Monday, March 30, 2009

Amway Global - $115 a Month Is Above Average!

Amway reported in 2001 that the average IBO earns $115 a month. Amway disregarded the IBOs who "did nothing" so the average income, I presume is fairly accurate. However, when I look at the 6-4-2 presentation, the majority of IBOs are at the 100 PV level and would earn about $9 a month. $9 a month is $108 a year. $115 a month is $1,380 in a year!

Thus an IBO earning $115 a month is way above average! If you show someone the plan, you are probably "above average" based on the entire IBO population. If you sponsor a single IBO, you are in the top 20% of all IBOs. If you move 300 PV in volume, you are probably at a level higher than most IBOs will ever attain.

So be encouraged IBOs and prospects. If you earn $115 a month, you are probably a top level IBO. Of course we are talking average, thus a crown ambassador thrown into the "average" probably pulls up the average. If I had to guess, I would say the "median" income would be between $10 and $30 a month. Can you buy your dreams at that price?

Friday, March 27, 2009

Amway Global - How Much Does It Cost To Be An IBO?

The actual cost to register as an IBO, I believe is in the neighborhood of $50. Many motivational groups such as BWW or WWDB or others, may have different costs because of product samples and/or tools included in the signup process. But aside from the cost of registration, what does it cost an IBO to run a Amway powered business? Many, if not most IBOs probably sign up thinking they will make money right away, only to find out that ongoing costs easily turn small profits into losses. Some of the costs I will display are optional, but often promoted as mandatory. Listed below are monthly costs:

100 PV = $300
KATE (voicemail) = $20
Website fees + $20
Standing Order (Tape/cd subcription) $42
Extra tapes/cds (two per week) $56
Book of the Month $10
Functions/Major functions (averaged out) $125
Monthly Open Meeting $8

These somewhat minimal estimates of monthly expenses add up to $581. Were you informed that a business building IBO would have to spend in the neighborhood of $600a month? Would you have been interested if this were disclosed? I woudn't have joined if this was disclosed to me. These costs are actually lowball estimates if you are a hard core IBO. These estimates would run you about $7000 a year. In five years, you may have spent $35,000 to build a business where you have a fraction of a one percent chance of making any real money.

What could you do with an extra $7,000 a year? What could you do with an $35,000, say 5 years from now?

The average active IBO earns less than $1,500 a year.

Do the math!

Wednesday, March 25, 2009

Amway Global Opportunity - IBO Lies Makes It Palatable?

I remember when I was a kid, my mom once told me we were having steak and when I took a bite, I spit it out and realized she game me a piece of liver. While it may have looked like a steak, it didn't pass the taste test. I remember my mom mentioning that she told me it was steak because she thought it would be more palatable to me presented that way.

I presume this is why many IBOs and upline leaders either outright lie or mislead prospects to entice them to see the plan. Often times, Amway is not mentioned, or an IBO will say, I am so and so Enterprises. Amway is just my supplier. Or they may be VERY deceiving and same something like we are Network 21, we work closely with Amway.

I am not sure why IBOs feel the need to deceive prospects. For example, if I ran a business and my store had a famous fast food name on the bill board, and customers walked in only to find that I sold carrot juice and vegan dishes, I am certain many or most customers would walk out, never return, and tell their friends and family that my store is a scam of sorts.

Well, that is exactly whet many IBOs are doing when recruiting new folks into the Amway Oppoerunity. My friend Rocket has a great post showing an IBO leader embellishing some facts:

I wonder what Amway wil have to say about this? IBOs who use deceit when recruiting, you need to know that sooner or later, you have to come clean with your
prospect and the sooner the better. Getting them in front of a slick upline speaker will not necessarily help your cause. Building your business with honesty, in my opinion, is the way to give yourself better long term success and sustainability. A business built on deception requires more deception to keep it going and will likely fall apart in the future.

What are you building?

Tuesday, March 24, 2009

Amway Global - The 6-4-2 Plan?

