In recent comments, one thing I have seen about Amway IBOs is "desperation". I believe this to be true as IBOs who are trying to build a business are in a precarious position. For one thing, Amway products in general are not priced at a competitive level with big retailers so IBOs are at a disadvantage. Lacking retail sales, and IBO must self consume 100 PV, which can cost about $300 or so on average. Most people that I know do not spend $300 a month on consumables, toilet paper and vitamins that IBOs claims simply "replaces your shopping habits" Even when I threw a party for 40 guests at my home, I still did not spend $300 at Costco that month for my own goods plus the party.
So why are IBOs "desperate"? I believe it is because the cost of the goods starts to become a burden for most IBOs and the disadvantage in cost makes selling products very very difficult. So with that in mind, the only other way for an IBO to increase volume is to sponsor downline IBOs in the hopes that they will also move volume. Thus IBOs do not get paid directly for recruiting (which allows Amway to remain legal), but the emphasis of most business builders is to sponsor downline because selling is more difficult. And because many IBOs are "desperate" to generate volume, they resort to trickery, deceit, and sometimes outright lies in order to get people to a recruitment meeting. It is why Amway has developed a reputation in North America. I believe Amway sales in North America is shrinking because of this, but I cannot confirm it since Amway no longer reports North American sales seperate from their global sales.
But this continued emphasis on sponsoring and showing the plan is the very reason why most IBOs can never build a sustainable business. For example, the Walton family can take a trip to Mars and WalMart will continue to have their sales go through the roof because they offer good products and rock bottom prices. Customers see value in WalMart goods and will shop there loyally for decades to come. Amway IBOs rely on IBOs joining and primarily self consuming products. This doesn't work because two thirds of IBOs quit in less than a year, possibly because there's not enough value in remaining, and the vast majority of the remaining IBOs quit within a year or a few years thereafter. Some diamonds may be able to keep replacing the quitters, at least enough to sustain some Amway income, but probably not enough to "walk away" from their businesses. For smaller volume IBOs, they simply cannot keep replacing what few downline they may have had, and eventually, they quit too.
For many, it's hard to quit if they were "serious" for a while because they have invested time and money and they are hopeful that their investment will eventually pay off. But at some point, it seems that desperation eventually sets in. Even diamonds who may be living bonus check to bonus check, probably cannot quit because they too, have invested much time and effort into their business. But recently, we have seen evidence of what I speak about. Diamonds quitting, diamonds resigning, and diamonds in financial difficulty. The writing is on the wall.
Wednesday, March 10, 2010
Tuesday, March 9, 2010
Amway - What Does Your Bottom Line Look Like?
One of the most vital things about running a business is your bottom line. The bottom line is a net profit for a business. But apparently, many IBOs do not look at their bottom line, probably at the suggesttion of their uplines. I believe uplines ask downline to ignore the bottom line because for most IBOs, even dedicated ones, is a loss. Thus IBOs are taught that Amway saves marriages, or that the Amway oppportunity has made you a better person, or that the Amway opportunity has made you a better husband. All of these things are great side benefits for having joined Amway, but in strict business terms, most IBOs are failures in the profit and loss category. (And if you are out almost every nite building an Amway business, are you really a better husband and father?)
The facts, some of which are published by Amway reveals this message quite clearly. Most IBOs cannot or do not sell a lot of Amway products. Most IBOs, even with much work, will never sponsor a downline. Even those who manage to sponsor others are likely to see these downline quit within the first year. In fact, many IBOs cannot even find someone open enough to see the Amway business plan. I believe it is why you hear stories of trickery, lies and deceit involved in many stories about Amway. Even the IBOs who do the work are likely to earn less than $1 of NET profit after taking business expenses into consideration. In fact, when factoring system expenses, most system IBOs operate at a loss!
So for most IBOs, the bottom line is a loss. Yes, some IBOs make money. Some make a lot, but those making money seem to have been around for a long time. I believe that too many observers mistakenly believe that the platinum level is profitable. I believe that a dedicated system platinum earns very little after all of the expenses associated with the system are factored in. This was confirmed by an attorney general study conducted in Wisconsin showing the average platinum lost nearly $1000 a year. While Amway defenders will claim that the study is dated (from the 1980's), I would like to note that the basics of the business hasn't changed. In fact, the advent of KATE and some other system materials make the expenses even higher than back when the Wisconsin study was done!
