According to a U.S. Census Department study entitled "The Big Payoff: Educational Attainment and Synthetic Estimates of Work-Life Earnings" (http://www.census.gov/prod/2002pubs/p23%2D210.pdf), over an adult's working life the following are average lifetime earnings based on educational level attained:
High school graduates - $1.2 million
Bachelor's degree - $2.1 million
Master's degree - $2.5 million
Doctoral degrees - $3.4 million
Professional degrees do best at $4.4 million.
In 1999, average annual earnings ranged from $18,900 for high school dropouts to $25,900 for high school graduates, $45,400 for college graduates and $99,300 for the holders of professional degrees (medical doctors, dentists, veterinarians and lawyers).
Given empirical, verified and objective data demonstrating that a college education more than pays for itself, it is foolish for someone to suggest that they can't reasonably expect a return on their investment in a college education. It would take a real moron to suggest that they could exceed that return by wasting their time building an Amway business. Especially given the data showing miserable average results.
As far as the cost of that education and the implication that a person will incur massive debt, that too is a complete fabrication.
For those of you interested in the actual data on student loans and the effect of a college education on earnings, look here:
http://www.studentloanfacts.org/NR/rdonlyres/97FD743A-8F38-4641-916A-C4D907A84EE5/0/factbook.pdf
and here:
http://www.collegeboard.com/prod_downloads/press/cost03/cb_trends_aid_2003.pdf
and here:
http://nces.ed.gov/programs/coe/2003/pdf/42_2003.pdf
Oh, and if you are an "average" IBO, spending 40 years working Amway with the average earnings of $115 a month, your career of 40 years will gross you $55,200.
Wednesday, May 2, 2012
Tuesday, May 1, 2012
Amway Creates Millionaires?
I keep hearing from some IBOs that they belive that Amway has created more millionaires than any other company in the US. I call BS on that claim. I am not saying that Amway hasn't created any millionaires, obviously, the Amway owners are worth billions of dollars. But what the IBOs are apparently implying is that the diamonds are millionaires. I'm sure there are some diamonds who indeed are millionires, especially if they are tenured diamonds, in particular the double diamonds and higher. But conversely, I believe that many high level diamonds are not millionaires. I believe it is just as common for a diamond to be in debt as it is for a diamond to be living large. I also believe that many diamonds did not accumulate their alleged wealth exclusively from Amway.
The reason why this is an issue is because these big pins will stand on stage and show off excessive wealth and imply that it is their Amway income that pays for these mansions, sports cars, and in some cases, jets. In the US, I attended a function called "Dream Nite" where these kinds of trapping are displayed, to the tune of the song "I wanna be rich". The diamonds would say that you can have what they have, if only you will do what they advise. These functions still go on today and I believe it is now called Winter Conference.
Stanley and Danko's book, "The Millionaire Next Door" http://www.personalfinanceplaybook.com/2009/08/the-millionaire-next-door/
This book makes some very interesting points which I believe applies to Amway diamonds. I will outline the significant ones and I will comment below:
**Predictably, the data shows that most people who you believe to be very rich are not.
**High net worth individuals, statistically, tend to be people that live within their means. They don’t spend a lot of money. They don’t waste money. They tend to be pretty frugal people.
**The authors point out that most of the richest people you know aren’t driving expensive luxury automobiles. That’s what the people who want everyone to think they’re rich drive.
Joe's commentary. The book does say that about 1/3 of millionaires acquired their wealth thru a J-O-B and saved and invested, but did mention that many millionaires were also business owners, such as a pest control company, etc. But based on the points made by the book above, I can see where it is likely that diamonds portray a wealthy lifestyle as a recruitment tactic, when the reality is they may be living very middle class lifestyles off stage, or may even be in debt. I have seen evidence of diamonds having their homes foreclosed and being in debt (Ruth Carter's book: Amway: Behind the Smoke and Mirrors). Recently, there was also a report that Triple Diamond Greg Duncan filed for bankruptcy. The report indicated that he could not make his mortgages, or something to that tune. Odd, because when I was in WWDB, some of the upline leaders said diamonds paid cash for everything because paying interest to the bank wasn't very smart.
