Wednesday, April 29, 2009

Amway Global - Denial Is Not A River In Egypt!

I've read countless accounts of IBOs in denial about their Amway business. For the record, denial is not a river in Egypt. IBOs are not totally at fault though. Upline leaders teach this sort of stuff. IBOs are taught to fake success, or translated, IBOs are taught to mislead prospects into thinking they are successful so they may be enticed to see the plan or register as an IBO.

I believe it is partly why IBOs wear business attire to all of their meetings. You want to portray something that is not. Just as an actor appears on a movie set, IBOs have a need to appear as important businessmen. IBOs make interesting claims as well. I recently engaged an IBO who insisted that his upline swore to him that the Amway business is hard hard work but in the same breath, he tells me that he will be retired by the age of 30 and laughing all the way to the bank while I continue to work when I retire. ?????

IBOs also are in denial about their upline's success. They think that when you go diamond, money falls out of the sky and you have so much that you will purchase mansions and jets in cash. They see a copy of a check and think that their upline diamonds receive these checks every other day. The reality is that a diamond may have a very modest monthly income and in fact, the one large check might be an annual bonus which must be budgeted throughout the entire year!

IBOs and prospects should seriously consider what I am writing here on this post. Look at your own business. Are you actually building volume and downline consistently? If you are not, why not? If you are not, when will it get better? Is your name list still strong after sponsoring new people? If not, your business will be even harder to build than it is now.

Are you actually making a profit or not? Are things likely to get better? Are you taught to ignore facts? Look at yourself objectively and remember that denial is not a river running through the desert!

Tuesday, April 28, 2009

Amway Global - True IBO Success!

Success. It's something that is talked about quite often in the IBO world. But what is success? Is it going diamond, or is it going platinum? Or is going broke a success? IBOs who drop in to read this article might wonder how going broke can be seen as success. The answer to that depends on what side of the table you are sitting on. If you are profitng from the sale of cds, books, voicemail and seminars, it is likely that you are successful!

But the majority of IBOs who register see the plan. Many drop out without doing anything, but the IBOs that put in an earnest effort are the ones who usually end up getting blindsided by the tools expenses. These are the IBOs who show the plan, get on standing order, get the voicemail, and attend functions. As long as a core group of these IBOs exist, the diamonds are able to fund their lifestyles. Now these core groups have interchangeable IBOs, meaning there will be IBOs who drop out frequently, thus they must be replaced. This is why there is so much emphasis on recruiting and showing the plan, to maintain the core group.

All you need to do is sit down with a pencil and a sheet of paper and you can figure out how much it costs a diamond to live his or her lifestyle. Then figure out how much a diamond actually earns versus the expneses associated with the business. You obviously won't get an exact number, but you can get a pretty good idea. It became obvious to me that most diamonds probably live off tool monies and Amway income is a side thought.

For this reason, a diamond will tell anyone that they are successful. You show up at a meeting or function, you will be called "winners" who are succeeding. IBOs who stay in for years but never sponsor anyone is "successful". IBOs who listen to cds and read books and "awesome". True IBO success may be "not quitting". But if you sit down and really think about what I have written here, one can conclude that participating in the "system" generates success, but unfortunately, that success is not the IBO's, but the upline diamond's.

Monday, April 27, 2009

Amway Global - Do IBO Leaders Run Their LOS Like The Mafia?

The Amway business has a "family" structure parallel to that found in organized crime. With respect to both organizations, the family orientation is twofold. First, every participant;in the business is considered a member of a "family," led by a particular individual at the top of a chain of command. Second, the business stresses involvement by participant's family members, such that wives and children are drawn into the business to perpetuate their family influence over time. Family dynasties result that may be passed from generation to generation.

The major Amway families do not, in most cases, have a formal legal relationship among each other. All distributors must enter into a distributorship agreement with Amway Corporation to recruit new distributors and sell Amway products and services, but Amway asserts that distributors are independent contractors, involved in their own businesses. Moreover, with regard to the tools business, there appears to be no legal relationship whatsoever between Amway Corporation and the major families - each family has its own tools program that it runs independently of Amway Corporation

The Mafia uses "omerta" and violence for control. Amway has other methods, with similar effect. Distributors must always honor their upline. No negative talk or action is permissible. A distributor who steps out of line is punished. Punishment may start off with being vilified by uplines as a "loser," as "negative," or as "brain-dead" which are typical Amway appelations for anyone who does not believe in the Amway system and the riches that allegedly flow from it. More serious offenders may be dealt with by having portions of their business taken away - e.g. they can no longer appear at rallies, or downline distributors are "re-routed." There are also reports of violence against those who attempt to take action against Amway.

