Tuesday, April 13, 2010

Amway Global - Go Platinum, So You Can Lose Money?

I read about an investigation conducted by Bruce Craig, attorney general (at the time) of Wisconsin. He concluded that the average platinum in Wisconsin (in the 1980's) lost an average of $918 per year. Granted the study is now a bit dated, but even though Amway bonuses may have gone up, the prices of Amway products and the prices of functions and other related expenses have also gone up, therefore we can reasonable conclude that if a platinum lost money back then, it is quite possible that it still happens. In fact, due to the heavy emphasis on the use of cd's KATE, functions and other tools that cost money, I would guess that a platinum's losses could be much more today! Not that much has changed over the years that would lead me to a different conclusion. In fact there are more tools and expenses today that did not exist many years ago, such as website fees and we also have a more expensive voicemail system now than some years back.

I have seen many testimonials from former platinums who said they lost money or perhaps, broke even at best. I was at a pin level with recommended parameters, and I was at break even/small losses. I was not privy to, but have also read of additional functions and expenses once you reach the platinum level and above. One such function is/was Go Diamond Weekend. In the book "Merchants of Deception", it outlined a very expensive cruise that upline put on and profited handsomely from it. It seems that almost every upline does allows them to profit from downline.

Based on my understaning of tools expenses and some believable testimony, I can reasonably conclude that it is quite possible for a platinum to lose money, mainly due to system expenses. If you factor in the cost of products, IBOs can expend a lot of money each month. The products are not a business expenses, but then again, how many "former" IBOs buy any Amway products? And if there are some former IBOs who buy product, how many of them buy 100 PV's worth? Apparently, the business itself creates an artificial need for Amway products.

IBOs who are checking out the business or who are new, should take this information and think about it. If platinums make little or possible lose money, is this truly a viable business option for you? Also, keep in mind that only a fraction 0f 1% of IBOs ever reach platinum. Can you overcome these odds? Can you build a platinum business without the system?

It is possible, but highly unlikely.

3 comments:

the man said...

do you happen to have a link to the study by this bruce craig?

Joecool said...

http://hunza1.tripod.com/amway/60min.html

Asd said...

You are awesome.This is THE most informative post about Amway I have come across.
I liked the way you expressed your views with your experience, studies & examples