My question is why IBOs continue to make up these claims? Try googling millionaire or Amway millionaire. There is nothing to indicate that Amway was responsible for creating the "most millionaires" of any US company. If this were true, wouldn't Amway state it on their website?
The reason why this is an issue is because these big pins will stand on stage and show off excessive wealth and imply that it is their Amway income that pays for these mansions, sports cars, and in some cases, jets. In the US, I attended a function called "Dream Nite" where these kinds of trapping are displayed, to the tune of the song "I wanna be rich". The diamonds would say that you can have what they have, if only you will do what they advise. These functions still go on today and I believe it is now called Winter Conference.
Stanley and Danko's book, "The Millionaire Next Door" http://www.personalfinanceplaybook.com/2009/08/the-millionaire-next-door/
This book makes some very interesting points which I believe applies to Amway diamonds. I will outline the significant ones and I will comment below:
**Predictably, the data shows that most people who you believe to be very rich are not.
**High net worth individuals, statistically, tend to be people that live within their means. They don’t spend a lot of money. They don’t waste money. They tend to be pretty frugal people.
**The authors point out that most of the richest people you know aren’t driving expensive luxury automobiles. That’s what the people who want everyone to think they’re rich drive.
Joe's commentary. The book does say that about 1/3 of millionaires acquired their wealth thru a J-O-B and saved and invested, but did mention that many millionaires were also business owners, such as a pest control company, etc. But based on the points made by the book above, I can see where it is likely that diamonds portray a wealthy lifestyle as a recruitment tactic, when the reality is they may be living very middle class lifestyles off stage, or may even be in debt. I have seen evidence of diamonds having their homes foreclosed and being in debt (Ruth Carter's book: Amway: Behind the Smoke and Mirrors). Recently, there was also a report that Triple Diamond Greg Duncan filed for bankruptcy. The report indicated that he could not make his mortgages, or something to that tune. Odd, because when I was in WWDB, some of the upline leaders said diamonds paid cash for everything because paying interest to the bank wasn't very smart.
My question is why IBOs continue to make up these claims? Try googling millionaire or Amway millionaire. There is nothing to indicate that Amway was responsible for creating the "most millionaires" of any US company. If this were true, wouldn't Amway state it on their website?
Monday, April 30, 2012
Amway IBOs Need A Business Mentality?
One of the catch phrases that IBOs spout quite often is that you need a "business mentality". Those of us who have an "employee mentality" simply cannot cut the mustard in Amway. I find this ironic since the vast majority of Amway IBOs have a job. A job that they NEED in order to pay for their Amway business. A job that pays for their voicemail, cds, functions and books, in addition to the cost of the Amway products. A job that feeds their family and pays their bills.
Apparently, a business mentality is one that doesn't expect quick profits, despite upline's claim that the Amway business has low risk and low overhead. That is also despite claims that you can profit right away unlike a traditional business. A business mentality is also one where you reinvest any or all profits back into buying support materials. A business owner doesn't expect to make a profit for 5 years. Many of these claims are taught by unethical uplines and unfortunately, many IBOs accept the teaching and buy into it.
Now it is true that a business owner might have to think and view things differently than an employee. For example, an employee might do a great job from 9-5 but after 5, that employee may be headed home to care for his or her family, or to participate in some exercise or recreation. The business owner might be inclined to stay after hours to finish a job because he or she may have invested much, and will want to make sure that the business succeeds. An employee might not have that same vested interest.
It is my suspicion that uplines want their downline IBOs to adopt a business owner mentality, not because they want downline to succeed, but because it instills a dedication to the tools purchases and it also takes an IBO's focus off profits for a few years. Thus IBOs think they are successful (without profit) if they are listening to standing order, attending all the functions and showing the plan. It is a gimmick used to retain IBOs who are not profitable. If IBOs were actually making money, there would be little need to continue to motivate them with an endless supply of cds and functions. But because most IBOs lose money or make little, the average IBO must be taught that a "business owner" commonly loses money for a number of years, or that they must continue to reinvest their profits in order to succeed.
In posting this, I say to IBOs, just make a profit. That is all the motivation you need. Keep track of your bottom line and look at the return on your investment of time and money. That is the action of a real business owner.
