Saturday, June 26, 2010

Amway - Is Lying Just Part Of The Business?

One of the things that got me upset after I left the Amway business was the amount of lies and deceit used to attract IBOs, and to keep them in the business. My first encounter with the Amway business was being invited to a beer bust that was actually an open board plan at someone's house. I later attended a meeting and eventually sign up when a very good friend of mine had gotten in and had qualified as Gold Direct (at that time).

As an IBO, I was told that NOBODY made profits from tools. I was also told that WWDB was a non profit organization. Both were lies and to date, as far as I know, not a single WWDB leader has been held accountable for these lies. Other questionable statements were "we don't make pennies until you make dollars", and that upline truly cared about us, and that's why they put on functions. At the time, nobody really knew that some uplines might have been making a living off tools and not from Amway.

Things changed a bit later, with the advent of Quixtar, but then more lies came from many IBOs, such as Quixtar is not Amway and is not even related in anyway. Seems that tricking people into meetings has never changed over the years and still occurs today. There are pockets of IBOs who are ethical, but they are the exception and not the rule. We also saw the perfect water fiasco where IBOs were selling $48 cases of water that allegedly had magical powers, only to find out it was mostly a hoax and Amway finally stepped in to stop some of the wild claims.

The there's the age old lies told about IBO income. I recently had a conversation by email with an IBO who swore that he made $1000 a month from Amway and he said he would shut me up by sending me a PDF copy of his check. Well, none came and he blocked me from contacting him. Now I don't doubt that people can earn $1000 a month from Amway, but the cost will be a bunch of downline to eat losses so you can earn that magical check. Trying to get a straight answer about income from most IBOs is like decpihering hyroglyphics at times.

If you are usinng deception as part of your recruitment process or using other deceptive practices, then you may ask yourself what your prospect will think if and when they discover the truth? This may be why Amway IBOs drop out like flies, where more than 60% of IBOs drop out the first year. I have just touched the tip of the iceberg by the way, I may have to do a follow up blog post to cover more on this interesting topic.

Thursday, June 3, 2010

Amway Global - The Truth About Tools Profits?


I was an Amway distributor from 1980 to 1982, and then again from 1987 to 2003, when I just decided to not renew. My organization was large enough for me to stay home for almost 5 years taking care of my parents and family.

Unfortunately, the truth in the matter is, the tool system is the most important, and most profitable part of the operation. Amway sanctioned the tools business by not forcing its end. As an accountant, I was the tax guy for several of the bigger people in the NY area. I was amazed to see that 60%-80% of the NET income that they were earning was from the tools and functions, not from the movement of products through the organization. Speakers were paid to speak, in cash. I know, because I hosted 100’s of these meetings in the NYC area for many years, and spoke at some of them. As the host It was my job to collect the door proceeds, pay the hotel/room bill, and then give the remaining cash in an envelope at end of meeting to the speaker. Sometimes these dollars were in excess of $ 500.00. The statement that they left their families for the good of the team is nonsense. They did it for the benefit the extra $ 20-30k in “tax free” cash flow. Directs earned $ 1.00 from each tape sold as a monthly standing order to their teams, larger Pins, earned from 1.50 to 3-4 dollars per tape. Tapes cost $ 6.00.

The whole business revolved around functions, where the tapes were made. The standing order tape of the week, (sometimes a double) WERE the recordings from these same meetings. We were told we needed to be on standing order so we could have the access to the upline help. Not on standing order, not at functions, kiss the upline by by.

As I saw what was going on, and seeing the huge expense I and my people were going through, I decided that it was not in my best interest to continue with the lies, and stopped attending functions. I still bought products, and even kept getting tapes via mail. Quixtar transfer killed much of our NY volumne, so income dropped quite a bit. They talk about the relationships. Well, my immediate upline was someone that I knew when I was just 2 years old. Our mothers were best friends for decades, and we spent a lot of time together in our grammer school days.
When my mother died, I was out of business on paper for about a year or so. NOT ONE OF THE PEOPLE IN MY UPLINE ATTENDED THE FUNERAL/WAKE, NOR DID THEY EVEN CALL. Including my old friend, who grew up with me and my family. Her excuse “I could not get a second vehicle to travel there”.