Ignoring Facts To Pursue A Dream?

One of the crazy things that our Amway upline taught the group was that the facts don't matter when you have a dream. There is evidence that this is still taught today and in particular, I have heard that from IBOs who claim to associate with WWDB. IBOs are taught to ignore facts because the facts make their Amway businesses look like a joke. Spend $300 a month on products to gain a $10 rebate when you could have bought the same or similar products at WalMart for a fraction of the cost. Then many IBOs spend another $200 or more so they can be taught to ignore facts or that this is somehow a great deal.

Any real business owner would never ignore facts. A real business owner makes business decisions based on facts. IBOs are being duped into making business decisions based on emotions and hype. The Amway opportunity already is already saturated with handicaps and challenges, particularly in the US and Canada, where the reputations and previous antics of fellow IBOs has so stained Amway's name that it appears to be negatively affecting sales and preventing any meaningful growth. Despite what Amway apologists claim, Amway revenues are shrinking (about 25% decline from 2013 to 2017) and will continue to do so unless improvements and corrections are made, in my opinion. It's also possible that it is too late to right the ship at this point.

It is also why many IBOs talk about how Amway saves marriages, or Amway made them nicer people. Uplines will teach this because it takes a business owner's focus away from their bottom line, the profit or loss. Or IBOs are taught that a loss just means they are investing in their business, despite being told upfront that there is little or no investment needed and that a profit can be turned quickly in Amway. These uplines have gone on for years with no accountability placed upon them by either Amway or their downlines. Any "incidents" are simply ignored or history revised by uplines.

There is one blog on the internet, where a WWDB IBO is writing about buying homes in cash, and Amway IBOs having a 2% divorce rate compared to more than 50% in the rest of the world, yet you have Amway defenders claiming this isn't being taught, when clearly it is. Cover it up all you want, the evidence is right there but these folks aren't interested in the facts. I urge great caution to people who are ignoring facts to pursue an Amway dream.

Justifying Amway Failure?

One of the things I heard as an Amway IBO was how as an average working man, we tend to justify our existence. For example, we will tell others that "I'm doing okay", at least with respect to our finances. We justify our apparent lack of finances that way. So my upline would talk about building the business so that the money is literally pouring in. But based on my observations and some tangible evidence, we know that many diamonds and certainly those below diamond do not have money pouring in. In fact, I suspect many diamonds are in debt, and possibly living month to month. As much of a diamond's income is from annual bonuses, it's possible that a diamond's monthly bonus from Amway is quite small. It is why I have often said that many diamonds are likely living very middle class lifestyles while trying to portray a fabulous jet set lifestyle. It is why I feel that many diamonds are actually broke or near broke. When you do the math, it makes sense.

And if diamonds can get into financial difficulty, then certainly IBOs are also in trouble. Many recruits are in financial difficulty, or do not earn enough income, which is why Amway appeals to them in the first place. It is why Amway appealed to me at the time I was involved. Many are convinced that Amway will make them rich. While uplines may have said Amway is not get rich quick, the prospect must have been fed the line that they will eventually get rich, else why would anyone sign up in the first place?

But in the big picture, IBOs are no different than other people. They also justify themselves. In fact, many are taught to justify themselves. It is why I still see IBOs claiming that Amway saves marriages. One IBO recently made the age old claim that the world has a 60% divorce rate and WWDB IBOs have a 2% divorce rate. Well, I am certain that is not true. I would guess that in many cases, Amway is the very reason some couples get divorced. And actually, this would not be an issue if IBOs and their leaders would not claim it. I believe the divorce rate amongst WWDB diamonds is already higher than what these IBOs are claiming. But upline just covers up scandals and downlines ignore the lies and cover ups.

Another funny one is when IBOs claim they are helping people by building the business. How do you help someone by enrolling them in a business where they are nearly guaranteed to lose money? What do IBOs do that is helpful to others? While IBOs are at functions or prospecting, other people are doing community service projects or feeding the homeless. I challenge an IBO to explain how recruiting others into Amway is helping them. Many IBOs also believe they are nicer people as a result of their involvement with Amway. If true, then it is a nice benefit, except this is a business and a business exists to make a profit. How many would join if they were only going to accomplish everything but make money?

IBOs, are you succeeding or justifying yourselves?

The Bottom Line?

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 Harsh Reality Of Amway?

