Financial Freedom! That was one of the major battle cries when I was recruited for the Amway business. You gain control of time and money by creating residual or passive income. That is true financial freedom. You wake up at noon, no job, and just do whatever you please, whenever you please. I remember the speaker saying that broke/unemployed people also had freedom, but it was different because they were broke and could not afford to go golfing or do other activities that required money on a regular basis.
I am assuming that this is still the cae for many IBOs. Of course, upline leaders may toss in a disclaimer that you don't get rich quick as an IBO, but the pitch apparently still contains the financial freedom and residual income theme, based on my experiences with IBOs.
But hey, financial freedome would be a great thing, don't get me wrong. Who wouldn't want to be 35 years old with enough cash to never have to work again? I mean I could spend some time imagining how fun that would be. I mean it would also be fun to imagine what you would do with all the cash if you hit the powerball lottery as well. But for the starry eyed IBOs, I simply have a few questions for you to ponder. A few realistic questions that you should be asking yourself. The answers to these questions will tell you a lot.
1. Who in your group or upline truly has achieved financial freedom? Have you seen their financials or simply a display of wealth such as mansions and fancy cars? Mansions and fancy cars could just be a massive pile of debt. Not too long ago, there apparently were diamonds who had their homes foreclosed, and a triple diamond who was in bankruptcy proceedings. Find out if anyone in your group/upline has actually achieved the success that they are using to recruit you. Also, if they are financially free, why do they work at function after function? Traveling and speaking might not be a traditional job, but it is still work, nonetheless.
2. Even if you find someone who is retired and golfing everyday because of Amway residual income, ask yourself what the likelihood is that you will be able to achieve the same results. If diamonds are still working, what chance do you have of success if you are new or experienced in Amway, and have few or no downline. More than likely, your chance of winning the lottery will be greater than your chance of achieving a significant residual income from your Amway business.
Wednesday, September 30, 2009
Tuesday, September 29, 2009
Amway - Dead Or Broke By Age 65?
Below, I have posted a recent article indicating that about 1/4 of Americans are working beyond the age of 65. That certainly debunks the IBO myth that 98% of people are dead or broke by age 65. It should be noted that the older folks still working make very good money. More food for thought should be how you as an IBO will benefit from the Amway business if you are not making money or if you are losing money due to continuous purchases of "educational" materials.
http://www.usnews.com/money/blogs/planning-to-retire/2009/7/14/a-quarter-of-americans-still-work-after-age-65.html
A Quarter of Americans Still Work After Age 65
Comment By Emily Brandon
Posted: July 14, 2009
Retirement is a thing of the past for a quarter of Americans over age 65. Just over 25 percent of those between ages 65 and 74 were still working in 2008, according to the latest Census Bureau numbers. And amazingly 9 percent of Americans still go to work between ages 75 and 84. After age 85, the number still working trickles down to 3 percent or about 122,000 people who continue to hammer away at their keyboard or punch in with their time clock.
Most people over age 65 still in the workforce are professionals (20 percent) or hold management positions (19 percent). A large portion of seniors also work in the service industry (18 percent) and sales (15 percent) or have office jobs (12 percent). But a few retirees also manage to do sometimes strenuous jobs such as production and transportation (12 percent) or construction and maintenance (5 percent).
Many of the seniors who continue to work full time have earnings at the top of the pay scale. About 20 percent of those age 65 and over make over $75,000 annually and just over half (53 percent) earn between $25,000 and $75,000 from work. Slightly over a quarter of those working full time in retirement make less than $25,000 annually.
http://www.usnews.com/money/blogs/planning-to-retire/2009/7/14/a-quarter-of-americans-still-work-after-age-65.html
A Quarter of Americans Still Work After Age 65
Comment By Emily Brandon
Posted: July 14, 2009
Retirement is a thing of the past for a quarter of Americans over age 65. Just over 25 percent of those between ages 65 and 74 were still working in 2008, according to the latest Census Bureau numbers. And amazingly 9 percent of Americans still go to work between ages 75 and 84. After age 85, the number still working trickles down to 3 percent or about 122,000 people who continue to hammer away at their keyboard or punch in with their time clock.
