate when you could have bought the same or similar products at WalMart for a fraction of the cost. Then many IBOs spend another $200 or more on tools and functions so they can be taught to ignore facts of that all of this is somehow a great deal.
Any real business owner would never ignore facts. A real business owner makes decisions based on facts. IBOs are being duped into making business decisions on emotions and hype. The Amway opportunity already is already saturated with handicaps and challenges, particularly in the US and Canada, where the reputations and previous antics of fellow IBOs has so stained Amway's name that it appears to be negatively affecting sales and preventing any meaningful growth. Despite what Amway apologists claim, Amway is very likely shrinking in the US, and will continue to do so unless improvements and corrections are made, in my opinion. It's also possible that it is too late to right the ship at this point.
It is also why many IBOs talk about how Amway saves marriages, or Amway made them nicer people. Uplines will teach this because it takes a business owner's focus away from their bottom line, the profit or loss. Or IBOs are taught that a loss just means they are investing in their business, despite being tols upfront that there is little or no investment needed and that a profit can be turned quickly in Amway. These uplines have gone on for years with no accountability placed upon them by either Amway or their downlines. Any "incidents" are simply ignored or history revised by uplines.
There is one blog on the internet, where a WWDB IBO is writing about buying homes in cash, and Amway IBOs having a 2% divorce rate compared to more than 50% in the rest of the world, yet you have Amway defenders claiming this isn't being taught, when clearly it is. Cover it up all you want, the evidence is right there but these folks aren't interested in the facts.
Why are Amway IBOs ignoring facts? A better question is why Amway IBOs would listen to a "mentor" who teaches them to ignore facts?
Any real business owner would never ignore facts. A real business owner makes decisions based on facts. IBOs are being duped into making business decisions on emotions and hype. The Amway opportunity already is already saturated with handicaps and challenges, particularly in the US and Canada, where the reputations and previous antics of fellow IBOs has so stained Amway's name that it appears to be negatively affecting sales and preventing any meaningful growth. Despite what Amway apologists claim, Amway is very likely shrinking in the US, and will continue to do so unless improvements and corrections are made, in my opinion. It's also possible that it is too late to right the ship at this point.
It is also why many IBOs talk about how Amway saves marriages, or Amway made them nicer people. Uplines will teach this because it takes a business owner's focus away from their bottom line, the profit or loss. Or IBOs are taught that a loss just means they are investing in their business, despite being tols upfront that there is little or no investment needed and that a profit can be turned quickly in Amway. These uplines have gone on for years with no accountability placed upon them by either Amway or their downlines. Any "incidents" are simply ignored or history revised by uplines.
There is one blog on the internet, where a WWDB IBO is writing about buying homes in cash, and Amway IBOs having a 2% divorce rate compared to more than 50% in the rest of the world, yet you have Amway defenders claiming this isn't being taught, when clearly it is. Cover it up all you want, the evidence is right there but these folks aren't interested in the facts.
Why are Amway IBOs ignoring facts? A better question is why Amway IBOs would listen to a "mentor" who teaches them to ignore facts?
Friday, September 21, 2018
If Amway Products Are "Good", Why Don't Former IBOS Buy Them?
It appears to me that Amway sales globally have been tanking. Amway peaked at 11.8 billion in 2013 and has decreased each year, coming in at 8.6 billion in 2017. That's about a 25% decrease over 5 years. This is something that Amway IBOs used to enjoy bragging about but with a slowdown in foreign expansion, we are seeing sales drop significantly. I believe Amway is reaching market saturation with their products and reputation and the big declines back up what I believe to be true.
Many IBOs and Amway defenders claim that Amway products are simply the "best". Some even go so far as to call Amway product superior to big box retailer's products. In the past, some unbiased reviews (including consumer reports) of Amway products compared to name brand had some Amway goods rated as average, some were very expensive, and some were satisfactory. Of course, quality is subjective and it certainly seems that whether or not one is an IBO determines that quality.
But here's the definitive question. If Amway products are so good, why do former IBOs rarely continue to buy them? I mean Amway sales would continue to climb steadily each year if former IBOs kept buying products. And here's another angle on all of this. If some former IBOs do purchase Amway goods, I would bet that they do not purchase 100 PV or more each month as they do when they are IBOs. It would appear that uplines are able to manipulate or create an artificial demand for Amway products among the active IBOs. This is a point of contention between Amway defenders and Amway critics because an artificial demand toes the line on legality issues.