So IBOs, what does your bottom line look like? Is there anything left of your PV bonus check at the end of the month? Or is it a loss that you justify by claiming you are a nicer person? Would you have joined if the plan had said you would be nicer but losing money? Would you have joined if you knew you would be losing money but have new Amway friends? Would you have joined if you knew that a platinum might be losing or not making much money? The bottom line in any business should be a profit. What does your look like?
The facts, some of which are published by Amway reveals this message quite clearly. Most IBOs cannot or do not sell a lot of Amway products. Most IBOs, even with much work, will never sponsor a downline. Even those who manage to sponsor others are likely to see these downline quit within the first year. In fact, many IBOs cannot even find someone open enough to see the Amway business plan. I believe it is why you hear stories of trickery, lies and deceit involved in many stories about Amway. Even the IBOs who do the work are likely to earn less than $1 of NET profit after taking business expenses into consideration. In fact, when factoring system expenses, most system IBOs operate at a loss!
So for most IBOs, the bottom line is a loss. Yes, some IBOs make money. Some make a lot, but those making money seem to have been around for a long time. I believe that too many observers mistakenly believe that the platinum level is profitable. I believe that a dedicated system platinum earns very little after all of the expenses associated with the system are factored in. This was confirmed by an attorney general study conducted in Wisconsin showing the average platinum lost nearly $1000 a year. While Amway defenders will claim that the study is dated (from the 1980's), I would like to note that the basics of the business hasn't changed. In fact, the advent of KATE and some other system materials make the expenses even higher than back when the Wisconsin study was done!
So IBOs, what does your bottom line look like? Is there anything left of your PV bonus check at the end of the month? Or is it a loss that you justify by claiming you are a nicer person? Would you have joined if the plan had said you would be nicer but losing money? Would you have joined if you knew you would be losing money but have new Amway friends? Would you have joined if you knew that a platinum might be losing or not making much money? The bottom line in any business should be a profit. What does your look like?
Monday, March 8, 2010
Amway - Why Most Amway Businesses Are Not Sustainable?
One of the selling points of the Amway business is for people to do the work once and then reap financial benefits for life. But that simply does not happen for the vast majority of IBOs. The reason why most IBOs do not have a sustainable business is because their business is not based on sales to genuine customers with a genuine need. Most IBOs themselves will not buy Amway products once their affiliation to Amway is over.
If you are an IBO doing your 100 PV monthly, then your only way to increase volume is to sponsor downline in hopes that they will also do their 100 PV as shown in the plan. And even if you are somehow able to accomplish this and sponsor a bunch of people as shown in the plan, chances are that many IBOs will "do nothing" and of the remaining, some will move 100 PV, but they will likely quit in one year or less.
In many or possible most cases, IBOs are only selling the Amway opportunity and not Amway products. They sell the possibility or hope that they will build a business, walk away and collect untold wealth for the rest of their lives. It isn't going to happen. Say for example, you sold 100 PV monthly on a consistent basis to customers. These customers will automatically go online and make purchases when they run out of their products. If you are lucky, they will also refer friends to make purchases. But most IBOs do not sell products, they are selling the opportunity.
That brings up the next point about why an Amway business is not sustainable for most. The products cost more than most other retailers. That will limit the potential for customers and referals. Amway defenders like to cite quality issues, but most customers who shop online aren't familiar with Amway products and have no way to know whether Amway has quality products or not. That leaves them to decide based on prices. And Amway in general, costs much more than Walmart for the same or similar products. A tough sell indeed.
If you are an IBO doing your 100 PV monthly, then your only way to increase volume is to sponsor downline in hopes that they will also do their 100 PV as shown in the plan. And even if you are somehow able to accomplish this and sponsor a bunch of people as shown in the plan, chances are that many IBOs will "do nothing" and of the remaining, some will move 100 PV, but they will likely quit in one year or less.
In many or possible most cases, IBOs are only selling the Amway opportunity and not Amway products. They sell the possibility or hope that they will build a business, walk away and collect untold wealth for the rest of their lives. It isn't going to happen. Say for example, you sold 100 PV monthly on a consistent basis to customers. These customers will automatically go online and make purchases when they run out of their products. If you are lucky, they will also refer friends to make purchases. But most IBOs do not sell products, they are selling the opportunity.
