When I was an IBO, many people would talk about "building a business". But many folks who spoke about building a business didn't know what that meant. I believe it is because they were taught that building a business meant listening to tapes and attending functions. Or building a business might mean sponsoring others. In my segment of the Amway world, building a business pretty much meant recruiting and showing the plan. Apparently I was mislead and many others were as well.
Building a business, generally speaking means building a customer base. A business moves products and services for a profit. In groups that focus on buying from yourself or prosumer nonsense, generally will struggle because the revenue they generate in their business is coming from their own pockets. Or their jobs are actually supplying the money for their own bonuses. In this model, the only way to profit is to sponsor many downline so the pyramidal compensation plan can work in your favor.
Many IBOs compare themselves to a franchise. Can you imagine a true franchise where your long term success depended on your ability to open other franchises? What if you as the owner and your family accounted for the majority of the sales? Could this franchise survive? More than likely not. Yet this is exactly what many Amway IBOs do and they mistakenly think they will be successful. The only reason why Amway IBOs are able to play out this model longer than a traditional franchise owner is because they do not have to rent office space or hire employees.
If an Amway IBO ran their business like a traditional business, the lack of retail sales to non IBO customers would be immediately apparent when the first month's electric bill or lease payment arrived.
Building a business entails many things. These things may include advertising, marketing of products, and do not necessarily include any training. In its simplest form, the Amway business is about selling and using products, and getting others to do the same as you do. Why do IBOs think such extensive training (standing order and functions) is needed? I challenge IBOs to write up an actual business plan for their Amway business, including projected sales and expenses and see what you come up with. If you think I am just being negative, write up your Amway presentation and show it to a loan officer at a bank. See what they have to say. Seriously.
Tuesday, July 14, 2009
Monday, July 13, 2009
Amway - Never Quit!
Never quit! That's what some uplines will teach new IBOs. They will make anecdotal comparisons about sports champions never quitting. For example, Tiger Woods will never quit in a golf tournament. While this may be true, the golf tournament will end and Tiger will play another day in another tournament. A football player may not quit, but the game will end and they will play another game on another day.
When someone says never quit, they mean don't stop trying, but it doesn't necessarily mean never quit Amway or never quit the tools systems. Many business owners at one time, have found themselves in a losing position. At times a business owner may have to make a business decision to close his current business due to lack of business, rent/lease is too high, etc. It doesn't mean that the owner is a quitter. This very same owner may open a new and very different business.
It appears to me, that some uplines use the catch phrase of never quit, and puts a negative label on those who quit Amway, as a means to apply subtle pressure to IBOs. I believe it is because an IBO who quits will not continue to be a customer of their lucrative tools systems.
IBOs and prospects need to take a critical look at their businesses. Take a look at your income versus your expenditures. Are you netting a profit or are you seeing losses month after month? Another vital factor is whether you are suffering a loss almost exclusively because of the expenses associated with the standing orders and functions? Some uplines will encourage IBOs to ignore facts, or they will try to instill hope with talk about success being around the corner, but these teachings are more likely self serving, to get IBOs to continue to buy tools, whether or not it is in the best interest of that IBO.
This message is to provide an insight into the straategy that some uplines will employ.
When someone says never quit, they mean don't stop trying, but it doesn't necessarily mean never quit Amway or never quit the tools systems. Many business owners at one time, have found themselves in a losing position. At times a business owner may have to make a business decision to close his current business due to lack of business, rent/lease is too high, etc. It doesn't mean that the owner is a quitter. This very same owner may open a new and very different business.
It appears to me, that some uplines use the catch phrase of never quit, and puts a negative label on those who quit Amway, as a means to apply subtle pressure to IBOs. I believe it is because an IBO who quits will not continue to be a customer of their lucrative tools systems.
IBOs and prospects need to take a critical look at their businesses. Take a look at your income versus your expenditures. Are you netting a profit or are you seeing losses month after month? Another vital factor is whether you are suffering a loss almost exclusively because of the expenses associated with the standing orders and functions? Some uplines will encourage IBOs to ignore facts, or they will try to instill hope with talk about success being around the corner, but these teachings are more likely self serving, to get IBOs to continue to buy tools, whether or not it is in the best interest of that IBO.