There are tens of millions of former IBOs. There are probably less than 200 qualified diamonds in the US. I believe there are more lottery winners than qualified diamonds. But if there are tens of millions of former IBOs and hundreds of thousands of current IBOs why aren't the Amway sales consistently growing? I believe it's because Amway IBOs are the primary consumers of Amway products and former IBOs are not. And because information is easily available on the internet, prospects who are approached an easily google up Joecool's blog or other sites full of information and make an informed decision. I believe that is partly why sales are down, because recruitment and sponsoring of new IBOs is down.
So if Amway products have such great value, why don't most former IBOs continue to purchase them?
Many IBOs and Amway defenders claim that Amway products are simply the "best". Some even go so far as to call Amway product superior to big box retailer's products. In the past, some unbiased reviews (including consumer reports) of Amway products compared to name brand had some Amway goods rated as average, some were very expensive, and some were satisfactory. Of course, quality is subjective and it certainly seems that whether or not one is an IBO determines that quality.
But here's the definitive question. If Amway products are so good, why do former IBOs rarely continue to buy them? I mean Amway sales would continue to climb steadily each year if former IBOs kept buying products. And here's another angle on all of this. If some former IBOs do purchase Amway goods, I would bet that they do not purchase 100 PV or more each month as they do when they are IBOs. It would appear that uplines are able to manipulate or create an artificial demand for Amway products among the active IBOs. This is a point of contention between Amway defenders and Amway critics because an artificial demand toes the line on legality issues.
There are tens of millions of former IBOs. There are probably less than 200 qualified diamonds in the US. I believe there are more lottery winners than qualified diamonds. But if there are tens of millions of former IBOs and hundreds of thousands of current IBOs why aren't the Amway sales consistently growing? I believe it's because Amway IBOs are the primary consumers of Amway products and former IBOs are not. And because information is easily available on the internet, prospects who are approached an easily google up Joecool's blog or other sites full of information and make an informed decision. I believe that is partly why sales are down, because recruitment and sponsoring of new IBOs is down.
So if Amway products have such great value, why don't most former IBOs continue to purchase them?
Wednesday, September 19, 2018
How Amway Teaching Evolves?
One of the things that is clear. Many Amway recruits are shown fancy cars and toys, along with luxurious vacations and trappings. This is a way to get prospects excited and interested in signing up for the Amway opportunity. Many sign up, and soon enough, the excitement fades and they quit. Either that or the IBO sees monthly losses and no prospects of improvement and quits. Many do little or nothing. But what many people do no understand or realize is that there is a reason for this. Many do little or nothing, I suspect because the business is much harder to build than advertised.
Because Amway has a stigma in the US (and growing in other locations), finding prospects is a daunting task. Add in the high prices of Amway products and you have major challenges that IBOs simply cannot overcome. Most simply quit and fade away into society. Some, like myself were lied to and abused, with upline leaders (WWDB)who were never held accountable for their actions. Thus I blog so others may share my experiences and can decide if they wish to climb insurmountable challenges for a less than 1% chance of financial success.
What many leaders do is evolve their teachings. They start to teach their IBOs that the Amway opportunity may have made them nicer people, better fathers or husbands and other nice to hear stories because it covers up the fact that these IBOs are not making money. Sometimes I wonder how someone can be a better person by deceiving others about the business opportunity, or how you can be a better father or husband when Amway meetings become a priority over your family and friends. Or how you can be a nicer person and leave threatening messages on forums with those who disagree about Amway being a great business opportunity?
Rather that justifying your involvement or looking are side benefits, IBOs should be looking at their bottom line. If your Amway "Business" is not generating enough money to pay for your voicemail and other expenses and leaving you with a net profit, then what exactly is your upline teaching you that is worth the ongoing expense? If you are like most, you are told that Amway has no overhead and has little risk. Well, that becomes untrue after months pass by and you have spent hundreds if not thousands on support materials that do not deliver you a net profit. Additionally, your upline is making a nice income by selling you those support materials and advising you to buy more.
Are you new or a tenured IBO? Has your teaching from upline evolved away from making money as the bottom line? If so, what do you do next? I would run in the opposite direction.
