Read About Amway Deception Here
WASHINGTON—The Center for Science in the Public Interest (CSPI) accused Amway of making deceptive claims for its NUTRILITE line of liquid dietary supplements. CSPI said it would file a class action lawsuit against Amway if it continues to use "unsubstantiated nutrition and health benefits" claims for its Fruits & Vegetables 2GO and Immunity Twist Tubes products.
Labels for NUTRILITE's Fruits & Vegetables 2GO Twist Tubes claim the product represents two servings of fruits and vegetables and the fine print clarifies that a dose, “contains the antioxidant equivalent of 2 servings." However, CSPI said the 10-milliliter tubes do not equal the same health benefits as real fruit or vegetables; fruits and vegetables contain more benefits than just antioxidants, CSPI said. CSPI noted unlike fruits and vegetables, Fruits & Vegetables 2GO does not contain fiber, and real fruits and vegetables have up to 8,000 phytochemicals that may provide health benefits.
CSPI also took issue with Amway's claims for NUTRILITE's Immunity Twist Tubes. The product claims it is an “immune system booster" that will “protect your cells." The immunity claim is unlawful, according to CSPI, because it implies the product will prevent disease. It won’t, says the group.
Also, CSPI noted both product lines contain the artificial sweetener sucralose, despite a print advertisement for “fruits & vegetables 2GO" that claims the product has no artificial ingredients.
“Amway is sending a horrible health message to American consumers when it holds out its Twist Tubes as a short cut to getting the health benefits of real food," said CSPI staff litigator Seema Rattan. “People who want the health benefits of two servings of fruits and vegetables are far better off eating two servings of fruits and vegetables. And no one should be deceived into thinking that these pricey little tubes will prevent them from getting sick."
In a letter to Amway chairman Steve Van Andel, CSPI said Amway’s labeling and advertising for NUTRILITE products violates federal regulations and consumer protection laws in Washington, Massachusetts, Texas, New Jersey and California.
In a company response, Anna Bryce, Amway Public Relations, said, understands the importance of accurate product claims. "For this reason, we have a thorough claims substantiation process, incorporating published nutrition science and regulatory directives. Frankly, we were disappointed when CSPI decided to publish its concerns about the marketing of the NUTRILITE Twist Tube line, without first asking Amway about its product claims. We would have appreciated the opportunity to share the results of our claims substantiation process. We always take such concerns seriously and we are investigating the assertions made by the CSPI."
Sunday, March 4, 2012
Tuesday, February 14, 2012
Amway Pays me What I'm Worth?
One of the really stupid things I saw as an IBO, and I believe is still taught today, is that Amway recruiters will talk about people's jobs and how you can only earn what the job is worth, and not what you are worth. Then they tell you to join the Amway business as a means to rectify that situation. But when you take a moment to think about it, it brings up interesting questions.
If your employer doesn't pay you what you think you deserve or what you are worth, you are welcome to offer your services to a higher bidder. If you are unable to find a higher bidder, then you either need to increase what you have to offer, or you have overestimated your value as an employee. But at least as an employee, you have a paycheck that you can depend on, and more than likely, you know when your paydays are. You can put food on the table and pay for your living expenses.
Now you get excited about being a business owner. Are you now paid what you're worth? Or at least, are you on your way to being paid what you are worth? Have you even asked or thought about what you are worth? Most IBOs, not counting the ones who "do little or nothing", end up moving 100 PV and getting approximately $10 back from Amway. If they are on the system, they are likely to have spent over $100 to 250 a month to participate in the functions and other training materials. Are you now "paid what you are worth?". You are in the negative, and even adding some downline is unlikely to change your situation significantly. Is your worth a net loss?
When you spend about $300 to make 100 PV, Amway gets paid. When you earn your 100 PV, Amway will give back about $90 in bonus money. Middle men in your upline take about $80, leaving you with $10. Are you paid what you are worth? Who did the work and who got the lion's share of the reward? Why does uplines get the bonus for your work?
Let's say you worked really hard for a couple of years. You finally reach platinum and you earn $50,000 (before taxes). After taxes and business expenses, let's say you net $25,000. Have you now earned what you are worth? A platinum is in the top one half of 1% of all IBOs and they net maybe $25,000. Are they paid what they are worth? If you can't answer yes to any of these questions, you have to ask yourself if the whole thing is worth it? I'd have to pass.