This message is to provide an insight into the straategy that some uplines will employ.
Friday, July 10, 2009
Amway - Costco Bests Amway In Many Ways!
In my informed opinion, Costco is a much better bargain than Amway. Since I was an IBO and a Costco member, I have seen noticeable differences. The main one being that when I leave Costco, if I spend $200, I leave with a cartload of stuff, as compared to an armful of goods that I got through Amway for the same price. I wrote a post about price comparisons between Costco and Amway recently. Costco came out ahead in nearly all price comparisons. That is not to say you cannot get any good products from Amway, but overall, I believe Costco to be the better bargain.
I live about 10 miles from my nearest Costo but driving there takes me along the coast of the island (I am from Hawaii) and it's a nice drive. When I arrive, I can fill my gas tank and using an Amercian Express card, I can get a 4% rebate on my gas purchase. I can also stop for lunch and get a foot long hot dog and a bottomless soda for $1.50, a deal that is hard to top. Additionally, there are great deals there. For example, a case of water, 35 bottles is $5.99. (How much for a case of perfect water?) I can also purchase a whole slow roasted chicken for $5.99, or a full rack of BBQ ribs for $9.99 or a whole 20" pizza for $9.99.
While Amway's laundry detergent and cosmetics might be somewhat competitive to other retailers and Costco, the overall array of products can be found cheaper at Costco and other big retailers. Additionally, I get up to a 2% rebate when I make my purchase with American express. No other strings attached!
But the biggest reason I like Costco? Nobody has ever tricked me into a Costco meeting which will try to sell me a Costco outlet! There is no Costco upline. Nobody has ever called me a broke loser because I didn't join Costco. Nobody tries to question my character if I decide not to shop at Costco. There are no Costco employees calling me names because I choose to shop elsewhere. There are no cds teaching me how to shop at Costco, nor do I have to attend any seminars to learn how to shop at Costco. I simply shop and save.
Some Amway defenders have tried to make price comparisons between Costco and Amway.
If you compare Costco online to Amway, the prices are closer, with Costco prevailing, but Costco prices are much cheaper if you are there in person and you can really add to your savings using a cash back credit card. I challenge prospects and current IBOs to walk down the aisles at Costco and compare prices.
I live about 10 miles from my nearest Costo but driving there takes me along the coast of the island (I am from Hawaii) and it's a nice drive. When I arrive, I can fill my gas tank and using an Amercian Express card, I can get a 4% rebate on my gas purchase. I can also stop for lunch and get a foot long hot dog and a bottomless soda for $1.50, a deal that is hard to top. Additionally, there are great deals there. For example, a case of water, 35 bottles is $5.99. (How much for a case of perfect water?) I can also purchase a whole slow roasted chicken for $5.99, or a full rack of BBQ ribs for $9.99 or a whole 20" pizza for $9.99.
While Amway's laundry detergent and cosmetics might be somewhat competitive to other retailers and Costco, the overall array of products can be found cheaper at Costco and other big retailers. Additionally, I get up to a 2% rebate when I make my purchase with American express. No other strings attached!
But the biggest reason I like Costco? Nobody has ever tricked me into a Costco meeting which will try to sell me a Costco outlet! There is no Costco upline. Nobody has ever called me a broke loser because I didn't join Costco. Nobody tries to question my character if I decide not to shop at Costco. There are no Costco employees calling me names because I choose to shop elsewhere. There are no cds teaching me how to shop at Costco, nor do I have to attend any seminars to learn how to shop at Costco. I simply shop and save.
Some Amway defenders have tried to make price comparisons between Costco and Amway.
If you compare Costco online to Amway, the prices are closer, with Costco prevailing, but Costco prices are much cheaper if you are there in person and you can really add to your savings using a cash back credit card. I challenge prospects and current IBOs to walk down the aisles at Costco and compare prices.
Thursday, July 9, 2009
Amway - What Are Eagle Parameters?
