Your Amway Business Vital Signs?

 When you drive a car, you have instruments on your dashboard that let you know how your car is running and possibly whether you need maintenance or repairs. For example, you have a gas gauge, so you know when to refill the gas tank. You may have a oil pressure gauge, tire pressure, and an indicator to show how warm or cool your engine is running. My car has a light that comes on when I need to change the oil or service the engine.  Cars now days are pretty complex and have all kinds of warning devices.

Your Amway business also has some warning devices and gauges. Unfortunately, many IBOs are taught by upline to ignore these indicators or made to think that warning signs are not to be heeded. I will explain further, but I believe too many IBOs see the signs, but simply have been trained to ignore these vital warning signs.

Selling products. Are you buying more PV than you are selling? I believe most Amway IBOs do. No business can sustain itself without selling to customers. Why IBOs think they can succeed without customers is because of bad upline advice or teaching. Some of the teaching might be to "buy from yourself". When you buy from yourself, you make no profits. Basically, buying from yourself just makes you a customer of Amway.  Sadly, most Amway IBOs fall into this category.

Non income producing activity. If you spend a lot of time listening to standing orders, reading books, attending meetings and prospecting people, these activities do not produce any income. In fact, these activities cost you money. Sure, eventually prospecting may pay off, but are you getting a fair return on your time and money spent doing these activities? If you pay for standing order but are unable to do more than 100 or 200 PV, then your business is not even covering the cost of standing order, not to mention the other costs that your upline may have told you was "needed".

Tools. If your expenditure on tools (cds/meetings/voicemail/website fees) continually exceeds your monthly income, you need to take a look at what it will take in order for your business income to grow. If not, you will simply take a loss month after month. If you are not sponsoring or finding more customers every single month, you are simply running in place, and you will expend energy (money) and not get anywhere.

Are you showing the plan? If you are having trouble finding people to see the plan, then you will be unable to sponsor enough people to expand your volume. Also, an inability to show the plan also restricts your ability to recruit potential customers. Do people flinch when you mention Amway? These are signs that should warn you that the opportunity is not palatable to most people, despite what you hear from upline.

The warning signs and gauges are there. IBOs simply need to believe their own eyes.

Amway IBOs And Deception?

 I cannot even count the number of Amway pitches I have seen on the internet. Because many of them sound exactly the same, or at least very similar. You can probably guess that many of these IBO recruiters were taught by the same LOS such as WWDB or BWW. That is one the major problems I see with the Amway opportunity, that large groups of people are being taught lies or unethical methods of running their business or recruiting. Amway defenders like to cite the fact that 10,000 or even 100,000 IBOs is small in the overall world of Amway and Amway has about 3 million IBOs worldwide. What many Amway defenders won't say is that apparently, most LOSs teach the same basic theories, thus IBO abuse is very significant.

I do not believe that a person can build a large Amway business based on honest recruitment and retention methods. In the past and even now, many IBOs do not know much about the tools business and how you actually get a cut. In the past, some groups lied and claimed they made no profits on tools. Some even went so far as to say their tools company was a non profit company. Eventually, downline IBOs discovered the real deal about the tools and then uplines started to admit that they profited from tools, and started to tell their downline a little about the system. However, these same uplines, many of whom are still active today, have never been held accountable for their past lies and deception. They simply wrote revisionist history where diamonds who got divorced or did something embarrassing were not mentioned or simply disappeared. And IBOs took the bait.

But can you build an Amway business based on pure honesty? I suppose it's possible, but in the US, it would be nearly impossible. Just the mention of the name Amway will turn the stomachs of many potential recruits. It is why some uplines invented the curiosity approach and why some IBOs resort to pure lies to get people to see the plan. Even when I was first prospected over 20 years ago, I was invited to a college "beer bust", only to arrive and see people in suits at a home with the white board. It is why I saw many people walk out of board plans once the name "Amway" was mentioned. It had to be that they were deceived or lied to.

So if you are an Amway IBO or simply an information seeker, I think this is a very fair and appropriate question. Can you build a sustainable Amway business based on honesty and the truth? What have you seen or experienced thus far? If what I have said is reasonable and true, then is it going to be worth your time and money to build this business? That is something your conscience will have to determine.

Return On Investment (ROI)?

 So many IBOs are taught that they need to invest in their businesses. The investments, however, aren't on equipment, employees, rent, or on advertising. In a typical Amway business, the investments that uplines often refer to are voicemail subscriptions, standing orders, website fees, seminars and books. In many cases, an IBO keeps on investing in these materials without making an assessment as to whether or not the investment was worth the money or if they are actually generating more business as a result of the investment.  These are basic fundamentals of any business but upline omits this from their teaching.

I find it ironic that many Amway recruiters will hype the Amway business as one of low risk and little or no overhead. But when an IBO starts to get truly interested, suddenly an investment of money is vital to the success of their business. IBOs get caught up in the excitement of starting a business and they pour money into their shiny new Amway businesses, often without understanding the purpose of the investment, because they are following the advice of their experienced uplines. Eventually, most IBOs will realize that they aren't making money, so they stop building the business and eventually quit. This is confirmed by the fact that over 90% of IBOs do not last 5 years and less than half of registered IBOs last even a full year.