If your employer doesn't pay you what you think you deserve or what you are worth, you are welcome to offer your services to a higher bidder. If you are unable to find a higher bidder, then you either need to increase what you have to offer, or you have overestimated your value as an employee. But at least as an employee, you have a paycheck that you can depend on, and more than likely, you know when your paydays are. You can put food on the table and pay for your living expenses.
Now you get excited about being a business owner. Are you now paid what you're worth? Or at least, are you on your way to being paid what you are worth? Have you even asked or thought about what you are worth? Most IBOs, not counting the ones who "do little or nothing", end up moving 100 PV and getting approximately $10 back from Amway. If they are on the system, they are likely to have spent over $100 to 250 a month to participate in the functions and other training materials. Are you now "paid what you are worth?". You are in the negative, and even adding some downline is unlikely to change your situation significantly. Is your worth a net loss?
When you spend about $300 to make 100 PV, Amway gets paid. When you earn your 100 PV, Amway will give back about $90 in bonus money. Middle men in your upline take about $80, leaving you with $10. Are you paid what you are worth? Who did the work and who got the lion's share of the reward? Why does uplines get the bonus for your work?
Let's say you worked really hard for a couple of years. You finally reach platinum and you earn $50,000 (before taxes). After taxes and business expenses, let's say you net $25,000. Have you now earned what you are worth? A platinum is in the top one half of 1% of all IBOs and they net maybe $25,000. Are they paid what they are worth? If you can't answer yes to any of these questions, you have to ask yourself if the whole thing is worth it? I'd have to pass.
Friday, February 10, 2012
Is Amway and BWW A Scam?
Very Interesting Testimony:
http://scamadvocates.com/1306-Amway-and-BWW.html
I was at a mall and a couple struck up a conversation about something i was looking to buy at the shop. To be polite i responded and they kept the conversation going and finally they asked my number. I hesitantly gave my number and forgot about the incident. Two weeks later I received a call on a Sunday evening after 7:00 PM from this very same person. After initial chitchat the person mentioned a e-commerce business opportunity which has helped him make money. So we booked a meeting at my home on a Monday evening after work to discuss more on this.
The couple showed up and gave almost no information on the opportunity except for some vague e-commerce concept and invited to an "industry briefing" to be held at a hotel on Wednesday evening at 8:00 PM and I was asked to show up there in business attire.
On Wednesday i went to the hotel where the "industry briefing" was to be held and was forced to sit in the front seat with a paper and pen too to make some notes. The person who spoke was very animated and used some classical phrases undermining how un-fullfilling our jobs were. He showed a business plan and claimed, a person in 3-12 months can start earning 2500+/month and in 3-5 years earn more than 250K per year. At the end he mentioned that they have a product company called 'Amway Global' formerly know as 'Quixtar' and a education system called 'Britt Worldwide" or BWW which work together to make the above claims a reality.
At the end of the seminar i was given a few CD's and a literature material again highlighting what was said in the meeting. Intrigued i asked the person who invited me as to how long he was doing this business and he said that he was doing it for a "couple of years" which i later found out to be 13 years in fact and he was by no means "RICH". He invited me to another meeting on Friday at his place called "PASE - Product and system Education" as a followup. I went to PASE and met a few others who were involved in this business and the meeting had a cult like flavor to it. I did succumb to the pressure to sign up and was asked to sign up then and there.
They asked me to start attending the meetings every week, buy a subscription program for CD's called SOCD which i was told would cost me 7.94$'s per week + taxes making it 8.02$'s, later they also mentioned something called LSO - Leadership Standing Order which would cost me another 8.02$'s per week. I was also asked to sign up for a service called 'CommuniKate' which is a voice messaging servicewhich would cost me 25$'s per month and also asked to open a business website where i could showcase my business based on 3 pre-formated templates which would cost me 15$'s per month.
I confronted as to the validity of all these that i am asked to buy and i was told that all these would make it look like a legitimate business. They also stressed that it is a tax deductible expenses so were all the miles i would drive to these meetings and any contacting meetings i would go to.