A frequent site visitor has asked numerous times and has doubted that there is such a thing as "Eagle" parameters. Now I don't know if WWDB still has this program, but I believe they do as I have seen some newbie IBOs mention that they are striving for Eagle. While Eagle may look like a "winner's club" of sorts to IBOs, I believe that the Eagles are basically the big money makers for the lines of sponsorship, which is probably why this program was created. Here are the general details:
Signed Counsel Sheet to Upline Diamond
300 PV personal use/retail for couples, 200 PV personal use/retail for singles
6-5-3 (PB/SO/MF) - Explained below
6 legs at 100 PV or higher
5 legs on standing order
3 legs attending major functions
Amquix info has more information: http://www.amquix.info/pdfs/wwdb_eagle.pdf
This is the Eagle program. Since most IBOs are not able to sponsor a single downline, you can see that Eagle is probably a fairly exclusive club. But if you look at the cost of 300 or 200 PV ($900 or $600), most families wouldbe hard pressed to move that much personal volume. Of course you can sell product, but my upline did not emphasize selling, but more 100% personal use.
In addition to the PV, you have 5 legs on standing order and 3 legs traveling to major functions (I'm from Hawaii). The Eagle program made a lot of money for upline, but not necessarily for the IBO who held the Eagle parameters. It is possible to be an Eagle and not be at 2500 PV. However, a structure like this without the tools would be profitable, IMO.
FYI - IBOS and newbies, do the math and see for yourself.
Signed Counsel Sheet to Upline Diamond
300 PV personal use/retail for couples, 200 PV personal use/retail for singles
6-5-3 (PB/SO/MF) - Explained below
6 legs at 100 PV or higher
5 legs on standing order
3 legs attending major functions
Amquix info has more information: http://www.amquix.info/pdfs/wwdb_eagle.pdf
This is the Eagle program. Since most IBOs are not able to sponsor a single downline, you can see that Eagle is probably a fairly exclusive club. But if you look at the cost of 300 or 200 PV ($900 or $600), most families wouldbe hard pressed to move that much personal volume. Of course you can sell product, but my upline did not emphasize selling, but more 100% personal use.
In addition to the PV, you have 5 legs on standing order and 3 legs traveling to major functions (I'm from Hawaii). The Eagle program made a lot of money for upline, but not necessarily for the IBO who held the Eagle parameters. It is possible to be an Eagle and not be at 2500 PV. However, a structure like this without the tools would be profitable, IMO.
FYI - IBOS and newbies, do the math and see for yourself.
Wednesday, July 8, 2009
Amway - Critics Steal Dreams?
Some debates over Amway recently churned up some accusations once again about critics being "dream stealers". I thought I would address this but first I wanted to print the definition of a dream from dictionary.com:
dream
[dreem] Show IPA noun, verb, dreamed or dreamt, dream⋅ing, adjective
Use dreams in a Sentence
–noun
1. a succession of images, thoughts, or emotions passing through the mind during sleep.
2. the sleeping state in which this occurs.
3. an object seen in a dream.
4. an involuntary vision occurring to a person when awake.
5. a vision voluntarily indulged in while awake; daydream; reverie.
6. an aspiration; goal; aim: A trip to Europe is his dream.
7. a wild or vain fancy.
8. something of an unreal beauty, charm, or excellence.
–verb (used without object) 9. to have a dream.
10. to indulge in daydreams or reveries: He dreamed about vacation plans when he should have been working.
11. to think or conceive of something in a very remote way (usually fol. by of): I wouldn't dream of asking them.
–verb (used with object) 12. to see or imagine in sleep or in a vision.
13. to imagine as if in a dream; fancy; suppose.
14. to pass or spend (time) in dreaming (often fol. by away): to dream away the afternoon.
–adjective 15. most desirable; ideal: a dream vacation.
—Verb phrase
16. dream up, to form in the imagination; devise: They dreamed up the most impossible plan.
-------------------------------------------------------------
Based on these definitions, I do not see how it is possible for anyone to steal a dream. This dream stealing verbage is just more upline propaganda designed to get IBOs to shut off their critical thinking skills and to blindly commit themselves to buying more standing orders and function tickets, whose profit goes into the pockets of your beloved upline leaders.
