How The Teaching Evolves?

 One of the things that is clear. Many Amway recruits are shown fancy cars and toys, along with luxurious vacations and trappings. This is a way to get prospects excited and interested in signing up for the Amway opportunity. Many sign up, and soon enough, the excitement fades and they quit. Either that or the IBO sees monthly losses and no prospects of improvement and quits. Many do little or nothing. But what many people do no understand or realize is that there is a reason for this. Many do little or nothing, I suspect because the business is much harder to build than advertised.

Because Amway has a stigma in the US (and growing in other locations), finding prospects is a daunting task. Add in the high prices of Amway products and you have major challenges that IBOs simply cannot overcome. Most simply quit and fade away into society. Some, like myself were lied to and abused, with upline leaders (WWDB)who were never held accountable for their actions. Thus I blog so others may share my experiences and can decide if they wish to climb insurmountable challenges for a less than 1% chance of financial success.

What many leaders do is evolve their teachings. They start to teach their IBOs that the Amway opportunity may have made them nicer people, better fathers or husbands and other nice to hear stories because it covers up the fact that these IBOs are not making money. Sometimes I wonder how someone can be a better person by deceiving others about the business opportunity, or how you can be a better father or husband when Amway meetings become a priority over your family and friends. Or how you can be a nicer person and leave threatening messages on forums with those who disagree about Amway being a great business opportunity?

Rather that justifying your involvement or looking are side benefits, IBOs should be looking at their bottom line. If your Amway "Business" is not generating enough money to pay for your voicemail and other expenses and leaving you with a net profit, then what exactly is your upline teaching you that is worth the ongoing expense? If you are like most, you are told that Amway has no overhead and has little risk. Well, that becomes untrue after months pass by and you have spent hundreds if not thousands on support materials that do not deliver you a net profit. Additionally, your upline is making a nice income by selling you those support materials and advising you to buy more.

Are you new or a tenured IBO? Has your teaching from upline evolved away from making money as the bottom line? If so, what do you do next? I would run in the opposite direction.

A Life Of Leisure?

 When I was an IBO and was out showing the plan, I often saw my upline diamond driving around town dressed in a business suit. I used to think why does he keep working so much if he can walk away and collect residual income? My sponsor told me that the diamond only works because he cares about his downline and wants to help them. So there are two possible scenarios, the diamond is working to help his downline out of a genuine concern, or possibly he is working because he has to! The only difference now is that the diamond works the night and/or graveyard shift, because many IBOs are building the business after they complete their day jobs. **We should also note that my former upline diamond dropped down to the emerald level around 2005 and has since re-established his diamond level. (So much for lifelong residual income)

Now Amway has stated that the average diamond earns about $150,000 a year. Amway currently says the average Diamond makes over $500K, but that is the average for aQ12 Diamond (which is the rare exception, thus I believe the average diamond income is still about $150K) That is a decent income, but after taxes and paying for basic expenses such as medical and dental insurance, the average diamond probably lives a very middle class lifestyle. Keep in mind that a large portion of a diamond's income comes in the form of an annual bonus, thus a diamond's monthly income may be quite small. Yes, diamonds may have other sources of income such as speaking engagements and income from standing orders and functions. But this income depends on the diamond's continued appearances and efforts.

So is it likely that a diamond is "free"? I would have to conclude that a diamond is not free, and may actually have to spend more time maintaining his group than if the diamond simply had a 9-5 job. For one thing, a diamond needs to maintain a personal group to keep qualifying for bonuses. With a poor retention rate in Amway, I am fairly sure that a diamond spends much time recruiting personally sponsored IBOs to maintain this group. Additionally, a diamond must help his six or more groups of downline platinums to maintain their businesses or face the possibility of falling out of qualification. My former diamond dropped down to the emerald level but has since re-qualified at diamond. A diamond must also dedicate time to reward up and coming movers and shakers, to keep them motivated. I got to spend time with my upline diamond when I was considered a promising up and coming IBO.

In order to continue to receive tools income, a diamond must also travel to numerous functions and speaking engagements. Although the tools income allegedly doubles a diamond's income, it also adds a lot of expenses, especially if the diamond and his family travel first class to show off the diamond lifestyle. I wonder if some diamonds can even afford to fly first class?

