Honest Question?

 I have a question for Amway IBOs and it’s a sincere one.  Do you really believe that you will get rich and be able to walk the beaches of the world in 2-5 years?    Do you believe you can build it right, build it once and walk away from Amway (if you wish) and live in luxury the rest of your life?  I know the diamonds make it sound easy but you know the old saying about how if something sounds too good to be true?  I know the diamonds try to skirt the issue by saying that Amway is hard work and that Amway is not get rich quick.  Some even say Amway is get rich slow.

But in the end it’s all BS.  If 2-5 years and being able to retire and walk the beaches of the world while wheel barrels of money rolling in forever is not a get rich quick scam, what is?  First off, name a few diamonds who walked away to enjoy that benefit of waking the beaches retired while income rolls in?  In all my years of research into Amway and personal experience, I have known of zero diamonds who achieved the level and walked away to collect their rewards forever.   I have seen a triple diamond file chapter 7 bankruptcy, diamond home foreclosures, and diamonds and higher levels dying while still working Amway.

So IBOS, do you really believe in pink unicorns and Amway forever residual income?  If that existed, you’d think there would have at least one diamond who would exercise that option.  Instead the diamonds feed you BS that they love you and work only for your success.  Do the math and figure out how much they make from selling books, standing orders , audios and functions and you’ll understand what I’m saying.

Lastly a diamond pin lasts forever so someone could go diamond one time and never qualify again but still possess the diamond pin and appear on stage earning income from books, audios, standing orders and functions.  When you understand this, you will know why diamonds are not retired and walking the beaches of the world.  More likely, diamonds are in debt living bonus check to bonus check like the people that attend their functions.   😃

The Pyramid?

 Let me start out by saying that Amway is a very likely a perfectly legal company, and therefore I am not saying or implying that Amway is illegal. But I believe however, that the way Amway businesses are run by upline and individual IBOs are like pyramids. In many, possibly most groups, you will have the lowest level IBOs efforts and tool purchases being responsible for the upline bonuses and tools income. Many many IBOs are fooled into thinking that the ability to surpass your upline or that you don't get paid to recruit downline makes this a good deal. This doesn't change the fact that the vast majority of IBOs lose money. The lottery is legal in most states but I'd say it's not a good investment for your money.

Unless you have a very very rare group where actual product sales to non IBOs are sufficient to cover the costs of running your business, functions and all, then it is true that the lower level IBO's jobs are likely the source of income for the uplines. How many groups sell enough product to cover expenses? None that I have ever seen or know of. In fact, how often do IBOs even sell enough products to cover their expenses for even one month out of the year? The groups that teach "buy from yourself" end up doing the most financial damage to their groups because the downline's expenses are then covered exclusively from the downlines jobs, bank accounts, or drive the downline into debt.

I've seen and discussed group structures in forums many times and I can only conclude that tool sales wipe out what little profits/bonuses some of the downlines might receive. Only when an IBO is able to sponsor enough downline to absorb the losses for them will they finally break even or make a little profit. I would guess that the 4000 PV level or platinum is where a dedicated CORE IBO would just about break even and possibly start to make a real profit. But if you are hard core dedicated, you can still lose money at these levels. We also know that most platinum groups have 100 or more IBOs in order to generate 7500 PV. Thus we can also conclude that less than 1% of IBOs make a net profit. The only way IBOs can earn a net profit at a lower level is to avoid purchasing tools and to avoid paying for functions. Those who get involved in a system such as WWDB or N21 almost guarantee that they will have a net loss because of the expenses associated with these systems.

Sure, my job may have a pyramid structure with the CEO making the most money. But the difference is that in a company, even the lowest paid employee still receives a paycheck and has money at the end of the month. The same claim cannot be made by IBOs. For these reasons, I believe Amway to be a legal pyramid, where money flows from downline to the upline. IBOs and information seekers are free to participate, but I challenge them to sit down and really analyze their ability to make a net profit. In most cases, the analysis won't be favorable. If you are in the US in particular, you may have great difficulty in even being able to discuss "Amway" without getting strange looks your way from others. Do you have to shy away from using the name Amway? Do you have to use the curiosity approach? If you do, ask yourself why. The answer is obvious.