Friday, April 24, 2009

Amway Global - The Facts Don't Matter!

I recently encountered on another blog, as IBO, supposedly at a significant level, who is criticizing the blog author. This IBO says the blog author's recollection of his experience in a function is not valid because the function was not run exactly as she remembers. This is despite the fact that functions are run all over the country and by different diamonds and different lines of sponsorship. These same IBOs get their underwear in a knot if someone says, in a broad generalization, that certain things happen in functions, implying that something might be taught in all groups, in all functions. Well, we know that is unlikely, but by the same token, to claim that certain things are never taught in all functions is not an accurate statement either.

So where am I going with this post? Ironically, I will use the same logic as some upline leaders. The facts don't matter. What's that you say? Yes, the facts don't matter - but not in the same context as some upline leaders.

My point is that whether an upline leader runs a functions a certain way, it matters not, most IBOs will not make money. If an upline leader teaches selling, most IBOs won't make money. If an upline leader teaches buy from yourself, most IBOs won't make money. If an upline leader doesn't push tools hard on their downline, most IBOs won't make money. Amway's numbers confirm this assertion. $115 a month average income (Which disregards IBOs who do nothing), less than 4% of sales are to non IBOs. No matter what your upline teaches you, you are likely to suffer financial losses if you are on the "syatem".

So there you have it folks, the facts don't matter. If you join the Amway Global opportunity and purchase system tools, the facts don't matter, you will likely lose money.

Wednesday, April 22, 2009

Amway Global - Upline Leaders Held To Higher Standards?

In a recent discussion on another blog, I mentioned that Amway upline leaders are held to a higher standard than the rest of the IBO population. It is fair and it is also because the upline leaders put themselves in that position. Let me explain.

What would you think if the head Pastor of your church stood on the pulpit preaching the good word and talking about morals and then you see him twice a week sitting in a bar getting drunk and speeing through town in his car? Yes, he is human, but he is a leader of the congregation and the people hold him to a higher standard. It's not to say that a Head Pastor is "sinless", never is tempted to sin, or never makes mistakes, but certainly, you would not expect someone in this position to get divorced, or be drunk in public, or speeding around town. Again, nobody is saying the Pastor is perfect, but you expect more from him than a casual attender. Agreed?

So a diamond or higher upline leader who says Amway saves marriages, we pay for homes in cash, financial integrity, personal responsibility, etc. These things are taught in seminars and on cds and tapes, and IBOs are advised to read personal growth types of books. Thus when a diamond leader divorces or has a home foreclosed, it probably raises eyebrows and questions from the downline faithful. These leaders are looked up to and edified, and rarely ever questioned. The diamond leaders teach these virtues and thus, they should be held accountable to their downline.

Are they perfect and expected to never make mistakes? No, but when they do make a mistake, do diamond leaders apologize and admit their errors or do they concoct stories, lies and other excuses to cover them up? Do they simply ignore it and act like nothing has happened? That is the issue and what appears to happen all to often. IBOs should look at these issues with a critical eye, especially if taking upline advice to heart.

Monday, April 20, 2009

Amway Global - Are System Tools Optional?

One of the biggest contributors to Amwau IBO failure, or a net loss, is the monies spent on the "systems". The system consists of voicemail, tapes, cds, books and seminars and open recruitment meetings. The system may cost as little as $50 or $60 a month for a casual business builder, or $150 to $600 a month for the dedictaed hard core IBOs. The materials sold are optional, and the packaging probably says they are optional. The problem is the way the materials are sold to IBOs. In many cases, they are not presented as optional, but a defacto requirement.

For example, an upline may say tools are optional but so is success. Or a recruit might be told that nobody has gone diamond without tools, but you can try to be the first. Another good one is (insert name) so and so diamond went diamond and is a multi millionaire and he thinks the tools are critical, but if you think you know better, you can try. These kinds of statments made to new IBOs exert a degree of pressure to buy into the system. If a doctor told you that you needed heart sugery or you will die, most people will have the surgery, even if it is optional. That's how many present the need for tools.

On the surface, $7 for a cd or tape, $20 monthly for voicemail, $125 for a major function, $7 - $10 fopr smaller meetings doesn't sound too bad. In fact these prices would normally be quite reasonable except for a couple of reasons.

