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, April 28, 2011
Monday, April 25, 2011
How To Retire As A Millionaire?
http://finance.yahoo.com/retirement/article/112585/start-with-10k-retire-millionaire-marketwatch?mod=oneclick
The 7% solution: Let money and time work for you, no matter your age.
The millionaire next door could be you.
All it takes is money and time; it always does. But what this really means is you have to save money over time, and that's where so many of us struggle.
Reaching age 65 with $1 million saved requires strong discipline and sustained effort. You need to recognize the importance of starting early and putting money away regularly. But even if you don't have as much time, you still have options other than a last-ditch Hail Mary pass.
More from MarketWatch.com:
• Key Strategies to Boost Your Retirement Savings
• Higher Tax Rates Loom for 401(k) Savers
• Bucket Strategies for Retirement Will Stick Around
It can be done -- even if you start with just $10,000.
"Whether you're 25 or 45 or even 55, you've got to start somewhere," said Nathan Dungan, founder of financial education firm Share Save Spend.
Call it a 7% solution. Assume a 7% inflation-adjusted return from a portfolio of U.S. and international stocks, bonds and cash -- not overly aggressive, but an expected return that requires taking some risk -- and living well within your means.
"In order to save, you have to understand your spending," said Eric Kies, a financial adviser with The Planning Center, an investment manager in Moline, Ill. "Build some awareness of where you are now, where do you want to be, and what are you willing to do to get there."
Of course there will be bumps along the road -- potholes, even, that challenge your resolve. The financial markets love to shake and stir individual investors; don't give up, because it may be hard to get back in
"It's less about where the money is invested and more about your ability to be disciplined," Dungan said. "Ask yourself, What is realistic? What can I achieve? The best savers don't have magical thinking about money. They're honest with themselves."
25 Years Old: Starting Out
Forty years is a long time. So long, in fact, that it's easy to put off saving for the future. There are bills to deal with, college debt to pay, stuff to buy, vacations to take, a career to build.
Savings -- sure, but who has money for that? Indeed, one of every three Americans between the ages of 18 and 33 have no personal savings, according to a recent Harris Poll survey. What's more, 53% of this age group has zero in the way of retirement savings.
They're missing out, big time. If a 25-year old with $10,000 invested $320 a month at a 7% annual compound rate of return until they turned 65, they would wind up with $1 million.
"There's a reason why Albert Einstein called compounding the most powerful force in the universe," said Jonathan Guyton, a principal at investment manager Cornerstone Wealth Advisors in Minneapolis.
Whether or not Einstein really said this, the math speaks for itself. At 7%, your money doubles every 10 years.
If saving a few hundred bucks a month seems daunting, rest assured it only gets worse. One way to make the job easier is to rely on your job -- specifically investing in your company's 401(k) plan and enjoy whatever contribution match your employer offers. Think of it as free money.
Don't have a 401(k)? Open a Roth IRA if you qualify, and automatically deposit money into it from your bank account to get tax-free growth.
35 Years Old: Early Innings
Ten years later, the price of waiting has been high. Not as costly as it will be, but tough enough. Instead of $320 a month, you're looking at saving $775 a month to turn that $10,000 into seven figures at a 7% annualized return.
Don't beat yourself. Just save. Funnel money into your 401(k) so you're not dipping into your own pocket for the full amount. Take the Roth IRA route if you can. By now you may have a young family -- so do it for the kids. Show them you not only can make money, but also know how to handle it.
"Children can be extremely good motivators to good financial habits," said Eleanor Blayney, consumer advocate for the CFP Board and a wealth adviser in McLean, Va. who specializes in financial planning for women.
Teach the kids sound money habits, and teach yourself at the same time. Said Blayney: "It induces you to be financially smart."
45 Years Old: Halfway Home
At 45, you're likely established in your career, with a decent salary. You may own a home, and the kids are thinking about college.
It's good you're making money, because you'll need to add $1,850 every month to that $10,000 base in order to reach $1 million in 20 years.
"There's a greater sense of urgency; your window for taking advantage of time is starting to close," Dungan said.
Yet one in four Americans between the ages of 46 and 64 have no retirement savings, the Harris Poll found. Another 22% have retirement savings mostly in bonds and savings accounts.
With so little saved at this point, you would do well to reevaluate your expectations for retirement. Are you saving and investing accordingly? You may have to weigh the purchases you make today versus a stable retirement.
"Now's your chance," Blayney said. "Don't blow it."