Amway Warning Signs

These are what Joecool believes are the warning signs that the Amway upline is getting you indoctrinated to their way of thinking and getting you to abandon your critical thinking skills in favor of blindly following your upline advice in a way similar to the mice following the pied piper. 

Sometimes it happens to the nicest of people and it often happens slowly and subtly.   These are the signs that you are becoming indoctrinated and you are likely annoying your loved ones at this point. I hope this helps:

*You're driven to recruit everyone you know. You may even resort to deception or outright lies to get people to meetings. Before you know it, your family and friends avoid you like the plague.  You slowly see less of your friends as you miss social gatherings, parties, backyard BBQs and such.  You are so dedicated to Amway that sacrifice things you enjoy even though you aren't making any net profit from Amway.  

*You're encouraged to develop an unreasonable, irrational zeal for the products. Even so far as to justify the quality of toilet paper or to call the products prestigious. You may even argue the quality of energy drinks or about phyto-nutrients, something you may not even know about.  You even become obsessed with vitamin supplements even if you never took any prior to joining Amway.  

*A whole bunch of demands, promises, subtle threats of failure if you don't try hard enough are made in the promotional material and motivational seminars. i.e. If you quit, you are a loser destined to die broke and unhappy.  Oddly enough, many people find themselves happier and with more disposable income and time once they leave Amway.  

*Because the system is touted as the way you're going to make yourself fantastically rich, you're under pressure to drop any conflicting or competing interests such as your bowling league or golf club. Nothing else in life has importance except for the quest of financial freedom. All activities in your life must enhance your Amway business and have an affect on your financial future.

*Your upline soon becomes your most trusted friend. Your thoughts and feelings are shaped in part by the cds, meetings and functions.  Even though diamonds might teach that you prioritize your job and family, they always tell you to never miss a meeting or function if something conflicts with your family or work obligations.

Do you recognize these behaviors? Hopefully you aren't displaying these behaviors.

Are Amway Diamonds Actually Wealthy?

 I recently read an article on what constitutes wealth. Some say an annual income of $100,000 would make them wealthy, some say assets exceeding $4 million would do it, and some estimated that $2 million would make them "rich". Of course, everything is relative and someone earning $25,000 a year would think that $100,000 a year is wealth, etc. College students might think $40,000 a year is awesome because many have little money to begin with. I'm sure someone like Bill Gates would not consider $4 million to be astonishing. It's all relative. If you are content with what you have, you are likely relatively well off already.

But let's talk about Amway diamonds. I say diamond because it is basically the pinnacle of success. It is the crowning achievement of the 6-4-2 plan (or other variations) that many groups show. The average diamond (non Q12 - the norm) earns about $150,000, according to Amway. Now $150,000 sounds like a lot of money to young people or to those with lower wage types of jobs, or those who are just starting out in their careers. But we also know that diamonds earn income from the sale of tools. Some groups advertise (verbally) that someone might earn $100,000 a year from the tools/speaking income.

Let's be generous and say the diamond earns $300,000 a year from Amway and tools income. Income tax and medical insurance for the family will eat up about 40% or more of that right off the top, leaving about $180,000. Fantastic you might say? Well, a diamond certainly would live in a million dollar mansion, which would give you about a $6000 a month mortgage or $72,000 a year, leaving $108,000. (Although many - a - diamond pays for their homes in cash) Fantastic right? Well, diamonds are constantly traveling to various functions, flying first class and staying only at 5 star hotels right? So an average of 1 trip per month with a family, first class and a 5 star hotel would probably cost about $10,000 or more per trip, or about $120,000 a year, now leaving $8,000 for this diamond's yearly budget. A good diamond with a family surely consumes 300 PV per month for household goods, or about $900 a month or about $11,000 a year, leaving debt for the rest of the year. A good diamond is often a Christian who would faithfully tithe 10% of his income, or about $30,000 a year, leaving the diamond with more debt (or they don't give to charity). Then there's monthly costs to pay for their electric and utility bills, gas, car payments, meals and entertainment.

