Is The Amway Opportunity Like Gambling?

 Let me make a disclaimer right off the top so Amway defenders don't try to discredit the post without reading it. The Amway opportunity is not a game of chance. But I will go on to explain how and why the opportunity can be compared to gambling and why the diamonds can be seen as a casino or the "house".

In the Amway opportunity, the odds against someone going diamond are astronomical. Literally tens of  millions of people (or more) have attempted to build an Amway business in North America over the years and diamond club for North American diamonds (In Maui, Hawaii (some years back had 160 diamond-ships represented. Certainly, some north American diamonds may have turned down a free trip to Hawaii but I'm guessing that's not a big number.  Isn't that a perk of being a diamond? 

The odds are also stacked in favor of the diamonds. Casinos are not built by winners, but by the hordes of losers. Just as a diamond business is not built by having a foundation of winners, but layers and layers of IBOs who are losing. The Amway opportunity is simply set up that way. Look at your common 6-4-2 plan or whatever version your group uses. The newest or biggest layer of IBOs make very little and when you factor in expenses such as functions or standing orders, the losses can be staggering.

A diamond, like a casino will attract many young dreamers who think they can conquer the world and will get rich. They use bright lights and profile former winners just as Diamonds show off fancy cars and testimonies to lure in recruits. The newness of the opportunity gets you excited, just as someone walking into a casino might feel the excitement with the sounds of the casino. All you need is some effort and little luck, right? Sadly, that excitement is all too often replaced with the harsh reality that most must lose in order for there to be a few winners, both in casinos and the Amway business.

Like casinos and diamond uplines, there is much caring for active IBOs and for players who are spending their money in casinos. But once you walk out of the casino, there is no special treatment, just as an IBO who stops building a business or stops being core quickly becomes forgotten and shunned. In Amway, people who said they were lifelong friends were never heard from again once an IBO missed a few meetings. If you re-emerge, you will find the love again, just as you will get free drinks and possibly other comps when you start gambling again.

And yes, there are some exceptional people who can scratch out a nice living by gambling, but they are few and far between, just as there are diamonds, but diamonds also have thousands of people who wanted diamond but could not achieve it. Those who can finally make it usually have an exceptional blend of skill and a bit of luck. Some even cheat/lie in order to gain a bigger edge, both in gambling and in Amway.

Like a gambling "system", the Amway opportunity has "systems". In either opportunity, the system doesn't work for the masses. There are an exceptional few who can make it work. Except in gambling, most people understand that the odds are stacked against them. In Amway, many new IBOs are told that anyone and everyone can succeed when it simply is not true.

Can you fulfill your dreams by gambling or with the Amway opportunity? The answer is yes, but the reality is that few (A tiny fraction of 1%) will ever do so. Like casinos and Amway diamond-ships, both are built on the backs of those who lose, not on those who win.

Do Amway IBOs Judge People?

 One of the things that my upline taught, and I believe is still taught today in various groups is that winners join Amway and losers do not. Or that you were a winner because you were doing something to better your financial future and those who didn't were losers. or broke minded. Of course, the upline who said this had no knowledge about those who were not in Amway. Some of them may already have been financially sound or may have been doing something to better their financial future. I'm not sure why these uplines, who promote "positive", had to resort to calling people losers simply because they did not agree that Amway was the greatest thing since sliced bread. It's only positive if it's Amway related and anything non-Amway is negative. Anyone see a problem with this?

In many games or sporting events, there will be someone or a team that wins the game and someone or a team that loses the game. Losing a game doesn't make you a loser and certainly, a team that wins the game would not say the losing team were losers. Can you imagine a Superbowl winning team's coach taking the podium after a game and saying his team won because the other team was a bunch or broke minded gutless losers? That would never happen, yet we see that frequently in the Amway/IBO world. The owner of Amway, Rich DeVos had once said in a recorded message that just because people do not agree with you (paraphrased) about Amway, does not make them losers and that IBOs should not call people losers. I believe this has been crafted by upline to apply pressure to downline IBOs to "never quit'.

In all of this, people's jobs are also criticized. That a job stands for "just over broke" or "jackass of the boss" and other insults. Many IBO's goals and dreams consist of ditching their job so they can sleep until "the crack of noon" and live a life of luxury. Ironically, it is most IBO's jobs that continue to produce income so they can pay their bills and feed their family. It is also an IBO's job that funds their Amway and AMO expenses such as product purchases and functions and voicemail, etc. Without having a job, most people could not even join Amway or pay for any tools. Sadly, most IBOs won't make any money in Amway either, or will have to continue to work at their jobs. I do not believe that someone earning an honest living working a job is a loser. Ironically, many of the folks calling people losers and broke are not even netting a profit from their Amway business!