Most people over age 65 still in the workforce are professionals (20 percent) or hold management positions (19 percent). A large portion of seniors also work in the service industry (18 percent) and sales (15 percent) or have office jobs (12 percent). But a few retirees also manage to do sometimes strenuous jobs such as production and transportation (12 percent) or construction and maintenance (5 percent).
Many of the seniors who continue to work full time have earnings at the top of the pay scale. About 20 percent of those age 65 and over make over $75,000 annually and just over half (53 percent) earn between $25,000 and $75,000 from work. Slightly over a quarter of those working full time in retirement make less than $25,000 annually.
Monday, September 28, 2009
Amway Global - Triple Diamond Bankruptcy?
WWDB Triple Diamond, Greg Duncan, apparently in financial difficulties. Although he appeared to have declared net assets of 63 million, it seems he cannot round up enough cash to pay his creditors. I wonder how much conviction Mr Duncan has these days when talking about his financial success? :-)
It started here: http://www.amquix.info/amway_real_estate_crisis.html
And then: http://www.amquix.info/duncan_bankrupt.html
And now: http://www.amquix.info/duncan_bankrupt_2.html
It started here: http://www.amquix.info/amway_real_estate_crisis.html
And then: http://www.amquix.info/duncan_bankrupt.html
And now: http://www.amquix.info/duncan_bankrupt_2.html
Amway - Upline Mentors or A Bunch Of Crooks?
One of the things our upline told us when I was an IBO was how much they cared about their groups. My sponsor told us that these wonderful diamonds could be anywhere, doing anything, but they chose to be at these functions out of love and loyalty to the group. At the time, upline insisted that nobody earned any money from the sale of support materials. I wonder how many of these wonderful upline mentors would have been at the function if they lost money or made no profit from the functions?
Shortly after I left the business, the lies about the tool income became exposed and the internet also made it easy for prospects to find out this information. Of course, many upline started to talk about tool income, although there is still a great deal of secrecy about the tools and the income generated by tools.
What I find humorous is how some IBOs actually think their upline is some kind of mentor to be followed. As time passes, we are finding that many diamonds are fakes and frauds. There are many "former" diamonds, clearly debunking the myth of lifelong residual income. We are finding diamonds who divorce, contrary to the teaching that Amway saves marriages. Diamonds who are in financial difficulty and some in apparent bankruptcy.
Now these diamonds are no different than the rest of society, but they made much profit in selling themselves as being "above" the crowds. Thay they were financially well versed, that their marriages were built on a foundation of rock. That their lives are in order and that these diamonds are to be honored and copied by their downline faithful. But slowly and surely, they are being exposed and hypocrites and we are finding that they are not living large and debt free as they claimed. They are being exposed as a bunch of crooks with nice suits and nice smiles. It is unfortunate that some of these diamond leaders are suffering misfortunes, but I have trouble drumming up sympathy for them at this point.
So is your upline a mentor to be followed or just a cheap crook?
Shortly after I left the business, the lies about the tool income became exposed and the internet also made it easy for prospects to find out this information. Of course, many upline started to talk about tool income, although there is still a great deal of secrecy about the tools and the income generated by tools.
What I find humorous is how some IBOs actually think their upline is some kind of mentor to be followed. As time passes, we are finding that many diamonds are fakes and frauds. There are many "former" diamonds, clearly debunking the myth of lifelong residual income. We are finding diamonds who divorce, contrary to the teaching that Amway saves marriages. Diamonds who are in financial difficulty and some in apparent bankruptcy.
