The Amway Zombie (Ambot)?

 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.  You are trying to do your best but part of the system is to sacrifice nearly everything you hold near and dear on the altar of Amway.  There are countless stories about this on the internet, and I've lived through some of it myself, having once been an IBO.

*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.  And can you blame them?  Zealous Amway IBOs can often become annoying and overbearing in their quest to go diamond.  

*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.  In the end, is there really any information to confirm that Amway products are any better than run of the mill products?  not really.  

*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.  The upline will drop these hints as pressure on the IBO to keep going, even if financial losses become staggering.

*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 effect 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.  You might even be guilty of "tapespeak", in which you simply parrot what your upline says.

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

Amway IBOs Help Others? Really?

 One of the BS things our Amway upline constantly told our group was that we were out there helping people and fighting for what is right in the world.  That evil will triumph when good men fail to take action. I agree with this. That the AMOs have thrived because too many good people have ignored the problem and it hasn't gone away, only unnoticed by most. The result is probably tens of millions of people over the years getting scammed out of their hard-earned dollars via the "tool scam".   It's so ironic that upline teaches that IBOs are helping and saving people by exposing them to Amway.  Looking back, it's laughable.

Let's dissect these issues and look at them one at a time. What exactly are you fighting as an IBO? Fighting against yourself? Your job? I know many uplines want you to think your job sucks, thus giving you motivation for joining and succeeding in Amway. Then the hook comes where they will tell you that tools are vital for your success. But you aren't fighting anything.  Your job pays your bills and allows you to make a living, whether you like it or not.  Most likely your Amway business isn't generating enough to cover your "functions and tools" expenses, so your job income is vital even if your upline says otherwise.  It's also ironic because your upline diamond is living the diamond lifestyle because of you and your job income, along with thousands of others.  

How about helping people? How do IBOs help people by enticing them to join Amway? While people are doing community service or other projects, IBOs are stalking people at malls or other venues looking for prospects or spending weekends at meeting and functions. How does this help anyone but the folks who profit from the functions? How are IBOs helping people? It's nice to believe that you are fighting or a cause or helping other people, but the fact is that most people make nothing or lose money by being involved in Amway, not even factoring in the time you may lose for spending time with family and friends.

I was once an IBO. I thought we were involved in a good cause. I did eventually realize that we weren't helping anyone. The only people we took interest in were potential Amway recruits. Everyone else was cannon fodder. Those who are familar have heard "some will, some won't so what? Next"!  I did not pursue to "help" anyone unless they were interested in Amway when I was an IBO.  How does that make the world a better place?

IBOs are mostly good and hardworking people. They have just been sucked into believing a false cause perpetuated by their upline. Most wake up and get out quickly as I did, but I believe the damage over the years is immense. I hope this blog provides some valuable insight for new and tenured IBOs and prospects.

Amway IBOs Are Simply In Denial?

 One thing that appears to be common among Amway IBOs is how IBOs are in constant denial. They truly believe that their uplines are working in their best interest and that upline only wants their success. I don't believe that to be true. If uplines were truly making a fortune from Amway, why would an downline IBO have to pay for practically every bit of help they get from upline leaders? Why aren't any functions pro bono? What difference would it make to someone making millions heaped upon millions?  Think about this, if others went "diamond" and achieved the pinnacle of success, suddenly the upline gets a smaller portion of the tools and functions income because the new diamond would get a significant cut from their personal downline.  In fact the best-case scenario is for someone to get close to diamond and quit, leaving all the active downline directly under the current upline diamond.

To illustrate this, to show the plan, you would need to pay to attend an open meeting, and pay for your guests, even if they do not register as a result of the presentation. You pay for voicemail to communikate with your upline and downlines. You pay for standing orders, and you may end up paying twice if you were in attendance at the function when the standing order was recorded. You pay for books and other materials as well.  And you get nothing if your guest winds up not joining, or joining but doing nothing and quitting.

What's more, many IBOs turn their heads when ugly facts rear their heads. For example, some IBOs deny that a prominent triple diamond (Around 2009 or 2010) was involved in bankruptcy proceedings. They continue to edify and pay for financial advice from someone who could not even manage his own finances. They believe that Amway saves marriages even when the leaders who speak this may be getting divorced. It's like upline simply revises history and downlines buy it without question. Many IBOs do not even see it as a problem that some upline lied and said there were no profits from tools in the past. I find this odd because tool profits are still shrouded in secrecy and downline simply believe that they will eventually get a cut, even without a written compensation plan and agreement.