I believe #6 is the most appropriate definition for an IBO. A long term goal. But if an IBO's long term goal is retirement and riches, they should analyze their involvement in the Amway business and determine if that is the appropriate vehicle to achieve their goals. For the vast majority of people, this is not the appropriate vehicle and facts confirm this. It's a matter of whether or not an IBO was told to ignore the facts by his/her upline.
dream
[dreem] Show IPA noun, verb, dreamed or dreamt, dream⋅ing, adjective
Use dreams in a Sentence
–noun
1. a succession of images, thoughts, or emotions passing through the mind during sleep.
2. the sleeping state in which this occurs.
3. an object seen in a dream.
4. an involuntary vision occurring to a person when awake.
5. a vision voluntarily indulged in while awake; daydream; reverie.
6. an aspiration; goal; aim: A trip to Europe is his dream.
7. a wild or vain fancy.
8. something of an unreal beauty, charm, or excellence.
–verb (used without object) 9. to have a dream.
10. to indulge in daydreams or reveries: He dreamed about vacation plans when he should have been working.
11. to think or conceive of something in a very remote way (usually fol. by of): I wouldn't dream of asking them.
–verb (used with object) 12. to see or imagine in sleep or in a vision.
13. to imagine as if in a dream; fancy; suppose.
14. to pass or spend (time) in dreaming (often fol. by away): to dream away the afternoon.
–adjective 15. most desirable; ideal: a dream vacation.
—Verb phrase
16. dream up, to form in the imagination; devise: They dreamed up the most impossible plan.
-------------------------------------------------------------
Based on these definitions, I do not see how it is possible for anyone to steal a dream. This dream stealing verbage is just more upline propaganda designed to get IBOs to shut off their critical thinking skills and to blindly commit themselves to buying more standing orders and function tickets, whose profit goes into the pockets of your beloved upline leaders.
I believe #6 is the most appropriate definition for an IBO. A long term goal. But if an IBO's long term goal is retirement and riches, they should analyze their involvement in the Amway business and determine if that is the appropriate vehicle to achieve their goals. For the vast majority of people, this is not the appropriate vehicle and facts confirm this. It's a matter of whether or not an IBO was told to ignore the facts by his/her upline.
Tuesday, July 7, 2009
Amway - A Great Comment That Makes Perfect Sense!
I recently received this anonymous comment on a post and it sums up why potential Amway recruits need to use due diligence if they are thinking about joining and to be wary of predatory uplines:
[Quote] Sorry if i sound a little bitter but I actually know some people in real life who can nary afford to be buying/selling Amway products because they can barely put food on their own tables. Someone somewhere told them Amway was the way to financial freedom but forgot to tell them there was actual work involved, and now they are spending money that they should be using to get their life in order on Amway instead. They should be getting real SECOND jobs to make their ends meet but they are living this fantasy that one day they'll be a diamond too. Believe me when I tell you that their so-called Amway education is NEVER going to compare with my bonafide university degree and the doors that it opened for me.
IMO, Amway sponsors and uplines clearly prey on people who can least afford to take part in this 'opportunity'. They look for people who are down on their luck, working minimum wage or other crappy jobs and seduce them with a get rich quick scheme - you can work from home a couple hours a week! More time with the family! They turn them into automatons who spout motivational bullcrap and judgemental observations about people who have regular jobs (and can therefore pay their bills) because these people haven't 'broken out of their comfort zone'.
Color me comfortable with the comfort zone. In today's economy you would have to be a moron to spend more money on products that you can get at your grocery store for less. If I need a little more cash, maybe I'll get a second part time job that Joecool and others have already demonstrated actually PAY MORE than the average IBO makes selling Amway. And the best thing is, I don't actually have to spend any of my own money to do it.
