Not Working Hard Enough?

 I believe there's a gigantic myth that people who ultimately fail in Amway simply didn't work hard enough, or didn't put in enough time, and ended up quitting too early. Based on personal experience and observations of others, I truly believe that to be NOT true. Now I agree that many IBOs do little or nothing, but generally, these folks don't complain and their losses are generally limited to the sign up fee or kit. Most do not seek refunds, file complaints and simply chalk up the loss as a learning experience.  

I myself, put in some months of very dedicated work towards building a business. I had a decent sized group and was headed for platinum. But the fact of the matter is that even though my group was growing, I wasn't making a net profit. I seriously doubt that any of my downline made a net profit, primarily because of the business and tools expenses. I drove the miles, I showed the plan and I attended all the meetings and functions. I did what I was advised by my upline. My net profit at 4000 PV was little to nothing with a net loss when all the business expenses were factored i such as gas money, functions, standing orders, etc.  

My upline also did a lot of work, and he put in the hours, drove the miles and attended everything. He told me his net profit was not any of my business. (If you hear that, it's a huge red flag). I suspect my upline and sponsor also broke even or lost money despite working very hard and doing what they were advised to. I later read the assessment made by the Wisconsin attorney general Bruce Craig, who examined the tax returns of (I believe it was platinums/direct distributors) of IBOs in his state and they averaged a net annual loss of $900. While the study is a bit dated, the business has not really changed except that there are more expenses and tools associated with the business today, than back when the study occured.  

I also question the validity of Amway defenders who claim that people did not work hard enough or did not run their business properly. I seriously doubt that anyone has done a comprehenseive study of people who actually made an effort to build an Amway business, to determine why they may not have the success they desired. However, I can make my own conclusions. Many IBOs are taught to buy from themselves with little sales. They're taught to buy tools, even when they aren't making progress in the business. People who are struggling in Amway are often told that they need to sponsor more people, show more plans. (A struggling business opens new stores to improve business?).

In my opinion, hard work and success in Amway have little relationship. Sure, there is work needed. But working hard doesn't assure you of anything. You need to be able to develop a following. Just working hard has nothing to do with long term sustainable success. There are plenty of examples of hard workers who lost money. What I believe happens, is that IBOs get excited, get started and contact people and show plans. But Amway has the reputation of "pyramid" or "scam" and people quickly get discouraged and stop building the business. Those who try to sell Amway goods find that a month's supply of multi vitamins ($80) double x is a tough sell, or $50 cases of bottled water. They also get discouraged and quit.  

Only those who can somehow recruit and replace those quit end up having a chance to grow their group large enough to sell them tools, which then makes selling Amway products less important. But I don't buy for a minute that people simply do not succeed in Amway primarily because they don't work hard or smart enough. I challenge anyone to prove that a lack of work is the reason for Amway failure. The system is designed for only a few to succeed. Examine the 6-4-2, there is 1 platinum and 78 downline, and that's assuming everyone "did some work".

IBOs fail in vast quantities, but not because they don't do any work.

The Cult?

 Many outsiders see Amway members as being cult like in nature. I also believe that many Amway groups are like cults. The only major difference I can see is that Amway members are free to quit and free to come and go.  But there are many similarities to a cult following which I will outline.

Groups are often told not to associate with non members. If your friends and family do not like Amway or are not positive about Amway, they are to be shunned. Members are told not to put anything but positive into their minds, thus IBOs are told not to watch television or read newspapers. thus, depriving an IBO of basic information about their communities or their cities. It makes them apathetic.  Most of the information or stimulation that an IBO receives is Amway propaganda and that other forms of information are seen as negative and should be avoided. 

IBOs are often advised or told to submit to their upline leaders. Just follow the trail already blazed by upline. Don't reinvent the wheel. Just copy or duplicate your upline. IBOs tend to dress alike, act alike and say the same things, but they are discouraged from speaking to crossline IBOs, which I find ridiculous for business associates.  In a twist of irony, IBOs are encouraged to buy audios and/or attend functions where crossline diamonds are speaking.

Downlines are trained to edify the diamonds. Standing ovations, adoration and complete submission to these "great" leaders. IBOs are often told to "counsel" with these great leaders. A 50 year old successful married businessman would have to "submit" and listen to the single and 30 year old diamond, because the diamond has accomplished what everyone wants - to be a diamond. (Doesn't this sound like the funny farm?)  Even in lesser ranked IBOs, your upline is your upline, oftentimes simply because of the fact that he or she signed up before you.  Amazing isn't it?

