Monday, July 6, 2015

Amway Dreams?

One of the issues I have with the Amway plan is that the newest IBO, possibly the one who does the most "Work", receives the smallest compensation. Amway pays about 32% of their income back in the form of bonuses. An IBO who does 100 PV receives a 3% bonus and somewhere, uplines and sponsors receive the rest. Some of the upline may not have even met the IBO who actually did the work. Is that really fair and is that a level playing field? What do some of these uplines do to deserve the lion's share of the bonus you worked to get? Yes, the upline diamond may show the plan in an open meeting, which may help you, but then again, you pay for entrance into that meeting.

Many uplines will talk about dreams and fulfilling your dreams. But if an IBO would stop and think for a moment, you can easily see that you are building the dreams of your upline, and not your own. You receive a tiny portion of the bonus for the volume that you move, and then in addition, if you are on the system, then you are also paying upline in the form of tool purchases for the priviledge of giving them bonuses with your product purchases.

It is why your upline diamonds can parade around on stage with designer suits and show you their fancy cars and mansions and other toys. It is because they are cashing in on your efforts. You are making their dreams come true. Your dedication to moving volume and purchasing standing orders are fulfilling dreams. The upline dreams. Yes, someday you can hope to have your own group of downline to exploit for your own benefit, but unless you are adding members to your group regularly, you will never achieve the kinds of dreams that uplines talk about. In the meantime though, you are definitely helping someone upline achieve their dreams with every function you attend. Ironically, the upline leaders will tell you to never quit, even if they don't know your personal circumstances and/or how your business is progressing.

Here's a challenge for IBOs and/or prospects who are being recruited into the Amway business. 100 PV will cost around $300 a month and dedication to the tools system will cost you around $150 to $250 a month on average. Would you not be better off simply writing a check to your upline for $100 and not even joining? Would you not be better off staying home and watching television instead of joining? If you read all of the information available on this blog and still decide to join, good luck to you, but remember this: Whose dreams are being fulfilled by your participation?
Yours or your upline?

Thursday, July 2, 2015

Is Amway Something For Nothing?

In my opinion, Amway is a pyramid. They are not illegal, but still a pyramid. The reason why they remain legal, apparently is because they do not pay anyone for recruiting downline and they claim to sell products to actual customers. But most everyone has been, or knows someone who was recruited by a zealous Amway IBO. The emphasis of most active IBOs is on recruiting and much of the teaching by upline is on techniques to recruit and/or how to talk to people without tipping their hat to reveal the Amway name. Most IBOs are not very good at this and they stick out like sore thumbs in many cases. It's also comical when uplines teach crazy antics, like how some IBOs use to deny that Amway and Quixtar were even remotely connected, or if anyone remembers the "perfect water" fiasco a number of years back.

One of the reasons IBOs use to justify their involvement in the pyramid is that they can earn more than their sponsor. While that is true, it is only because everyone below the emerald or diamond level is basically expendable, or a slave in the pyramid. There are many many IBOs who achieve fairly high levels who quit, or had upline wreck their businesses. Thus even platinums are expendable to upline. In fact an upline might make more money by removing the platinum. For new IBOs or recruits, do you really believe that you are going to ever surpass your current upline diamond or higher? If you believe that, you are sadly mistaken.

And for those who dream of achieving diamond and walking the beaches of the world. How do you think you can ever achieve that? You don't get something for nothing unless someone gets nothing for something. In order for you to receive income for little or no efforts, your downline IBOs must keep purchasing products and replacing IBOs who quit. If your downlines cannot keep up with the attrition rate, your business will collapse in a hurry. Come to think of it, if a diamond can walk away and collect a large income forever, why hasn't anyone done it? I mean we still see crown ambassadors still busy working functions and I don't know of any who walked away to spend their lives jet setting on the beaches of the world.

The sad reality is that you see new faces at meetings and functions, just as often as you see familiar faces disappear. With that kind of attrition rate, you may have to work even harder at the higher levels just to keep your business status quo. In Egypt, the slaves built the pyramids. Do you have enough slaves? What many Egypologists find amazing is how the Egyptians were able to motivate the slaves to keep on going, doing backbreaking work all of their lives. The same can be said of a diamond level business (or higher)

Wednesday, July 1, 2015

Amway Is "Proven"?

