One of the things Amway promoters often use to entice prospects into joining is to get them to think about financial dreams and goals that they would like to accomplish. After all, who wouldn't want to be retired at age 29 and walking on the exotic beaches of the world? Or who wouldn't want to live a life of leisure and excitement with unlimited barrels of cash rolling in to finance all of the fun and frivolity?
Of course most people get excited by this.
Sadly, the things that people get excited by, or the things that people join for, often become less accessible because of people's involvement in Amway. Not due to Amway itself, but because of the leach organizations that attach themselves to the Amway business. These organizations will promote their materials as the key to success in Amway, but in reality, these organizations reap handsome profits while basically bankrupting the downline IBOs. What is also sad is that the system does not deliver the success that is touted. Less than one half of one percent even reach the platinum level, which is allegedly the level where you break even or make a small profit.
During my tenure in the business, uplines taught us to buy all the materials. Books, standing order tapes/cds, functions, and other materials. In fact, in addition to standing order, upline wanted IBOs to purchase an additional 5-7 tapes or cds each week. Afterall, you should be listening to new material right? In fact, upline wanted people to "invest" or spend all of their income on these materials. In an open meeting setting, a diamond said that your famioly could skip a meal to get another tape/cd because the information was so valuable that you might hear the one thing that propels you to diamond. Almost as if buying a tape/cd was like some lottery ticket.
And sadly, some IBOs did go "all in". They bought tools like there was no tomorrow. In my crossline, there was a couple who went bankrupt and a couple whose home was foreclosed. Now was this financial difficulty all due to their involvement in Amway? I don't know, but certainly, buying hundreds of dollars of materials on a monthly basis cas certainly contribute to someone's financial problems. And these IBOs did this on upline's advice. Thus upline advised this even when they likely knew that these IBOs were in financial difficulty. If they would tell you to starve your kids, then surely they will not be concerned about your other issues. I also sat in a function where a diamond taught about how long you can put off paying a mortgage before foreclosure would occur. Probably so people could go in hock to attend a major function.
It is a sad thing indeed when uplines will try to sell you dreams. What's worse is when they are actually selling you broken dreams.
Thursday, May 14, 2015
Wednesday, May 13, 2015
Amway Tools?
When I was an IBO and even now, I see IBOs and others claiming that the tools are vital. That tools are necessary to achieve success in Amway. When I was an IBO, and I suspect even now, that uplines tout tools as a defacto mandatory part of being an Amway business owner. That nobody can succeed without tools. That tools are optional, but so is success. Noone has ever succeeded without tools but you can try to be the first. But if an IBO stops and turns on their critical thinking, one should ask, what value is in the tools?
For hardworking and dedicated IBOs, the tools are likely to cost on average $200 a month or more. If you have to travel by plane to attend functions, then your cost may be even higher. Driving the miles to show the plan, standing orders, voicemail, website fees, books and other materials basically become the business. I would bet money that most IBO spend more time listening to cds or voicemail than they ever do selling and/or promoting products.
Can you learn from some of the tools? Yes, I believe you can, but what value do they add to your efforts as an IBO? If you are a real business owner, you don't spend more on tools than your monthly income for very long unless the tools will directly result in your ability to make more profit. Most IBOs don't even make enough income from Amway to cover the cost of their monthly voicemail bill, let alone the other materials and the functions. Most IBOs never sponsor anyone, which is the key to attempting to achieve the residual income that many are chasing but few (if any) have ever achieved.
I mean if you handed out 6 cds and the result was 6 people sponsored, I would say you had a great deal. But I personally don't know of anyone who ever handed out a standing order or any tape or cd that resulted in sponsoring a downline. I don't know of anyone whose business was profoundly affected positively because of the tools. Those who achieve in Amway appear to be natural leaders with a degree of charisma. It is why people gravitate towards them and are motivated by them. Lacking that, most other IBOs simply play a game called Amway that becomes expensive over a period of time. It is why there are stories of people losing tens of thousands of dollars in a business where there is "low risk". Your moneyis drained on function at a time, one standing order at a time. Thousands of people spending $200 a month on tools equals a nice income.
But do the tools have value? I don't see much there, unless you are selling the tools.