Because Amway has a stigma in the US (and growing in other locations), finding prospects is a daunting task. Add in the high prices of Amway products and you have major challenges that IBOs simply cannot overcome. Most simply quit and fade away into society. Some, like myself were lied to and abused, with upline leaders (WWDB)who were never held accountable for their actions. Thus I blog so others may share my experiences and can decide if they wish to climb insurmountable challenges for a less than 1% chance of financial success.
What many leaders do is evolve their teachings. They start to teach their IBOs that the Amway opportunity may have made them nicer people, better fathers or husbands and other nice to hear stories because it covers up the fact that these IBOs are not making money. Sometimes I wonder how someone can be a better person by deceiving others about the business opportunity, or how you can be a better father or husband when Amway meetings become a priority over your family and friends. Or how you can be a nicer person and leave threatening messages on forums with those who disagree about Amway being a great business opportunity?
Rather that justifying your involvement or looking are side benefits, IBOs should be looking at their bottom line. If your Amway "Business" is not generating enough money to pay for your voicemail and other expenses and leaving you with a net profit, then what exactly is your upline teaching you that is worth the ongoing expense? If you are like most, you are told that Amway has no overhead and has little risk. Well, that becomes untrue after months pass by and you have spent hundreds if not thousands on support materials that do not deliver you a net profit. Additionally, your upline is making a nice income by selling you those support materials and advising you to buy more.
Are you new or a tenured IBO? Has your teaching from upline evolved away from making money as the bottom line? If so, what do you do next? I would run in the opposite direction.
Tuesday, September 18, 2018
Success Is Obvious?
One of the things the Amway diamonds and other big pins like to do is to flaunt their wealth. They show up at meetings with fancy cars, they like to wear fancy suits and my former LOS, WWDB, even had and still has a function called "Dream Night". Dream Night is where the diamonds show off pictures of mansions, jets, cars, fancy vacations and they claim that everyone will one day join them in their lives full of pleasure and excess. Despite these displays of wealth, there is much evidence to suggest that these diamonds may not be able to afford all of these goodies. In fact, I strongly suspect that many diamonds are living in debt because they cannot sustain these fairy tale lifestyles on their incomes, even adding up the Amway and tools income. Now I'm not claiming that all diamonds are in hock, but I would not be surprised if half of them were in debt. If the US has multitudes of people in debt, why wouldn't people who live lives of excess be in debt?
Even lower level IBOs attempt to appear wealthy. They may dress nicely and whatnot, but in the parking lot at functions, might see a more accurate glimpse of reality when you see what kinds of cars these IBOs are driving around. I remember seeing a bunch of broken down cars, some of them on their last legs at the local functions. Yet if you were to speak to some of these nice folks, you would be told they are doing great and that business is booming.
But my question is why isn't all of this Amway success obvious? Why do IBOs dance around the questions about how much they earn from Amway? Why do diamonds like to copy some once a year bonus and pretend that they earn that kind of income on a monthly basis? If a room were full of IBOs and only the ones with a NET profit were to stand up, only a small handful of IBOs would be standing. Most of the rest probably don't even make enough to cover the cost of their voicemail.
Why can't an entire group of IBOs earn a net profit? The answer is simple. In the vast majority of groups, the cost of tools exceeds the group income that is earned from Amway. Do the math and it's easy to see. Unless your group refuses to purchase any tools and focuses on selling products, then you are more than likely to end up losing money. Success is not obvious, and the reason for that is quite obvious.
Even lower level IBOs attempt to appear wealthy. They may dress nicely and whatnot, but in the parking lot at functions, might see a more accurate glimpse of reality when you see what kinds of cars these IBOs are driving around. I remember seeing a bunch of broken down cars, some of them on their last legs at the local functions. Yet if you were to speak to some of these nice folks, you would be told they are doing great and that business is booming.
But my question is why isn't all of this Amway success obvious? Why do IBOs dance around the questions about how much they earn from Amway? Why do diamonds like to copy some once a year bonus and pretend that they earn that kind of income on a monthly basis? If a room were full of IBOs and only the ones with a NET profit were to stand up, only a small handful of IBOs would be standing. Most of the rest probably don't even make enough to cover the cost of their voicemail.
Why can't an entire group of IBOs earn a net profit? The answer is simple. In the vast majority of groups, the cost of tools exceeds the group income that is earned from Amway. Do the math and it's easy to see. Unless your group refuses to purchase any tools and focuses on selling products, then you are more than likely to end up losing money. Success is not obvious, and the reason for that is quite obvious.
Subscribe to:
Posts (Atom)