Yes, some expenses may be slightly higher or lower, but what I am trying to illustrate is that even an above average diamond with tools income is more likely to be broke than wealthy if they live the lifestyles portrayed at functions such as dream night or other major functions. Do the math. It is unlikely that diamonds pay cash for everything and it is unlikely that fabulous lifestyles can be sustained on a diamond income. There is plenty of evidence out there. Diamond's homes foreclosed, diamonds behind on income taxes, a prominent triple diamond in bankruptcy proceeding, many diamonds selling off their homes in a bad real estate market.

I truly believe that it is quite possible for many diamonds to broke or in debt trying to portray a lifestyle of wealth and fortune.

What Is Business Mentality?

 One of the things Amway IBOs "think" they possess, but in reality they are far from it, is "Business Mentality". It is not necessarily the fault of the IBOs. Many are sponsored into Amway by trusted friends or family members and lacking business experience, they will "submit" to upline as they are advised and will try to learn about the Amway business. The problem is that many upline leaders teach self serving business practices such as hard core dedication to their tools system, from which they often handsomely profit.   The dedication to the system wouldn't be so bad if people actually progressed in the business and actually made a net profit, but they don't.  Let's examine some of the questionable practices.

"Buy from yourself". If you have a business owner mentality, you only buy from yourself if it's beneficial to your business. Many IBOs talk about ridiculous things like a McDonald's owner would never eat at Burger King. That's bull crap. Just because I own a McDonald's doesn't mean I am eating Big Macs daily or even weekly for the rest of my life. You cannot spend yourself to prosperity. If I sold pens for $1.00 and my cost was .50, and my competitor had a special on the same pens at 3 for $1.00, I'm buying them from my competition. Also, buying from yourself makes you a customer, not a business owner.

"Ignore facts if you have a dream". This is probably the biggest heap of bull crap taught by some upline. I have seen this spouted in particular by IBOs downline from WWDB and BWW leaders. A business owner studies the facts, not ignores them. Any REAL business owner wants to know how much he is bringing in and how much is going out. That's how you detect the heartbeat of your business. A site visitor named Gina on this site, recently posted a profit/loss statement from her real business. Naturally, IBOs were at a loss to discuss it because it was foreign material to them.

"Submit to upline" Another load of hogwash. Why should someone submit to upline simply because they "sponsored me" or whatever? A real business owner would think independently and make business decisions based on facts and numbers, not on the advice of someone upline who hasn't taken the time to assess each IBO on a personal level to be able to give advice on an IBO's "Independent Business", or worse, advice on their personal lives".

"Dedication to the system". Silly advice as well. What dedication does the system have for an IBO? If an IBO succeeds (which is very rare), the system takes credit, but for the more than 99% of people who never make a significant income, it is their own fault if they don't make it. Amway apologists will defend this by saying that many may not have signed up wanting a significant income. While that may be partially true, tell me where people show "plans" designed for the guy who wants an extra $100 a month? The plans shown are always (AFAIK) to go platinum or diamond.

IBOs and information seekers, does any of this sound familiar? Is this a part of your experience? If so, I encourage you to ask questions here and get more information before proceeding with any more "business" activity.

Blame Yourself?

 One of the things Amway IBOs are taught by their "great" diamond leaders is to blame themselves for not working the business hard enough or not doing things exactly right, even if they do exactly as upline advised. Actually, nothing could be further from the truth. Many people put forth tremendous effort but still do not succeed.  But uplines want to be absolved from any responsibility so they teach downline that failure in Amway is their own (The downline's) fault. Upline however, is quick to take credit for any success, even if minimal.  

