Tuesday, June 30, 2009

Amway Global - Investing In Your Business?

One thing that is very interesting to me, is how IBOs seem to think that spending money on cds, tapes or functions is an investment in their business. If I owned a restaurant for example, I would have to purchase equipment such as ovens and grills. If my business does well, I may choose to re-invest some of my profits for perhaps more efficient cooking equipment, or nicer chairs and tables for my patrons, etc. The things I invest or re-invest in makes an immediate impact on my business for the better. Food is served faster, and perhaps the environment is nicer for my customers.

What exactly do IBOs get from cds or attending functions? They likely end up with less money. Attending a function for example, not only costs money, but takes you away from your business for a weekend each month. In what business is it beneficial to spend money and take a weekend away from your business? Only in Amway do upline leaders teach this kind of questionable business practice. It wouldn't seem so bad if upline leaders weren't the primary financial beneficiary of these functions.

Now if an IBO spent time and money creating advertising for their products, or a business gameplan, that would be a reasonable investment of their resources to benefit their business. It is too bad that upline leaders teach bad business practices that end up in IBO failure while they are enjoying financial gains for teaching this crap.

Friday, June 26, 2009

Amway Global - Businesses Don't Turn A Profit Right Away?

Many IBOs defend their continued losses in Amway (primarily due to standing order and functions) by saying that businesses often do not make money in the first few years, perhaps up to five years. This is a myth taught by uplines. I will go on to explain further.

A new conventional business may not make money right away. While that may be true, it is often because the owner has not yet made up his initial investment and may still be building up a customer base. However, once a business opens its doors, they make profits from customer purchases and for many businesses, eventually the customer base is enough to sustain the business.

In the Amway opportunity, many upline will entice recruits to join by saying their is no overhead, little operating costs and whatnot. Therefore, there is no reason why an Amway IBO should be in business for five years without a profit. This is just bullshit taught by uplines so their new IBOs think they are investing in their business or that this is normal, for an Amway business owner to not make money for a few years. This hides the fact that uplines are draining their downline's resources one standing order at a time, or one function at a time.

If you are an IBO or a prospect, there is no reason you cannot make a profit right away. Simply avoid buying training materials and focus on selling product. It is that simple. Uplines who tell you that training and motivation is your priority probably do not have your best interest at heart, regardless of what they might tell you.

Tuesday, June 23, 2009

Amway Global - Why Don't IBOs Track Expenses?

In my observation of IBOs and the things they talk about, it is apparent to me that IBOs are taught to ignore their expenditures. I believe upline teaches their downlines to disregard expenses. Some upline teaches that "the facts don't matter". It would seem apparent to me, that any real business owner would track their income and expenses. That is how you determine whether you made a profit or not. A business exists to make a profit.

It seems as though too many IBOs don't understand, or are indoctirnated to believe that their Amway business doesn't exist to make a profit. IBOs will justify their lack of profit by saying they learned to be a nicer person, or they learned how to ru a business. If you received a side benefit by running an Amway business, that is good, but is it why you joined in the first place? Would you have signed up to be a nicer person, knowing there would be no profit, and maybe even losses when considering your expenses?

It is Joecool's opinion that uplines teach thei downline IBOs to ignore facts and to ignore their expenses because it keeps them in the "system" where uplines can profit handsomely. Uplines teach their IBOs that functions and standing order are vital to their success, when the exact opposite is usually true. It is more likely that standing order and functions are the reason why so many IBOs lose money. But it is a clever scheme to teach downline IBOs that they are successful by attending a function, or listening to the latest standing order, regardless of their sales and income.

If IBOs were to run their businesses as a business, which includes tracking expenses, most of them would soon realize that their uplines are exploiting them one standing order and one function at a time. Simply do the math and compare your income with your monthly expenses and you'll see. Most IBOs earn nothing or $9 at best. Factor in the system and you will sustain monthly losses. I challenge IBOs to dispute this.

Friday, June 19, 2009

Amway Global - This Testimony Sums Up A Lot!

I recently saw this on anothet blog and it is a very short testimony, but it sums up the ridiculous mindset that IBOs are taught to have by upline.