Apparently, a business mentality is one that doesn't expect quick profits, despite upline's claim that the Amway business has low risk and low overhead. That is also despite claims that you can profit right away unlike a traditional business. A business mentality is also one where you reinvest any or all profits back into buying support materials. A business owner doesn't expect to make a profit for 5 years. Many of these claims are taught by unethical uplines and unfortunately, many IBOs accept the teaching and buy into it.
Now it is true that a business owner might have to think and view things differently than an employee. For example, an employee might do a great job from 9-5 but after 5, that employee may be headed home to care for his or her family, or to participate in some exercise or recreation. The business owner might be inclined to stay after hours to finish a job because he or she may have invested much, and will want to make sure that the business succeeds. An employee might not have that same vested interest.
It is my suspicion that uplines want their downline IBOs to adopt a business owner mentality, not because they want downline to succeed, but because it instills a dedication to the tools purchases and it also takes an IBO's focus off profits for a few years. Thus IBOs think they are successful (without profit) if they are listening to standing order, attending all the functions and showing the plan. It is a gimmick used to retain IBOs who are not profitable. If IBOs were actually making money, there would be little need to continue to motivate them with an endless supply of cds and functions. But because most IBOs lose money or make little, the average IBO must be taught that a "business owner" commonly loses money for a number of years, or that they must continue to reinvest their profits in order to succeed.
In posting this, I say to IBOs, just make a profit. That is all the motivation you need. Keep track of your bottom line and look at the return on your investment of time and money. That is the action of a real business owner.
Friday, April 27, 2012
The Fruit On The Tree?
I had a good chuckle recently when some Amway apologists spoke about looking at the "fruit on the tree" as a way to confirm that various diamonds were successful. One commentator said his parents were broke and he looked to his diamond since the diamond apparently had fruit on the tree. I thought about this concept and I agree, that perhaps we should look at fruit on the tree. First of all, what is fruit? Is it pictures of lavish things or is it looking and bonafide and verified financial statements? How would you know if your diamond was wealthy just because he owns a porsche? What if that same diamond was carrying credit card debt and was just creating an illusion of success? Impossible you say? There are verified accounts of diamonds having their homes foreclosed and other issues.
IBOs and Amway prospects, please ask your upline platinum or diamond to show you the fruit on their tree. Ask them to see their (business) financial statements. This is actually a common practice in real business. When a friend of mine sold his business a few years back, he made three year's worth of income tax returns to show prospective buyers. He showed his business and personal tax returns. If someone is asking you to do business with them which will require your investment of time and money, you have every right to ask for information/evidence.
As far as I know, not one single bigger pin has ever shown their business financials except for those who had their finances revealed in public documments such as a bankruptcy. In fact, if it made certain bigger pins look good, why wouldn't they want to "show their fruit". They certainly don't mind showing off diamond rings, fancy clothes, sports cars and the like. What many IBOs don't understand is that fancy cars and other toys is no evidence of fruit on the tree. For all you know the cars are rented and the diamond might be drowning in debt.
It has been discussed that some diamonds may rent cars or fancy homes and try to imply that they own these items. Some diamonds, possibly many diamonds in the past have lied or embellished the truth about paying for everything in cash, including their homes and cars. They also at times, have given the audience the impression that these luxuries are all purchased with Amway income, and we know that many diamonds have probably had supplemental income from the systems, or other business ventures outside of Amway.
We also know that some diamonds are in debt, but simply try to portray an excessive lifestyle. (See Ruth Carter's Book: Amway Motivational Organizations, Behind the Smoke and Mirrors). Some diamonds may have a substantial income, but it doesn't mean they are financially free and able to live a jetset lifestyle that many portray. It is an illusion, possibly to be able to attract new prospects into the business.
So yes, let us actually see the fruit on the tree. Is there any fruit?
IBOs and Amway prospects, please ask your upline platinum or diamond to show you the fruit on their tree. Ask them to see their (business) financial statements. This is actually a common practice in real business. When a friend of mine sold his business a few years back, he made three year's worth of income tax returns to show prospective buyers. He showed his business and personal tax returns. If someone is asking you to do business with them which will require your investment of time and money, you have every right to ask for information/evidence.