55 Years Old: Winding Down
At 55, the amount needed to reach $1 million with a $10,000 bankroll is both comical and sad: $5,700 a month for 10 years.
Maybe you've been living paycheck to paycheck, and life has been good. You've got a nice house, a fancy car -- but no savings.
In short, you have a big hat, but no cattle. The millionaire is next door, and he isn't knocking.
This is your moment of truth. You may not become a millionaire, but you can live like someone who is on the way to being one.
Here's how: Cut expenses, save what you can, and work longer.
"If a client is in their mid-50s and hugely behind, we start to focus on lowering expenses by paying off debt, restructuring debt, or lowering housing costs," said Guyton, the Minneapolis financial adviser.
"If that change lowers their expenses by $1,000 a month, that's more beneficial than helping them accumulate an extra $100,000," Guyton said. Indeed, cutting $12,000 a year from expenses equates to what roughly $175,000 in assets would produce at a 7% yield.
And take care of your health, Guyton added. You're going to need it in order to show up at work.
"It's a whole different matter when you have to stay on the treadmill," Guyton said. "We don't mince words. We try to make it manageable and realistic, but there are some options that aren't on the table anymore."
The 7% solution: Let money and time work for you, no matter your age.
The millionaire next door could be you.
All it takes is money and time; it always does. But what this really means is you have to save money over time, and that's where so many of us struggle.
Reaching age 65 with $1 million saved requires strong discipline and sustained effort. You need to recognize the importance of starting early and putting money away regularly. But even if you don't have as much time, you still have options other than a last-ditch Hail Mary pass.
More from MarketWatch.com:
• Key Strategies to Boost Your Retirement Savings
• Higher Tax Rates Loom for 401(k) Savers
• Bucket Strategies for Retirement Will Stick Around
It can be done -- even if you start with just $10,000.
"Whether you're 25 or 45 or even 55, you've got to start somewhere," said Nathan Dungan, founder of financial education firm Share Save Spend.
Call it a 7% solution. Assume a 7% inflation-adjusted return from a portfolio of U.S. and international stocks, bonds and cash -- not overly aggressive, but an expected return that requires taking some risk -- and living well within your means.
"In order to save, you have to understand your spending," said Eric Kies, a financial adviser with The Planning Center, an investment manager in Moline, Ill. "Build some awareness of where you are now, where do you want to be, and what are you willing to do to get there."
Of course there will be bumps along the road -- potholes, even, that challenge your resolve. The financial markets love to shake and stir individual investors; don't give up, because it may be hard to get back in
"It's less about where the money is invested and more about your ability to be disciplined," Dungan said. "Ask yourself, What is realistic? What can I achieve? The best savers don't have magical thinking about money. They're honest with themselves."
25 Years Old: Starting Out
Forty years is a long time. So long, in fact, that it's easy to put off saving for the future. There are bills to deal with, college debt to pay, stuff to buy, vacations to take, a career to build.
Savings -- sure, but who has money for that? Indeed, one of every three Americans between the ages of 18 and 33 have no personal savings, according to a recent Harris Poll survey. What's more, 53% of this age group has zero in the way of retirement savings.
They're missing out, big time. If a 25-year old with $10,000 invested $320 a month at a 7% annual compound rate of return until they turned 65, they would wind up with $1 million.
"There's a reason why Albert Einstein called compounding the most powerful force in the universe," said Jonathan Guyton, a principal at investment manager Cornerstone Wealth Advisors in Minneapolis.
Whether or not Einstein really said this, the math speaks for itself. At 7%, your money doubles every 10 years.
If saving a few hundred bucks a month seems daunting, rest assured it only gets worse. One way to make the job easier is to rely on your job -- specifically investing in your company's 401(k) plan and enjoy whatever contribution match your employer offers. Think of it as free money.
Don't have a 401(k)? Open a Roth IRA if you qualify, and automatically deposit money into it from your bank account to get tax-free growth.
35 Years Old: Early Innings
Ten years later, the price of waiting has been high. Not as costly as it will be, but tough enough. Instead of $320 a month, you're looking at saving $775 a month to turn that $10,000 into seven figures at a 7% annualized return.
Don't beat yourself. Just save. Funnel money into your 401(k) so you're not dipping into your own pocket for the full amount. Take the Roth IRA route if you can. By now you may have a young family -- so do it for the kids. Show them you not only can make money, but also know how to handle it.
