Amway Is Not A Gamble?

I’ve seen and heard many debates about Amway and one interesting discussion was about Amway and gambling and the odds of success.  The Amway defenders were quick to point out that Amway is not a game of chance and hard work is required to succeed.   But let’s look beyond those simple and obvious arguments.

If Amway is not a game of chance, then it is possibly the most difficult business in the world to succeed in.   That’s because millions or tens of millions have put forth a lot of time, effort and money into their Amway business only to end up with a net loss.   Amway’s own financial disclosures confirm this.   Now I didn’t go digging for the most recent figures but Amway’s own stats showed that about 1/4 of one percent of IBOS go platinum.  That’s the level where dedicated IBOS allegedly break even or begin to make a profit although many IBOs go platinum but do not requalify for that level again.

So based on information that Amway discloses, you have about a small fraction of one percent of breaking even or making money in Amway.  And I repeat the Amway defender’s line that Amway is not a game of chance.  Who in the world would want to join a business where you have less chance to succeed than a game of chance?  Seriously?  If I flip a coin, I have a fifty percent chance of calling the correct outcome of heads or tails.

Even most games in Las Vegas gives you close to a 50 percent chance of winning.  Certain games such as black jack can actually favor the player depending on the level of skill.  Now I’m not advocating gambling as a good way to make an income but I’m just illustrating how difficult it can be to succeed in Amway.

More food for thought:  Vegas builds new hotels and attractions on the losses from losing gamblers.  However, most gamblers enjoy gaming knowing they are likely to lose but with a chance to win.  Amway diamonds enjoy the diamond lifestyle by selling cds/audios and functions while encouraging downline to move more PV but in the mean time, the down lines are losing money month after month with little chance of even getting small jackpots along the way.  The sad part is that Amway is not a game of chance.  At least gambling doesn’t require hard work.

The Solution To a Failing Business?

I just shake my head when I read about the kinds of advice that Amway IBOS receive from their trusted mentors and upline.   Now let me say that I would have nothing to criticize if diwnljnes were regularly progressing and moving up the ranks and actually making money.  But it’s obvious that most IBOS are spinning their wheels getting nowhere and the only advice that upline seemingly gives  is to spend more money on functions and tools that are already proven to be ineffective.

When most real business owners are cutting expenses or looking at strategies to bring in more revenue, Amway IBOS and uplines are advising people to spend more money on activities that don’t make them money.  Why not just get a pile of cash and burn it?  The result would be the same.  Keep in mind that the upline profits from the sale of tools and functions so it seems pretty dubious that upline would advise struggling fir lives to spend more time and money in things that haven’t worked in the first place.  

What is the real solution to a failing business?  I can’t tell you that but I can tell you that spending more money on things that do not result in more sales and profits is not the solution.  Most dedicated IBOs lose money because of the tools and functions which are not effective in helping IBOS become profitable.  What makes it more insidious is that uplines profit nicely for giving downlinex bad
advice even if their bad advice results in bigger losses.

When it comes to Amway, it seems apparent to me that the only logical solution is to walk away, seek refunds on whatever you can and find another activity to make some income. Sitting at home watching TV is more profitable to most IBOS that actively trying to run an Amway business.

Owning A Business?

Amway IBOS call themselves business owners but they seemingly know so little about business.  Their knowledge is often clouded by the BS they are fed by their all knowing upline.  Ironically, many IBOS refer to upline as mentors or coaches.  They see nothing wrong with the massive failures that upline produces and most don’t seem to think it’s a problem that many IBOS blame themselves despite following the paid fir arise that they received from upline.

Fir example the upline may sell them on an Amway business by pitching the low cost and low overhead only to have upline later tell them that they need to invest in Amway like any other business.  They are told that Amway can give them quick profits but when those profits don’t materialize they are told that business owners often spend 5 years without making net profits.

The reason why IBOS fall for the upline BS is because they really know little to nothing about actually owning and running a business .  They fall for the upline’s faulty advice and although many make an earnest effort to build their business, Amway is flawed and the upline advice is ineffective and flawed as well,  sadly, the expenses of running an Amway business and the cost of the system can quickly turn into losses of thousands of dollars or tens of thousands and more, depending on the level of dedication.

The way to get around this is for IBOS to track their income and expenses very closely and to run a profit loss analysis weekly or at least monthly.  If there are no real prospects to increase income or reduce expenses, there is no point in continuing to run an Amway business.   If you attend functions, is there a direct relationship between attendance and increased business income?  If not then why attend?  Same goes for other tools such as standing orders.

Quitting Amway is a good business decision if there are no profits and no concrete measurable plans to make a profit. Isn’t profit the reason you started an Amway business in the first place.

The Partner Store Myth?

One of the interesting things that Amway IBOS like to claim us how Amway partners with big name companies like Disney or Nike.  But that’s like saying 7-11 is partnered with CocaCola because 7-11 sells their product.  It’s the same as Amway IBOS.  They might have Nike or Disney products in their  catalogs but calling it a partnership is a stretch.  It’s not like you can buy Amway stuff at Disneyland or Nike town.  That would be a partnership wheee each company sells each other’s products.

