Tuesday, February 5, 2013

Going Broke In Amway?

Many people join the Amway business because they believe that they will get rich in doing so. Upline will tell their audiences that they will not "get rich quick". I believe they do this as a disclaimer so that people don't believe this is some scam that is too good to be true. Obviously, many people have the idea that they will evnetually get rich if they will only follow upline advice and do what they are told. On the surface, the Amway presentation looks reasonable and makes sense. Basically, it is sold as make money and save money. Sound easy enough and who wouldn't want to make money, save money, or both? But what's not told to prospects up front is that in order to work the system, you will need to be a leader and a good example for your downline to duplicate. Thus you will be expected to move at least 100 PV each month. 100 PV costs about $300 a month and a leader or serious IBO will be expected to be on voicemail, standing order, and book of the month, as well as attending functions which may include out of town conventions requiring airfare and other trave; expenses. I believe the average dedicated IBO would spend between $200 and $300 a month on average, on these tools. Thus an average business building IBO will spend about $500 to $600 a month in order to become a business building IBO. $500 or $600 a month in expenses might seem reasonable for a business owner, except that you were likely told that the Amway business has little or no expenses. What would you have said if you were told upfront that you needed to come up with $6000 to $7000 annually to participate in Amway? Sure, you get some products with that expense, but more than likely you will also end up with many products you may not need, nor would you have used some of these products if not for your involvement in Amway. Typically, IBOs don't last for long, but a bunch of IBOs do put in a few years of earnest effort before they realize that Amway is not going to deliver their dreams. After 2-3 years, it's possible that you may have "invested" over $20,000. If you are under 30 years of age, do you realize what $20,000 invested can do over the span of say, 30 years when you would likely retire from work? Even if you didn't invest it, couldn't that $20,000 fulfill some of your dreams? A new car, a dream vacation, maybe a down payment on real estate? Sadly, many uplines will lure eager young people into the Amway business and their seperate tool business. They will con them into giving up their resources so they can chase a dream that won't materialize. Then when the IBO wakes up and quits, they are shunned and labeled a loser or a quitter. IBOs and prospects often think they will get rich in Amway. But for most, especially those caught up the the teaching systems, they are far more likely to go broke fast.

6 comments:

Amwayscam said...

Any MLM is designed to make their members, or whatever the designations they use, fail. Longer you are in MLM more chances of going bankrupt. We know the famous book written on this as well!

Mike Watts said...

Joe, can you help me understand some of the Amway math? Watch this video:
http://www.youtube.com/watch?feature=player_detailpage&v=tM4nZq16IQ8#t=239s

So he's saying if you do 100PV, that's the 3% level, and you'd make about $90/month. How is that possible? 100PV is about $250, right? And 3% of $250 is like $8. What am I missing?

Joecool said...

Mike, 100 PV will generate about $90 in Amway bonus. But at 100 PV, you only qualify for 3% of that.

Somewhere upline gets the rest. Who said do the work and get paid?

Mike Watts said...

Wow.. so that video is very misleading. They first tell you the big number but don't mention you only get a small part of it. The next levels they mention, it seems they are telling you your true share. Thanks for the info Joecool!

Joecool said...

Mike, the Amway folks will show you "what's possible", or the best case scenario. They don't show you what is likely, which is a net loss for your time, effort and money.

Mike Watts said...

Oh I know... but that video is even worse than that. He says "you earn about $90 a month". I guess you do, you just have to share it with your upline. The rest of the examples, he seems to be telling you what you would actually receive per month, not shared with the upline. I suppose not many people read the fine print at the bottom that the avg per month is $115, making all of this a moot point.