As far as I know, not one single bigger pin has ever shown their business financials except for those who had their finances revealed in public documments such as a bankruptcy. In fact, if it made certain bigger pins look good, why wouldn't they want to "show their fruit". They certainly don't mind showing off diamond rings, fancy clothes, sports cars and the like. What many IBOs don't understand is that fancy cars and other toys is no evidence of fruit on the tree. For all you know the cars are rented and the diamond might be drowning in debt.
It has been discussed that some diamonds may rent cars or fancy homes and try to imply that they own these items. Some diamonds, possibly many diamonds in the past have lied or embellished the truth about paying for everything in cash, including their homes and cars. They also at times, have given the audience the impression that these luxuries are all purchased with Amway income, and we know that many diamonds have probably had supplemental income from the systems, or other business ventures outside of Amway.
We also know that some diamonds are in debt, but simply try to portray an excessive lifestyle. (See Ruth Carter's Book: Amway Motivational Organizations, Behind the Smoke and Mirrors). Some diamonds may have a substantial income, but it doesn't mean they are financially free and able to live a jetset lifestyle that many portray. It is an illusion, possibly to be able to attract new prospects into the business.
So yes, let us actually see the fruit on the tree. Is there any fruit?
Thursday, April 26, 2012
Most Amway IBOs Fail
Most IBOs fail. That is not a wild guess. That is a fact. Failure would mean doing nothing or trying hard and not making a net profit equal to minimum wage for the hours expended. Amway supporters will argue that many IBOs do little or nothing, and while that might be true, even the remaining IBOs who work hard, still find little or no success. The system is set up that way. If you see a diamond "walking the beaches" as the cash rolls in, that means someone is putting forth the effort to make that happen. It is the downline IBOs who purchase Amway products and tools that allow these diamonds to enjoy what they portray as success. By the way, does anyone actually know one of these diamonds who are retired and doing nothing while cash rolls in?
We also know that some diamonds overhype their success. There has been evidence that the diamond lifestyle is often not what people think it is. If you could truly earn residual income by the bucketload, why do diamonds quit, resign, lose homes in foreclosure proceedings, and even wind up in bankruptcy court? One could argue that some diamonds are failures. The diamond lifestyle is an illusion created by upline leaders as a means to entice recruits. I would venture a guess that many diamonds are living in debt or struggling to make ends meet.
Many Amway zealots and apologists try to make ridiculous claims comparing a company owner to a diamond. The big difference is that a company owner has employees who get a regular paycheck. These employees generally wanted the job and probably applied for the work. And if and when an employee leaves, there are other applicants who are willing to step in and do the work. Thus the business continues to meet their demands and continues to profit.
In the Amway opportunity, the IBOs spend money purchasing products, and then upline leaders expect these same folks to spend even more money to learn how to be motivated to do the Amway business. But in reality, if IBOs made profits, that would likely be sufficient motivation to run their businesses. Because it is hard to find enough (suckers) prospects to join the business and fork out cash while they lose money, other IBOs have resorted to trickery, deception and outright lying at times, in order to attract potential downlines. This has damaged Amway's reputation.
The 6-4-2 system ensures that the majority of business builders must "do the work" to uphold their platinum, who (probably) barely earns a net profit. And then you need 3 or 6 groups of IBOs losing money in order to maintain an emerald or diamond. Amway has revealed that less than 4% of product moves to non IBOs. The absence of non IBO customers nearly guarantees that most IBO groups will lose money or make very little. Most IBOs are destined to fail. And it is not necessarily the IBO's fault. The system itself comes with many flaws which most IBOs cannot overcome, even for those who put forth much effort. It is why most IBOs fail. It is why I hope prospects will find and read this information before making a final decision to sign up or not.
We also know that some diamonds overhype their success. There has been evidence that the diamond lifestyle is often not what people think it is. If you could truly earn residual income by the bucketload, why do diamonds quit, resign, lose homes in foreclosure proceedings, and even wind up in bankruptcy court? One could argue that some diamonds are failures. The diamond lifestyle is an illusion created by upline leaders as a means to entice recruits. I would venture a guess that many diamonds are living in debt or struggling to make ends meet.