Yes, in this business or the sports world, there will be winners and there will be losers. The question is whether you are the one who is allowed to be the judge of who is and who isn't. I would also suggest that IBOs are completely shutting down potential future business by their behavior. What if I went to a store to purchase something but the item was not available on that particular day, so I don't purchase anything and leave. As I leave, the store owner says I am a loser for not buying something there. Will I go back? Very unlikely. If an IBO truly sees themselves as a store owner, all prospects should be seen as potential business, whether future or present. If your upline tells you that people not interested are losers, you should hand him a mirror. Or inform your upline that when you point a finger at someone, there are even more fingers pointing back at you.

Losers?

 One of the things that my upline taught, and I believe is still taught today in various groups is that winners join Amway and losers do not. Or that you were a winner because you were doing something to better your financial future and those who didn't were losers, or broke minded. Of course, the upline who said this had no knowledge about those who were not in Amway. Some of them may already have been financially sound or may have been doing something to better their financial future. I'm not sure why these uplines, who promote "positive", had to resort to calling people losers simply because they did not agree that Amway was the greatest thing since sliced bread.

In many games or sporting events, there will be someone or a team that wins the game and someone or a team that loses the game. Losing a game doesn't make you a loser and certainly, a team that wins the game would not say the losing team were losers. Can you imagine a pro football team's coach taking the podium after a game and saying his team won because the other team was a bunch or broke minded gutless losers? That would never happen, yet we see that frequently in the Amway/IBO world. The owner of Amway, Rich DeVos had once said in a recorded message that just because people do not agree with you (paraphrased) about Amway, does not make them losers and that IBOs should not call people losers.

In all of this, people's jobs are also criticized. That a job stands for "just over broke" or "jackass of the boss" and other blurbs. Many IBO's goals and dreams consist of ditching their job so they can sleep all day and live a life of luxury. Ironically, it is most IBO's jobs that continue to produce income so they can pay their bills and feed their family. It is also an IBO's job that funds their Amway and AMO expenses such as product purchases and functions and voicemail, etc. Without having a job, most people could not even join Amway or pay for any tools. Sadly, most IBOs won't make any money in Amway either, and will have to continue to work at their jobs. I do not believe that someone earning an honest living working a job is a loser. Ironically, the folks calling people losers are often not even netting a profit from their Amway business!

Yes, in this business or the sports world, there will be winners and there will be losers. The question is whether you are the one who is allowed to be the judge of who is and who isn't. I would also suggest that IBOs are completely shutting down potential future business by their behavior. What if I went to a store to purchase something but the item was not available on that particular day, so I don't purchase anything and leave. As I leave, the store owner says I am a loser for not buying something there. Will I go back? Very unlikely. If an IBO truly sees themselves as a store owner, all prospects should be seen as potential business, whether future or present. If your upline tells you that people not interested are losers, you should hand him a mirror.

The Millionaire Mentality?

 A comment left by an anonymous site visitor:

"I love Amway. I just don't understand why people have to be negative about it. I don't hurt or steal from anyone yet I make money. I'm not a millionaire as of yet but working towards that goal. It's called "millionaire mentality". Joecool, you will never succeed with penny mentality."

Joecool's commentary:

It would be my informed opinion that most diamonds do not have a millionaire mentality. If you see how they spend money and how they flaunt excessive wealth, I see people who could win the Powerball lottery and wind up broke. They might earn a nice income (even if it may come by lying and deceiving), but they spend it all, and possibly more by portraying the diamond lifestyle. In my opinion, the diamond lifestyle as portrayed in functions such as "Dream night" are not sustainable.  For this reason, we are now seeing evidence of this such as a triple diamond who was in chapter 7 bankruptcy proceedings, diamonds losing homes to foreclosures. We are seeing diamonds selling their mansions. Sure, they might be downsizing or liquidating their assets, but if these homes have been paid in cash as they claim, why sell them in a bad real estate market? Why not wait a few years?