I believe too many Amway IBOs are simply in denial. They give upline their trust and upline abuses it. IBOs are told they are successful for attending a function even when they might be losing money month after month. They may be told that the Amway business is not about money but about making friends. They may be told that they are nicer people because of their participation in Amway. What too many IBOs do not see is that they are simply in denial about their business. Most IBOs are losing money, a little at a time, perhaps $100 or $150 a month. For the hardcore, maybe more. But they are taught to ignore these simple facts and deny that there is a problem.

It is my hope that exposure of some of these tactics will be beneficial to information seekers and perhaps new IBOs who have not yet been fully indoctrinated. I encourage people to ask tough questions, demand answers and use due diligence when checking out this opportunity. The fact is that very few people every make a profit and people should know this before getting involved. In the end, IBOs pay up and they keep on paying upline for their sage advice, even when their bank accounts keep getting lighter. Where will it end?

Joecool On Vacation

Hi Folks!   I'll be on a trip for the next week so I won't be updating this blog until about next week Friday, October 28, 2022.  I'll be visiting Arizona, Nevada, and possible Utah.  

Until next week, I am posting this article called "Amway Math"

It is my observation that people who join Amway usually end up losing money in the end. They may get involved to make a few bucks or because they are mistakenly led to believe that they will become millionaires in Amway in 2-5 years. I know my sponsor convinced me that we would be millionaires in a few years. These folks who recruit new IBOs into Amway are often associated with a "system" such as Worldwide Dreambuilders (WWDB)or Network 21 (N21). These system promoters, often diamonds, may mislead the recruits by showing them pictures of mansions or other luxuries, implying that they attained these goods with their Amway business. In many cases, it is a deception, especially when we know for a fact that some diamond leaders who proclaimed that they only make cash purchases, had their homes foreclosed. Without the hype, I am sure there would be fewer sign ups. But what is the evidence?

It is simple. Amway reports that the average active IBO earns about $200 a month in gross income. This average includes diamonds and other higher end IBOs. I believe if you calculated the median, the average would be much lower.

But what makes IBOs operate at a loss is the system expenses. The system generally consists of voicemail, standing orders, cds, functions, books and other materials. An average business building IBO might spend an average of $250+ a month or so on these expenses. Amway defenders like to decry the amount, but there are couples who would likely spend more and IBOs who must travel by air to functions would spend more. Single IBOs who buy only the minimum might spend a bit less. Some IBOs with abusive uplines might spend much much more than $250 a month on tools. I believe my former sponsor spent easily an average of $1000 a month on average. (I am from Hawaii so the average cost of functions is greater due to long distance travel)

Thus if the average IBO earns $200 a month but the same average IBO spends $250 a month on tools, the average active IBO is losing $50+ a month, with lower level IBOs (i.e. 100 PV) would lose more.

Look at a group of 100 IBOs at 100 PV. (This is just a model). If a 100 business building IBOs average $250 a month on tools, they as a group would expend $25,000 a month on tools and functions. Their volume would be 10,000 PV, or about 30,000 BV. This would generate about $7500 in bonuses per month. Thus this group spent $25,000 to learn and be motivated while the group splits up $7500 a month in bonuses. The platinum would get the lion's share of the bonus but most of the rest of the group will suffer net losses. As the group grows, the bonus may grow, but so will their expenditures on tools. Keep in mind that a group of 100 IBOs spitting up $7500 would be an average of $75 each. It is the diamonds that drive up that average. The math bears it out.

The only way the group can make money as a whole is to avoid participation in the tools altogether and to actually sell products to non IBO customers. The evidence is right here with simple math. The systems do not work because the cost of the system is likely to consume all of the Amway generated bonuses and more. I gladly challenge anyone to explain in detail how this post is not reflective of the reality of being in Amway and a system such as WWDB or Network21.

The facts speak for themselves.

Minimum Wage Or Amway?

 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 long hours and usually under poor working conditions. For example, a foreign operation may have a warehouse full of women and children working all day in some factory 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 than 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/audios, 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. They claim that you benefit by "associating" with them but you are no more associating with them than the cleaning lady does when she is working. I saw this firsthand and have no doubt that some or all of it exists today. Many platinums works are free doormen and ushers at meetings and functions. 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 much better proposition than Amway.