Now these diamonds are no different than the rest of society, but they made much profit in selling themselves as being "above" the crowds. Thay they were financially well versed, that their marriages were built on a foundation of rock. That their lives are in order and that these diamonds are to be honored and copied by their downline faithful. But slowly and surely, they are being exposed and hypocrites and we are finding that they are not living large and debt free as they claimed. They are being exposed as a bunch of crooks with nice suits and nice smiles. It is unfortunate that some of these diamond leaders are suffering misfortunes, but I have trouble drumming up sympathy for them at this point.
So is your upline a mentor to be followed or just a cheap crook?
Friday, September 25, 2009
Amway - Do IBOs Intend To Profit Or not?
I have been blogging for 5 or 6 years now and one thing I still cannot understand is whether or not, IBOs think it is important to make a profit. I hear stories about how IBOs are nicer people (although it doesn't show in many cases), how they make so much more money than before, how their lives are better, etc etc etc.
Now I know I joined Amway some years ago for one thing. That was to make money. If the plan said I could be nicer or make more friends, I would have quit or not joined at all. When I joined, I had been in my career for only about 9 years or so and thus, I was not at the top end of the pay scale, thus a few hundred a month more looked attractive.
I remember seeing the plan and thinking a diamond is a tough level to achieve. But I heard that a 2500 or 4000 could make up to $500 to $1000 a month. I was pretty sure I could reach those levels. And I did. But at the 4000 level, I made no money and I asked upline. I was told that the money would be there if only I would keep growing. I said wait a minute, where's the money that was supposed to be there?
(I'm from Hawaii so mainland functions ate up much of my profits). Upline told me to just keep going and the cash would be there. So I ignored losing money or breaking even at 4000 PV and I finally quit when my sponsor told me that I needed to submit to upline and really get plugged in to succeed. That pushed me off the edge (along with some other factors) and I quit.
But I ask this os IBOs, and new prospects. At what point do you expect to profit from the Amway business? And if you do as advised (told), at what point do you question that advice if you do not achieve what was advertised? If you spend money on standing order and functions and achieve what you were advised to do, why shouldn't the results be what was advertised?
If you truly believe that profit in business is not important, maybe you need to ask if you intended to profit or not. Seems upline is good at making people think profit is not important.
Now I know I joined Amway some years ago for one thing. That was to make money. If the plan said I could be nicer or make more friends, I would have quit or not joined at all. When I joined, I had been in my career for only about 9 years or so and thus, I was not at the top end of the pay scale, thus a few hundred a month more looked attractive.
I remember seeing the plan and thinking a diamond is a tough level to achieve. But I heard that a 2500 or 4000 could make up to $500 to $1000 a month. I was pretty sure I could reach those levels. And I did. But at the 4000 level, I made no money and I asked upline. I was told that the money would be there if only I would keep growing. I said wait a minute, where's the money that was supposed to be there?
(I'm from Hawaii so mainland functions ate up much of my profits). Upline told me to just keep going and the cash would be there. So I ignored losing money or breaking even at 4000 PV and I finally quit when my sponsor told me that I needed to submit to upline and really get plugged in to succeed. That pushed me off the edge (along with some other factors) and I quit.
But I ask this os IBOs, and new prospects. At what point do you expect to profit from the Amway business? And if you do as advised (told), at what point do you question that advice if you do not achieve what was advertised? If you spend money on standing order and functions and achieve what you were advised to do, why shouldn't the results be what was advertised?
If you truly believe that profit in business is not important, maybe you need to ask if you intended to profit or not. Seems upline is good at making people think profit is not important.
Thursday, September 24, 2009
Amway - College Graduate Earnings Vs. IBO Earnings
According to a U.S. Census Department study entitled "The Big Payoff: Educational Attainment and Synthetic Estimates of Work-Life Earnings" (http://www.census.gov/prod/2002pubs/p23%2D210.pdf), over an adult's working life the following are average lifetime earnings based on educational level attained:
High school graduates - $1.2 million
Bachelor's degree - $2.1 million
Master's degree - $2.5 million
Doctoral degrees - $3.4 million
Professional degrees do best at $4.4 million.