For hardworking and dedicated IBOs, the tools are likely to cost on average $200 a month or more. If you have to travel by plane to attend functions, then your cost may be even higher. Driving the miles to show the plan, standing orders, voicemail, website fees, books and other materials basically become the business. I would bet money that most IBO spend more time listening to cds or voicemail than they ever do selling and/or promoting products.
Can you learn from some of the tools? Yes, I believe you can, but what value do they add to your efforts as an IBO? If you are a real business owner, you don't spend more on tools than your monthly income for very long unless the tools will directly result in your ability to make more profit. Most IBOs don't even make enough income from Amway to cover the cost of their monthly voicemail bill, let alone the other materials and the functions. Most IBOs never sponsor anyone, which is the key to attempting to achieve the residual income that many are chasing but few (if any) have ever achieved.
I mean if you handed out 6 cds and the result was 6 people sponsored, I would say you had a great deal. But I personally don't know of anyone who ever handed out a standing order or any tape or cd that resulted in sponsoring a downline. I don't know of anyone whose business was profoundly affected positively because of the tools. Those who achieve in Amway appear to be natural leaders with a degree of charisma. It is why people gravitate towards them and are motivated by them. Lacking that, most other IBOs simply play a game called Amway that becomes expensive over a period of time. It is why there are stories of people losing tens of thousands of dollars in a business where there is "low risk". Your moneyis drained on function at a time, one standing order at a time. Thousands of people spending $200 a month on tools equals a nice income.
But do the tools have value? I don't see much there, unless you are selling the tools.
Monday, May 11, 2015
Better Options Than Amway?
One of the humorous things that IBOs say on my blog is if Amway isn't such a great deal, then why don't we offer a better solution? I guess it's not enough that there are facts and experiences posted here so that information seekers can find and make informed decisions about joining or not joining Amway, but we must also suggest better options? Well, I will offer some. While I am not advising anyone to listen to my thoughts, nor do I think you should act on what you read what's here without doing your due diligence and your own soul searching, here are my opinions on what may be better than Amway:
1. Be a better steward of the money you already have. Many people have enough income but simply channel too much of it to things they don't need. A daily $5 cup of starbucks for example. Disciplined saving and investing. Eliminating certain optional expenses can add up to a lot of money over the course of a month or a year.
2. Get a second job and set aside a portion for saving and investing. You will not only have more discretionary cash, but also more to be able to set aside for your golden years. Try to find a job that's not so stressful and something you may have fun with. For example, working part time at a sporting goods store would be something that I might enjoy.
3. Start your own small business. The biggest issue with Amway, in my opinion is the endless supply of training that uplines sell. It causes most "serious" IBOs to end up with a net loss. You can find a niche product and sell it on ebay or craigslist, unlike Amway products. Another type of small business might be something like learning to do minor household repairs or installing hardwood flooring. These kinds of services are quite common and can be lucrative.
4. Do nothing. Since most business building IBOs lose money, doing nothing, although comical, actually makes you bette off than losing money because of functions and standing orders.
5. Spend more time with your family. Ironically, many IBOs have this as a goal, but actually spend less time with family because of Amway related activities.
There you have it folks. There are some ideaas of what might be better than spending your time and money participating in the Amway business and the Amway motivational organizations. While these are only ideas, only you can decide what is best for you and your family. In whatever you decide to do, I wish you well.
1. Be a better steward of the money you already have. Many people have enough income but simply channel too much of it to things they don't need. A daily $5 cup of starbucks for example. Disciplined saving and investing. Eliminating certain optional expenses can add up to a lot of money over the course of a month or a year.
2. Get a second job and set aside a portion for saving and investing. You will not only have more discretionary cash, but also more to be able to set aside for your golden years. Try to find a job that's not so stressful and something you may have fun with. For example, working part time at a sporting goods store would be something that I might enjoy.
3. Start your own small business. The biggest issue with Amway, in my opinion is the endless supply of training that uplines sell. It causes most "serious" IBOs to end up with a net loss. You can find a niche product and sell it on ebay or craigslist, unlike Amway products. Another type of small business might be something like learning to do minor household repairs or installing hardwood flooring. These kinds of services are quite common and can be lucrative.