"I was involved with Amway and then Quixtar for 18 years and never made any money, but think it is a great program because your support team will teach you the secrets of success in anything. "

This IBO was involved for 18 years and never made any money. But he thinks it's a great program? Why? 18 years of time and money spent building a business for no money? Is this what upline teaches you? When I was an IBO, upline taught us that we were indeed successful as long as we were on standing order and attending functions. What they really meant was the IBOs were making upline successful by being on standing order and attending functions.

As far as I know, there is no evidence that standing order or functions helped anyone to achieve the kind of success that the diamonds portray on stage. Of course, IBOs are welcome to prove me wrong.

Wednesday, June 17, 2009

Amway Global - IBOs Compare Themselves To WalMart?

One thing I used to see as an IBO was the speaker at some meeetings compare the Amway opportunity to a "shopper's club". These may include Costco, Sam's Club and WalMart. I even heard of IBOs prospecting in WalMart. This is sort of redundant, and frankly, IBOs doing this are barking up the wrong tree.

Why do I say this? Because there are some Amway zealots, such as IBOFightback, who make arguments (without bonafide neutral party assessments) that Amway in fact may not save you money, but certainly that Amway may be of superior quality as compared to the big box retailers. Now the quality of soap and vitamins are subjective, and most people are perfectly happy with the goods they purchase (cheaply) at WalMart or Costco at a discount.

Also, the flaw with making the case for quality is that Amway goods are nearly exclusively sold to IBOs! IBOs have a financial interest in purchasing Amway products, thus their opinions are biased, as is IBOFightback's. While I'm sure Amway does have some quality products, the average person on the street shops at Costco or Walmart for a reason. Costco and WalMart sell their goods cheap! Many customers know this and shop at these venues for that very reason!

Thus, while IBOs may be able to argue quality or concentration factors for Amway products, to argue that these same products are cheaper than a big box retailer is silly. I know some supporters will want to refute this claim, but I offer them this. Provide a neutral third party assessment, such as a consumer report magazine write up, that Amway products are better and/or cheaper than WalMart or Costco and we'll have something to discuss.

Until then, it is my conclusion that WalMart/Costco products are much cheaper than most comparable Amway products, and the general public agrees. Amway sales are dwarfed by WalMart and Costco sales. The numbers tell quite a story......

Monday, June 15, 2009

Amway Global - LA Lakers 2009 NBA Champs!

Congratulations to the LA Lakers, 2009 NBA champs! Ironically, they won the NBA championship in the Amway arena. This is a team that may go on to win several more titles. The Orlando Magic had a great season and Dwight Howard is an up and coming star, they too, will have to be reckoned with in the years to come.

Friday, June 12, 2009

Amway Global - A Wife's Testimonial - Amway Does Not Save Marriages!

Note: This is my own perception of my personal experience with the Amway business. If I've had a bad personal experience than that's what I had, I'm not attacking Amway or those in Amway, I'm telling my personal story.

I was in Amway 12 years ago. It was more like a nightmare than a business for me. I got the inside look at the weekly meetings and the grandiose Amway functions. I used all of their overpriced products while my then husband was encouraged to show the Amway plan. (Draw circles on boards trying to convince others to join Amway so they can become super rich).

From the moment I saw the first Amway convention I felt like something was wrong. There was a whole lot of hype, lots of people crying, and crowds of people admiring the millionaires on stage, hanging on their every word, taking notes, following whatever they said. It actually scared me, but not my husband, he loved it.

My husband spent thousands upon thousands of dollars on Amway tools, cassette tapes, videos, books, and meetings. I "the dutiful wife" was told to listen to the Amway tapes over and over again and to follow the advice of the "Amway Diamonds." (Who are he people who got rich through Amway). Only problem is the tapes kept telling me to leave my kids to go show the plan and to keep my eye on the prize. Since my kids are my biggest prize I wasn't willing to leave them to go convert people to Amway.

So my then husband (who is not a salesman) spent many nights out hunting for people to show the Amway plan to. He annoyed many people, but didn't sell the business idea to anyone.