For most, they will never recoup even their first months' worth of investments, even with a honest and earnest effort of building the business. Most IBOs never even make enough income to cover their voicemail bills. It is sad that uplines dupe their faithful followers into believing that their tools will help them succeed as IBOs. There is ZERO unbiased evidence that voicemail, functions and other materials do anything to help an IBO to make a substantial profit from the Amway business. It is my educated opinion that training materials sold by uplines have the exact opposite effect. The training materials and functions suck money out of an IBO's business and goes to the upline in the form of support materials profits.

For most IBOs, there is little to no return on their investment. What has voicemail or a standing order done for your business? Ask yourself an honest question. What tangible result have you seen in your business as a result of attending a function or listening to a standing order? If there was any result, is it a one time phenomena or are the functions resulting in continued growth of downline and business volume? Even if you did see a small increase in volume for example, was it enough to justify taking a perhaps out of town trip by air and hotel expenses just for a small volume increase? Do the never ending standing orders result in your downline and volume growing or simply your bank account shrinking?

Any real business owner will look at expenses and make sure that any investments into their business results in more customers or more revenue. If not, then that expense is shut down and other options looked at. Since many IBOs don't have any customers or very few customers, is it worth your time and money to attend functions? Is standing order increasing your monthly volume or bonuses? This is not to persuade IBOs to quit, but simply food for thought so that IBOs will truly use their "business mentality" and decide for themselves if support materials vis a vis an "investment" in their Amway business is paying off or not. If not, you are enjoying a hobby called Amway. Hobbies cost you money, but they rarely make you money. Is Amway a business or a hobby?

Losing Your ASSets?

 One of the issues I have with the Amway plan is that the newest IBO, possibly the one who does the most "Work", receives the smallest compensation. Amway pays about 30+% of their revenue back in the form of bonuses. An IBO who does 100 PV receives a 3% bonus and somewhere, uplines and sponsors receive the rest. Some of the upline may not have even met the IBO who actually did the work. Is that really fair and is that a level playing field? What do some of these uplines do to deserve the lion's share of the bonus you worked to get? Yes, the upline diamond may show the plan in an open meeting, which may help you, but then again, you pay for entrance into that meeting plus you pay for your guests.

Many uplines will talk about dreams and fulfilling your dreams. But if an IBO would stop and think for a moment, you can easily see that you are building the dreams of your upline, and not your own. You receive a tiny portion of the bonus for the volume that you move, and then in addition, if you are on the system, then you are also paying upline in the form of tool purchases for the priviledge of giving them bonuses with your product purchases. How is that a good business deal in any way, shape or form?

It is why your upline diamonds can parade around on stage with designer suits and show you their fancy cars and mansions and other toys. It is because they are cashing in on your efforts. You are making their dreams come true. Your dedication to moving volume and purchasing standing orders are fulfilling dreams. The upline dreams. Yes, someday you can hope to have your own group of downline to exploit for your own benefit, but unless you are adding members to your group regularly, you will never achieve the kinds of dreams that uplines talk about. In the meantime though, you are definitely helping someone upline achieve their dreams with every function you attend. Ironically, the upline leaders will tell you to never quit, even if they don't know your personal circumstances.

Here's a challenge for IBOs and/or prospects who are being recruited into the Amway business. 100 PV will cost around $300 a month and dedication to the tools system will cost you anywhere from $100 to $500 or more, depending on your level of commitment. Would you not be better off simply writing a check to your upline for $100 and not even joining? Would you not be better off staying home and watching television instead of joining? If you read all of the information available on this blog and still decide to join, good luck to you, but remember this: Whose dreams are being fulfilled by your participation? Yours or your upline diamond, who profits from tool sales?

Life After Amway?

 When I was a young IBO, I saw the plan and thought it was realistic to go direct and to find six (6) downlines who could do the same thing. I didn't know the realistic chances of doing this, but the presentation made sense so I went with it. I basically built my group on excitement, and it seemed like the system could work. Sadly, as I climbed the ranks, my bottom line did not change. I did not "net" $200 at the 1000 PV level, and I did not "net" $1000 a month at 4000 PV as my upline taught. I had the parameters they taught, but the reality was my leaders taught everyone to pump what little profits we earned into buying more tools.

My leaders also taught people to get out of debt, which was good advice on the surface, but at the same time, any disposable income left over was to be channeled into tools, and for those who did not escape debt, they were told it was okay to go deeper in debt, but only if it was to "invest" in their businesses by purchasing more tools. Thus it certainly appears that upline's advice was purely self-serving and had nothing to do with an IBO's individual success. Channel your money into tools (your upline's profits) and never mind your own business.

I was in WWDB and they (upline) said that WWDB was breaking the most diamonds and that WWDB diamonds were the most profitable. So here it is many many years later, where are all these new diamonds? Aside from from foreign diamonds, there are (I believe) less than 4 new diamonds from WWDB in the US from the time I left the business. I might add that some diamonds have left the business. Now I may be wrong, but even it was a few more than 4 new diamonds, that is a miserable success rate given the amount of cash spent by downline on tools and the claims made my upline about the tools.