The reason why I believe that the system os not worth the expense is because there is no evidence that the system works. Sure, hard core Amway apologists will say that all the diamonds are on the system. While that may or may not be true, there are tens of thousands, possibly millions of IBOs who worked the system and did not achieve anything. There are simply too many obstacle and handicaps to overcome in Amway. The second reason is that the tools expenses never ends. Many is not most IBOs only stop using the system when they quit the Amway business altogether.

So IBOs and prospects, all I ask is that you take a moment and think, are your tools truly optional and are your tools helping you to make a profit in the Amway business. Basically, if you cannot honestly answer yes to these questions, it might be wise to reconsider your position.

Friday, April 17, 2009

Amway Global - Can IBOs Compete? Really?

IBO, or "Independent Business Owner". It's a selling point, for people to say they own a business. They like the title of being CEO or owner of (insert name) Enterprises. But in the real world of business, it seems that most IBOs and their Amway powered businesses seem like a joke. The reason for this is because of some of the zany things that some IBOs say and do. Granted, these IBOs probably were taught (by upline leaders) and believe in what they are saying. But can an IBO actually compete with the open market? I say no and I will explain further below;

IBOs cannot compete because they sell a variety of products, most of which can be found in local stores and often times, found cheaper in those stores. Now even if the exact product cannot be found in a local store, such as LOC, a similar product can be found, such as simple green. Secondly, when a customer goes to a store, they can read the labels, touch the goods, and take a good look at a product. These factors put IBOs at a great disadvantage. Thirdly, a customer who may like certain Amway products, such as the bathsoap or whatever, will still need to go to the local store to purchase perishable goods so there is no savings inthat respect.

Online stores such as has a greater appeal, in my opinion, because purchasing a book is something that people are willing to do online, and many customers don't have a need to touch or feel a book, and would not have to go to the bookstore "anyway" to buy other good.

So can an Amway IBO compete with other online businesses and real businesses? In my opinion, the answer is clearly "no". The Amway produced numbers back my opinion. Very low sales volume to non IBOs, low monthly earnings for IBOs, difficulty in sponsoring others because of the reputation of Amway. If you are on standing order and attending seminars, you make your chance of succeeding practically impossible as the expense of running your business will likely exceed any earnings and/or rebates that you may earn. Some, but very very few people will succeed. Many will try, but the challenges and barriers to success are simply too great for the average person to succeed. A world class runner couldn't outrun me if I strapped a hundred pound weight on each of his legs. Same as how a business owner cannot succeed with high prices and other inconveniences, and not much else to offer the customer.

Monday, April 13, 2009

Amway Global - Seeds Of Doubt - Or Your Conscience Calling?

Some IBOs and Amway supporters recently, and in the past have accused Joecool of planting "seeds of doubt" in the minds of IBOs. Granted, I am a critic of the Amway Global opportunity but it's not like I am telling lies about the Amway business. I am basically telling my story, and what I see wrong with the Amway opportunity, which is primarily the motivational groups such as WWDB, Network 21, and/or BWW.

These motivational groups entice prospects to join Amway, and then encourage the IBOs to subscribe to KATE, standing order, book of the month, attend seminars, open meetings, etc. These materials and seminars are often promoted as "key to your success" or "vital" to your business, yet there is no evidence that these materials help anyone to build a profitable business. Instead, the vast majority of IBOs end up channeling money into these materials, which makes their uplines wealthy. I see it as a gross conflict of interest very unethical. Yet for years, these uplines have shamelessly emptied the pockets of the downline, all the while pretending to be great leaders and teachers. If these teachings actually led to business success, there would be few critics. Some Amway apologists will claim that most if not all who go diamond and above use the system, and at the same time, disregard the millions of IBOs over the years who used the same system with no results. What I find very humorous is that the Amway Champion himself (IBOFightback) has apparently not achieved anything of significance in Amway, except for his 3% bonus, if even that.

What Amway supporters may call "seeds of doubt", is in reality, I believe an IBO's conscience simply telling the IBO that what is printed on this blog is probably the truth and that what is said here often makes more sense than what upline is teaching.

So IBOs and prospects, ask yourself, is Joecool planting seeds of doubt or simply
awakening your conscience who tells you to think twice?

Saturday, April 11, 2009

Amway Global - Let's Talk Business!