Downlines are also constantly on the hunt for new cult members (recruiting). They go through all kinds of trials and tribulations to do so, even attending out of town seminars to learn this skill. The IBOs also channel significant amounts of money to upline leaders in the form of tools purchases, or in some cases, special functions run exclusively by their upline.   

So are Amway groups such as BWW, N21, LTD or WWDB cults? I don't know, but I can say pretty confidently that they certainly exhibit traits that can be compared to a cult.

Duplication Is Not A Copy Machine?

 One of the things my upline used to teach, and apparently is still taught today, it to duplicate or copy your way to success. In fact, we were told to always check upline because things we did needed to be duplicatable for your group. For example, flying first class to a function was not duplicatable, thus not allowed. I believe this is why some IBOs mistakenly think they are franchise owners. Looking back, it would seem that diamonds are exempt from this rule.  If it's not duplicatable as upline says, why do they fly first class, or why do they claim to do so?  The hypocrisy of upline at times, is astonishing.

At functions, everyone seemed to have a catalog shirt or suit. Everyone used the products and spoke phrases or strategies off the tapes, or standing orders. This is where the term "tapespeak" came from. The recruiting approach was also similar for many, and people in the US became aware of the techniques and I believe this is a contributor to the apparent decline in Amway North America.  It's funny for me as a former IBO, because you can see what's coming from a mile away or more.  And the IBO responses are a source of humor  :).

While IBOs can certainly duplicate certain things such as dressing alike and using the same tools such as voicemail to run their business, they cannot duplicate the conditions or the market that a higher pin may have had in order to achieve their success. That is why I believe so many IBOs fall short of their business goals. In fact, if duplication was truly the answer to IBO success, then why aren't there more pins breaking? Why do diamonds and other big pins quit the business if the answer was duplication?   It's because duplication is just a catch phrase used by upline that may sound reasonable, but does not work in the real world of business.  The results of decades sides with my argument.

I think the bottom line is clear. Duplication doesn't work.  You can copy and duplicate your upline all you want.  But you cannot duplicate everything, which means there are too many variables and aspects of your upline diamond's business that simply cannot be duplicated or copied to any realistic measure of success.  Duplication is not a copy machine, so you might think you are copying or duplicating, but you're not.  Also, if your upline diamond is no longer qualified and you are unaware of this, you then are duplicating something that is not nearly as successful as you were led to believe. 

Amway IBO Wife's Testimony?

 This comment was left on my blog some years ago and I'm now posting it because it gives a really interesting insight on the thinking and teaching in Amway and WWDB. Keep in mind that this comment is not exclusive.  I've heard similar stories in the past.  Enjoy;

Let me tell you a story about my "successful" Amway marriage.
Was in WWDB. Upline Diamond: Puryear (seriously)

Husband (now ex-) and I were core all the way. Drank the koolaid, ate the food bars, no TV, only listened to tapes and read books. Attended all the functions. Major functions were our "vacations" and "dates." In public, we were Mr. and Mrs. Amway. In private, he was physically abusive. I finally got a chance to leave.

Upline sponsors, Platinums and Emeralds called me, yelling at me, telling me that it was "unbiblical" to leave my husband. Guess it was okay for him to do what he was doing?

I left and never looked back. It was tough to deprogram after the WWDB brainwashing.

My husband wasn't abusive when we met and were first married. That started happening maybe six months after we were married.

He was already in Amway when we met, but he wasn't very active. After we got married, he started to get more active in "the business."

I didn't know much about Amway when I met him. I met his upline sponsors when we got engaged and I thought they were just good friends. After we were married, I went to a rally and was struck by how the wives seemed to be so supportive. Then I heard the Emerald wife speak, and all she did was edify her husband or go on to "us gals" that we needed to let go of any negativity. As I went to more functions, I heard the wives tell "us gals" to be submissive - that we were wrong for having any needs or requests. It's one of the kids' birthday or your birthday and there's a function? Guess which one takes priority. You can celebrate later when you're "Free," when you're a Diamond.

I thought there would be some sales training. I went to an Artistry clinic - they taught us how to put on makeup and showed us some of the latest colors. But there was nothing about how to find customers, generate sales, or even have a makeup party. At one time, there was a tape by Bettyjean Brooks (wife of Jim Brooks, WWDB) about how to build a retail business. I ordered it, but never received it. She and Jim divorced. Jim stayed in WWDB and the tape suddenly became "unavailable."