"Children can be extremely good motivators to good financial habits," said Eleanor Blayney, consumer advocate for the CFP Board and a wealth adviser in McLean, Va. who specializes in financial planning for women.
Teach the kids sound money habits, and teach yourself at the same time. Said Blayney: "It induces you to be financially smart."
45 Years Old: Halfway Home
At 45, you're likely established in your career, with a decent salary. You may own a home, and the kids are thinking about college.
It's good you're making money, because you'll need to add $1,850 every month to that $10,000 base in order to reach $1 million in 20 years.
"There's a greater sense of urgency; your window for taking advantage of time is starting to close," Dungan said.
Yet one in four Americans between the ages of 46 and 64 have no retirement savings, the Harris Poll found. Another 22% have retirement savings mostly in bonds and savings accounts.
With so little saved at this point, you would do well to reevaluate your expectations for retirement. Are you saving and investing accordingly? You may have to weigh the purchases you make today versus a stable retirement.
"Now's your chance," Blayney said. "Don't blow it."
55 Years Old: Winding Down
At 55, the amount needed to reach $1 million with a $10,000 bankroll is both comical and sad: $5,700 a month for 10 years.
Maybe you've been living paycheck to paycheck, and life has been good. You've got a nice house, a fancy car -- but no savings.
In short, you have a big hat, but no cattle. The millionaire is next door, and he isn't knocking.
This is your moment of truth. You may not become a millionaire, but you can live like someone who is on the way to being one.
Here's how: Cut expenses, save what you can, and work longer.
"If a client is in their mid-50s and hugely behind, we start to focus on lowering expenses by paying off debt, restructuring debt, or lowering housing costs," said Guyton, the Minneapolis financial adviser.
"If that change lowers their expenses by $1,000 a month, that's more beneficial than helping them accumulate an extra $100,000," Guyton said. Indeed, cutting $12,000 a year from expenses equates to what roughly $175,000 in assets would produce at a 7% yield.
And take care of your health, Guyton added. You're going to need it in order to show up at work.
"It's a whole different matter when you have to stay on the treadmill," Guyton said. "We don't mince words. We try to make it manageable and realistic, but there are some options that aren't on the table anymore."
Monday, April 18, 2011
Comment By IBO "Robb"
Wow, i'm amazed at the lack of intelligence (and proper spelling and grammar - i know, i don't capitalize so i'm a hypocrite) on BOTH sides of this argument. first, a little background - i have a degree in chemical engineering and graduated first in my class. just saying this so you know i'm not an idiot.
Your comment: "You're buying products. That's not a form of making money. And you'll be spending way more for each, on average, than you ever will have before. Get it straight: You're simply becoming a consumer of a line of products and tools; Amway and the AMOs will make a healthy profit from all the cash you send them."
Answer: Yes, much like WalMart, McDonald's, Walgreens, Starbucks, etc. will make a healthy profit from all the cash you send them. The only difference here is that by buying Amway products, I'm not paying for advertisements. Amway never claimed to be a non-profit company - yes, they make money. if you don't like that, then grow up - it's business.
Second, my wife and I have tracked our product spending over the past several months, and we are NOT spending any additional money on Q products vs. what we spent before at other stores/restaraunts/etc. In fact, we're at the 12% bonus level, therefore getting 12% more back that we EVER did at those other places. oh, and our personal use (as a couple) is at 250PV, without spending any EXTRA money over what we used to spend...
And on the saturation idea, do your real world numbers mr. calculator... we are actually falling behind population growth, not overcoming it as you like to suggest. saturation is a complete myth. why are we falling behind? because 1) not a large percentage of people are seriously building an Amway business and 2) a lot of those who are use horribly vague and ineffective presentations. my sponsorship rate is over 50% (and climbing)... learn how to show a plan, and even the ones who don't become involved will have a positive idea of what Amway does.
And on the pyramid thing... geez, this one is so annoying... EVERY company pays a small cut the people who are responsible for getting a product or service into your hands. here, some of those steps have simply been replaced by other active IBO's. what we do is no different in concept than when an engineering firm owner hires 10 engineers (or contracts them) to go work on projects. he tell them "i'll pay you x% of each project you complete" and he keeps the rest... the only real difference is that Amway is a completely level playing field for everyone who gets in, whereas the owner of the engineering firm is always making the most amount of money... that's right, we're MORE FAIR and BETTER than most business payout structures. i create volume personally and contract out the rest. i pay people who create volume for me, they can do the exact same, and because of this they can pass me tomorrow! this can happen because if the volume that leg creates is greater than my entire group volume (minus leg A) then he makes more money than i do!!!! and don't say "well there's always someone at the bottom," because the de-saturation that is happening proves that they are either at the bottom by choice or because they are incapable of showing the plan to someone.
so why don't you try to go shut down walmart, starbucks, target, microsoft, etc. for their pyramid schemes? in reality, they are MUCH more like one than we are.