Many uplines and IBOs will talk about their system. More often than not, the various systems such as WWDB or Network 21 will tout themselves as the best, fastest growing, proven, and most profitable. I know that was promoted when I was an IBO and I believe it is still promoted this way. There are many comments on the internet from IBOs and recently former IBOs that indicate that this is true. But let's take a look at these claims.

How does one determine the best? You really can't. The best is an opinion unless there are established criteria on what constitutes the best. Of course, every upline will think their group is the best, but what can factually be derived from that claim? If you are an IBO or prospect of Amway, try asking that question. Based on what do you make the claim of being the "best" group or system?

Fastest growing can be proven or disproved. But for the most part, we know that Amway isn't growing by leaps and bounds in North America. During the Quixtar tenure, it appeared that Amway sales in NA either stagnated or even shrank. Amway supporters cite overall Amway sales going up, but it's reasonable to conclude that the increase in sales is primarily in foreign countries. For some odd reason, Amway no longer reports North American sales, but simply lumps everyhing into a global sales figure.

As for any system to be making claims of proven, all these systems have basically done is proven that they are dismal failures. Based on Amway's own figures, we can deduce that less than half of one percent of IBOs ever reach the platinum level. The platinum level is approximately where you might see a small profit if that platinum is CORE. There is some documentation indicating that platinums might lose money at that level. While the study is dated, the expenses associated with being a platinum have gone up significantly since that study (Wisconsin Attorney General) so it can be very possible that platinums continue to see a net loss these days. It's also very visible that there are fewer diamonds in north America today than a dozen years ago. Diamonds have quit and some were terminated. It appears that most new diamonds come from foreign countries where Amway has not yet suffered reputation issues.

Makng claims of fastest growing is also one that can be proven. However, try asking your sponsor or upline for evidence of this claim. Also, is the growth occuring in your area? Are you from the US or Canada? Citing growth in Korea for example, is unlikely to mean anything for the vast majority of IBOs. And even if there is some growth, how does that translate as leverage or an advantage for you? Ask these questions and see what answer you receive, if any.

The system is proven for sure. But it's proven to be a failure. The numbers supplied by Amway clearly back up this claim.

Tuesday, June 30, 2015

The Reality Of Amway?

One of the things that attracts many IBOs to the Amway opportunity is the idea that they can work part time, 2-5 years and gain a "shortcut" to ongoing and voluminous wealth. Many of the prospects don't have the kind of income or resources that they would like, so the possibility of a shortcut to these trappings sounds like a good idea. They sign up and get started, and then the realities of the business sets in.

100 PV, is the defacto minimum quota for business building IBOs. It costs about $300 to purchase 100 PV worth of products. How many young and single people or couples for that matter, use and/or need $300 worth of household products each month? How many of these same people can actually afford to expend that much cash on household products? The pitch is to change where you shop but how many people were buying these kinds of good prior to Amway? My guess is none. I know I purchased many items, including vitamins, and I didn't need or use before Amway. But my desire to be teachable and to be an example to my downline kept me buying the goods, and trying to pawn off some stuff on friends and relatives to lessen my PV burden.

I also found that getting people to see the plan was no easy task. While my business was growing, it took more and more effort to recruit downline and I can see where many IBOs would reach the saturation point where there simply aren't anymore viable recruits and they might need to resort to cold contacting in order to generate potential prospects. This is probably why there are stories of IBOs stalking people in bookstores, malls and supermarkets. Even when people saw the plan, there wasn't a high percentage of new people signing up. It is why building and maintaining a business is a nearly impossible task, and it is why I believe there aren't people who retire, walk away from their Amway businesses and enjoy six figure residual incomes for life.

The more likely scenario is an IBO signing up, buy and using the products and tools and slowly but surely build up debt. There are countless stories of ex IBOs who got fired up, started building the business and fouond that in a relatively short period of time, found themselves in thousands or tens of thousands of dollars in debt. All the while upline was encouraging them to buy more tools and attend more function, even when they were not profitable. In my opinion, this is confirmation that uplines care more about their tools profits that they do about downline success. I sat in functions where upline would teach about reducing debt, but in the same breath, say it was okay to go deeper in debt if it was to purchase more tools. Self serving advice.

It is why I believe this opportunity, along with the tools system, will nearly guarantee IBO failure. It is sad, but it is also a reality.

Monday, June 29, 2015

Amway Helps Me Get Out Of Debt?