Instead, Amway IBOS get to hawk products for these “partner” stores but strictly on a commission only basis.  It’s a great deal to have Amway IBOS sell your stuff for commission only and no fringe benefits.   The “partner” store has nothing to lose.  It’s like having access to a fleet of free sales people who only get paid a little if they sell product but receive nothing unless volume is actually moved.

What Amway folks don’t like to talk about is how Enron and MCI Worldcim were also Amway partners at one time.  IMO, a scam partnering with a scam.  LOL.  So basically the partner program for Amway IBOS is like unrequited love.  In other words it’s all one sided.

In the end, the partner concept might in name bring some credibility to the IBOS story when prospecting new recruits but in the end, you still need to deal with the Amway name and reputation.  Selling a few Nike or Disney products in the Amway catalogs doesn’t make Amway a better business opportunity nor does it tend to make IBOS any more profitable, nor does it make an IBO more likely to succeed.  The partner store concept is just a nice talking point and nothing more.  LOL. 😃

Is Amway A Cult

Many people who have attended or seen an Amway convention have at times compared the experience to a cult.  While an Amway convention might not be an actual cult, there are many similarities in which a gathering of IBOS can be considered very cult like.  There are certain parameters that IBOS adhere to that make Amway seem eerily cult like.

They seem to worship the leader.  The diamond is like a rock star and is given adulation, standing ovations when they enter a room, and Amway IBOS will practically take a bullet for their upline diamond.  People literally line up and even move extra Amway products fir the privilege of driving the diamond to a meeting or to spend an hour with the diamond.   I recall as an IBO having to meet a qualification in order to attend a picnic with the upline diamond.

At meetings you’d think the diamond walked on water with the way the IBOS would serve them hand and foot as if they were divine beings, and at a minimum, the diamonds were treated like royalty or celebrities.  Additionally, IBOS dress alike, act alike and act terribly predictable.  It’s almost humorous when you see it happening.

The IBOS all have a common goal if financial freedom even if no one seemingly achieves it.  They assume that the diamond is wealthy beyond belief even though nobody really knows what the diamonds net worth actually is.  All I know is that diamonds are always working while normal folks eventually retire when they are older.

Is Amway and the related groups such as WWDB a bunch of cults and cultists?  I don’t really know but I do know that they have many cult like characteristics.  Although you can come and go, there is peer pressure to not leave the group.  The similarities are uncanny.

Buy From Yourself?

Buy from yourself us a common teaching spread amongst Amway IBOS and while it makes sense to support your own business, the way it’s taught in Amway almost sounds retarded to a neutral observer.  The idea is to be your own best customer and that a McDonalds owner would not eat at Burger King.   It might sound sensible but in the bigger picture of business, it’s lame.

Nobody ever ran a successful business without real customers.  It might help to support your own business but no matter how much you buy, in the end, all the buyers are just customers of Amway.  So but all you want, Amway appreciates you.  In this sense, you’re just as much of a business owner as someone using a cash back credit card.  The difference is that a cash back card has no minimum quota like Amway and there is no training and functions needed for using a cash back credit card.

Also, the notion that one business owner would not patronize a competitor is silly.  I know people who own food establishments and they frequent other eating places on a regular basis because they get to try new things and see what their competitors are doing.  It’s silly to think that a McDonalds owner will only eat Big Macs the rest of his or her life.

The bottom line is you need a lot of real customers who make purchases in order to make profits and to be able to capitalize on Amway’s bonus scale.   Buying from yourself creates no profit and the fact that you support your business only puts profit in Amway’s coffers.  You think you profit buying from yourself is profitable because upline has fed you thus false doctrine.  When you buy from Amway, they profit and any perceived profit that you made really cane out of your own pocket, much like transferring money from your checking to savings and calling the transfer a profit.

If your upline us teaching this hoax of buying from yourself, read this article again and think twice before paying fir anymore of this type of ridiculous advice.   😃

Fake It But Never Make It?

My upline used to tell the audience to fake it till you make it.  In other words to give the appearance of success to prospects until you actually become successful.  In other words put on a phony show in the hopes that you will be able to attract potential downline who would duplicate your efforts.  On the surface this may sound like a good idea but the bottom line is you are deceiving people that you hope to do business with,

If someone attracted me to a business under fake pretenses, it’s typically called fraud but Amway IBOS get away with it because they generally recruit friends and family who are unlikely to complain    or file any complaints.  The idea is to appear successful even if you’re not.  Sadly fir IBOS, putting up the appearance of success can be costly as you may be wearing a nice suit and watch while you live in debt and paycheck to paycheck.

Thus practice also contributes to Amway’s bad reputation as people eventually realize they may have been duped or mislead about the opportunity.  Add in the bad taste many people get from having wasted time and money on tools and functions and you can see how people can exit Amway feeling like they hit shysted or tricked by someone  they may have trusted.

Add in the fact that there is no true natural progression towards any true success and all you have is an Amway trail littered with dead bodies of people who may have tried to succeed only to fail and lose money.  But failure is not on the IBOS necessarily, because the Amway multi tiered system is designed to have a few ‘pins’ while the vast majority flounder in mediocrity and financial losses.  The outcome is easily predictable and expected to the trained observer.

Until then, Amway IBOs and uplines continue to prey on the hopes and dreams of hopeful people.  People who want to hope and believe that Amway is a shortcut to riches and early retirement.  Sadly it appears that Amway is the opposite.