Robb
Your comment: "You're buying products. That's not a form of making money. And you'll be spending way more for each, on average, than you ever will have before. Get it straight: You're simply becoming a consumer of a line of products and tools; Amway and the AMOs will make a healthy profit from all the cash you send them."
Answer: Yes, much like WalMart, McDonald's, Walgreens, Starbucks, etc. will make a healthy profit from all the cash you send them. The only difference here is that by buying Amway products, I'm not paying for advertisements. Amway never claimed to be a non-profit company - yes, they make money. if you don't like that, then grow up - it's business.
Second, my wife and I have tracked our product spending over the past several months, and we are NOT spending any additional money on Q products vs. what we spent before at other stores/restaraunts/etc. In fact, we're at the 12% bonus level, therefore getting 12% more back that we EVER did at those other places. oh, and our personal use (as a couple) is at 250PV, without spending any EXTRA money over what we used to spend...
And on the saturation idea, do your real world numbers mr. calculator... we are actually falling behind population growth, not overcoming it as you like to suggest. saturation is a complete myth. why are we falling behind? because 1) not a large percentage of people are seriously building an Amway business and 2) a lot of those who are use horribly vague and ineffective presentations. my sponsorship rate is over 50% (and climbing)... learn how to show a plan, and even the ones who don't become involved will have a positive idea of what Amway does.
And on the pyramid thing... geez, this one is so annoying... EVERY company pays a small cut the people who are responsible for getting a product or service into your hands. here, some of those steps have simply been replaced by other active IBO's. what we do is no different in concept than when an engineering firm owner hires 10 engineers (or contracts them) to go work on projects. he tell them "i'll pay you x% of each project you complete" and he keeps the rest... the only real difference is that Amway is a completely level playing field for everyone who gets in, whereas the owner of the engineering firm is always making the most amount of money... that's right, we're MORE FAIR and BETTER than most business payout structures. i create volume personally and contract out the rest. i pay people who create volume for me, they can do the exact same, and because of this they can pass me tomorrow! this can happen because if the volume that leg creates is greater than my entire group volume (minus leg A) then he makes more money than i do!!!! and don't say "well there's always someone at the bottom," because the de-saturation that is happening proves that they are either at the bottom by choice or because they are incapable of showing the plan to someone.
so why don't you try to go shut down walmart, starbucks, target, microsoft, etc. for their pyramid schemes? in reality, they are MUCH more like one than we are.
Robb
Friday, April 15, 2011
Amway IBO Comment?
All you negative people make me laugh!!! DO you relized that you work for a living? Do you relaize that you work for SOMEBODY? Do you realize you will not make more than your boss in the "position" you are at? Will your boss ever make mmore than his boss? Will anyone make more than the owner, president, or CEO of the company YOU WORK for as an emplyoee? I didn't think so.
Let me ask you this, why does a muti-billionaire like Robert Kiyosaki whom wrote New Yorks best selling book "Rich Dad Poor Dad" talk nothing but great things about Quixtar, Amway, Etc. The reason he does, is because he like that we are being shown how to become business owners, not sales peolpe. You will never get ahead in the E-Quadrant which is the emplyees status, or the S-Quad which is the sel-employeed people. They make a lot of money, but thier time belongs to someone else, and their is no gurantee that you have a job or brick and mortar business the very next day.
I wish these thumb-sucking negative weenies would get out of their pitty party and do something in life to help themselves and families instead of sucking the life out of positive go-getters that want the best for their families, and other families with this great opportunity from Quixtar.
Negative people are the bucket of crabs analogy. Have you ever seen a bucket of crabs that are miserable in eachothers company because they are confined, restricted, limited, have no FREEDOM? Then one day 1-crab out of 20 or 40 crabs looks up and sees opportunity when he sees the sky and the light, where there are no limits, the crab heads way for the top of th bucket and just as the crab reaches the top and sees and smells freedom...the crabs below reach up and grabs the crab that wants better than the ugly situation its in down there and pulls him right back into the misery.
