Thursday, September 18, 2014

Amway And Motivation?

I believe that Amway IBOs have approximately a 50% attrition rate for the first year alone. If you look at a 5 year window, I believe the attrition rate is something like 95%. So what we're saying is that out of 100 IBOs, only 5 will be around in 5 years, or out of 1000 IBOs, 50 will remain after 5 years. This is extremely significant because if you are a business builder, you will need to replace half of your IBOs every single year. For this reason, I am very doubtful that there are IBOs who "built the business right and built it once", who no longer do Amway related work, but still collect significant residual income. I would guess that significant income could be defined as being enough to live a lifestyle in the top tax bracket (for the US) without having to report to a J-O-B.

Now I understand that some IBOs take it personally when I bring up subjects like this. It is because they have been deceived by some upline diamond or big pin who has sold them on a dream of financial prosperity for life if they will only work hard for 2-5 years. I once thought so too, but realized that there isn't a single diamond that I know of who built the business right and walked away to enjoy the beaches of the world while truckloads of money rolls in. Kinda makes you wonder why you see Crowns still working, and diamonds actually quitting or resigning. I have asked the question many times and it has never been answered. Can anyone name a few people who built their business right and built it once who is currently enjoying these lifelong residuals? Also, if that were a benefit, why doesn't Amway say so?

Instead, you have a constant and endless flow of motivation being sold to IBOs. This motivation comes in the form of cds, books, meetings, functions and other things like voicemail messages. It's sad that IBOs have to continue to pay through the nose for motivation and "teaching" about the Amway business when there are cheaper and more efficient means of communication. For example, why would you need an expensive voicemail when a facebook group account can disseminate messages to your group in seconds at no cost? It is because the uplines want to extract every possible sent from their downline. Because of the internet, I believe people are starting to figure things out and avoid the systems altogether. I hope Joecool's blog contributes to this.

All the motivation IBOs truly need is to see a net profit at the end of the month. If IBOs actually earned an extra $200 a month, or $50 a month, or $600 a month as advertised, there would be no need for motivational speeches. The IBOs would simply look at the growth in their finances and they would keep going. The poor retention rate is easy to explain. IBOs are losing money because of the system expenses and they lose their motivation to continue. If you are an IBO or a prospect, stop and think for a minute. If you are making an extra $200 a month with minimal effort, would you need functions and other materials to motivate you? Or would you have intrinsic motivation from the profit? All the motivation you will ever need is a net profit. Take that to the bank.

6 comments:

Anonymous said...

I asked a mlm leader his secret. Was told not to sign up the average mom & pop. But sign up those with a history or doing well selling. Told me some people can signup hundreds with their sales skills. Also the obvious spend the bare minimum on products or sales materials.

Joecool said...

Yes, selling the opportunity can be lucrative if you can continue to sell it and build a big group and replace the 95% who quit over a 5 year span. Residual income is basically a myth except possibly for some of the tenured folks sitting atop the pyramid.

Anonymous said...

But how many with the history or talent to sell. Would join Amway? Takes them less than 5 mins to read the dirt online. Look at a few numbers of Amway stats and laugh. There are better mlm higher paying plans out there. Plus sales people rather go sell real estate,stocks,mutual funds etc. Where its easier to make money and not stress maintaining a group.

Joecool said...

I agree. I believe with the information easily available these days, most people can find the dirt on Amway and make informed decisions about joining or not.

Anonymous said...

I just joined this weekend now reading all this worried me �� so could I get my money back.

Joecool said...

Yes, you can ask your sponsor for a full refund. If they refuse, file a formal complaint with the better business bureau and the FTC. They will give you the money back if you offer to file a complaint.