All you need to do is sponsor 6 who sponsor 4 who sponsor 2. 2-5 years of this and you will be free. Some groups have done other variations of this "plan" when recruiting new IBOs. I have heard of a 9-4-2 plan. On paper, it seems reasonable and it certainly seems attainable to some people. It's why new IBOs get "fired up". They believe that they will find their 6 and go diamond, and pay for their homes and jetskis is cash.

Then after a while, the harsh reality of the business sets in. The prices are high, making it difficult to sell products to customers. Because the prices are high, it becomes difficult to self consume 100 PV or more. If you are on standing order and attending functions, that expense starts to become heavy on your checkbook as well. The $9 check from Amway is not that exciting. You find that recruiting people to see the plan is difficult as the Amway opportunity has some baggage. Sponsoring people is even harder. You notice that many IBOs have no group or downline.

You find yourself conforming to the group because it is the thing to do. You put on a suit and a smile but deep down you have doubts. You stay in because you have been taught that success might be "right around the corner".

Despite what your upline has told you, the 6-4-2 plan is a myth. There is no substantial evidence that one can achieve diamond in 2-5 years. Some have done it but they are the exception and not the rule. Most IBOs do not sponsor another IBO, much less 6 others. Most IBOs quit before a year passes, thus your "6" is like spinning plates. Some will fall out and need to be replaced. Even if you are that 1in 10,000 who may reach diamond, maintaining the level is another story. There is much evidence that a diamondship is not easily maintained. It is why you have stories of diamonds quitting and/or leaving Amway for better oppertunities.

The 6-4-2 plan will be promoted as "possible" and "achievable", but please look at it with a discerning eye if you are considering this opportunity. If you are a current IBO, where in that plan are you now? Are you headed to diamond or not?

Thursday, March 19, 2009

Amway Global - Why Is Lying An Important Aspect Of Recruiting New IBOs?

In my personal experience and even now, I see evidence from IBOs that lying is still a big part of the script for those who are recruiting new IBOs. A business built on lies is a house built on a shaky foundation. Some of the lies?

We don't make any money until you do

We don't make money from tools

Quixtar is not Amway

Save 30% by becoming an IBO

The business is easy

All you need is six

Diamonds pay cash for everything

Jobs are for losers

98% for people are dead or broke by age 65

95% of small businesses fail in the first year

**Have you heard any of these statements? Have you been fed lies or half truths (lies)?
If these statements sounds familiar, it may be a red flag for you. I urge you to at least verify any questionable claims made by upline or by those recruiting you into the business.

Saturday, March 14, 2009

Amway Global - Quitters Are Losers?

Over at the Amway Talk forum, there was a long and interesting debate about the use of the term quitters and losers. Certainly over the years, many have left the Amway business. Some sign up and never do a thing, some put in a little effort and quit, and some do a lot, and still quit. Certainly though, someone who chooses not to participate in Amway should not be criticized, especially when selling newspapers or panhandling can be much more lucrative on average.

One blogger justified the position by saying if you quit, then quite simply, you are a quitter. I guess in a way, that is true, at least on the surface. But the way it is done by IBOs is mean spirited and divisive. My upline used to say there are winners and losers. Winners were in this room, we were told (in an Amway meeting). And this statement was followed up with a statement like "and if you're not a winner, that makes you a l-o-s-e-r". In my opinion, my upline made statements like these simply to use subtle pressure to make IBOs not want to quit, because then you morph from a winner into a loser.

This labeling of winners and broke losers may not be true of all uplines, but based on my experience in dealing with IBOs, certainly it is probably true with the majority of uplines, and possibly to some extent, in all LOS's.

If an IBO puts forth effort and makes no money and quits, isn't that prudent? If an IBO cannot build a business because of high prices and a bad Amway reputation and quits, isn't that prudent? If an IBO finds he/she hasn't the time needed to run a business, is that person a loser? Based on how some IBOs think, anyone without the goal of crown ambassador is a broke loser. Again, this is not something the critics of Amway make up, but simply pointing out IBO behavior. The IBOs who get angry just cannot handle the truth.