Anyone who is reading this, put yourself in that crabs position, do you want life to pass you by and take you down, when you want to live life to its fullest for the better of yourself and your family ? Are you Man or woman enough to do what ever it takes to give your family and yourself your freedom?
JOHN - Silver in Amway
Let me ask you this, why does a muti-billionaire like Robert Kiyosaki whom wrote New Yorks best selling book "Rich Dad Poor Dad" talk nothing but great things about Quixtar, Amway, Etc. The reason he does, is because he like that we are being shown how to become business owners, not sales peolpe. You will never get ahead in the E-Quadrant which is the emplyees status, or the S-Quad which is the sel-employeed people. They make a lot of money, but thier time belongs to someone else, and their is no gurantee that you have a job or brick and mortar business the very next day.
I wish these thumb-sucking negative weenies would get out of their pitty party and do something in life to help themselves and families instead of sucking the life out of positive go-getters that want the best for their families, and other families with this great opportunity from Quixtar.
Negative people are the bucket of crabs analogy. Have you ever seen a bucket of crabs that are miserable in eachothers company because they are confined, restricted, limited, have no FREEDOM? Then one day 1-crab out of 20 or 40 crabs looks up and sees opportunity when he sees the sky and the light, where there are no limits, the crab heads way for the top of th bucket and just as the crab reaches the top and sees and smells freedom...the crabs below reach up and grabs the crab that wants better than the ugly situation its in down there and pulls him right back into the misery.
Anyone who is reading this, put yourself in that crabs position, do you want life to pass you by and take you down, when you want to live life to its fullest for the better of yourself and your family ? Are you Man or woman enough to do what ever it takes to give your family and yourself your freedom?
JOHN - Silver in Amway
Thursday, April 7, 2011
Save 30% By Purchasing Through Amway?
One of the things I saw at an Amway presentation, and I believe many still tout this, that shopping with Amway will save you 30%. Of course, I have yet to see any price comparisons to verify this claim. In fact, I believe if you made an opposite claim, that shopping with Amway costs you 30% more, that would probably be more accurate. I believe that Amway recruiters make this claim because to the audience, it only makes sense to join Amway because you will save 30%. Unfortunately, it is a recruiting tactic. Simply walk down the aisles at Walmart and tell the audience with a straight face that you will save 30% on average, but purchasing from Amway instead of WalMart. WalMart boldly makes a claim that families shopping there regularly will save $2500 a year, which is more than the average IBO earns. Amway makes no such claim that I know of. I believe this is an LOS recruiting trick.
If you stop and think about it, Amway must charge at least 30% or more on top of their overhead and profit in order to pay the IBO bonuses. I sincerely doubt that Amway suffers losses to pay out bonuses. Add in shipping and the cost goes up. I believe that the save 30% by shopping with Amway is a myth. If not, I challenge IBOs to put forth a reasonable price comparison to prove me wrong. Where else would Amway get the money to pay those bonuses? I'm sure Amway is npt operating at a loss. Amway must charge more on average because the IBOs constitute layers and layers of middlemen which must be paid. This contradicts what some uplines show in their presentation where they claim that Amwa eliminates the middle man in the distribution process. More likely the opposite is true where they add more middlemen and cost more, whereas a store like Walmart will deal directly with the factories and obtain the best possible prices for their customers.
Walmart will match any advertised price for the same product in their stores. So if you see Walgreens selling a product at a certain price, you can get Walmart to match that price if you show them the printed ad. Try that with an IBO or with Amway and see your results....
If you stop and think about it, Amway must charge at least 30% or more on top of their overhead and profit in order to pay the IBO bonuses. I sincerely doubt that Amway suffers losses to pay out bonuses. Add in shipping and the cost goes up. I believe that the save 30% by shopping with Amway is a myth. If not, I challenge IBOs to put forth a reasonable price comparison to prove me wrong. Where else would Amway get the money to pay those bonuses? I'm sure Amway is npt operating at a loss. Amway must charge more on average because the IBOs constitute layers and layers of middlemen which must be paid. This contradicts what some uplines show in their presentation where they claim that Amwa eliminates the middle man in the distribution process. More likely the opposite is true where they add more middlemen and cost more, whereas a store like Walmart will deal directly with the factories and obtain the best possible prices for their customers.
Walmart will match any advertised price for the same product in their stores. So if you see Walgreens selling a product at a certain price, you can get Walmart to match that price if you show them the printed ad. Try that with an IBO or with Amway and see your results....
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