I did not know at that time that every Wednesday meeting i would attend would cost me 6$'s per week. I was also asked to buy tickets to "BBS- Business Building Seminar" which would cost me 25$'s per meeting and this is held 4 times a year. Here they introduced something called 'Eagle Program" where every person if he needed to be 'an Eagle' had to buy 300 P.V worth of products from Amway every month else they are 'chicken'. Each P.V was 2.50$'s making it a commitment of 750$'s every month on Products. While doing all these I was yet to see any earnings. They also mentioned about another larger meeting called "conference/ FED/ Leadership" to be held and it would cost me 100$'s. These Large conferences are also held 4 times every year.
To know what happens in the conference you do a bit of search using keywords "Dateline Amway" and look at the video's in the link.
I asked the person who introduced me to this business to provide me with receipts for all the money I had to spend on BWW stuff, like CD's Tickets etc. But i was told that no receipts will be given.
Later I found out that the Big Pins make Tons of money from these tools than Amway itself, and since these were circulated by Hand and money collected through cash and checks without receipt, THIS WAS THE TAX FREE INCOME. REPORTING of this income does not go to IRS, I am sure IRS Does not even know such an income stream exists.
After all weekly meetings, a lots of CD's, compelled to do 300 P.V every month, driving a lot of miles and driving away all my friends and relatives it dawned on me that although Amway Makes good Products and sell them at a Premium and is considered a Legitimate by the Government, its combination with BWW MAKES IT A SCAM.
If you are reading at this account, you are either looking at getting into this business or have a doubt in your mind if your decision was correct to join this business.
If you are OK with all the points i have stated above go ahead and still build the business.
Else Rescue your money, because you will loose a lot of it if you get into this.
http://scamadvocates.com/1306-Amway-and-BWW.html
I was at a mall and a couple struck up a conversation about something i was looking to buy at the shop. To be polite i responded and they kept the conversation going and finally they asked my number. I hesitantly gave my number and forgot about the incident. Two weeks later I received a call on a Sunday evening after 7:00 PM from this very same person. After initial chitchat the person mentioned a e-commerce business opportunity which has helped him make money. So we booked a meeting at my home on a Monday evening after work to discuss more on this.
The couple showed up and gave almost no information on the opportunity except for some vague e-commerce concept and invited to an "industry briefing" to be held at a hotel on Wednesday evening at 8:00 PM and I was asked to show up there in business attire.
On Wednesday i went to the hotel where the "industry briefing" was to be held and was forced to sit in the front seat with a paper and pen too to make some notes. The person who spoke was very animated and used some classical phrases undermining how un-fullfilling our jobs were. He showed a business plan and claimed, a person in 3-12 months can start earning 2500+/month and in 3-5 years earn more than 250K per year. At the end he mentioned that they have a product company called 'Amway Global' formerly know as 'Quixtar' and a education system called 'Britt Worldwide" or BWW which work together to make the above claims a reality.
At the end of the seminar i was given a few CD's and a literature material again highlighting what was said in the meeting. Intrigued i asked the person who invited me as to how long he was doing this business and he said that he was doing it for a "couple of years" which i later found out to be 13 years in fact and he was by no means "RICH". He invited me to another meeting on Friday at his place called "PASE - Product and system Education" as a followup. I went to PASE and met a few others who were involved in this business and the meeting had a cult like flavor to it. I did succumb to the pressure to sign up and was asked to sign up then and there.
They asked me to start attending the meetings every week, buy a subscription program for CD's called SOCD which i was told would cost me 7.94$'s per week + taxes making it 8.02$'s, later they also mentioned something called LSO - Leadership Standing Order which would cost me another 8.02$'s per week. I was also asked to sign up for a service called 'CommuniKate' which is a voice messaging servicewhich would cost me 25$'s per month and also asked to open a business website where i could showcase my business based on 3 pre-formated templates which would cost me 15$'s per month.
I confronted as to the validity of all these that i am asked to buy and i was told that all these would make it look like a legitimate business. They also stressed that it is a tax deductible expenses so were all the miles i would drive to these meetings and any contacting meetings i would go to.