Amway has an interesting and unique system where they basically encourage you to brainwash yourself with the Amway tools. Granted, they are not brainwashing you, you are choosing to do it to yourself. Those who miss meetings, don't listen to the tapes, or don't use only Amway products are looked at as losers and told to try harder. Those who sponsor (get people to sign up), buy all of the tapes, books, etc, are the heroes.

The good side of Amway would be that the people are encouraged to have big dreams, set goals, and to stay positive. They teach great sales techniques, leadership skills, and the power of positive thinking, hard work and determination.

Learning to be a positive go getter doesn't hurt anyone, but spending all your money might. My husband I divorced, being very young and dealing with the added strain was too much.

I have since remarried. The people who are in Amway say it strengthens families, and that you cannot possibly lose money, and when people come out and say that yes, I lost my marriage or yes, I lost money, they tend to attack. I have heard that they do not like it when anyone says anything bad about Amway, but people have a right to their opinions.

I believe that anything in the extreme has the potential to be destructive, but Amway encourages you to go to the extreme, and for some families destruction is exactly what it causes.

Wednesday, June 10, 2009

Amway Global - Joecool's Experience in Amway (Re-Print)

About JoeCool

Some people have asked me why I am a quixtar critic so I will tell my story.

I had two brushes with Amway. The first time I was in college and a friend invited me to a beer bust. I arrive at the house and voila! It’s an Amway meeting. Needless to say, I sat through the house meeting and I left after the meeting, very negative about Amway.

Fast forward to late 1995. A good friend of mine called and said he was very excited about a new opportunity he was involved with. I agreed to meet with him and when he arrived at my house wearing a suit, I knew it was Amway. Anyways, I bought some stuff from him and told him if he ever made any money in the business, I would look at it again. About two years later this friend calls me. He said he had become a direct distributor and could teach me how to do it and that it was easy. Seeing someone I actually knew reach a significant level made it seem real, that maybe I could in fact do the same.

I went to see the plan again, and I signed up in 1997. My plan was to retail some specialty product to a niche market, and move volume. My sponsor (an old friend) asked me why I would not strive to achieve more. In other words, if I was going to take the time to run a business, why not try for the big bucks, after all, he was direct and could teach me. So I trusted him and signed up for standing order, and started to attend the functions.

In my first month of business, I did my 100 PV. By month two, I had personally sponsored 4 people and I was at 1500 PV. Fired up, got to cross stage as a brand new 1000 pin at the Leadership function. Well, my group kept growing, three months later I was at 4000 PV. I started to think about going direct, “earning time” with the diamond, and how cool it would be to work the doors at the functions. What’s perplexing to me is that despite making some profit from Amway, I did take note that the tapes and functions were taking away all my profits and then some, but upline kept saying the money would be there, just keep building.

All the while I was building the business, my girlfriend was supportive, and she accepted the fact that I had limited time to spend with her but at the same time she was excited to see my business growing. Well, in month 8 of my experience, I had a counseling session with my upline. He sat down and told me that he was proud of me. He did however, have a suggestion that would propel me to direct, and to emerald. I excitedly asked him what that was. He told me to “ace my girlfriend” Fiancee at the time). He felt that I could build the business faster without her and that a lot of girls would be interested in a single ruby or emerald.

It was at that moment when I decided that the business was not worth it. For the last 8 months, I had spent most of my time building the business hard, and I had nothing to show for it. Now my upline is telling (advising me) to get rid of my soon to be wife. Well, I quit about a week later. I stayed active a little bit longer (retail only) to provide to some customers I had.

In the subsequent years, I read more and more about the tools industry being the driving force behind the diamond’s lifestyles. I later discovered Qblog and due to my wife’s fondness of “snoopy”, I took on the handle of “Joecool18”. The 18 was just a number I once had on an email account but I kept it.