In 1999, average annual earnings ranged from $18,900 for high school dropouts to $25,900 for high school graduates, $45,400 for college graduates and $99,300 for the holders of professional degrees (medical doctors, dentists, veterinarians and lawyers).
Given empirical, verified and objective data demonstrating that a college education more than pays for itself, it is foolish for someone to suggest that they can't reasonably expect a return on their investment in a college education. It would take a real moron to suggest that they could exceed that return by wasting their time building an Amway business. Especially given the data showing miserable average results.
As far as the cost of that education and the implication that a person will incur massive debt, that too is a complete fabrication.
For those of you interested in the actual data on student loans and the effect of a college education on earnings, look here:
http://www.studentloanfacts.org/NR/rdonlyres/97FD743A-8F38-4641-916A-C4D907A84EE5/0/factbook.pdf
and here:
http://www.collegeboard.com/prod_downloads/press/cost03/cb_trends_aid_2003.pdf
and here:
http://nces.ed.gov/programs/coe/2003/pdf/42_2003.pdf
Oh, and if you are an "average" IBO, spending 40 years working Amway with the average earnings of $115 a month, your career of 40 years will gross you $55,200.
High school graduates - $1.2 million
Bachelor's degree - $2.1 million
Master's degree - $2.5 million
Doctoral degrees - $3.4 million
Professional degrees do best at $4.4 million.
In 1999, average annual earnings ranged from $18,900 for high school dropouts to $25,900 for high school graduates, $45,400 for college graduates and $99,300 for the holders of professional degrees (medical doctors, dentists, veterinarians and lawyers).
Given empirical, verified and objective data demonstrating that a college education more than pays for itself, it is foolish for someone to suggest that they can't reasonably expect a return on their investment in a college education. It would take a real moron to suggest that they could exceed that return by wasting their time building an Amway business. Especially given the data showing miserable average results.
As far as the cost of that education and the implication that a person will incur massive debt, that too is a complete fabrication.
For those of you interested in the actual data on student loans and the effect of a college education on earnings, look here:
http://www.studentloanfacts.org/NR/rdonlyres/97FD743A-8F38-4641-916A-C4D907A84EE5/0/factbook.pdf
and here:
http://www.collegeboard.com/prod_downloads/press/cost03/cb_trends_aid_2003.pdf
and here:
http://nces.ed.gov/programs/coe/2003/pdf/42_2003.pdf
Oh, and if you are an "average" IBO, spending 40 years working Amway with the average earnings of $115 a month, your career of 40 years will gross you $55,200.
Tuesday, September 22, 2009
Amway - Amway And The Better Business Bureau?
Over the years, I have seen literally hundreds (if not more) blogs and testimonials about Amway. Most of them decry the pitfalls of being an Amway IBO. Most of the complaints cite the fact that Amway in general has higher prices than comparable retailers and the fact that the system consisting of voicemail, books, cds and seminars ate up any profits the IBO may have made and resulted in net losses for most. One particular Amway apologist bemoans the fact that the internet is full of bad testomonials about Amway. The reason why there are so many negative testimonials about Amway is because over the years, thousands, possibly millions either had a bad experience for the reasons I cited above, or personally know of someone who had a bad experience.
Amway defenders will often cite the fact that many IBOs sign up and "do nothing" as their defense to this. But I will easily point out that I haven't seen anyone say they signed up, failed to do anything or order products, quit and started blogging about a bad experience in Amway. These defenders will also compare Amway to the gym where people sign up and "do nothing". Whether true or not, I also do not see people who sign up and "do nothing" complain about not receiving health benefits by simply signing up. It is a very weak defense. Conversely, I have seen numerous accounts of folks like myself who did put in effort, some for many years, who did what upline advised and did not see the financial rewards that is promoted in "the plan".