Sunday, March 8, 2009

Amway Global - It's Good For Amway!

I hear ridiculous claims from IBOs at times. They make alll kinds of claims that have nothing to do with their business. For example, Amway recently reported their sales at 8+ billion dollars.
It's good - for Amway! It has no bearing on IBOFightback Enterprises, or whatever you call your business.

Amway Arena had a rock concert! Great for Amway - it has no bearing on John Smith Enterprises. The DeVos and Van Andel families are billionaires! Great - it has no bearing on an IBO's business.

So many IBOs mistakenly or ignorantly confuse Amway's success for their own. Of course it helps when the corporation gets good press because it can help sales. But then again, many IBOs don't sell goods, they "buy from themselves". If you buy from yourself, then all of this good press does nothing to increase your sales.

All of the good things happening for Amway or because of Amway - is it increasing your bottom line? Is it helping your "Independent Business"? If not, then why brag about it? Aren't you an IBO - Independent Business Owner? Can you make the same or similar claims about your own business?

P.S. Joecool will be out of town for a week, on a week long Golf junket on various islands in Hawaii. I will try to get to an internet cafe to publish comments if I can. How many diamonds have the time to golf with the boys for a week?

Thursday, March 5, 2009

Amway Global - Noone Holds A Gun To Your Head To Make You Join!

I received this comment recently, and it made me chuckle. I thought this comment alone was enough to be able to make a blog post:

Anonymous Comment: "Who are you people? why do you do this? You spend time searching out places online to put down Amway, Why? No one ever holds a gun to anyone to make them join Amway, If it did`nt work for you ok, there are to many people out there like me that it did work for, Stop taking away peoples hope."

Joecool says: Simple, I am a former IBO. I did not have a gun to my head when I joined. I was conned. Conmen do not force you to do anything. They convince you that something is a good idea. In many, possibly most cases, what a conman wants you to do is beneficial to him but not necessarily for you. Just as in Amway, many recruiters are like conmen. There are some recruiters for Amway who lie about income, deny that Amway is the opportunity, or make other false claims such as the business is easy and you can be retired at age 35 instead of having aq dreaded j-o-b.

If Amway works for you, then I say go for it. My only question is whether it works for your downline? If your downline are losing while you gain, is it a good deal for your downline? Did your downline know this was the arrangement?

Iwould like to know how reading a brief article on this blog takes away someone's hope? I have never met or engaged in conversation with a dedicated IBO who suddenly read my blog and said "Joe, your blog makes so much sense that I quit Amway".

Hey, if you believe that Amway works, go for it. I only ask that you analyze your downline's success when you speak of your own. Your downline likely joined because they believed you could help deliver their dreams. That's a part of why I joined. When I realized it was all phoney, I quit.

Wednesday, March 4, 2009

Amway Global - It's Only 100 PV!

When I saw the Amway plan, the key figure on the board seemed to be 100 PV. If everyone did their 100 PV, it would all be good right? Then all you need is to sponsor 6 and so on. But what is not talked about that much is what does 100 PV consist of and what does it cost? Apparently 100 PV, if you are a self consumption IBO, can cost anywhere from $270 to $300. If you buy a lot of items from partner stores, you may spend much much more.

So the question is - Do most people actually spend that much money on household products and consumables? The answer is no, at least for most people. If you are single or possibly a college student, then the answer is definitely no! Ironically, many uplines expect couples to spend 2 - 3 times more. Many couples can feed themselves and buy household goods (for a month) for less money than the cost of 100 PV. Even if you save some time by making online purchases, you still need to drive to the store to buy fresh bread, meat, vegetables and milk, unless you will be eating basically "canned" foods exclusively from Amway.

What many IBOs also do not realize is that Amway is probably charging you about 30% more for goods above and beyond everything else because that is the amount of bonuses they pay out. That means you are paying up to $300 for about $200 worth of goods in order to earn a $9 rebate. I suppose it's a good deal for a platinum and above, and not such a good deal for all those under the platinum. But then again - it's only 100 PV right?