Husband really followed the "fake it 'til you make it" teaching. To everyone, he was Mr. Successful. After our child was born, I became a stay at home mother. He led everyone to believe that it was our Amway income that allowed me to stay home. We weren't even at 1500 PV. We never made any money. I kept my mouth shut and played the submissive/supportive wife role. Keeping the books, running call-in and pickup for our downline, and trying to peddle the products to "customers." He never tried to sell anything - that was the wife's job. WWDB taught that.

It all came to a head when the police got involved because of the abuse. He had to move out of our house. He lied to everyone, saying that it was all really nothing and that the courts (and I) were blowing everything out of proportion. After going through counseling and therapy, it was clear to me (and to the therapist) that he was not being honest with any of us. I filed for divorce.

It was then that the upline contacted me. Our sponsor (the wife), platinum and emerald each called me. It started out that they were "concerned" about me and wanted to counsel me. When I told them exactly what happened and why I was leaving, they told me that it was "unbiblical" for me to leave my husband. Yelling at me. Accusing me of negativity. They also said that there was no way he could have done those things, that they just couldn't believe it. I offered to let them see a copy of the police report. Nobody ever took me up on that offer.

Now, I can't say that Amway taught him to be abusive, but I wholeheartedly believe they taught him to be a good liar and how to hide the truth and dodge questions. They did everything short of preach that the "little lady" stay at home, pregnant and in the kitchen. Wives on stage used to brag about how the couple drove a hundred miles and left their kids sleeping in the car while they went inside someone's house to show a plan.

Freedom, indeed. More like servitude.

IBOs = Fraud Victims?

 I've heard over the years, many IBOs who failed in the Amway opportunity who blamed themselves for not putting in enough effort, not trying hard enough or not working the system "just right".  While I don't doubt that some IBOs don't work hard enough, I cannot fathom that so many motivated and eager prospects simply failed because they didn't work hard enough. I believe IBOs are taught to accept failure as their own, even if they had followed upline advice very closely.   In a twist of irony. upline teaches personal responsibility to the downline, even though they do not take personal responsibility for their ineffective teaching.  

Uplines will tell new IBOs to trust them and that these new IBOs will succeed if only they will follow the advice of the allegedly successful diamond because they have already blazed the trail for you. Ironically, after many IBOs fail, upline will never take responsibility for the advice they issued that led to downline failures. They then turn the tables on their downline and say that their advice is like a buffet. You pick and choose the advice you need and disregard the rest. That is such a bunch of crap that I cannot fathom downline IBOs buying what they are shoveling. A new IBO places their trust in the diamonds because they have achieved the pinnacle of success, but a new IBO is supposed to pick and choose which advice to follow? And then failure is the fault of the downline?  How is a new IBO supposed to know what upline is good for their new business or not?  I guess in reality it doesn't matter, given the dismal results we see from Amway businesses. 

Ironically and sadly, these downline, when they ultimately fail, often end up blaming themselves and just disappear unless someone recruits them again. They are often sponsored by friends and family, so you won't see them filing complaints against Amway or the uplines who led them astray. Uplines nearly assured their success if only these new IBOs would buy the training materials and attend all of the functions. But many IBOs work hard and do everything outlined by upline only to fail. It is likely because the system doesn't work. Many financial systems are for sale out there and most of them have very little success. Amway is no different, except that uplines promote their systems as sure fire.

It is, however, my belief that many or possibly most IBOs are the victims of fraud in that they are given possibly false positive information about the Amway opportunity. They get involved and find out that the system doesn't work, and then they end up quitting with a loss and them blaming themselves. Brilliant for the uplines who profit but, in my opinion, it makes IBOs the victims of fraud by upline. Upline profits whether or not their downline makes a cent. Some upline strongly encourage downline to buy more and more tools, even when they know that those downline have no chance of making money in the Amway opportunity. It makes the IBOs victims, and it makes the uplines a bunch of crooks.

Looking at it from another angle, upline claims to have the best interest of their downline at heart, but somehow the answer to a failing Amway business seems to be to buy more tools and function tickets.  It's ridiculous that upline advice for a failing business is to expend more money on things that do not produce income for the business.  But the most insidious thing they do is to push personal responsibility on their downline, when they (upline) themselves take none.

Mentors Or Crooks?

 The really insidious part about some of the LOS leaders, such as the ones I had in WWDB, is that they apparently are cutthroat ruthless businessmen with nice suits and disguised as your mentors and friends. They get you to trust them, and they will tell you that they have your best interest at heart, or that they would never purposely lead you astray. On the surface, you may think this is true, but look at their actions and you can easily discern that some of these uplines are absolutely ruthless businessmen who would take every cent from you if they could. I was in WWDB, and I have good reasons to believe that they are still doing this, based on a WWDB IBO blog. On this blog, I see all the same teachings today, that I heard as an IBO and some of the same claims such as buying homes in cash. It's scary.