Amway defenders will then try to justify themselves, saying that the better business bureau (BBB) receives few formal complaints about Amway. I will agree with this. Many IBOs never bother to file formal complaints to the BBB or to Amway because in many, probably most cases, the person who quits and may have had a bad experience, was sponsored into the business. The sponsor was often a friend or family member of the IBO who left the business. Many will simply leave and forget the episode and chalk it up to a learning experience in life. Some will complain, but really have to ne venue to voice their remorse about joining. Some of us have found the interent to be quite effective in sharing our experiences and our opinions on why the business did not work. This is what one Amway defender calls the "internet war". What I have pointed out is that critics most often simply point out what the IBOs themselves have done. In many cases, the IBO is his own worst enemy. Afterall, critics didn't deny Amway and Quixtar had a connection, nor did critics make up claims about perfect water, etc.
It would appear that most of the problems has a root in the AMO systems, such as WWDB, BWW, LTD, or N21. Now, not all upline leaders are unethical, but it appears that many are, and new IBOs have no way to identify the good from the bad. It also appears that some of these upline leaders will issue bad avice. Advice that is detrimental to the IBOs, but financially beneficial to themselves, such as telling IBOs to never miss a function, or to buy more cds. In many cases, these unethical uplines do not care about IBO success, their goal is just to move as many support materials as possible, so they can fund their "diamond" lifestyle. Sadly, it is also apparent that the diamond lifestyle may be a facade in some cases. An illusion of wealth portrayed as a recruiting tool.
If you recognize some of these warning signs, ask tough questions of your potential sponsor and visit this or some of the blogs linked to this one for more information.
Amway defenders will often cite the fact that many IBOs sign up and "do nothing" as their defense to this. But I will easily point out that I haven't seen anyone say they signed up, failed to do anything or order products, quit and started blogging about a bad experience in Amway. These defenders will also compare Amway to the gym where people sign up and "do nothing". Whether true or not, I also do not see people who sign up and "do nothing" complain about not receiving health benefits by simply signing up. It is a very weak defense. Conversely, I have seen numerous accounts of folks like myself who did put in effort, some for many years, who did what upline advised and did not see the financial rewards that is promoted in "the plan".
Amway defenders will then try to justify themselves, saying that the better business bureau (BBB) receives few formal complaints about Amway. I will agree with this. Many IBOs never bother to file formal complaints to the BBB or to Amway because in many, probably most cases, the person who quits and may have had a bad experience, was sponsored into the business. The sponsor was often a friend or family member of the IBO who left the business. Many will simply leave and forget the episode and chalk it up to a learning experience in life. Some will complain, but really have to ne venue to voice their remorse about joining. Some of us have found the interent to be quite effective in sharing our experiences and our opinions on why the business did not work. This is what one Amway defender calls the "internet war". What I have pointed out is that critics most often simply point out what the IBOs themselves have done. In many cases, the IBO is his own worst enemy. Afterall, critics didn't deny Amway and Quixtar had a connection, nor did critics make up claims about perfect water, etc.
It would appear that most of the problems has a root in the AMO systems, such as WWDB, BWW, LTD, or N21. Now, not all upline leaders are unethical, but it appears that many are, and new IBOs have no way to identify the good from the bad. It also appears that some of these upline leaders will issue bad avice. Advice that is detrimental to the IBOs, but financially beneficial to themselves, such as telling IBOs to never miss a function, or to buy more cds. In many cases, these unethical uplines do not care about IBO success, their goal is just to move as many support materials as possible, so they can fund their "diamond" lifestyle. Sadly, it is also apparent that the diamond lifestyle may be a facade in some cases. An illusion of wealth portrayed as a recruiting tool.
If you recognize some of these warning signs, ask tough questions of your potential sponsor and visit this or some of the blogs linked to this one for more information.
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