-Living in the Real World
[Quote] Sorry if i sound a little bitter but I actually know some people in real life who can nary afford to be buying/selling Amway products because they can barely put food on their own tables. Someone somewhere told them Amway was the way to financial freedom but forgot to tell them there was actual work involved, and now they are spending money that they should be using to get their life in order on Amway instead. They should be getting real SECOND jobs to make their ends meet but they are living this fantasy that one day they'll be a diamond too. Believe me when I tell you that their so-called Amway education is NEVER going to compare with my bonafide university degree and the doors that it opened for me.
IMO, Amway sponsors and uplines clearly prey on people who can least afford to take part in this 'opportunity'. They look for people who are down on their luck, working minimum wage or other crappy jobs and seduce them with a get rich quick scheme - you can work from home a couple hours a week! More time with the family! They turn them into automatons who spout motivational bullcrap and judgemental observations about people who have regular jobs (and can therefore pay their bills) because these people haven't 'broken out of their comfort zone'.
Color me comfortable with the comfort zone. In today's economy you would have to be a moron to spend more money on products that you can get at your grocery store for less. If I need a little more cash, maybe I'll get a second part time job that Joecool and others have already demonstrated actually PAY MORE than the average IBO makes selling Amway. And the best thing is, I don't actually have to spend any of my own money to do it.
-Living in the Real World
Monday, July 6, 2009
Amway - Why Do Amway Recruiters Need To Lie?
One thing I have noticed recently is how many Amway recruiters cannot or will not recruit prospects by telling them the virtues of Amway. It appears that insulting people's jobs or lifestyles is a common recruitment tactic by many IBOs. They try to instill a fear in recruits to make Amway look good.
Common tactics will be falsehoods such as 98% of Americans are dead or broke by age 65. Or they will make up outright lies such as 95% of all small businesses fail in their first year. They talk about the bad economy, or how starting a conventional business is a bad idea because there is some start up capital needed. While a conventionl business does involve some risk, you have a decent chance of succeeding, provided you plan well, and put in the necessary effort.
Planning and putting forth effort doesn't necessarily result in Amway success. As far as I know, there is no evidence that standing order, or functions guarantee any degree of success in Amway. Sure, Amway defenders will state that all of the (few)new diamonds were on the system, but will ignore the thousands if not millions of IBOs who also were on the system, put forth effort, and did not experience a profit.
At functions, one things I remember seeing was the fabulous toys and lifestyles of the diamonds, but there was no mention that these toys and luxuries were made possible by tools income or other sources of income outside of Amway. I understand that AMOs now mention tools income, but do not elaborate as to how you qualify and what the compensation will be if qualified.
It is my informed conclusion that Amway recruiters lie - because they have to. The business is a tough sell because of past unethical IBO behavior, such as tricking someone into attending a recruitment meeting. Factor in the high overall prices of Amway and Amway partner store products and the pyramidal compensation plan and you almost cannot recruit people in the US without some degree of shmoozing and deception.
Common tactics will be falsehoods such as 98% of Americans are dead or broke by age 65. Or they will make up outright lies such as 95% of all small businesses fail in their first year. They talk about the bad economy, or how starting a conventional business is a bad idea because there is some start up capital needed. While a conventionl business does involve some risk, you have a decent chance of succeeding, provided you plan well, and put in the necessary effort.
Planning and putting forth effort doesn't necessarily result in Amway success. As far as I know, there is no evidence that standing order, or functions guarantee any degree of success in Amway. Sure, Amway defenders will state that all of the (few)new diamonds were on the system, but will ignore the thousands if not millions of IBOs who also were on the system, put forth effort, and did not experience a profit.
At functions, one things I remember seeing was the fabulous toys and lifestyles of the diamonds, but there was no mention that these toys and luxuries were made possible by tools income or other sources of income outside of Amway. I understand that AMOs now mention tools income, but do not elaborate as to how you qualify and what the compensation will be if qualified.
It is my informed conclusion that Amway recruiters lie - because they have to. The business is a tough sell because of past unethical IBO behavior, such as tricking someone into attending a recruitment meeting. Factor in the high overall prices of Amway and Amway partner store products and the pyramidal compensation plan and you almost cannot recruit people in the US without some degree of shmoozing and deception.
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