We have also seen some WWDB diamonds end up in home foreclosures. Where is the integrity and financial acumen these leaders boasted about? Where is the success and long term financial security available to everyone that was touted? I believe more diamonds and emeralds fell out of qualification than new pins emerged. The business was promoted as one that would stand the test of time. Sadly, I believe WWDB and the Amway opportunity as promoted by WWDB has been a miserable failure.

There is little success to speak of, just he same old tired diamonds showing off a lifestyle that some of them apparently can no longer afford. Where is the success?

It is years later and we are still waiting.......

The Level Playing Field?

 One of the things my upline always taught was how the business was fair.  That it's a level playing field for everyone.  Everyone starts at zero, we were told. Everyone does start at zero, but it is hardly fair when you break down the compensation and the layers of people between you and your uplines. I will also speak about how the sponsoring is somewhat cloudy as well. Despite the claim that you will be paid if you "do the work", it is not necessarily true. These are catch phrases that upline uses to make it seem fair.

The sponsoring system that Amway uses is a hit or miss. You could have tons of business acumen and insight on running a business, but your sponsor and others upline will always be your upline and will always profit on your efforts - simply because they were there first. In many cases, a sponsor has nothing to offer a downline. They are in no way shape or form able to advise or give sound business advice. But as long as they are in the business, they get to profit from your efforts. Does that sound fair to you?  In some cases, a sponsor might be younger than you but somehow they are upline so they will help shape your life and business decisions?  Where else but in Amway or other MLMs do you hear such nonsense?

Also, let's take a new Amway IBO for example. If that new IBO sells and consumes 100 PV, that new IBO will receive a 3% bonus. Amway pays roughly 32% to 33% of their take in bonuses. Thus the new IBO who "did the work" gets 3% and somewhere in the layers of upline, 29% to 30% gets split up among the upline. Some of the upline don't know that the new IBO exists, but they get a portion of the bonus, simply because they were there first. The new IBO has done the work and some of the uplines have done nothing to help this new IBO, but they enjoy a percentage of that IBO's bonus. Does that sound fair?

Tenured upline may also sell business support materials such as voicemail, websites, books, cds, and seminars. None of these materials have been proven to be effective in assisting IBOs in building a business. In fact, some of the biggest crown ambassador types built their Amway businesses before these materials existed. But because they were there first, they now claim to have the expertise on how to build a successful Amway business. Based on some numbers that Amway has provided, we can conclude that less than 1 in about 400 IBOs ever reach platinum and out of those who reach platinum, less than 1% ever reach diamond. Not much evidence that the system works. Yes, I acknowledge that some people don't follow the system, but out of these ones who do follow the system, the success rate is still miserably low. If the system is so difficult to follow and succeed, is it fair for IBOs to have to keep paying for a system that will not help them?

All of the above are reasons a new IBO has the deck stacked unfairly against them. Yes, some IBOs can overcome overwhelming challenges and succeed, but they are few and far between. Is this business set up in a fair manner?   Is this your level playing field?

What Is Your Business Worth?

 Many many people see the Amway plan, sign up as an IBO in the hopes that Amway income will help them fulfill their dreams and that they will walk away from their jobs at a young age and collect lifelong residual income while walking the beaches of the world. Sadly, most IBOs will never even sponsor a single downline or see a net profit. These IBOs may continue in the business for a while but will eventually quit when they see the writing on the wall. Someone mentioned on another forum that people who want to work 2-5 years and do nothing thereafter are probably lazy and therefore, are not capable of achieving in anything, much less in Amway. I agree with this but even hard working eager IBOs generally make nothing or lose money.

But wait, you're an "independent business owner". So instead of quitting, why not sell your Amway business? I wonder if any IBOs actually think about what their business is worth. I mean a diamond in theory could sell their business and live large happily ever after right? Here's some food for thought. Why are there instance of diamonds quitting or resigning from Amway? Why would they just quit when they could either walk away and collect an income "forever" or sell the business? I mean do IBOs ever stop and think about this? It is an honest and serious question that should get some consideration. Honestly, why would a diamond not walk away if they could collect income forever?

I believe diamonds quit and resign because their business is worth very little or nothing. And most Amway businesses do not even generate a net profit. For IBOs who are seriously pondering on this very important message, try looking up this topic in Amway's rules. There are very complicated steps to be taken when selling your Amway business as each person upline must be offered ownership (To the best of my understanding). This process can go on for a long time and the attrition of your business could render it worthless before you can find a buyer, if you have a buyer at all. Also, if you quit, the downline in your group would be surrendered to the immediate upline anyway. So why would your upline want to buy your business?

So IBOs, I ask you. What is your business worth? You don't own your downline. They are independent owners like yourself. You should not have inventory, employees or some warehouse storage complex. Aside from the ability to add downline volume to your own, your Amway business likely has very little value in the real world. So IBOs and prospects, think about it for a minute. What is the value of your Amway business? Ever see anyone sell their Amway business or actually walk away from Amway to collect residual income? Do you ever wonder why crowns and double diamonds are still working, even beyond retirement age for people with jobs?