4. Do nothing. Since most business building IBOs lose money, doing nothing, although comical, actually makes you bette off than losing money because of functions and standing orders.
5. Spend more time with your family. Ironically, many IBOs have this as a goal, but actually spend less time with family because of Amway related activities.
There you have it folks. There are some ideaas of what might be better than spending your time and money participating in the Amway business and the Amway motivational organizations. While these are only ideas, only you can decide what is best for you and your family. In whatever you decide to do, I wish you well.
Friday, May 8, 2015
Business Owner Or Amway Customer?
One of the silly things IBOs say is how they need to be their own best customer. That a McDonald's owner would never eat at Burger King, etc. That is complete hogwash. While there is nothing wrong with supporting your own business, IBOs are blinded by the fact that their business produces nothing. They are simply middlemen distributors. Do you really think diamonds consume thousands of dollars of standing orders because they own or profit from tool companies, which are for profit companies that produces training materials? Of course not. When you purchase something from your Amway business, you make no profit. Any "false" profit you see is simply money out of your own pocket moving to the other pocket. The Amway corporation makes the profit. Yes, you may receive a volume bonus, but that is still a lot of your own money being given back to you. Spend $300 and get back $10. If you can get enough people to follow you and move volume, your bonus will increase, but the increase then comes out of your follower's pockets instead of your own. The only real profit would be selling product to actual non IBO customers.
I know some business owners and they are never the best or sole customer of their own stores. Many Amway business owners are their only customers or their best customer. That simply is not how a business is run. Any REAL business cannot support itself by having the owners and perhaps the owner's employees as the primary customer base. For any business to thrive, you need customers and a demand for products. Without customers and a demand for products, you have no business. But some upline leaders still teach "buy from yourself" as the primary means of doing business. Other leaders may ask you to sell, but to focus on sponsoring others because they are hopeful that this will result in increased volume. Sadly, most IBOs will never sponsor a downline and many will never acquire a customer other than themselves.
It seems as though many IBOs think they are business owners but the reality is that they are simply glorified customers of their own business. Their only hope of making a profit is to sponsor others. In my opinion, this method of doing business is a pyramid because the only way to eventually make a profit is to sponsor enough downline until you can leverage enough volume to fimally break even or profit. An IBO with a real customer (and not buying tools) can make a profit by selling a single product. But many IBOs are not taught this because their upline makes a much bigger profit by selling to their downline IBOs standing orders, voicemail, books and seminar tickets. Many IBOs do not realize that they are simply customers of Amway and customers of the tools system.
For people already involved or considering involvement in the Amway opportunity, you are highly encouraged to seek more information and to fully understand how a profit is made in this business. Simply seeing circles drawn oversimplifies the process as most IBOs never get close to finding six (6) like minded people. Even those who find six are unlikely to be able to retain them. Over time, the cost of the products and the cost of the training will start to add up and the losses will escalate. For real business owners, an assessment of profit/loss and return on investment should be done and if the return is not good, a real business owner would consider other options.
So are you a business owner or a glorified customer?
I know some business owners and they are never the best or sole customer of their own stores. Many Amway business owners are their only customers or their best customer. That simply is not how a business is run. Any REAL business cannot support itself by having the owners and perhaps the owner's employees as the primary customer base. For any business to thrive, you need customers and a demand for products. Without customers and a demand for products, you have no business. But some upline leaders still teach "buy from yourself" as the primary means of doing business. Other leaders may ask you to sell, but to focus on sponsoring others because they are hopeful that this will result in increased volume. Sadly, most IBOs will never sponsor a downline and many will never acquire a customer other than themselves.
It seems as though many IBOs think they are business owners but the reality is that they are simply glorified customers of their own business. Their only hope of making a profit is to sponsor others. In my opinion, this method of doing business is a pyramid because the only way to eventually make a profit is to sponsor enough downline until you can leverage enough volume to fimally break even or profit. An IBO with a real customer (and not buying tools) can make a profit by selling a single product. But many IBOs are not taught this because their upline makes a much bigger profit by selling to their downline IBOs standing orders, voicemail, books and seminar tickets. Many IBOs do not realize that they are simply customers of Amway and customers of the tools system.