Many Amway zealots and apologists try to make ridiculous claims comparing a company owner to a diamond. The big difference is that a company owner has employees who get a regular paycheck. These employees generally wanted the job and probably applied for the work. And if and when an employee leaves, there are other applicants who are willing to step in and do the work. Thus the business continues to meet their demands and continues to profit.
In the Amway opportunity, the IBOs spend money purchasing products, and then upline leaders expect these same folks to spend even more money to learn how to be motivated to do the Amway business. But in reality, if IBOs made profits, that would likely be sufficient motivation to run their businesses. Because it is hard to find enough (suckers) prospects to join the business and fork out cash while they lose money, other IBOs have resorted to trickery, deception and outright lying at times, in order to attract potential downlines. This has damaged Amway's reputation.
The 6-4-2 system ensures that the majority of business builders must "do the work" to uphold their platinum, who (probably) barely earns a net profit. And then you need 3 or 6 groups of IBOs losing money in order to maintain an emerald or diamond. Amway has revealed that less than 4% of product moves to non IBOs. The absence of non IBO customers nearly guarantees that most IBO groups will lose money or make very little. Most IBOs are destined to fail. And it is not necessarily the IBO's fault. The system itself comes with many flaws which most IBOs cannot overcome, even for those who put forth much effort. It is why most IBOs fail. It is why I hope prospects will find and read this information before making a final decision to sign up or not.
Wednesday, April 25, 2012
Amway Broke Losers?
One thing I will applaud Amway for is their customer service. Whenever I called the corp as an IBO to order or for other things, their staff was always courteous and friendly. But IBOs, on the other hand, do not seem to value potential customers that way. What I mean is when prospects are called stupid, or broke losers just because they do not wish to become an IBO. What you have done basically, is ensure that the prospect will never be a customer of yours, and possibly Amway. Some uplines teach that people not in Amway are broke or losers and/or if you quit the ranks of being an IBO, you become a broke loser.
Imagine walking into a retail store, and realizing that maybe you didn't have enough cash in your pocket, or that the store did not have the item you were looking for, so you leave. As you leave, the stores employees said what a fool. What a broke loser he is not buying anything from us or wanting to open a similar store. While this may be an extreme example, I believe it is a perfectly valid one. If you value your customers and treat them with courtesy and respect, you have a good chance of retaining them. Calling someone a loser is almost a sure way to fail in Amway or any other business. Why some leaders choose to label people as such is a mystery to me.
I believe that this comes from two things. Number one is that IBOs are not very interested in selling products. They are mostly interested in sponsoring. And that is the number two reason. IBOs are mainly focused on building their group, because that is the key to moving up the ranks, in terms of a pin. Some groups simply teach IBOs to self consume and then focus on sponsoring. It leads to the opportunity being borderline in terms of whether the opportunity is a pyramid where there are no sales to non participants (pay to play).
This division between potential customers and potential IBOs is what causes Amway to have a bad reputation with the general public. It is evident here on my blog, where IBOs criticize me, without even supporting their arguments. This is not the only reason, but a contributing factor to Amway's bad reputation in the US.
IBOs, if you take a hard look at what I have written, it is not negative, it is a perfectly valid reason why so many do not succeed. You need to treat your potential customers and downline with respect, regardless of whether they choose to join or buy products from you right away.
Imagine walking into a retail store, and realizing that maybe you didn't have enough cash in your pocket, or that the store did not have the item you were looking for, so you leave. As you leave, the stores employees said what a fool. What a broke loser he is not buying anything from us or wanting to open a similar store. While this may be an extreme example, I believe it is a perfectly valid one. If you value your customers and treat them with courtesy and respect, you have a good chance of retaining them. Calling someone a loser is almost a sure way to fail in Amway or any other business. Why some leaders choose to label people as such is a mystery to me.
I believe that this comes from two things. Number one is that IBOs are not very interested in selling products. They are mostly interested in sponsoring. And that is the number two reason. IBOs are mainly focused on building their group, because that is the key to moving up the ranks, in terms of a pin. Some groups simply teach IBOs to self consume and then focus on sponsoring. It leads to the opportunity being borderline in terms of whether the opportunity is a pyramid where there are no sales to non participants (pay to play).
This division between potential customers and potential IBOs is what causes Amway to have a bad reputation with the general public. It is evident here on my blog, where IBOs criticize me, without even supporting their arguments. This is not the only reason, but a contributing factor to Amway's bad reputation in the US.