I did not know at that time that every Wednesday meeting i would attend would cost me 6$'s per week. I was also asked to buy tickets to "BBS- Business Building Seminar" which would cost me 25$'s per meeting and this is held 4 times a year. Here they introduced something called 'Eagle Program" where every person if he needed to be 'an Eagle' had to buy 300 P.V worth of products from Amway every month else they are 'chicken'. Each P.V was 2.50$'s making it a commitment of 750$'s every month on Products. While doing all these I was yet to see any earnings. They also mentioned about another larger meeting called "conference/ FED/ Leadership" to be held and it would cost me 100$'s. These Large conferences are also held 4 times every year.
To know what happens in the conference you do a bit of search using keywords "Dateline Amway" and look at the video's in the link.
I asked the person who introduced me to this business to provide me with receipts for all the money I had to spend on BWW stuff, like CD's Tickets etc. But i was told that no receipts will be given.
Later I found out that the Big Pins make Tons of money from these tools than Amway itself, and since these were circulated by Hand and money collected through cash and checks without receipt, THIS WAS THE TAX FREE INCOME. REPORTING of this income does not go to IRS, I am sure IRS Does not even know such an income stream exists.
After all weekly meetings, a lots of CD's, compelled to do 300 P.V every month, driving a lot of miles and driving away all my friends and relatives it dawned on me that although Amway Makes good Products and sell them at a Premium and is considered a Legitimate by the Government, its combination with BWW MAKES IT A SCAM.
If you are reading at this account, you are either looking at getting into this business or have a doubt in your mind if your decision was correct to join this business.
If you are OK with all the points i have stated above go ahead and still build the business.
Else Rescue your money, because you will loose a lot of it if you get into this.
Thursday, February 9, 2012
The "New" Average Income?
Source: Amway
The average monthly Gross Income for “active” IBOs was $202.
Approximately 46% of all IBOs were active.
U.S. IBOs were considered “active” in months in 2010 when they attempted to make a retail sale, or presented the Amway IBO Compensation Plan, or received bonus money, or attended an Amway or IBO meeting. “Gross Income” means the amount received from retail sales, minus the cost of goods sold, plus monthly bonuses and cash incentives. It excludes all annual bonuses and cash incentives, and all non-cash awards. There may be significant business expenses, mostly discretionary, that may be greater in relation to income in the first years of operation.
Joe's Commentary: Previously, Amway's average income was $115 a month, but also disregarded IBOs who "did nothing". In this report, it looks like Amway disregarded an additional 20% of IBOs when calculating the figure. Viewers should also note that there might be large pins included who drive the average up.
Based only on PV/BV, and depending on your business structure, you would have to be approximately at the 9% or 12% level (1000 PV) in order to earn a bonus in the neighborhood of $200. Being that most IBOs do little or nothing, and most people cannot sponsor any downline, I would make an educated guess that the vast majority of IBOs will never achieve the average income.
So what would the typical IBO earn? I can't say for sure but taking a look at the "plan" that many IBOs show, I'd say the average rank and file IBO earns about $10 a month from Amway plus any difference between wholesale and retail, if that IBO sells products to actual customers.
The average monthly Gross Income for “active” IBOs was $202.
Approximately 46% of all IBOs were active.
U.S. IBOs were considered “active” in months in 2010 when they attempted to make a retail sale, or presented the Amway IBO Compensation Plan, or received bonus money, or attended an Amway or IBO meeting. “Gross Income” means the amount received from retail sales, minus the cost of goods sold, plus monthly bonuses and cash incentives. It excludes all annual bonuses and cash incentives, and all non-cash awards. There may be significant business expenses, mostly discretionary, that may be greater in relation to income in the first years of operation.
Joe's Commentary: Previously, Amway's average income was $115 a month, but also disregarded IBOs who "did nothing". In this report, it looks like Amway disregarded an additional 20% of IBOs when calculating the figure. Viewers should also note that there might be large pins included who drive the average up.
Based only on PV/BV, and depending on your business structure, you would have to be approximately at the 9% or 12% level (1000 PV) in order to earn a bonus in the neighborhood of $200. Being that most IBOs do little or nothing, and most people cannot sponsor any downline, I would make an educated guess that the vast majority of IBOs will never achieve the average income.
So what would the typical IBO earn? I can't say for sure but taking a look at the "plan" that many IBOs show, I'd say the average rank and file IBO earns about $10 a month from Amway plus any difference between wholesale and retail, if that IBO sells products to actual customers.
Sunday, January 29, 2012
Why Amway IBOs Fail?