For people already involved or considering involvement in the Amway opportunity, you are highly encouraged to seek more information and to fully understand how a profit is made in this business. Simply seeing circles drawn oversimplifies the process as most IBOs never get close to finding six (6) like minded people. Even those who find six are unlikely to be able to retain them. Over time, the cost of the products and the cost of the training will start to add up and the losses will escalate. For real business owners, an assessment of profit/loss and return on investment should be done and if the return is not good, a real business owner would consider other options.
So are you a business owner or a glorified customer?
Tuesday, May 5, 2015
Are Amway Tools Needed?
Buy products, sell products, sponsor others. That is the Amway business in a nutshell. If you have bought and sold Amway products, you already possess the main skills needed to run an Amway business. If you have also sponsored downline, you probably have all the skills needed to build an Amway business. So the question is how much training and tools are needed? Is the investment in tools worth the price for what you get in return? In my informed opinion, I would have to resoundingly say "no".
For many IBOs, the tools are the reason why they are unable to profit. Voicemail for example, is an outdated tool that costs more than most IBO's bonuses. With the ability for IBOs to use email, twitter, or facebook, voicemail is an outdated and frankly, less efficient manner for an upline to communicate with their groups. Standing orders, while some training and advice may be helpful to IBOs, a weekly subcription quickly becomes an expense that an IBO can do without. My upline swore that tapes/cds were vital in sponsoring other, but I had never sponsored, or knew of other crossline who used a tape/cd to sponsor someone. As I said, if you already sold a product and sponsored downline, you probably already possess the skills needed to build an Amway business.
Functions, especially the ones that require airline travel are the most costly and gives the least return on investment. You leave your home and business to attend a function somewhere. You incur a lot of cost and while you are gone, your business is closed. For most IBOs, they will never recoup the expense of one of these functions, let alone having multiple functions througout the year. Also, the functions appear to be more of a social event than an actual business seminar. Sure, the bright lights and touching speeches may inspire you, but how does that translate into business growth? I never observed appreciable growth in my group or crossline as a result of a big function. Sure, there may be exceptions, but overall, the functions were just a drain on IBO resources.
It is my observation that when uplines talk about tools being "needed", they are saying it because upline needs you to buy tools. For many uplines, the tools business is their primary business with Amway being secondary. Some uplines earn far more from the tools sales than from Amway. For that reason, the tools sales are "needed". If you are new or seeking information, try asking upline or your sponsor, what tangible benefit can be received by attending a big function. My sponsor told me that he could not describe the event, that I simply "needed" to attend it in person and see for myself. After my first major function, I did not see what the big deal was. I had to use time off from work, incur some fairly large expenses for travel and it did not result in business growth.
So are tools needed? It is my opinion that some tools may be helpful to an IBO, but if the tools do not directly teach you to sell Amway products or result in you being able to sponsor downline, the tools purchases can be questionable as it won't help your bottom line. However, your continued tool purchases greatly benefits your upline diamond's bottom line. Beware.
For many IBOs, the tools are the reason why they are unable to profit. Voicemail for example, is an outdated tool that costs more than most IBO's bonuses. With the ability for IBOs to use email, twitter, or facebook, voicemail is an outdated and frankly, less efficient manner for an upline to communicate with their groups. Standing orders, while some training and advice may be helpful to IBOs, a weekly subcription quickly becomes an expense that an IBO can do without. My upline swore that tapes/cds were vital in sponsoring other, but I had never sponsored, or knew of other crossline who used a tape/cd to sponsor someone. As I said, if you already sold a product and sponsored downline, you probably already possess the skills needed to build an Amway business.
Functions, especially the ones that require airline travel are the most costly and gives the least return on investment. You leave your home and business to attend a function somewhere. You incur a lot of cost and while you are gone, your business is closed. For most IBOs, they will never recoup the expense of one of these functions, let alone having multiple functions througout the year. Also, the functions appear to be more of a social event than an actual business seminar. Sure, the bright lights and touching speeches may inspire you, but how does that translate into business growth? I never observed appreciable growth in my group or crossline as a result of a big function. Sure, there may be exceptions, but overall, the functions were just a drain on IBO resources.