One of the things that many Amway uplines will talk about with their downline is debt. Many IBOs and prospects join Amway, hoping that Amway will help them eliminate debt, by providing some extra income. What many IBOs find out though, is that they end up more deeply in debt, not because of Amway necessarily, but often because of the pressure to purchase tools and function tickets and other Amway related business expenses. The really sad thing is that much of the additional debt that Amway IBOs end up incurring becomes profit for their upline, via tool purchases.

Eliminating debt on the surface, is a good thing. However, I believe that many uplines only want IBOs to eliminate debt so they can free up discretionary monies that can be channeled into tool purchases, which uplines profit from. So while the advice seems sound, it still ends up as a self serving piece of advice. If you are an IBO or a prospect, is your upline advising you to eliminate debt and then turning around and telling you to attend "all" functions? It doesn't make any sense at all to go into debt to build an Amway business that is supposed to be low cost and low risk. If you aren't selling enough products to pay for functions and other tools, then it's very likely that your business simply cannot afford to take on those expenses.

As a former WWDB IBO, I heard the mantra about getting rid of debt. It sounded good to me, but I was floored when the same upline told us it was okay to go deeper in hock if it was to further our business, or in other words, to buy more standing orders or to attend functions. I could not understand why it was okay to create more debt, but only if it was to "invest" in your business. If debt is bad, then functions and other tools should be cut as well, until the IBO can reasonably afford to participate in the system. Amway IBOs, in my opinion. should be using profits from the business in order to purchase tools. If there is no net profit, then that IBO needs to decide whether or not the tools are worthy of an investment. Even if an IBO has some profits, the IBOs should determine whether to bank the profit or to channel them towards tool purchases, especially if the tool purchase will turn a net profit into a net deficit.

Too many IBOs trust their upline and make initial and ongoing purchases of tools, and then continue to do so without seeing tangible results. I believe this is why IBOs are taught to trust and have faith. Or that success is right around the corner. It keeps an IBO going, even in the absence of results. Hopefully a post like this can bring awareness to IBOs and potential IBOs. Good luck to those who disregard this information.

Friday, June 26, 2015

Amway IBOs Keep On Paying?

One thing that appears to be common amongst IBOs is how IBOs are in denial. They truly believe that their uplines are working in their best interest and that upline 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? Would it hurt for a diamond making millions to run a free function or meeting for his downline, especially when that diamond is the biggest beneficiary of the meeting.

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.

What's more, many IBOs turn their heads when ugly facts rear their heads. For example, some IBOs deny that a prominent triple diamond 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 boldy 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 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 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 oppportunity. 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?

Thursday, June 25, 2015

Amway IBOs, The Real Losers?

One of the things I recall as an IBO was thinking how sorry I felt for people who were not IBOs because we were all going to be rich and everyone else was a loser. Our upline used to tell us that we were winners - and if you weren't a winner, then obviously, you are a loser. Many times, the term "broke" was attached to the term loser. That was my mindset back then, but having been out of the system more than ten years, I can look back and laugh, realizing that the losers were the ones buying stuff they don't need, stalking people at malls and bookstores, and wasting their time and money on tapes (cds), books and functions.

What goes unnoticed in many cases, is how much time and money really goes down the drain for IBOs who work the system. Your life revolves around the business if you are dedicated and hard core. You are always looking for prospects and people to show the plan to, and you have to rearrange your schedules, or outright skip social or family gatherings because of the neverending number of meetings and functions, many of which teach you nothing about running a profitable business. When I first left the Amway business, I was sort of angry at the time and effort that was wasted, along with the cash I threw down the crapper. But after having been gone for a while, you get on with life and you get back into a normal pattern of life and social interactions with friends and family.

So after I did finally cut ties with the business and the people associated with it, I got back into a new routine of sorts. I focused on my job and after some years of gaining experience and working my way up the corporate ladder, I received some promotions and I am scheduled to be retired at the age of 56 with a decent retirement income and will likely have my home paid off by then. So while I did have to work a dreaded job to be able to retire, pretty much all IBOs are also working a job or business PLUS having to expend their time and money to run their Amway business which has little to no chance of providing a long term stable and significant income. And if I may add, it is the systems such as WWDB or N21 that usually end up costing the IBOs the most money because of things like the functions.

So I will ask the question. Who's the real loser? The person diligently working and saving for their future or the person chasing a dream that is unlikely to materialize? Factoring in the expenditure of time also makes the systems even more costly than it appears on the surface.