Lately, there's been a lot of activity on Joecool's blog. A lot of discussion back and forth. IBOs have yet to make a real claim that is believable about their alleged success. I am in no way saying that nobody makes money in Amway. I know that there are some people who make nice incomes from Amway. The problem is that the people who make nice incomes are few and far between, and the successful people often take advantage and basically rip off their downlines. Many successful IBOs, diamond and above, sell their tapes, cds, books and seminar tickets. Thousands and thousands of IBOs spend hundreds or thousands of dollars chasing this dream, hoping that they will be the next diamond. It is my guess that these diamonds make more income from their system than from Amway. If you do the math, it seems like a foregone conclusion. The problem with the system is that it doesn't work.

A fair comparison would be a group of lottery winners selling books, tapes, cds, and seminars to teach you how to win the lottery. If you succeed, you join the elite group of winners. If you fail, it is your fault for picking the wrong numbers. It is exactly how the systems operate. Systems such as WWDB, BWW, and Network 21. What seems like a group of successful "businessmen" is actually is group of shysters more interested in selling you books, tapes, voicemail, cds, and seminar tickets.

And if you buy into the system, they give you wise advice (sarcasm on) like ignoring facts, not keeping a profit/loss statement, and that losing money is success. It truly scares me to hear what IBOs are taught as success. If you want to talk business, then you need to know business. It seems some uplines are not about teaching business. They are more about teaching undying loyalty to upline and the system. Think about why that is.

Wednesday, April 8, 2009

Amway Global - The Amway Opportunity Is Like Hawaii's Recycling Program

In Hawaii, we have a recycling program started by the State. For each aluminum can, or glass or plastic bottle, yuo pay the store six (6) cents and after you finish consuming the drink, you may take the empty can or bottle to a recycling center and redeem it for five (5) cents. The extra cent that is lost in the transaction is to cover the administrative fees and the expense of contracting a company to redeem the cans and bottles.

This is a direct parallel with how Amway works. You overpay for your Amway products. The amount you overpay is returned to the IBOs in the form of bonuses and in that cost, Amway takes their profits and adminstrative costs. The only major difference is that Amway pays their IBOs in tiered levels with IBOs who have more volume receiving more. In Hawaii's recycling program, the man with small volume would receive the same rate of reimbursement as someone who had a truckload of empty bottles or cans. Although with recycling, you get some money, the extra cent that goes to the State of Hawaii makes this a negative sum game, as it is in Amway as Amway and your uplines take a cut of the bonus before it reaches you.

Now imagine a recycling program where you needed to pay to learn how to recycle those cans and bottles. Thus you are paying a cent in adminstrative fees, and then in addition, what if the State of Hawaii had a "optional but highly recommended" program where you had to pay to learn how to use the recycling center?

The end result would be the consumer would end up with nothing or a loss because of the adminstrative fees and training fees.

That folks, is what you have in the Amway Global Opportunity. Most IBOs make nothing, and if they are on the training program, they almost guarantee themselves a loss. If Hawaii had a training program for recycling which was not free, then most Hawaii consumers would be better off throwing their cans and bottles away and saving themselve the trouble. Much like in Amway. If IBOs are dedicated to the training system, nearly all of them would be better off doing nothing or doing something more lucrative like delivering newspapers or panhandling.

The only difference is that it is "possible", but highly unlikely that someone on the training system will make some money in Amway. Hawaii's recycling program doesn't offer that, but conversely, Hawaii's recycling program, doesn't have a training system. LOL

Tuesday, April 7, 2009

Amway Global - IBOs, Are You Ashamed Of The Amway Name?

Come join our new ecommerce business. Network marketing, E-busiess, Quixtar, etc.

When IBOs recruit prospects and describe what they do, they tend to avoid mentioning Amway until the middle to end of the presentation. Some will claim that Amway is just their supplier and that you are really joining (insert name) enterprises.

I can only conclude that IBOs are ashamed to use the name Amway.

When I was an IBO, I was also taught not to use the Amway name because a prospect may not understand what we do, or they may have a preconceived idea of what Amway is all about. As it turns out, our upline was correct about this. That most people knew about Amway and already had a negative opinion about Amway. It ranged from pyramid scheme to pure hatred when hearing the name Amway. Some of it was justified and some of it not. In either case, these folks were not open to joining Amway.

Ironically, it wasn't really Amway that people did not like, but the actions of IBOs. IBOs who were probably taught by upline leaders from groups such as WWDB, BWW, or Network 21. The deception and outright lies of IBOs reflected badly on Amway and public perception was soured. Amway's apparent role in this was recognizing this (See Directly Speaking by Amway Co-Founder Rich DeVos) and allowing IBO abuse to continue.