After breaking down projected income and considering projected expenses, I can only conclude that a diamond probably lives a middle to upper middle class lifestyle, and probably works as much as a man with a 9-5 job, except that a diamond works nights and weekends. A good portrait of this is shown in Ruth Carter's book (Amway Motivational Organizations: Behind The Smoke and Mirrors). In the book, the diamond had a net income of over $300,000, but lived in debt, could barely pay his mortgage, and was always on the run from one function to the next. This is not the lifestyle that diamonds try to portray.

I believe that diamonds may actually be busier at the diamond level than an average Joe who has a 9-5 J-O-B. The difference is that the diamond works the night shift. Is this the freedom you are seeking?

Upline Mentor Or Crook?

 In the Amway business, most active IBOs are advised to trust upline. To think of upline as a coach or a mentor. These upline mentors or coaches are supposed to have your best interest at heart and they will guide you to success if only you will be open to learning. Many uplines, including my former uplines used to coin the term "copy" or duplicate. If you can do that you will be successful. Even the simplest of people can copy. The upline may crack a joke about getting thru school by copying. Thus, many IBOs follow exactly what their upline advises them to do.

But then uplines turn the responsibility away from themselves. Many Amway defenders will also claim that downline should not simply follow the advice of upline. They may make a ridiculous claim that standing orders and functions contain advice that must be discerned. That information is like a buffet. You pick and choose what you need and discard the rest. If you are a new IBO or prospect, let me tell you that is a load of guano (bird crap) that is being heaped on you. Your upline is touted as having experience and wisdom in the Amway business, which is why you are paying good money for voicemail, books, cds/audio files, and functions. So why would their advice be something you pick and choose? How would a new IBO know what to pick and choose?

Imagine hiring a guide for a trek in the wilderness. The guide is supposed to be an experienced outdoorsman, perhaps an expert. So if he recommends that you eat certain plants or fruits, you trust that he is going to guide you right. Imagine eating something that made you sick to your stomach, only to have the guide tell you that he just points out plants and fruits and you have to discern which is good for you and which is not. You would fire the guide and tell everyone you know not to use that guide anymore.

But here we have these "systems" such as Network 21, WWDB or BWW that have been "guiding" IBOs for up to 20 years or more in some cases, and the number of diamonds are negligible. Sure there might be new platinums, but many tool consuming platinums have been found to be losing money or making very little money for their efforts. What's more, it would appear that Amway is losing ground in sales. Amway's sales dropped from 11.8 billion in 2013 down to 8.6 billion in 2017. One can reasonably guess that any new platinums that break are simply replacing the volume for a platinum that no longer exists or a platinum that no longer qualifies. My former upline diamond appears to have all new qualifying platinums from the time I was in the business and here's the kicker. My former diamond had 6 downline rubies. As far as I know, none of these rubies are qualified as platinum anymore, much even in the business.

Uplines also program their downline to take responsibility for the failure. Thus you have IBOs who did everything that was asked of them, only to fail. Yet these IBOs often blame themselves for their failure. It is my opinion that former IBOs who did everything asked of them only to fail should file a formal complaint against their LOS with the better business bureau. Amway defenders like to think that a lack of formal complaints means that the system works when clearly, there is no unbiased substantial evidence to suggest that the system works. It looks like some succeed in spite of the system, not because of.

The catch in all this is uplines skirting responsibility for the outcomes of those they "mentor" and profit from. IBOs should ask if upline really cared about their success, why do you have to pay for any help that you receive from your upline diamond?

Amway IBOs Exploited By Upline?

 Some big companies and some private entrepreneurs have been accused of being "sweat shop owners". This is when they exploit their workers, often in foreign countries by having them work for a very small wage. For example, a foreign operation may have a warehouse full of women and children working all day under poor conditions for a few bucks a day. The owners of these operations can rake in the dough as they save a ton of money in labor costs. There are some big American corporations that have been accused of this.

Some uplines operate just like sweat shop owners, but in many cases, they are worse then sweat shop owners because even exploited workers earn something. At the end of the month, they have a net gain, even if it might be small. In the case of many Amway IBOs, they spend money on Amway products, and uplines take the lion's share of the rebate/bonus that is generated by those sales, and then in turn, these same uplines try to get many of their downline to also become customers of their system of cds, books, voicemail and seminars or functions. In many, probably most cases, uplines will make just as much if not more income from the system, than from Amway. Most downline IBOs would be far more profitable if they simply worked a part time minimum wage job instead of building an Amway Empire.