It is not a big secret that many IBOs fail in the Amway business opportunity. The retention rate is poor, and frankly, the compensation for IBOs usually won't even cover the monthly cost of the website fees. So uplines should figure out why so many downline fail and then address it instead of advising IBOs to never quit and keep buying more tools. Based on what I experienced, I would have to say my uplines (who are still around today) didn't care about their downline, which is why we received bad advice such as IBOs had to keep paying for standing orders if your downlines quit.
But IBO failure goes beyond this. In order to sustain a business, you need to establish and build a customer base. Amway's own figures suggest that there is about 1 cutomer for every 4 IBOs. Less than 4% of Amway goods are sold to non IBOs. How can any business sustain itself in that manner?
Many IBOs will cite concentration and quality as the reason for Amway's premium prices. But it is apparent that it is primarily IBOs who see things this way. The public more likely sees Amway products as generic with premium prices. Ironically, IBOs seem to shift to the viewpoint of the general public once they stop being IBOs. Seem that IBOs don't mind premium prices when they believe Amway will allow them to retire early and walk the beaches of the world, but when that dream ends, so does product loyalty.
Hard work and effort doesn't necessarily equate success in Amway and I will explain. Say I was selling Iphones for $50. People would be flocking to me to buy one. I would probably run out of the Iphones before I ran out of customers. The price is great and thus the demand exceeds the supply. Now say I was selling regular cell phones and charging $1,000 for a regular run of the mill cell phone. I may sell one, but more likely my only sale will be to myself as a representative of the cell phone company. There would be no demand, only perhaps an artifical demand by the purchase of $1000 cell phones by the cell phone retailers. This is exactly what Amway IBOs, or sales people are experiencing. People in general don't care about the phytonutrients in double x. They see the whopping price and they buy vitamins at Walmart. As a side note, does the inclusion of phyotnutrients in a vitamin drive up the cost that much? I suspect not.
In any case, I believe this is why most IBOs fail. There are too many disadvantages to overcome.
But IBO failure goes beyond this. In order to sustain a business, you need to establish and build a customer base. Amway's own figures suggest that there is about 1 cutomer for every 4 IBOs. Less than 4% of Amway goods are sold to non IBOs. How can any business sustain itself in that manner?
Many IBOs will cite concentration and quality as the reason for Amway's premium prices. But it is apparent that it is primarily IBOs who see things this way. The public more likely sees Amway products as generic with premium prices. Ironically, IBOs seem to shift to the viewpoint of the general public once they stop being IBOs. Seem that IBOs don't mind premium prices when they believe Amway will allow them to retire early and walk the beaches of the world, but when that dream ends, so does product loyalty.
Hard work and effort doesn't necessarily equate success in Amway and I will explain. Say I was selling Iphones for $50. People would be flocking to me to buy one. I would probably run out of the Iphones before I ran out of customers. The price is great and thus the demand exceeds the supply. Now say I was selling regular cell phones and charging $1,000 for a regular run of the mill cell phone. I may sell one, but more likely my only sale will be to myself as a representative of the cell phone company. There would be no demand, only perhaps an artifical demand by the purchase of $1000 cell phones by the cell phone retailers. This is exactly what Amway IBOs, or sales people are experiencing. People in general don't care about the phytonutrients in double x. They see the whopping price and they buy vitamins at Walmart. As a side note, does the inclusion of phyotnutrients in a vitamin drive up the cost that much? I suspect not.
In any case, I believe this is why most IBOs fail. There are too many disadvantages to overcome.
Tuesday, December 27, 2011
More Amway Commentary?
Joanna says:
27th December, 2011 at 3:33 PM
Hi All,
I started reading this blog back in 2009 I think. I was searching the web for information about AMWAY because a close friend of mine had become involved and was pressuring me to join too.
In those past years not one person in her group has made any money from AMWAY. But they have a lost a lot of important things that can’t be counted, friendship and self-respect. My friend was no idiot and she wasn’t lazy. She put everything into it. For nothing!
The only people who make money in AMWAY are the people who sell the CD’s, Books and Functions.
I think this will be my last post here. My friend has quit, she is my friend again and AMWAY is in the past.