IBOs, if you take a hard look at what I have written, it is not negative, it is a perfectly valid reason why so many do not succeed. You need to treat your potential customers and downline with respect, regardless of whether they choose to join or buy products from you right away.
Tuesday, April 24, 2012
Amway Works - If You Work It?
The Amway business works if you work it! That's what many Amway enthusiasts will claim. I do not believe that is true and I will further explain in this post. Many IBOs who claim that the business works are usually new and are unable to show any evidence that the business works, except perhaps to show a photocopied check from an upline diamond or the like. To date, no IBO who posts on this blog as shown evidence that Amway works. And there is no evidence that hard work results in Amway success.
Let me make a disclaimer that some people might be able to make significant money from Amway, but most of those folks are usually tenured diamonds who are almost in an exclusive club. There is only a short list of new diamonds that I know of in the US, and I have heard that even these new diamonds may have had legs in other countries. It would seem that Amway is not growing much in the US and Canada. Also of note, Amway does not release figures that are seperate between Amway North America and the rest of their overseas operations.
Ok, so Amway enthusiasts claim that the business works if you work it. Business in its simplest form is selling a product or service for a profit. Yet many many IBOs spend so much of their time doing other things, as advised by their upline "mentors" who sell them training materials that take up much of their valuable time. Listening to tapes/cds, attending functions, reading books, and other training activities not only costs the IBO money, but takes up valuable time in non income producing activities. Nobody makes sales reading books or attending seminars. Inviting people to see "the plan" may be a way to help generate volume but with Amway's reputation, even this is a hit and (mostly) miss activity.
Many IBOs spend almost all of their time doing these activities (the work) when they could be better off not getting the training and focusing on selling the Amway products and services. Even that comes with a handicap as Amway products as a whole, costs a lot more than purchasing similar or the same products as a big retailer such as Costco or WalMart. It is why most IBOs eventually get discouraged and quit far before the promoted 2-5 year plan.
Few people will even bother to see the plan once you mention "Amway" and for those who are open minded and motivated to register end up having to deadl with a hard to sell opportunity along with high priced common commodities such as soap, vitamins and energy drinks. It's pretty easy to see that the business does not work, even for most of those who actually work it. There are simply too many issues with the business that hanidcaps those brave enough to try. It seems even the fiercest defenders of Amway are unable to provide a shred of evidence that they have actually made a profit from this opportunity.
Let me make a disclaimer that some people might be able to make significant money from Amway, but most of those folks are usually tenured diamonds who are almost in an exclusive club. There is only a short list of new diamonds that I know of in the US, and I have heard that even these new diamonds may have had legs in other countries. It would seem that Amway is not growing much in the US and Canada. Also of note, Amway does not release figures that are seperate between Amway North America and the rest of their overseas operations.
Ok, so Amway enthusiasts claim that the business works if you work it. Business in its simplest form is selling a product or service for a profit. Yet many many IBOs spend so much of their time doing other things, as advised by their upline "mentors" who sell them training materials that take up much of their valuable time. Listening to tapes/cds, attending functions, reading books, and other training activities not only costs the IBO money, but takes up valuable time in non income producing activities. Nobody makes sales reading books or attending seminars. Inviting people to see "the plan" may be a way to help generate volume but with Amway's reputation, even this is a hit and (mostly) miss activity.
Many IBOs spend almost all of their time doing these activities (the work) when they could be better off not getting the training and focusing on selling the Amway products and services. Even that comes with a handicap as Amway products as a whole, costs a lot more than purchasing similar or the same products as a big retailer such as Costco or WalMart. It is why most IBOs eventually get discouraged and quit far before the promoted 2-5 year plan.
Few people will even bother to see the plan once you mention "Amway" and for those who are open minded and motivated to register end up having to deadl with a hard to sell opportunity along with high priced common commodities such as soap, vitamins and energy drinks. It's pretty easy to see that the business does not work, even for most of those who actually work it. There are simply too many issues with the business that hanidcaps those brave enough to try. It seems even the fiercest defenders of Amway are unable to provide a shred of evidence that they have actually made a profit from this opportunity.
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