These same upline will also teach fierce loyalty to the system. Never miss a function. Make sacrifices to buy more books or cds, and make sure you are always looking for people to sponsor to add to the system. Joining the system almost guarantees that you will suffer a net loss in the Amway business. It is why I continue to write about what IBOs and prospects should look for when they are being recruited or indoctrinated into these systems. It is why there are so many defenders of Amway, most of whom are losing money, but think they are still successful because it is what upline teaches. If only the IBOs and prospects could just step back and look at things objectively instead of blindly believing what their upline teaches them.

I know most IBOs won't believe this, but I will say it anyway. IBOs on the system are probably worse off than sweat shop employees because they are paying their upline to do their work. At least sweat shop employees get a small salary. Upline will teach you that it is an honor to drive them around, or to do tasks for them. I saw this firsthand and have no doubt that some or all of it exists today. Many platinums works as free doormen and ushers at meetings and functions, or as taxi drivers to take the diamond to their paid meetings. Upline benefits by maximizing profits from functions. It is pure downline exploitation and I hope eventually that more and more IBOs will recognize this. It is clear for those who are willing to look at it objectively.

For most, a part time minimum wage is a better proposition than Amway.

Amway Or Gambling?

This blog post is not about comparing Amway to a game of chance, although sadly, Amway's ultimate results have less success than gambling, For Amway and Gambling, "hope" is the common thread that hooks people and keeps them involved. Why does Amway appeal to some people despite the overwhelming odds? I believe it's the same reason why people enjoy gambling and what keeps people hooked on both. Like gambling, the Amway opportunity (the way it is often presented) represents "HOPE". Hope it is why people buy a lottery ticket. Hope is often the reason why people gamble as well. One pull on a slot machine could result in millions. Amway is not a game of chance but it represents hope. As a young prospect, my sponsor would ask how else any of us could (in reality) become rich or millionaires? The answer was zilch. My sponsor would say that the Amway business represented our "best" chance.

Everyone needs hopes and dreams. It's what keeps most people going. Without hope, many people are susceptible to depression or they may begin to wonder what the purpose of their life is. In some instances where people take their own lives, it is common for that person to have lost or given up hope. Without any hope for better things or a better life, they give up and may do the unthinkable and take their own lives.

Where I believe some Amway leaders are scum is when they give people false hopes and dreams and use it to profit handsomely likely knowing that their downline will never profit in the Amway business. I've heard from some former pins who had witnessed some of the bigger pins making jokes about the dreamers in the audience who keep coming to seminars but will never make it. These folks want success so badly that they literally have tears in the eyes. They will work the business hard but they won't make it. The system is designed to have a few successes with many participants. A good example is the common 6-4-2 plan where all 79 IBOs moved enough volume to earn a bonus, yet only one platinum is created from that volume. The rest, if on the system of cds, seminars, voicemail and books will likely operate at a net loss despite doing the right things and putting in the effort. It's just really sad to know that so many people have big hopes and dreams that will never be fulfilled.

Some groups of diamonds will display a "diamond lifestyle" showing off golf trips, fabulous vacations, mansions, cars and jet skis. Do all of this with no job and the money is unlimited and keeps rolling in. This is what some groups will portray as the goal for many young and newbie IBOs. They'll says things like "anyone" can do it. While anyone can do it, anyone can also win the lottery or anyone can make million in Las Vegas. No, Amway is not gambling, but the representation of "hope" is often what attracts people to gambling, Las Vegas, and Amway. Both (Amway and gambling) have few winners and a multitude of losers.

Are You An IBO Or A Customer?

 I've been debating with others about the concept of customers. Amway's most prolific defender argues that IBOs are customers and holds the position that there are alot of people who register with Amway simply to be customers. Now I don't know how anyone can possibly make that determination, but regardless of whether it's true or not, these folks are still considered IBOs. I don't want to debate the legal ramifications about the 1979 FTC ruling and the 70% rule, although the spirit of the rule was to prevent IBOs from buying their bonus. in the 2016 FTC ruling against Herbalife, the FTC said sales to distributors do not count as retail sales and required Herbalife to changes their operations because of this rule.