One of the things that keeps some IBOs going is the "harsh reality". What I mean by that is for some IBOs, once you have been in Amway for a while, it can be hard to quit. You were possibly recruited with dreams of lifelong residual income and walking on all of the exotic beaches of the world. Retiring young and spending that time with your wife and family. To quit means an IBO would have to face the reallity that these dreams will not come true, at least not with the Amway busines. The fact is that the Amway opportunity probably would not have delivered those dreams anyway. Even a diamond more than likely cannot afford those dreams. In fact I would estimate that most diamonds, if they flaunt some excessive lifestyle, are near broke or in heavy debt as a diamond income cannot sustain a jetset lifestyle, save for a founders crown ambassador or something similar. I believe the prominent WWDB triple diamond bankruptcy shed a lot of light into the finances of an upper level pin and it wasn't as impressive as I would have thought.

But what really is the harsh reality? It's working hard only to drift between 100 and 500 PV. It's finally sponsoring a new IBO only to have a downline quit. It's talking to people about Amway and getting laughed at or getting rejected. It's your upline or sponsor pushing you to do more. Possibly your upline is one who questions your manhood if you aren't working hard enough. It's your upline or sponsor reminding you that a winner doesn't miss functions, especially the major ones. It's staying up late for team meetings or nite owls when you need a good nite's rest to do your job the next day. It's driving the miles to show a plan, only to have your prospect not show up. It's having to be deceptive about what you are doing. It's skipping functions with family and friends so you can be core to the business.

As IBOs, do you see any of this? I saw some of this during my involvement. While I have not been an IBO in some years now, I still see many testimonies and comments by more current and even some active IBOs to indicate that a lot of this still goes on. While Amway defenders will deny it, I see no reason why any of this would have changed over the years since Amway has made no significant changes to stop abusive uplines. If Amway did make any changes, they are not immediately apparent and the continuous string of comments and testimonies do not confirm that any clean up has been done.

For active IBOs or prospects, these are the harsh realities that may be attached with the Amway opportunity. Much of it is because of motivational groups such as WWDB, but if you are seeing these traits in your group, ask the tough questions. If you happen to decide that the Amway opportunity is not for you, take heart! There are other ways to achieve your financial goals and dreams and there are more efficient ways out there. Sometimes, quitting something that isn't working is a wise business decisions and sometimes you can lose more by not quitting. Good luck in whatever you decide.

Amway IBOs "Help" People?

One of the things I often thought odd as an Amway IBO was how our upline would keep teaching us that the Amway business was all about "helping people". Somehow, our upline felt that showing someone the plan or talking to them about the Amway business was helping someone. That is because our upline felt that everyone was doomed for financial failure if they didn't join Amway. Of course, nothing could be further from the truth now that I am looking back. In fact, I would have to say that building the business and purchasing tools was the CAUSE of financial disaster for some of my fellow IBOs. I remember reading about more than one home foreclosure and a couple of bankruptcies.

It's like IBOs held some dark secret and they could save the world by sharing this secret with prospects. So the theme of many voicemails (Amvox at the time) was about how IBOs in the group were saving the world by helping people. I used to wonder how we were helping people when we basically only "helped" IBOs who wanted to build the business. If someone declined to join, they were forgotten or shunned. Our upline said we threw them a life preserver but they rejected it, so we are moving on. it was often compared to a church activity where IBOs are saving souls. I actually found this extra weird because we were often taught that we could give the church money in the future ($10,000 checks) and we could serve in ministry after we were "free". I find this ludicrous now, but at the time, we were told that this was delayed gratification. After I left Amway, I spoke to the senior pastor of the church I attended and he opined that Amway was harmful to many because it simply held too many empty promises. In other words, they promote big dreams and wealth, but very few ever attain any success, for whatever reason. The pastor said the reason for the low success was not relevant. The fact that it was rare to see success was enough to conclude that Amway was not a good opportunity.

In fact, some diamonds can be seen as prosperity preachers. They speak about wealth attained through Amway when in reality their wealth may come from other sources, such as tools income, yet they falsely promote Amway as their primary source of success. Then they bait and switch IBOs and tell them that the tools system is the only way to succeed, all the while profiting handsomely from the tools. They then justify their conflict if interest by claiming that IBOs are helping people and/or doing God's work by joining Amway. I believe many IBOs are giving false hope and promises to prospects as taught by upline leaders. All the while they themselves are losing money while thinking they are supporting a noble cause. I hope they awaken before it's too late.

