Wednesday, October 22, 2014

The Truth About Amway?

What is the truth about Amway?

One of the things that irks me about some Amway leaders is their blatant revisionist history. They never take responsibility for anything except for the miniscule amounts of success that seeps through their system. Real problems and issues are ignored, or leaders pretend they never happened, or they simply rewrite history to fit their goals and agendas. And to make matters worse, these same leaders teach their downline to accept personal responsibility for their failures, even when downline faithfully purchase and apply teaching from tools such as voicemail, standing orders and functions. The truth is that the Amway leaders are given a pass and are not held accountable to anyone.

One good example from the past was the complete lie that nobody made profits from tools. Then when caught red handed, leaders now admit that they make profits from tools but nobody seems to know exactly how much, or how you actually qualify to receive compensation. And there was no backlash for having told such blatant lies. Today's IBO's were not present when the lies were told and most current IBOs would have no knowledge of it. Nobody was accountable.

Leaders in my former LOS, WWDB used to teach how so few IBO couples ever gets divorced. I heard that Amway couples had a 2% divorce rate as compared to the rest of the world where over 50% of couples get divorced. Yet, WWDB uses their own revisionst history. One good example is Howie Danzik, who WWDB says built his business as a single and later married Theresa Tsuruda. I guess I must have imagined the emerald function I attended where Howie and his wife at the time, Susan, said they built the business together. There are other examples of this, but what amazes me is how the downlines seem to ignore these facts.

Another fairly recent example was how an IBO insisted that a prominent triple diamond in WWBD did not have homes foreclosed or was not involved in bankruptcy proceedings, even when there are numerous public documents providing ample evidence that it was true. It's mind boggling. If Tiger Woods were a diamond and denied that he had any affairs, I bet his downline would believe him as well. Scary.

I just have to wonder when IBOs, who dedicate themselves to various systems, will ever hold these leaders accountable for their actions. If you buy a television and it didn't work, you would ask for a refund. Well, if those standing orders and functions contain vital information and you apply them and they don't work, you should ask for a refund as well. People should also ask upline the tough questions. If someone gives you bad advice, they should be held accountable. If someone tells you buying a home with a mortgage is stupid because of the interest you will pay, then you find out they have "interest only loans", that makes them a hypocrite and their advice should be questioned.

Don't allow these well compensated leaders to simply rewrite history to ignore their mistakes and trangressions. This blog contains many "truths" about Amway and it may not be pretty and won' be what your upline says. Ask questions and be discerning. Good luck!

Tuesday, October 21, 2014

The Amway Dream Stealers?

Some debates over Amway recently churned up some accusations once again about critics being "dream stealers". I thought I would address this but first I wanted to print the definition of a dream from dictionary.com:

dream  
[dreem] Show IPA noun, verb, dreamed or dreamt, dream⋅ing, adjective
Use dreams in a Sentence
–noun
1. a succession of images, thoughts, or emotions passing through the mind during sleep.
2. the sleeping state in which this occurs.
3. an object seen in a dream.
4. an involuntary vision occurring to a person when awake.
5. a vision voluntarily indulged in while awake; daydream; reverie.
6. an aspiration; goal; aim: A trip to Europe is his dream.
7. a wild or vain fancy.
8. something of an unreal beauty, charm, or excellence.

–verb (used without object) 9. to have a dream.
10. to indulge in daydreams or reveries: He dreamed about vacation plans when he should have been working.
11. to think or conceive of something in a very remote way (usually fol. by of): I wouldn't dream of asking them.

–verb (used with object) 12. to see or imagine in sleep or in a vision.
13. to imagine as if in a dream; fancy; suppose.
14. to pass or spend (time) in dreaming (often fol. by away): to dream away the afternoon.

–adjective 15. most desirable; ideal: a dream vacation.

—Verb phrase
16. dream up, to form in the imagination; devise: They dreamed up the most impossible plan.

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Based on these definitions, I do not see how it is possible for anyone to steal a dream. This dream stealing verbage is just more upline propaganda designed to get IBOs to shut off their critical thinking skills and to blindly commit themselves to buying more standing orders and function tickets, whose profit goes into the pockets of your beloved upline leaders.

I believe #6 is the most appropriate definition for an IBO. A long term goal. But if an IBO's long term goal is retirement and riches, they should analyze their involvement in the Amway business and determine if that is the appropriate vehicle to achieve their goals. For the vast majority of people, this is not the appropriate vehicle and facts confirm this. It's a matter of whether or not an IBO was told to ignore the facts by his/her upline.

Monday, October 20, 2014

Hypocritical Amway Upline?