It is my observation that when uplines talk about tools being "needed", they are saying it because upline needs you to buy tools. For many uplines, the tools business is their primary business with Amway being secondary. Some uplines earn far more from the tools sales than from Amway. For that reason, the tools sales are "needed". If you are new or seeking information, try asking upline or your sponsor, what tangible benefit can be received by attending a big function. My sponsor told me that he could not describe the event, that I simply "needed" to attend it in person and see for myself. After my first major function, I did not see what the big deal was. I had to use time off from work, incur some fairly large expenses for travel and it did not result in business growth.
So are tools needed? It is my opinion that some tools may be helpful to an IBO, but if the tools do not directly teach you to sell Amway products or result in you being able to sponsor downline, the tools purchases can be questionable as it won't help your bottom line. However, your continued tool purchases greatly benefits your upline diamond's bottom line. Beware.
Monday, May 4, 2015
Attend "All" Functions?
One of the things Amway defenders will spout is how tools are optional in the Amway business. While Amway says this, many Amway AMO leaders do not. One of the things I remember hearing was how an IBO "needed" to attend "all" functions. So many IBOs asked the upline questions such as what if my brother is getting married and the wedding is on the same day as a function? Or what if my kid has a soccer game or an event that was scheduled on the same day as a function? The answer from upline was simple. "All means all". Even though the leaders might say God and family come first on stage, when it comes to Amway, everything else is secondary despite what they say.
So upline may teach you that God is #1, spouse is #2, kids #3, job #4 and Amway is a distant #5. That's what they said but that isn't what they mean. Anytime there was a conflict with anything, I heard the same thing: "all means all". Meaning that one needed to attend all functions. Amway defenders are quick to jump in and claim this doesn't happen or that they have never heard it, yet I continue to see stories and testimonies indicating that this is still happening in most of not all AMO groups. Sure some upline might be more lenient than others, but in the end, it seems that most uplines want their downlines to attend all functions, regardless of whether an IBO is profitable or not, because upline makes money only if you buy a ticket and attend the functions.
I recall even an IBO who had worked hard and was not profitable. He was given the same answer about "all means all". Some upline want you to believe that hard work equals success, but in Amway, hard work doesn't guarantee success. And I believe it is because an Amway IBO is basically a commissioned salesperson and in that kind of business, hard work can go unrewarded. It is not a matter of working hard, and even working hard and smart can go unrewarded at times. It is because Amway's prodcuts are difficult to sell and Amway IBOs previously unthethical behavior makes it hard to find people who are interested in Amway. Thus even finding someone willing to see the Amway sales plan is a great challenge.
What does your upline say about attending meetings and functions? Do they advise you to pick and choose the ones you can afford or do they tell you that you should attend "all". Do they look at your business profitability before advising you to do they ask you to trust their guidance and leadership? Do they also advise you to buy other tools in the same manner? That is advising you to be on voicemail or standing order without knowing about your business parameters? Do they really want your auccess or their own? Keep in mind that some upline make much more money from tools than from Amway. What say you now?
So upline may teach you that God is #1, spouse is #2, kids #3, job #4 and Amway is a distant #5. That's what they said but that isn't what they mean. Anytime there was a conflict with anything, I heard the same thing: "all means all". Meaning that one needed to attend all functions. Amway defenders are quick to jump in and claim this doesn't happen or that they have never heard it, yet I continue to see stories and testimonies indicating that this is still happening in most of not all AMO groups. Sure some upline might be more lenient than others, but in the end, it seems that most uplines want their downlines to attend all functions, regardless of whether an IBO is profitable or not, because upline makes money only if you buy a ticket and attend the functions.
I recall even an IBO who had worked hard and was not profitable. He was given the same answer about "all means all". Some upline want you to believe that hard work equals success, but in Amway, hard work doesn't guarantee success. And I believe it is because an Amway IBO is basically a commissioned salesperson and in that kind of business, hard work can go unrewarded. It is not a matter of working hard, and even working hard and smart can go unrewarded at times. It is because Amway's prodcuts are difficult to sell and Amway IBOs previously unthethical behavior makes it hard to find people who are interested in Amway. Thus even finding someone willing to see the Amway sales plan is a great challenge.