As an IBO, the diamonds would tell you to never miss a function, ever. The only good reason for missing a function was for your own funeral. I recall some cross line IBOs rearranging pre-planned anniversary parties, weddings, and other special family events in the name of being core and attending all functions. Some IBOs actually did quit their jobs to attend functions and they very well may have done so because some uplines taught this. IBOs were also encouraged and told to go into debt to attend a function. This was okay because it was an investment into your business.

Our group was also strongly encouraged to buy extra cds every week. To be core, you needed to listen to a cd each day and you cannot listen to the same one each day, right? Couples were told to buy their own separate standing orders. Brad Duncan even had a true north tape (cd) that said sponsors were to eat the standing orders for downlines who quit because it was too much trouble to call upline who calls upline who calls upline to cancel a standing order. Oddly enough, they didn't mind upline calling upline calling upline to add a standing order.

In the end, I was lucky enough to have been progressing up the pin ranks, so my losses were not that devastating. I ended up losing in my early months of the business but mostly broke even when I was at 4000 PV. Sadly though, my cross line did not fare so well. I know of one couple who declared bankruptcy. I don't know how much their WWDB involvement contributed to bankruptcy, but I am certain it was a major factor and I know of two couples who had homes foreclosed, and I believe that their allegiance to WWDB was a factor in those foreclosures. But I guess hey, two WWDB diamonds had homes foreclosed so maybe they were duplicating?

Do not be fooled. The diamonds may have a nice smile and a nice suit, but they are ruthless businessmen who will take your last dime if you allow them to.

Bad Advice?

 Based on my personal experience, and based on having read numerous accounts from other former IBOs, it's pretty clear that the higher uplines, absolve themselves of issues and problems by having others do their dirty work. While some leaders are bold enough to make dumb statements on stage, many uplines will have their "eagles" or platinums do their dirty work, which is to pass bad and often self serving advice to their downline. Advice that will help them (upline) to profit directly from the losses suffered by downline.

For exampe, a diamond may stand on stage and talk about the merits of getting out of debt. Now getting out of debt is a good thing and nobody should get caught up in credit card debt and other piles of debt. But so many times, I sat in meetings where the group was told they needed to be at the next function - no matter what. Do whatever it takes to get there, even if it meant selling personal belongings. Ironically, the solution to getting to the next major function did not involve selling Amway products. So many IBOs made sacrifices of time and money to get to the next function, but their business did not experience any growth in volume or downline. I saw many crossline IBOs attend meeting after meeting and function after function without any downline. They faithfully spent their time and money chasing a dream based on lies by the upline leaders. Our group was told that upline made zero profit on tools. While some groups now admit that profit is made on tools, there is still a lack of transparency about the tools profits and as far as I know, there are no formal written agreements with regards to the tool profits.

I also recall our platinums having platinum and above meetings while we were at major functions, and it seemed that the platinums always had something to teach the group that was contrary to what we had just heard on stage and the platinum would tell us that he had the freshest information from the meeting. It's like the platinum was just a henchman for the diamonds and carried out their dirty deeds. Another example is how the diamonds taught vertical alignment where God is first, then your spouse, your kids, your job and in 5th place was your Amway business. But anytime an event such as a friend's wedding or an anniversary dinner or your kid's soccer game conflicted with an Amway event, the group was told "attend all meetings". All means all, is what our group was told. That is directly contrary to the concept of vertical alignment. In fact, the Amway IBOs became less useful to their communities and churches as they are constantly attending meetings and functions and unable to serve in other capacities. I also wondered whether the Amway business and tools consumption took away their abililty to tithe and give to the local charities. Our upline would tell us to go diamond and then send in $10,000 checks as if that made it okay not to serve others and help the needy.

It is my informed opinion that this still goes on today, despite the claims of Amway apologists that my experience is dated. There is ample evidence suggesting that very little has changed from 20 years ago. In fact, many of the leaders from my IBO days are still teaching unethical things to this day. Many Upline passes bad advice downline, but they do it in sneaky ways such as having their downline leaders pass the information on. This is also how Amway itself can skirt some of their issues, as IBOs are not Amway employees, they are "independent". But most people in North America now know the truth and hopefully this article shines some light on that truth.