That brings up the next point about why an Amway business is not sustainable for most. The products cost more than most other retailers. That will limit the potential for customers and referals. Amway defenders like to cite quality issues, but most customers who shop online aren't familiar with Amway products and have no way to know whether Amway has quality products or not. That leaves them to decide based on prices. And Amway in general, costs much more than Walmart for the same or similar products. A tough sell indeed.
Thursday, March 4, 2010
Amway - Critics vs. Defenders
Ever since the "tools scam" in Amway was exposed by the internet and further confirmed by Dateline and previously by 60 Minutes in expose's, there has been a sort of "internet war" between Amway critics and defenders. The defender's mantra is almost always "we don't do that", which I find ironic, because often, these same defenders admit they are from the more abusive of the lines of sponsorship. While I admit there may be some "rogue" IBOs who focus on selling product, they are the rare exception and not the rule. Most IBOs belong to an LOS who sells tools such as cds, voicemail, seminars/function and other support materials. In the past, uplines lied and denied that they made any tools profits. Now that the lie has been exposed, the IBOs seemingly have just forgotten about this and gave upline a free pass while uplines continue to display a lack of transparency about the tools business.
I will also acknowledge that Amway may have tried to make some changes to clean up some of the abuse, but at the same time, many of the changes appear to be cosmetic and meaningful changes are not apparent. Take accreditation for example, what did it truly accomplish? Not much in my opinion.
The most hard core defenders of Amway act like internet trolls at times, setting up alerts and dropping uninvited into conversations whenever the word Amway comes up. The weaker defenders of Amway will drop into a conversation and will disappear in a flash once they get schooled by the facts. One good example was someone denying that diamonds spoke about buying homes in cash. When other commentators confirmed hearing this claim, the AMway defender tucked tail and ran. The more elusive defenders of Amway will try to get a critic to defend an extreme postion, or will try to say that critics paint too broad of a picture. For example, when you say upline, why refer to all upline. A valid point, but when making a defense, these same defenders will paint all of the upline as "rosy" by saying things like "we" don't do that, implying that not a single person in the LOS does that, which is almost always false.
But the most important thing that information seekers should note is that Amway defenders have something to gain by defending Amway. Amway defenders may have something to gain and may even lie and cheat to make Amway look good. Some diamonds in the past even made ridiculous claims just to sell their "perfect" water product. Amway critics have nothing to gain. Some of us do this only because there are many injustices placed upon the masses of downline, and not only did the upline get away with past offenses, many of them continue their practice of bilking their downline for personal benefits.
Those are the differences between Amway critics and defenders.
I will also acknowledge that Amway may have tried to make some changes to clean up some of the abuse, but at the same time, many of the changes appear to be cosmetic and meaningful changes are not apparent. Take accreditation for example, what did it truly accomplish? Not much in my opinion.
The most hard core defenders of Amway act like internet trolls at times, setting up alerts and dropping uninvited into conversations whenever the word Amway comes up. The weaker defenders of Amway will drop into a conversation and will disappear in a flash once they get schooled by the facts. One good example was someone denying that diamonds spoke about buying homes in cash. When other commentators confirmed hearing this claim, the AMway defender tucked tail and ran. The more elusive defenders of Amway will try to get a critic to defend an extreme postion, or will try to say that critics paint too broad of a picture. For example, when you say upline, why refer to all upline. A valid point, but when making a defense, these same defenders will paint all of the upline as "rosy" by saying things like "we" don't do that, implying that not a single person in the LOS does that, which is almost always false.
But the most important thing that information seekers should note is that Amway defenders have something to gain by defending Amway. Amway defenders may have something to gain and may even lie and cheat to make Amway look good. Some diamonds in the past even made ridiculous claims just to sell their "perfect" water product. Amway critics have nothing to gain. Some of us do this only because there are many injustices placed upon the masses of downline, and not only did the upline get away with past offenses, many of them continue their practice of bilking their downline for personal benefits.
Those are the differences between Amway critics and defenders.
Wednesday, March 3, 2010
Amway - IBOs Wear Rose Colored Glasses?
One of the things 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 and IBO's family. They will take time off to shopw the plan, attending countless numbers of meetings and to attend functions. They are taught to "delay" gratification, but many do not realize that they are permanently delaying gratification by participating in the "systems".