What does your upline say about attending meetings and functions? Do they advise you to pick and choose the ones you can afford or do they tell you that you should attend "all". Do they look at your business profitability before advising you to do they ask you to trust their guidance and leadership? Do they also advise you to buy other tools in the same manner? That is advising you to be on voicemail or standing order without knowing about your business parameters? Do they really want your auccess or their own? Keep in mind that some upline make much more money from tools than from Amway. What say you now?
Friday, May 1, 2015
Building Amway On 8-12 Hours A Week?
One of the myths that upline used to, and likely still perpetuate is the claim that you can build an Amway mega empire on 8-12 hours per week. I'm venturing an educated guess that this number is used because while it still represents time, it is probably less hours than working a part time job. But let's take a closer look at this 8-12 hours per week.
If you listen to one (1) cd per day as recommended by upline and read one of their "success" books 15 minutes each day, you already close to nine hours of time used and neither of these activities produces any income for your Amway business. In fact, both activities cost you money and produce no tangible result. If you spend another 15 minutes a day contacting people, you are close to 12 hours per week. Where will you find additional time to show the plan and to expand your name and contact list? What about servicing customers, at least for IBOs who actually may have some customers.
What about attending meetings and functions? These are also non income producing activities. It's no wonder the vast majority of IBOs don't make money. Their upline has them running around participating in activities that produce no income for their businesses. Ironically, their non income producing activities such as listening to a cd, produces a lot of income for certain uplines who produce and sell them. To me, it is just an elaborate game of bait and switch played by upline. Your upline might tell you that you "need" these tools to succeed but the reality is that the tools take away resources and you wind up in non income producing activities such as listening to cds.
You sell the prospect the dream of financial freedom. You tell that prospect that Amway is their best chance. You tell them that you can help them and that the tools of the business (standing order, voicemail, books, functions) are the key to their success. Those who are serious enough to commit to the system likely won't quit without making some effort and will allow uplines to earn some nice profits before these downline eventually realize they aren't profitable and quit. Because many IBOs are sponsored by family and friends, you don't see too many formal complaints about the business. Most people chalk it up as a life lesson and do not complain.
But IBOs and information seekers, do not be fooled into thinking that you will create a financial empire by working 8-12 hours a week. If you attended a big meeting, look around and see how many people are rank and file as compared to the "successful" IBOs. It's likely less than 1%. Not the kind of odds a real businessman would undertake.
If you listen to one (1) cd per day as recommended by upline and read one of their "success" books 15 minutes each day, you already close to nine hours of time used and neither of these activities produces any income for your Amway business. In fact, both activities cost you money and produce no tangible result. If you spend another 15 minutes a day contacting people, you are close to 12 hours per week. Where will you find additional time to show the plan and to expand your name and contact list? What about servicing customers, at least for IBOs who actually may have some customers.
What about attending meetings and functions? These are also non income producing activities. It's no wonder the vast majority of IBOs don't make money. Their upline has them running around participating in activities that produce no income for their businesses. Ironically, their non income producing activities such as listening to a cd, produces a lot of income for certain uplines who produce and sell them. To me, it is just an elaborate game of bait and switch played by upline. Your upline might tell you that you "need" these tools to succeed but the reality is that the tools take away resources and you wind up in non income producing activities such as listening to cds.
You sell the prospect the dream of financial freedom. You tell that prospect that Amway is their best chance. You tell them that you can help them and that the tools of the business (standing order, voicemail, books, functions) are the key to their success. Those who are serious enough to commit to the system likely won't quit without making some effort and will allow uplines to earn some nice profits before these downline eventually realize they aren't profitable and quit. Because many IBOs are sponsored by family and friends, you don't see too many formal complaints about the business. Most people chalk it up as a life lesson and do not complain.
But IBOs and information seekers, do not be fooled into thinking that you will create a financial empire by working 8-12 hours a week. If you attended a big meeting, look around and see how many people are rank and file as compared to the "successful" IBOs. It's likely less than 1%. Not the kind of odds a real businessman would undertake.
Subscribe to:
Posts (Atom)