I hope that anyone considering of going into this so called “buisness” because someone promised them “financial freedom” think really really hard. If it worked why can’t they say “I am an IBO with AMWAY and I am rich and personally gaurantee that you will rich be too”
Results are all that matters and all I saw were a lot of unhappy people pretending that were doing great when the opposite was true.
27th December, 2011 at 3:33 PM
Hi All,
I started reading this blog back in 2009 I think. I was searching the web for information about AMWAY because a close friend of mine had become involved and was pressuring me to join too.
In those past years not one person in her group has made any money from AMWAY. But they have a lost a lot of important things that can’t be counted, friendship and self-respect. My friend was no idiot and she wasn’t lazy. She put everything into it. For nothing!
The only people who make money in AMWAY are the people who sell the CD’s, Books and Functions.
I think this will be my last post here. My friend has quit, she is my friend again and AMWAY is in the past.
I hope that anyone considering of going into this so called “buisness” because someone promised them “financial freedom” think really really hard. If it worked why can’t they say “I am an IBO with AMWAY and I am rich and personally gaurantee that you will rich be too”
Results are all that matters and all I saw were a lot of unhappy people pretending that were doing great when the opposite was true.
Wednesday, December 7, 2011
Amway Tax testimonial
http://www.quatloos.com/Q-Forum/viewtopic.php?f=5&t=694
"I met with a prospective tax client a few years ago. Combined, they both made pretty good money but, upon reviewing their prior returns, I noticed they also had a Schedule C that showed $6k-$7k loss year after year (about 7 years in total). Their prior preparer had warned them about the hobby loss rules but they had insisted they had a profit motive because they were eventually going to be making lots of money. I asked if this was Quixtar. They said "yes" and how did I know that. I told them the large losses year after year were a good sign. They didn't seem to get it. While the IRS hadn't noticed their losses (yet), they state had. While, the state wasn't denying the losses, it was asking them to review the hobby loss rules. I told them that they needed to quit this and they seemed offended. I told them where the people at the top really made their money (the tools) and they wouldn't believe me. They claimed that "no one makes money on the tools". They were well brainwashed. They had an canned answer for every comment I made. The cultlike brainwashing had done its job. Needless to say, I lost them as a client but I couldn't let them go on every year like this without saying something and besides, it was approaching April 15th and they were really really disorganized.
Earlier this year, I did talk our receptionist out of Quixtar. She is only 22 and had never heard of Quixtar or even Amway for that matter. I asked her if her sponsor was trying to get her to go to seminar. She said "yes". Apparently, there was one the next weekend that she "had to be at" (according to him) and it was about 500 miles away. He and a few of his prospects were going to roadtrip. She called him and quit. Well, at least I saved one.
The higher ups at Quixtar really don't want their downline to be successful. There is so much money made on those seminars that, if the downlines started actually being successful, they would stop coming."
"I met with a prospective tax client a few years ago. Combined, they both made pretty good money but, upon reviewing their prior returns, I noticed they also had a Schedule C that showed $6k-$7k loss year after year (about 7 years in total). Their prior preparer had warned them about the hobby loss rules but they had insisted they had a profit motive because they were eventually going to be making lots of money. I asked if this was Quixtar. They said "yes" and how did I know that. I told them the large losses year after year were a good sign. They didn't seem to get it. While the IRS hadn't noticed their losses (yet), they state had. While, the state wasn't denying the losses, it was asking them to review the hobby loss rules. I told them that they needed to quit this and they seemed offended. I told them where the people at the top really made their money (the tools) and they wouldn't believe me. They claimed that "no one makes money on the tools". They were well brainwashed. They had an canned answer for every comment I made. The cultlike brainwashing had done its job. Needless to say, I lost them as a client but I couldn't let them go on every year like this without saying something and besides, it was approaching April 15th and they were really really disorganized.
Earlier this year, I did talk our receptionist out of Quixtar. She is only 22 and had never heard of Quixtar or even Amway for that matter. I asked her if her sponsor was trying to get her to go to seminar. She said "yes". Apparently, there was one the next weekend that she "had to be at" (according to him) and it was about 500 miles away. He and a few of his prospects were going to roadtrip. She called him and quit. Well, at least I saved one.
The higher ups at Quixtar really don't want their downline to be successful. There is so much money made on those seminars that, if the downlines started actually being successful, they would stop coming."
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