Now that the internet is so accessible, information flows freely and some of the dark secrets of the Lines Of Sponsorship have been exposed. Also, as times passes, it is becoming clear that a bunch of upline leaders are major hypocrites, apparently motivated by greed and personal gain. I believe this trend will continue as well. It appears that these same leaders have managed to get around Amway's accreditation guidelines, which appears to be toothless.

Many upline leaders appeal to their audience by talking about how the Amway business can save marriages. I remember sitting in an audience when some diamonds spoke about how couples who build the business have a less than 2% divorce rate as compared to the national figure of 50% or so. One major reason cited was the financial stress that J-O-B people had (not enough cash). But now we see some upline diamond leaders getting divorced and in some cases, no explanation is offered, as if the missing spouse was beamed up by aliens. Many leaders simply revise history or deny that certain events happened. Some leaders just pretend nothing happened and it seems like IBOs are very forgiving, thus no real accountability has ever been applied to upline leaders.

People also found that some diamonds make a lot of money from tools. When I was an IBO, we were told very clearly, that nobody made profits from tools. That profits went back into the functions to make them better and cheaper. (Has any function gotten cheaper in the last 12 years?) In fact, when I was an IBO, I was told that WWDB was a non-profit entity, which was a bold lie. I will admit that upline later changed their story to WWDB was a for profit company, but nobody kept profits, thus the channeling money to make events better and cheaper. Agsin, when have events ever been cheaper. Now I don't think that events should be run pro bono, but the leaders should be transparent about it rather than the lies and shroud of secrecy that often accompanies talk about tools and tool income.

Some upline leaders also spoke of how utterly stupid it was to take out a loan as the banks make so much money off the interest. We now see some of these very leaders having their homes foreclosed! Some of these diamonds were the very ones who said their pay cash for everything, including their homes and cars. It is not in the hopes for these folks to suffer, but it is exposing the lies and deception that leaders used to entice IBOs to join and to purachse tools that were supposed to help IBOs to attain the same lifestyle as the diamonds. However, rather that more diamonds, I believe WWDB and some other LOSs, at least in the US, have fewer diamonds now than 15 years ago. Where's the evidence of success?

What's even more amazing is how the hypocrisy of some of these leaders are exposed to downline and the downline simply ignores it and continues to follow blindly without an explantion or questioning the leaders after the incidents are exposed.

IBOs should ask their leaders questions when these kinds of issues arise. And you should think twice if the answer you receive is silence or deflections.

Friday, October 17, 2014

The Amway Retirement Myth?

I was watching a show on Discovery channel the other night about Sasquatch. It was followed by a show about evidence of UFOs. It made me start to think about these phenomena. It seems like everyone has heard about or knows something about Sasquatch (Big foot) and/or UFOs. There are many documentaries showing pictures and evidence of both, but to date, there is no bonafide evidence that these things exist. You'd think that a body or bones of a Sasquatch would turn up somewhere, sooner or later, or we would find compelling evidence of a spaceship from another galaxy.

It sounds just like stories of people who built a diamondship, then "walked away" from their businesses, retired in the lap of luxury and did nothing while the money kept rolling in. I heard numerous scenarios about this happening, but looking back, all the diamonds kept working and since Joecool left the business, the diamond either kept working, or quit or got terminated or died while working as a diamond. But I never heard anyone name some higher up Amway pin who built a business, and then walked away from it to travel the beaches of the world while hundreds of thousands of dollars kept rolling in. Many have heard about it but nobody seems to be able to name any of these folks. I mean after over 50 years in existence, you'd think some of these folks would exist, especially when it seems to be a selling point of the business for many AMOs.

It is my opinion that Sasquatch, UFOs and retired Amways diamonds (with significant Amway income) are non existent. If these folks existed, there should be at least some shred of evidence of it. The lack of evidence indicates to me that it is either non existent or so rare that nobody can display bonafide proof. I mean there aren't any T-Rexs roaming the earth anymore but fossil evidence proves that they existed at one time.

Keeping in mind that the Amway business has a high attrition rate, coupled with low sales to non IBOs and you can easily conclude that residual and significant income is nearly impossible. An Amway business that is left alone will deteriorate like a sandcastle does as the waves wash it away. You (in theory) could possible walk away from an Amway business for a while and collect some income, but you won't be collecting enough income to live the "diamond lifestyle" as portrayed by diamonds in their functions and open meetings. I'm not even sure that active diamonds can comfortably afford that lifestyle even when building their businesses. There is ample evidence to support my claim. Diamonds losing homes to foreclosure, former diamonds revealing secrets about their income. If you really believe you can walk away from your Amway business and collect untold wealth, I have a bridge in Brooklyn to sell you. :-)

Thursday, October 16, 2014

A JOB Versus Amway?