Amway apologists apparently contends that IBOs who purchase and then resell to downline are meeting the sales requirements and the downline are customers. Okay, let's go with that. But wait, IBOs do not buy and then resell to their downline. IBOs order directly from Amway do they not? If IBOs order directly from Amway, their upline gets some volume credit for downline purchases but the upline doesn't buy and then resell anything to downline. So are IBOs actually making any sales to non IBOs, save for sympathetic friends and family?

If in fact, IBOs are not selling their goods, and are primarily self consuming them, it means that most of the upline bonus is basically generated from the pockets of the downline. I believe the tools business is a product pyramid as only IBOs are buying standing orders and attending functions. The lack of selling Amway products to the public would put the Amway business opportunity in pretty much the same category. I wonder what the FTC would rule today if that were the case? I wonder what the FTC would rule on the tools systems as it is today?

Something to think seriously about. If you are an Amway business owner, and you are selling little or nothing, where do you think your bonus comes from? It either comes from your own pockets, or it comes from taking advantage of your downline, who then pony up a portion of your bonus from their pockets. In a system such as this, the only way to maximize your bonus is to recruit as many downline as possible. Because the more people you can leverage, the more bonus you can get. The problem with this system is that people realize they aren't making money, and that paying in some cases, ridiculous high prices for "prestigious" soap and vitamins is not worth it, and they quit. When these folks lose their Amway dream of mansions and jets, they somehow lose their desire to keep making purchases.

If former IBOs kept on buying Amway goods, then Amway sales would climb pretty much every year as the former IBO's purchases coupled with current IBO purchases should keep going up, not down. But that's not really the case is it? In what business can the employees or company owners be the primary customers and prosper. The answer is none and Amway is not an exception.

Amway And The BBB?

 I recently saw comments on this blog from an apparent Amway defender. The comments extolled the virtues of Amway partner stores such as Nike and Apple. To be honest, I don't know if Amway actually partners with Nike and Apple but let's say they do. What does the partner store designation mean? All it means is that Amway IBOs get to list Apple and Nike stuff in their catalogues. If they manage to sell any Nike or Apple stuff, they get a commission paid by Nike or Apple through Amway. But of course, because of the IBO bonuses and because Amway needs to make some money on the transaction, the prices of Nike and Apple products in the Amway catalogue cannot compare (in general) to to big retailers or even Internet shops like Amazon.com.

Assuming that Nike and Apple are truly Amway "partners", they have a one-sided partnership. Nike and Apple don't do anything for Amway IBOs except to allow them to sell their products for premium prices on a commission only basis. Meaning is nothing gets sold, Nike and Apple do not have to compensate anyone. It's a no brainer for Nike and Apple. If people sell your stuff for top prices, you pay a commission but if they sell nothing, you pay nothing. It's a great deal for Nike and Apple, again, assuming they really are Amway "partners". Heck, if JoeCool made "I hate Amway" stickers and Amway wanted to be my partner, I would do it too. Nothing to lose and much to gain.

Now, about the BBB. I don't know what Amway's rating actually is because they could be "A' rated in Michigan for example, and not "A" rated in Arizona. The rating has a lot to do with Amway dealing with complaints to the BBB. If they deal with complaints, then they might get a good rating. However, many people are sponsored by friends and family and simply do not register complaints about Amway even if they had a bad experience. But even if they registered, it was likely against an LOS (Line of sponsorship) such as BWW (Britt Worldwide) or WWDB (World Wide Dream Builders) or N21 (Network21). These are for profit third party companies designed to help recruit and train Amway IBOs and who profit even if Amway IBOs lose their shirts. Often these groups are not rated with the Better Business Bureau (BBB). Individual Amway IBOs who do bad and unethical things are also not registered with the BBB so their bad behavior would not be rated by the BBB.

Why do you suppose Amway has such a bad name reputation while their IBOs brag about Amway's alleged BBB reputation? IBOs and their training companies are not Amway. It's very possible that Amway would not approve of the things done by individual IBOs or the training groups but Amway for too long (in my opinion) has profited because of the bad behavior of the lines of sponsorship and the bad behavior of individual IBOs who they claim they can't control. Perhaps if Amway cannot contain the bad behavior, they should not be allowed to profit from this bad behavior and should be fined or have restrictions imposed upon them like Herbalife did last year.

I believe I have thoroughly debunked the partner store and BBB myth, but I'm sure Amway IBOs and defenders will be back to raise the issue again soon. LOL