Amway Creates Wealth?

Amway can make you rich is what many uplines will proclaim. Many IBOs say they were told that Amway was not "get rich quick". But obviously, someone must have given them the impression that Amway would eventually make them rich, otherwise, why would anyone join? Why would anyone want to work that hard and embarrass themselves in front to friends and family to promote a business that will more likely get you funny looks than money. But can Amway actually make you rich?

Well, yeah, Amway can make you rich if you are a diamond selling voicemail services, books, standing orders and function tickets. Amway can make you rich if you own Amway and sell to millions of IBOs who "buy from themselves". Amway can make you rich if you write a book that millions of IBOs purchase. Amway can make you rich if you can get enough loyal downline to keep purchasing products so that you can get the bonuses. But aside from these few people who I just described, the Amway opportunity is more likely to make you broke, or at least lighter in the pockets. The facts are there. Amway published them. It's called income disclosures. The average IBO earns around $200 a month, which is after "non active IBOs" are disregarded. Thus the average income of all IBOs is about $100 a month, which included the diamonds, platinums and crown ambassadors. Do the math.

Most Amway IBOs do not even earn enough to cover their monthly voicemail expenditures, much less the other support materials that are pushed on the downline in groups such as WWDB or BWW, or N21. These materials are touted as the "key to success" in Amway when in reality, it is the key to success for the uplines who share in the profits from these materials. The real kicker is despite claims that these materials are key to success, the uplines get their followers to blame themselves if the system doesn't work for them. Kind of like tossing a coin and saying "heads I win, tails you lose". Upline wins as long as you buy support materials from them, and your results are of no consequence to them. In fact they probably don't want new diamonds as they would then have to share the tool money.

So can Amway make you rich? I would guess it is possible, but it is also possible for you to win the powerball lottery. It takes normally, over 100 downline IBOs to create a platinumship. And a platinumship is .26% according to Amway, which is roughly 1 in 400 IBOs. And at that level, you likely make a little profit or break even. Where is the wealth created by the Amway business?

Why Amway Doesn't Work?

1. The Amway products are too expensive to compete with other brands. While IBO's claim high quality, that is subjective and for most consumers, Amway products are not well known and seen as generic in nature with a premium price. Many people consider Amway products "satisfactory" or "average". Some people do enjoy Amway products, but overall in the US market, it clearly indicates that price is a factor and people apparently choose Costco or WalMart. Also, person to person advertising is not as effective as national advertising such as Proctor and Gamble. While Amway does some advertising, they are too far behind in the game and their spotty reputation precedes them. Amway IBOs often refer to Amway products as the "cadillac of soap/cleaning products". But guess what? People aren't in the market for "prestigious" cleaning products. And there's no bonafide evidence that Amway is the cadillac of soap/cleaning products.

2. The compensation plan is very unfair to new IBO's. The new guy does the work but gets only a tiny fraction of the generous bonus Amway pays out. A new IBO who moves 100 PV would get back $10 or so while layers of uplines split up the remaining $90 or so on bonuses generated by the 100 PV. The only way an IBO can increase volume is to sponsor downline and hope that they will also buy into the system and dedicate themselves to moving volume consistently. But this will also fail due to reasons #3 and #4. The IBO who does the work does not "get the money".

3. Amway's reputation is so bad that sponsoring downlline to build a group is nearly impossible. Even getting people to see the plan is a tough sell. It is why building a business without some deception is nearly impossible. It is why many uplines begin to teach that Amway saves marriages, or that you become nicer by building an Amway business, or that the Amway business is about friends and not money. That is a bunch of BS, business is about making money. If not you have joined a social club.

4. The uplines push the tools scam on their downline while they make handsome profits from these books, voicemails, standing orders and functions. What's more, these tools do not help an IBO build a business because of the reaons listed above. In fact, I believe that any IBO who actually succeed, does so in spite of the system and not because of the system. There is zero unbiased evidence to indicate that the system tools have any relationship to IBO success. And most systems are more alike than not, despite what they may claim.

It is for these reasons that I believe Amway is not a good business opportunity for the vast majority of people. When you factor in the system expenses, you almost assure yourself of a losing proposition. Do the math and do the research. Your conclusion should be clear.