In the past, I have posted some articles showing the traits and characteristics of millionaires. Many of these articles cite saving, investing, and living below your means. Many wealthy people drive regular everyday cars and live in the suburbs. They don't commonly have Porsches, and jaguars. And for the record, the average diamond income, as reported by Amway, isn't all that much when you factor in business expenses and taxes. So why do diamonds try to show off wealth?

I believe diamonds show off wealth because it is a way to attract recruits. Because the Amway opportunity has a high turnover rate, nobody can reasonably "walk away" from their business and have cash rolling in for long. Attrition would eat away your business in a matter of days or weeks. It is why I believe diamonds do not walk away from their businesses, because they can't afford to. The business requires constant attention or it will crumble faster than stake cookies.

Most IBOs are simply fooled into thinking they are developing into having a millionaire mentality. An honest question for IBOs. How do you even know if your upline diamond is a millionaire? Anyone, even a broke guy can wear a nice suit and show off pictures of mansions and sports cars. For that matter, how do you know if your upline diamond is currently qualified as a diamond? Amway doesn't release that information except for new pins.

In my opinion, diamond's displays of excessive wealth and luxury portrays something, but it's not the millionaire mentality.

The Real Scam?

 A lot of people come and go in Amway, but many of those who come and go don't even notice the scam. They get sold on what they believe is a business opportunity that they can make some money at, or at the very least save some money on products that they would normally buy anyway. If they do it right, they can possibly make some "real" money and with some had work, you can build it right and have the option one day of walking away from Amway and living off ongoing residual income from Amway. It sounds reasonable and therein lies the scam.

For years, I have challenged people to name 2-3 people, aside from the Amway owners, who joined, built the business "right" and was able to walk away and retire with ongoing residual income, enough to be financially free forever. Not a single person has been able to name and confirm that even a single person has done this. I believe it's all a lie and part of the scam. Amway's distributor force turns over about 50% each year. How can you build a residual income empire when half of your downline quits each year? I believe Amway diamonds trade their 9-5 jobs for the night shift. They work at night and into the morning hours because they are working to replace people who quit and to support downline platinums who might struggle or fail to re-qualify for that level. If upline says they are working for the love of their downline, I call BS on that. If walking away and enjoying life was an option, why hasn't anyone chosen it?

Now you could argue that a diamond's "work" isn't that bad, and they aren't reporting to a boss. And that would be true, but I imagine the pressure of churning people in and out to keep qualifying can be stressful in itself. If you live on an island like me, you can eventually have trouble finding new people to work with. In 1997 or so, there were a bunch of diamonds in Hawaii and they all moved to the mainland. Now I"m not sure why but my upline diamond was Harimoto, who loved the ocean and the beaches. Yet he moved to Washington state. I believe they needed new grounds to mine, just like gold miners.

The next part of the scam is how IBOs will tell you about Amway's generous money back guarantee. 100% they'll tell you. What they don't tell you is that the guarantee is only on some of the products and the sign up fee. The cds, books, voicemail and functions are not sold or run by Amway. And these expenses can be very significant over a period of time. IBOs and prospects need to know this. You can lose thousands and get back pennies on the dollar asking for a refund on the sign up fee and perhaps a few products. Another piece of the scam.

Also, IBOs and prospects are often shown only the very best case scenario (such as going diamond) but not told that your chance of being struck by lightning is much higher than your chance of going diamond, even though going diamond is not a random event. A real life and likely scenario is getting in and trying hard for a while, and then quitting with some business losses. At least if you know this and still try anyway, you will have done so with full disclosure.

Lastly, it's insidious in my opinion, for upline to tell you to trust them and to do as they say, and then turn around and tell IBOs that failure is their responsibility. That they didn't work hard enough or do thing just right. That sure isn't what they are preaching when recruiting you into the business. They are saying how sharp you are and how you're likely to tear up the business. But it's just another facet of the scam. I've outlined the parts of the opportunity that I believe are scams, but I'm sure it's not limited to my point of view.

Good luck if you read this and join anyway.

Artificial Intelligence View On Amway?

 Out of curiosity, I asked my Microsoft Co-Pilot AI (artificial intelligence) if Amway was a poor business opportunity.   The initial part of the response was how you can register as an affiliate for $55.   It goes on to speak about different levels in Amway such as affiliate or a higher level  where you recruit downline, etc.   It also mentions that income increases when you sponsor downline, creating a leadership group.  This is general basic knowledge for people somewhat familiar with the Amway opportunity and the details.

The interesting part is the discussion about the challenges and controversies surrounding the Amway opportunity.  