One of the ways that upline diamonds would put down jobs was to toss in the phrase that a job was simply trading hours for dollars. As if it were demeaning to have a job where you got paid for your time. I believe it's all relative. Being that many IBos are young and maybe working in more entry level types of jobs, then yeah, your hourly wage might not be that great. If you earn say $10 an hour, then you might be struggling financially and it may take time before your skills and knowledge increase to a point where your experience is worth more money. What if you had a job paying $1000 an hour and earned $160,000 a month? Is that a lousy deal trading hours for dollars? I think not!

Conversely, having a business can be good or bad also. If you have an Amway business earnning less than $100 a month and you spend $200 on functions, standing orders and other training and motivational materials, then you are losing money. You would be better off working for free. That is still a better alternative than working a business where you are losing money. I think most people agree that a platinum group typically has a 100 or more IBOs. Thus a platinum is in the top 1% of all IBOs. I have heard that the platinum level is where you start to break even or make a little profit, depending on your level of tool consumption. If platinums are barely making a profit, then the other 99+% of IBOs are likely losing money. How much is that worth per hour?

I think uplines cleverly trick IBOs into thinking that a job is bad. Trading hours for dollars, afterall, sounds like some kind of indentured servant of sorts. But in the end, what matters is your bottom line. If you are an IBO with little or no downline, and/or not much in terms of sales to non IBOs/customers, then you are losing money each and every month if you are attending functions and buying standing orders. Your 10-12 hours a week of Amway work is costing you money! But if you spend 10-12 hours a week, even at minimum wage, then you might be making about 300 to 350 a month gross income. After taxes, you make about 250 to 300. At least trading hours for dollars gets you a guaranteed net gain at the end of the month, whereas Amway is getting you a net loss.

Uplines trick you into a "business mentality" where you think that working for a net loss is just a part of business. IBOs should realize that a business promoted as low risk and no overhead should be one where you can profit right away. Instead, IBOs are taught to delay gratification, or to reinvest any profit back into their business in the form of tools and functions, which results in a net loss. If that's the case I would choose trading hours for dollars.

Remember, trading hours for dollars is not a bad deal if you are making enough dollars per hour. And even those who make less, are better off that those who "run a business" but end up with a net loss. It's all relative and hopefully, this message will help new or prospective IBOs who are being enticed to join the Amway business opportunity. Good luck to those with jobs and those with businesses. You can be successful either way. Remember that!

Wednesday, October 15, 2014

People Quitting Amway?

I often see commentary about people quitting Amway and Amway loyalists are quick to call them broke, losers, lazy, lacking guts. Ironically, these same lazy and loser types of people were "sharp" and motivated prospects before they signed up for the Amway opportunity. Someone recently left a comment on my blog about how AMOs should conduct exit interviews with departing IBOs to get to the root of the problems. The root of the problem in my opinion is that Amway products are priced too high and the business opportunity is a poor one. It really is that simple.

However, based on my years of blogging and Amway experiences, I can honestly say I believe that people quit Amway primarily for one reason. The money isn't there. Amway's own numbers show that the averahe IBO earns just over $100 a month and that is before taxes and expenses. Business building IBOs earn most of the bonuses, but business building IBOs generally have the most expenses, often participating in the system of standing orders and functions.

When I was an IBO, I did as upline advised and I achieved a fairly significant level (4000 PV), but due to the expenses associated with tools and helping downline, I didn't earn net profit. This is confirmed by a study done by the Wisconsin attroney general who examined the tax returns of platinume and found that they averaged a net loss of about $1000 a year. While the study was a bit dated, I would suggest it is still very valid as platinums today, have more tools (business building materials) that they are expected to buy from upline. If I made nothing at 4000 PV, anyone with half a brain can conclude that IBOs below 4000 PV and fully participating on the system would end up with a net loss because their expenses would be similar to mine, but with less bonus money.

The bottom line is that people are very likely quitting because they aren't profitable. If people made a few hundred a month with 8-15 hours of work per week, they would continue to run their businesses. But those who work and make nothing or lose money have no reason or motivation to continue. Thus they simply make a wise business decision and quit. What seemed like a good idea during the presentation simply did not pan out when reality set in. It's also reasonable to conclude that the products are not that great either because if they were, those who quit would become loyal customers, thus even if the sales force turned over, sales would consistently rise as former IBOs would become customers. It's apparent that most former IBOs do not become loyal Amway customers. In fact, for those who later discover they were lied to or deceived about the Amway opportunity, become critical of Amway instead.

Why do people quit Amway? I think the answer is crystal clear.

Monday, October 13, 2014

Amway Systems?

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.