My upline was a very close and trusted friend. When he advised me to trust him, I did. I was one of his close “inner circle” IBO’s. My trusted friend was also my physician, who treated me several times. People ask how someone can do what seems silly in this business. Well, in my case you can see why. I bought standing order, plus 5-7 extra tapes each week. I never missed a meeting. I arrived early, left late. I bought extra function tickets. Luckily for me, I saw the light before too much damage was done.

The business is generally filled with nice, motivated people. The problem is that their critical thinking is turned off, because many like me, were probably sponsored by someone they knew and trusted. (People who are murdered are often killed by someone they know as well). The teaching system, if you are not careful, will slowly drain you of resources, and the system does not produce results. For whatever reason, the government has not looked into the motivational organizations. Until something is done, I will do my best to inform prospects about the secrets of the business so they can at least make an informed decision as to whether they should do the business or not.

Monday, June 8, 2009

Amway Global - Myth Busted - Dead or Broke By Age 65

Debunking another myth taught by upline. People aren't broke by age 65. In fact, all of the retirees I know all live quite comfortably, travel several times a year. enjoy golf and other activities. Uplines want people to believe they will struggle in their golden years and the convince you that the Amway opportunity is the only way to avoid it. Check out the facts for yourself!


Economics – More older people enjoy increased prosperity than any previous generation, with an increase in higher incomes and a decrease in the proportion of older people with low incomes and in poverty. However, major inequalities continue to exist for older blacks and for people without high school diplomas, who report smaller economic gains and fewer financial resources.

• Income generally rose between 1974 and 2006. The proportion of older people with incomes below the poverty line went from 15 percent to 9 percent; those categorized with low income dropped from 35 percent to 26 percent; those with high incomes increased from 18 percent to 29 percent.

• Median net worth for households headed by whites age 65 and older was six times that of older black households, although the gap has slightly narrowed since 2003.

• More older people, especially women, continued to work past age 55.

Friday, June 5, 2009

Amway Global - It's Not About Money?

One of the things my sponsor taught our group, after most IBOs were in for a few months, was that joining AMway was not about money. I thought that was very strange because the reason I joined was to make money, and I figured that most other IBOs joined for the same reason. I certainly didn't join to attend meetings and wear suits.

I believe this is a tactic by upline to justify the lack of real income made by IBOs. It is why you hear stories of IBOs "being nicer people", or "coming to God". While these may be nice side benefits, how many recruits would have agreed to become IBOs under these conditions? I know I wouldn't have.

It appears to be a clervely designed scam by the upline leaders. Show recruits flashy cars and suits. Show videos of shopping sprees, golfing and other luxuries that the diamond lifestyle affords you, then tell the recruits that they can have all this, if only they will trust their sponsor and their upline leaders.

These same folks will then tell you that the only way to succeed, is to sell out to the system. The system of cds, functions, books, voicemail and meetings. That if you follow the system, success is all but guaranteed. Yet meeting after meeting, most IBOs begin to notice the same folks on stage, their groups do not grow despite following the system. They usually get disillusioned and quit.

It is why upline will try to get you to buy into the side benefits, in hopes that it will retain you in the business and in the system. Business is about making money. Please think about this very carefully if you are experiencing the same or similar conditions. Feel free to ask questions here on this blog.

Thursday, June 4, 2009

Amway Global - WalMart Rocks!



Thu Jun 4, 12:06 am ET
BENTONVILLE, Ark. – As Wal-Mart Stores Inc. opens about 150 new or expanded stores in the U.S. in 2009, the company expects to hire about 22,000 people for new positions.

Those positions include plenty of cashiers and stock clerks, but the world's largest retailer will also be adding store managers, pharmacists and personnel workers.

Wal-Mart is holding its annual shareholders meeting on Friday, and employees from its stores around the world are spending the week in Bentonville at company headquarters.

Wal-Mart, still the target of criticism from union-backed groups for its pay and benefits, has improved its health insurance coverage and opened it to full- and part-time employees. The company says 94 percent of its employees have health coverage, either through Wal-Mart or another family member.

"At Wal-Mart, we offer competitive pay and benefits and real opportunities for our associates to advance and build careers," Wal-Mart Vice Chairman Eduardo Castro-Wright said. "Job creation is just one way in which we're working hard every day to help people across this country live better."