But the reason is why hard work doesn't equal success is because an Amway IBO is basically a commissioned sales person. In commissioned sales, one can work hard for no reward and at times, little effort may reap large rewards. But in Amway, with a crappy reputation, Amway IBOs are given a handicap that most simply cannot overcome. Getting new people to recruitment meetings is hard enough, not even factoring in the abililty to sponsor others. When factoring in these tidbits, it's easy to see why uplines teach buy from yourself and selling is not important. It deflects the fact that selling is nearly impossible with less than competitive prices (in general)

Additionally, IBOs are encouraged to join the "system" such as WWDB, LTD, N21, etc.  The system costs money and teaches IBOs to engage is many non income producing activities such as attending countless meetings and functions that do not result in increased sales volume.  Imagine a store owner whose store was constantly closed so the owner could meet with other owners and/or someone who encourages them to do things that don't produce sales volume.  That store owner would fail, which is what at least 99+% of Amway IBOs do. 

The work involved is very simple. Sell products and get other IBOs in your downline to be able to leverage your volume. Many Amway IBOs work hard and attend all of the functions and do all of the steps as outlined by upline, but very few reap rewards and most quit when they realize that the system doesn't work. It is sad that on top of losing money, that IBOs are also taught to blame themselves for their demise. Where is the upline when IBOs bust their butts working hard and get no rewards? On top of that, to make it worse, uplines profit from selling training and motivation to their downlines. Why aren't they held acountable?   

I've read comments by some Amway defenders wanting to sue Amway critics for a potential loss of business. But most critics, like myself are simply stating our experiences and opinions. Many of which are true and still happening today. So I will ask, what about the millions of former IBOs who may have lost billions of dollars because of false claims which led them to believe that they would get rich following upline advice? Maybe former IBOs should unite and file claims against unethical upline leaders who led them astray?   How can IBOs lose business from a critic when the vast majority do nothing and/or ultimately fail anyway?

In any case, hard work doesn't equate success in Amway and I dare anyone to try to prove me wrong.

Buy Your Way To Riches?

  One thing I can credit Amway diamonds with is coming up with the most bat sh@t crazy ideas that sound sensible to Amway IBOs but utter madness to anyone else.  One that I heard about was how you can buy your way to prosperity.  Buy your own Amway products and get others to follow and you’ll soon be on the road to early retirement and residual income.  In a pure business sense, that's insanity.  In what business to you buy your way to financial success.  That's just the selling point used to attract recruits, that you can buy your way to riches.  

Have you ever seen a store or business prosper when the major of sales are simply to the business owner and employees?   The answer is no because such a business does not exist.  It’s amazing that people actually believe that you can get rich buying from yourself.  But it works on the downline so the diamonds perpetuate the storyline.   And IBOs soak it in because it sounds so simple and easy to do right?

One thing I saw at a live function was the diamond telling IBOs to ask prospects if they like selling stuff and whether the answer was yes or no, your response would be “great, then this business is perfect for you”.  Of course, actual stories of significant retail sales were rare and my own experience suggested that sympathetic family and friends comprised most of whatever sales took place and I found myself at times selling items at my cost just so the expenses of moving 100 PV wasn’t all on me.  

The strategy of buying your own stuff seems to work because most people do not like selling stuff and especially not to friends.  But many will give it a run because they are hopeful that Amway will deliver the wealth that upline seemingly promises.  The sad thing about the whole this is that dreams of wealth is all you get and there’s very little success to speak of.  From function to function it’s the same old diamonds time and again.  

The diamonds might say they want downline success but they don’t.  They just want to keep replacing quitters with new members as long as they can churn in new tools and functions subscribers.  That’s the real game of diamonds and that’s why the emphasis of the tools and functions is recruiting new people into the game. It’s an elaborate scheme that prospects and new IBOs don’t see because they have Amway dreams clouding their thoughts.   Think about it, new diamonds means another person getting a cut of the tools and functions profits.  It's more profitable to just keep brining in new recruits who are the customers of the tools and functions scam.

You'll be told you can buy your way to wealth but it's just a big lie.