So IBOs and prospects - are you prood to be am Amway IBO, or do you hem and haw when asked the age old question? Is this Amway?

Sunday, April 5, 2009

Amway Global -Customers? Broke Losers?

One thing I will applaud Amway for is their customer service. Whenever I called the corp to order or for other things, their staff was always courteous and friendly. But IBOs, on the other hand, do not seem to value potential customers that way. What I mean is when prospects are called stupid, or broke losers just because they do not wish to become an IBO. What you have done basically, is ensure that the prospect will never be a customer of yours, and possibly Amway.

Imagine walking into a retail store, and realizing that maybe you didn't have enough cash in your pocket, or that the store did not have the item you were looking for, so you leave. As you leave, the stores employees said what a fool. What a broke loser he is not buying anything from us or wanting to open a similar store. While this may be an extreme example, I believe it is a perfectly valid one.

I believe that this comes from two things. Number one is that IBOs are not very interested in selling products. They are only interested in sponsoring. And that is the number two reason. IBOs are mainly focused on building their group, because that is the key to moving up the ranks, in terms of a pin.

This division between potential customers and potential IBOs is what causes Amway to have a bad reputation with the general public. It is evident here on my blog, where IBOs criticize me, without even supporting their arguments.

IBOs, if you take a hard look at what I have written, it is not negative, it is a perfectly valid reason why so many do not succeed. You need to treat your potential customers and downline with respect, regardless of whether they choose to join or buy products from you right away.

Friday, April 3, 2009

Amway Global - The Reality?

When I was an IBO, I was considered hard core when I was actively building my business and sponsoring others. It seemed cool to be at functions with guys in suits and feeling the positive vibes. But it was before and after the functions or meetings that you got a better look at the reality of what is going on.

I would see IBOs in broken down cars. Many of the folks who joined Amway were probably the ones who could least afford to spend the extra money on high priced products, standing order and functions. In conversations with other IBOs, I was surprised at the occupations held by some crossline. It was not a clean cut across society. It appeared, at least in my experience that many IBOs seemed to be younger and often times, less tenured or successful than many. And that makes sense because these are the folks more likely to be attracted to the lure of early retirement and untold wealth.

At home meetings, you would see where some folks actually lived and in many cases, it was a rented apartment. Very few IBOs had their own homes. I myself lived in a rented apartment at the time.

It's not to say that IBOs are not good honest people. Most of them were. Most of them were hard working and motivated as well. The thing though, that many had in common, was the fact that many of us had not yet arrived at where we wanted to be financially in life, because many were just starting their careers. I'm sure many who were active in my days, are probably now financially secure, and without the Amway opportunity.

As I have stated many many times in the past. You can succeed in Amway. But your chances are very slim. Much like the lottery has a winner, or there is a "Bill Gates" out there. Yes there is, but you are not he. Also, there is only one Bill Gates and he is the exception and not the rule. The reality is that most will not rise to the level of exceptional, and contrary to what some leaders say, not everyone can rise to that level.

Thursday, April 2, 2009

Amway Global - Business Is Booming!

Business is great! My business is working for me and my family. I am a better person! Things have never been better!

I hear these kinds of statements from IBOs all the time. If their business is working out, more power to them. However, when I was in the business, my upline always taught us to be positive all the time. That meant "our business was booming" all the time because you did not want to "bring someone down" by sounding negative. Saying your business is actually struggling could be a negative which affects someone else's business, is what we were told.

Looking back, in reality, this appears to be just a ploy to prevent people from facing reality and taking a close look at their business expenses and determining if they are running a business or participating in a social club?

The bottom line is if the average active IBO eanrs $115 a month (before expenses) and most IBOs earn less than $10 a month, and only 1 in 5 IBOs manage to sponsor another IBO, the only conclusion I can make is that many IBOs are eebeliishing their stories of success and/or they are outright lying about the state of their business. Factor in the system expenses for those on standing order and attending seminars and you have IBOs losing money, possibly losing their shirts, all the while smiling, recruiting others into the business, and portraying a happy and prosperous IBO.

IBOs, is this what you are doing? Are you pretending to be positive while losing each month? If so, I urge you to stop, and at least think about your situation for a minute. If your business is not actually "booming", then what are you doing? Really - give it a thought. Please.