Other employee benefits include a 401(k) plan, stock purchases and discounts for workers making in-store purchases.

The company has touted its generic drugs program in which Wal-Mart is selling $4 prescriptions for many popular medicines. Competitors, such as Kroger Co., have matched the price for some prescriptions.

"During this difficult economic time, we're proud to be able to create quality jobs for thousands of Americans this year," Castro-Wright said.

Earlier this year, the company shared more than $2 billion with its workers through bonuses, profit sharing and payments into the company 401(k) plan.

Wal-Mart has more than 2.1 million employees in the U.S. and abroad. The company had sales last fiscal year of $401 billion.

On the Net:

Wal-Mart corporate site: http://www.walmartstores.com

Tuesday, June 2, 2009

Amway Global - How Many Diamonds Are There In Amway?

How many diamonds are there in Amway? I don't know. Nobody knows for sure except Amway and Amway isn't telling. I once emailed Quixtar to ask this question and I was told to ask the person who invited me to a meeting. IBOFightback recently wrote a post on his propaganda blog decrying Amway critics for creating an "echo chamber" effect where people searching for information will be mislead about how many diamonds there are in Amway. Of course, he doesn't criticize the corporation for not publishing this valuable and controversial piece of information. He recently wrote a blog post claiming there are about 4000 Amway diamonds worldwide. While that may or may not be true, given IBOFightback's propensity for lying, it certainly doesn't speak about the number of Diamonds in the US and Canada.

On one of the Amway PR blogs, I posed a question (over a year ago) and Anna Bryce of Quixtar (at the time) stated that there were 160 Diamondships in attendance to 2006 Diamond club. Assuming there were some absentees, there might be a few more than 160 Diamonds in Amway. 160+ Diamondships in nearly 50 years of existence is not much to get excited about. Also, in Amway, a diamond is not forever. Diamonds fall out of qualification, probably more often than a new one emerges.

IBOFightback talks about the thousands of people who may have achieved success thru this opportunity. He doesn't mention however, the MILLIONS who may have been harmed by participating in this wonderful opportunity, albeit possibly from a motivational organization and not necessarily from Amway, Quixtar or Alticor. Although the motivational organizations have mostly been allowed to operate freely to cause this harm, and blemish the corporation's reputation.

The point being missed here is that the more diamonds there are, it is likely that there will be more and more people who lose money. Nearly all diamonds that I know of hard sell their tapes, seminars and other support materials. Thus the more diamonds there are, the more downline, and probably more people on the system. The vast majority of people on the system lose money because of the system expenses. A lack of sales to non IBOs almost guarantees a loss for IBOs because the only way to increase volume without sales is to increase downline who then suffer the losses for you. The more diamonds there are, the more lower level IBOs there are, and more IBOs who make little or lose money in order to support these higher pins.

Monday, June 1, 2009

Amway Global - Goofy Stuff Taught By Upline?

A site visitor recently gave me a password which gave me access to an IBO blog. Here is some of the stuff they wrote about. The name was withheld for privacy:

xxxxx xxxxx at 5/5/2008 8:47:08 PM Says:

I built the business single for a while and knew that I could never date or marry someone who wasn't 100% for this business. I had my upline help when I thought a guy may have been more interested in me than the business. Then I met my husband, (q.i.'d him & went to a meeting before agreeing to go on a date.) It was when HE asked ME for more CD's I knew I wanted to marry him! :-) It was a big shift from being the leader of my business to giving him the reigns. I still q.i., show the plan, and do all the same things; he's just in charge now. It's important to be supportive of your husband, but it's also very important to take on an active role. As a single lady, don't settle for ANYTHING less than what you deserve and don't let a "potential mate" be a potential if they're not on board with your dream. Now our business can go twice as fast and I have my warrior!

Here's another gem!

xxxx xxxxxx at 4/27/2008 3:50:17 PM Says:

One of the best things that has really helped me is to stop asking "why" so much. If he asks me to do something or states that this is what we are going to do, I've learned to truly be submitted and only give my opinion when asked!