An IBO's belief is often compartmentalized into thinking that showing the plan, listening to standing order, 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.
My former sponsor achieved the platinum level in less than two yaers, 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?
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.
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 and IBO's family. They will take time off to shopw the plan, attending countless numbers of meetings and to attend functions. They are taught to "delay" gratification, but many do not realize that they are permanently delaying gratification by participating in the "systems".
An IBO's belief is often compartmentalized into thinking that showing the plan, listening to standing order, 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.
My former sponsor achieved the platinum level in less than two yaers, 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?
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.
Tuesday, March 2, 2010
Amway - Success Is Around The Corner?
When I was an 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 "maade 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.
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.
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 on 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. 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, evern if that is a second job. The average "active" IBO earns about $115 a month according to Amway. Considering all IBOs, then the average income is probably about $85 a month. You can earn more than than working 4-5 hours a week at minimum wage.
Is success right around the corner? I doubt it.
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.
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 on 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. 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, evern if that is a second job. The average "active" IBO earns about $115 a month according to Amway. Considering all IBOs, then the average income is probably about $85 a month. You can earn more than than working 4-5 hours a week at minimum wage.
Is success right around the corner? I doubt it.
Monday, March 1, 2010
Amway - Anyone, But Not Everyone Can Succeed
One of the "false hope" things my upline used to tell our group was that everyone was going to succeed. That although things are tough, one day we will all be at diamond club together looking back at the struggles and laughing. Well, nothing could be further from the truth. One of the things that Amway promoters like to state is that "anyone" can succeed", but in the same line of reasoning, I could also say that "anyone" can win the lottery. The same thing can apply to not "everyone" can succeed in Amway and not "everyone" can win the lottery. Amway is not a game of chance like the lottery, but this still applies.
Using the term "anyone can succeed" is simply a statement that gives people hope. It appears that Amway promoters love to use the psychology of giving people hope as a means of recruiting and retaining IBOs. Hope is what keeps people motivated. The problem with the Amway opportunity, is that it is false hope. It is very easy to see that in most groups, the majority of downline IBOs will lose money. The majority of active IBOs, if they receive a bonus, will get only about $10 a month from Amway. If they use voicemail, or subscribe to standing order, they are already at a net loss for the month. Never mind the open meetings, major functions and other expenses associated with the Amway business.
I believe it is hope that makes gambling popular. One pull on a slot machine handle can change your life. Many IBOs believe that one good run of business can change thir lives. Unfortunately, the Amway business has not appeared to produced much fruit in North America. It seems that any new success is simply replacing older pins who no longer qualify. In my opinion, it is a telltale sign that Amway has stopped reporting North American sales. I'm sure if sales were up, they would stand on their rooftops and trumpet out such success. Instead, it is covered up like any disparaging news about this business opportunity.
To summarize, "anyone" can succeed. But that simply means that you never know who the next platinum or diamond may be. You don't know where they will come from. And it is unlikely to be a new recruit. If you are using a system such as N21, WWDB, or BWW, then I can say with certainty, that "everyone" cannot succeed.
Using the term "anyone can succeed" is simply a statement that gives people hope. It appears that Amway promoters love to use the psychology of giving people hope as a means of recruiting and retaining IBOs. Hope is what keeps people motivated. The problem with the Amway opportunity, is that it is false hope. It is very easy to see that in most groups, the majority of downline IBOs will lose money. The majority of active IBOs, if they receive a bonus, will get only about $10 a month from Amway. If they use voicemail, or subscribe to standing order, they are already at a net loss for the month. Never mind the open meetings, major functions and other expenses associated with the Amway business.
I believe it is hope that makes gambling popular. One pull on a slot machine handle can change your life. Many IBOs believe that one good run of business can change thir lives. Unfortunately, the Amway business has not appeared to produced much fruit in North America. It seems that any new success is simply replacing older pins who no longer qualify. In my opinion, it is a telltale sign that Amway has stopped reporting North American sales. I'm sure if sales were up, they would stand on their rooftops and trumpet out such success. Instead, it is covered up like any disparaging news about this business opportunity.
To summarize, "anyone" can succeed. But that simply means that you never know who the next platinum or diamond may be. You don't know where they will come from. And it is unlikely to be a new recruit. If you are using a system such as N21, WWDB, or BWW, then I can say with certainty, that "everyone" cannot succeed.
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