The Road To Ruin?

 When I saw the Amway plan, it was presented sort of as a road to riches. Yes, the presenter/speaker was careful not to say it was "get rich quick", but 2-5 years is relatively quick when compared with working 40 hours a week for 40 years as the business plan was shown to us. And while some exceptional people do achieve diamond, there is a massive trail of IBOs who suffer losses, some of them staggering. In our own group, I know of at least one couple who lost their home following upline advice, and another couple to ended up filing for chapter 7 bankruptcy. I must state that the bad advice leading to bankruptcy and foreclosure most likely came from upline leaders. I also know of a gal who quit her job to attend a function, faithfully following upline advice from WWDB. It took her a while to recover from that bad advice.  I'm sure other IBOs suffered a similar fate if they faithfully followed upline advice.

So what is the experience of many CORE IBOs? I'm not talking about those who "do nothing", but IBOs who actually make an effort. Well, if they do their 100 PV, then they are spending about $300 a month on Amway stuff and dedicated IBOs will typically spend about $200 a month or more on average for tools and functions. This is for a single person. A couple or family would be expected to do more, thus spend more. So for these 100 PV IBOs, they will expend about $500 a month or more and get back maybe $10. Of course, if they were not in Amway, they would still have some expenses for household goods, but not anywhere near $500 a month. 

Over the course of a few years, these expenses add up and can become staggering losses. Hard core IBOs might expend even more. The only way a rank-and-file IBO can gain relief is to sell products (which is difficult given the prices and the Amway name reputation) or to sponsor downline who will then suffer some of the losses for you. It would be my estimate that an IBO might break even at about the 4000 PV level. However, at 4000 PV, you might have significant expenses associated with running a group, such as showing distance plans for your group.  

Over the years, I would suspect that millions of IBOs have come and gone through the Amway opportunity, and probably lost billions of dollars. But many of those who lose money think they are successful, because many upline will edify those who buy tools, regardless of IBO results. After a few months, if your group and PV are not growing consistently, it is highly unlikely that you are headed for success. 

IBOs and newbies, are you on the road to riches or financial disaster? Keep in mind that a net loss is not success, despite what you upline mentor may tell you.  

Amway Works?

 The Amway business works if you work it! That's what many Amway enthusiasts will claim. I do not believe that is true and I will further explain in this post. Many Amway IBOs who claim that the business works are usually new and are unable to show any evidence that the business works, except perhaps to show a photocopied check from an upline diamond or the like. To date, no Amway IBO who posts on this blog as shown actual evidence that Amway works. And there is no evidence that hard work results in Amway success. 

Let me make a disclaimer that some people might be able to make significant money from Amway, but most of those folks are usually tenured diamonds who are almost in an exclusive club. There is only a short list of new diamonds that I know of in the US, and I have heard that even these new diamonds may have had legs in other countries. It would seem that Amway is not growing much in the US and Canada. Also of note, Amway does not release figures that are separate between Amway North America and the rest of their overseas operations, so information is limited.

Ok, so Amway enthusiasts claim that the business works if you work it. Business in its simplest form is selling a product or service for a profit. Yet many many IBOs spend so much of their time doing other things, as advised by their upline "mentors" who sell them training materials that take up much of their valuable time. Listening to audios/cds, attending functions, reading books, and other training activities not only costs the IBO money, but takes up valuable time in non income producing activities. Nobody makes sales reading books or attending seminars. Inviting people to see "the plan" may be a way to help generate volume but with Amway's reputation, even this is a hit and (mostly) miss activity. 

Many IBOs spend almost all of their time doing these activities (the work) when they could be better off not getting the training and focusing on selling the Amway products and services. Even that comes with a handicap as Amway products as a whole, costs a lot more than purchasing similar or the same products as a big retailer such as Costco or WalMart. It is why most IBOs eventually get discouraged and quit far before the promoted 2-5 year plan. 

Few people will even bother to see the plan once you mention "Amway" and for those who are open minded and motivated to register end up having to deadl with a hard to sell opportunity along with high priced common commodities such as soap, vitamins and energy drinks. It's pretty easy to see that the business does not work, even for most of those who actually work it. There are simply too many issues with the business that hanidcaps those brave enough to try. It seems even the fiercest defenders of Amway are unable to provide a shred of evidence that they have actually made a profit from this opportunity.