1.  Amway has faced criticism for its pyramid like structure where recruitment plays a significant role in earning income.  

While Amway was reviewed by the FTC in the past, they were found not to have qualified as an illegal pyramid.  However, this is not to say that Amway was exonerated or spoke of as a good example by the FTC, which is what some Amway IBOs and defenders like to spew on the internet.  Indeed, Amway was fined at one time for $100,000 for violating that 1979 ruling.  In this case, Amway apparently had ads that misrepresented income claims.

was amway fined in 1986 - Search (bing.com)

2.  The company (Amway) imposes strict requirements and sometimes unrealistic goals, making success challenging for many.  

For example, Amway has very strict rules about advertising and other factors that make it difficult to move products to the general public.  And if you have any disputes about these rules and regulations, you appeal to Amway, who gets to be the arbiter of these rules.  Can anyone really challenge and multi billion dollar corporation and win?  I find it highly unlikely, next to impossible.

3.  Amway affiliates cannot sell Amway products on platforms like Amazon or EBay, limiting their options.

So IBOs cannot use retail outlets or even ecommerce giants to move Amway products,  Thus, IBOs can sell person to person.  That is a restriction that is likely to hinder the opportunity to move a high volume of products.  I don't understand this rule because once an IBO makes a purchase from Amway, they get to restrict how that product is marketed to the public?  Maybe there's something I don't know about this, but you'd think Amway would want the market flooded with their products.   During the covid pandemic, online businesses like Amazon went through the roof and sales were booming.  If I'm not mistaken, Amway sales were lower or flat compared to pre-pandemic levels.  Amway had at one time peaked about just over 11 billion (I believe) but their sales and revenues has since dropped.  

And these restrictions are imposed by the corporation but doesn't include charging premium prices for generic in nature types of products, generally speaking.  If you remove any bias from your mind, take a look at what you can purchase from Amway for $100 and see what you can get from Costco or Wal Mart for similar products.  (Costco and Wal Mart don't sell Amway products).   Secondarily, the Amway name reputation has suffered from IBO lies and behavior.  For example, calling people broke or losers because they don't agree that Amway is a great deal.  All these factors add up to what the opportunity is:  A revolving door with high IBO turnover and the potential for business losses.  Is seems as if the longer you stay in and participate in the tools and training systems, the losses mount and become staggering in some cases.  

I know AI still needs to be scrutinized and double checked, but the AI response on Amway is correct, based on my experiences and in my own opinion. 

 

  

The "System"?

 Based on my experience in Amway, my blogging experience, and observation of other people who give financial advice such as real estate gurus who teach you to buy property with no money down, or others such as Robert Kiyosaki for that matter, commonly show testimonials of successful people. In the end, this is as effective as showing all the people who won the lottery. Focus attention on the people who won but ignore the millions of people who failed trying to accomplish the same thing. Obviously, they do not show you the vast majority of people who try their systems and fail.

It is my informed opinion that whether it is Amway, WWDB, BWW, N21, real estate or the cash flow business, the vast majority of people who try these systems do not make any kind of significant income. Sure, some do, and those are shown as the possibilities. But if you watch infomercials for these "systems", you will see in small print on the bottom of the screen, "unique experience", your results may vary. I believe that a similar message is used at the end of Amway diamond recordings and audios as well. The diamonds basically present only the best-case scenario to prospects while ignoring the most likely results.

These systems in general do not work for various reasons. Many people simply do not have the acumen to work the system. Or the system has too many variables for the system to work, or the system calls for things beyond your control. For example, success in Amway generally requires you to sponsor others, something that is beyond the control of most people. Add in the lazy and people who are hoping for a quick score and it is understandable that most will fail. But these systems are often set up where the majority simply cannot all succeed. Nowhere is that truer than the Amway business where the pyramidal compensation plan nearly guarantees failure for the vast majority of lower level IBOs. The 6-4-2 plan shows 79 IBOs with 1 platinum. Thus, even with everyone in the groups earning a bonus, (practically impossible), you have 1 in 79 achieving platinum, which is the level where you allegedly begin to break even or make a small profit, depending on your level of commitment to the "system".

So what can someone do? Well, it may not be as sexy or attractive but a part time job and investing and saving might be something to think about. Even a part time business where you focus on selling products for a profit might work. It just seems prudent to avoid these "systems" as the primary beneficiary of these "systems" are the ones who directly profit from them - the upline diamonds.