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.
Saturday, June 26, 2010
Thursday, June 3, 2010
Amway Global - The Truth About Tools Profits?
http://www.perrymarshall.com/45/amway-tapes/
#47
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”.
#47
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”.
Tuesday, May 25, 2010
Amway Global - 1 in 125 US Citizens Are Millionaires
I don't know how many millionaires Amway has created. I honestly don't think Amway knows either, except for the owners of Amway who are reported as billionaires. But still there is a myth that Amway has created the most millionaires in the US, save for Microsoft corporation. To be perfectly honest, I am fairly sure that there are some millionaires who can attribute their wealth accumulation to the Amway business. But I suspect that there are far fewer millionaires created by the Amway opporunity in North America than your upline would have you believe.
I googled WikiAnswers to see how many people in the US are millionaires. The answer was 1 out of every 125 Americans are millionaires. It did not specify how much income these folks had, nor did it say what kinds of businesses or occupations were likely to make you a millionaire.
But then again, we can make some comparisons of how many millionaires versus various pin levels. 1 out of about 240 IBOs reach the platinum level where depending on your structure, you might earn $30,000 to $50,000 annually. This is before taxes and business expenses are considered. These figures are approximate. 1 out of about 15,000 IBOs reach the level of diamond where you earn about $147,000 annually. This is also before considering taxes and expenses.
But 1 out of 125 people in the US are millionaires. It sounds like most Americans have a better chance of becoming a millionaire (without Amway) than they do of becoming a platinum in Amway.
I googled WikiAnswers to see how many people in the US are millionaires. The answer was 1 out of every 125 Americans are millionaires. It did not specify how much income these folks had, nor did it say what kinds of businesses or occupations were likely to make you a millionaire.
But then again, we can make some comparisons of how many millionaires versus various pin levels. 1 out of about 240 IBOs reach the platinum level where depending on your structure, you might earn $30,000 to $50,000 annually. This is before taxes and business expenses are considered. These figures are approximate. 1 out of about 15,000 IBOs reach the level of diamond where you earn about $147,000 annually. This is also before considering taxes and expenses.
But 1 out of 125 people in the US are millionaires. It sounds like most Americans have a better chance of becoming a millionaire (without Amway) than they do of becoming a platinum in Amway.
Tuesday, May 11, 2010
Where Is The Success?
So many IBOs pass through my blogs and they make claims of success. But where is this success? Why aren't there hoards of former IBOs who are collecting residuial income and walking the beaches of the world? Why are crown ambassadors still working all of the functions? Why do so many IBOs make income claims and then disappear when asked for some evidence of their alleged success?
I mean if you look at a cross section of your community or country, there will be retired postal carriers, retired government workers, retired airline employees and a host of other occupations. But as far as I know, I don't know of any former Amway IBOs who have retired in full or even in part because of income they passively generate thru Amway. It might also be noteworthy that Amway the corporation does not promote residual or passive income. This is hype generated by the lines of sponsorship and a way to recruit new IBOs.
I believe that Amway sales in the US has been declining based on the figures that Amway had reported. Thus there is less money going out to IBOs and more than likely, fewer IBOs in the US, and therefore, very likely, fewer big pins.
So I ask, where is the success? Why are former IBOs who collect residual income so rare that noone I know can name even one person who is out there walking the beaches of the world while Amway checks keep rolling in? Wouldn't these folks be as common as retired postal workers or retired airlines employees? Why are they so rare that it almost seems like an extinct population? Where is the success? Maybe there is none?
I mean if you look at a cross section of your community or country, there will be retired postal carriers, retired government workers, retired airline employees and a host of other occupations. But as far as I know, I don't know of any former Amway IBOs who have retired in full or even in part because of income they passively generate thru Amway. It might also be noteworthy that Amway the corporation does not promote residual or passive income. This is hype generated by the lines of sponsorship and a way to recruit new IBOs.
I believe that Amway sales in the US has been declining based on the figures that Amway had reported. Thus there is less money going out to IBOs and more than likely, fewer IBOs in the US, and therefore, very likely, fewer big pins.
So I ask, where is the success? Why are former IBOs who collect residual income so rare that noone I know can name even one person who is out there walking the beaches of the world while Amway checks keep rolling in? Wouldn't these folks be as common as retired postal workers or retired airlines employees? Why are they so rare that it almost seems like an extinct population? Where is the success? Maybe there is none?
Tuesday, May 4, 2010
Joining Amway Is Not Like Joining The Gym!
One of the feeble defenses I have heard from Amway apologists is a comparison of the Amway opportunity to a gym membership. The defense is that you have to do something to get results. On that point, I agree. Except the comparison is ridiculous as a gym is not a business opportunity. A gym membership is a product/service that one can purchase. It seems that many Amway defenders so deperately want to justify their positions that they come up with silly comparisons. Gym owners don't care if you sign up and do nothing, just as upline leaders don't care if you succeed, as long as you keep buying tools from them. A gym owner could not sustain his business if everyone actually worked out every day, and a diamond leader probably doesn't want a lot of new pins breaking because it would take away tool profits.
If the Amway oportunity was compared to a gym owner, wouldn't that be a better comparion? On that point, if you were recruited to be a gym owner, wouldn't you demand to know how other gyms are doing financially? Wouldn't you want to know the likelihood of success if you were to open a gym? Wouldn't you need to know about operating expenses and potential income before you even thinking about buying a gym?
What if you were told that maybe only 9 or 10 out of 10,000 gym owners make enough income to live on? If more than half of the gyms went out of business in their first year, would you still be interested? If the greater majority of gym owners lost money, would you still be interested? If the majority of gym owners lost money, and many lost lots of money, would that interest you?
Wouldn't any investor with an ounce of business savvy look at this gym opportunity and run in the opposite direction? The fact that Amway defenders like IBOFightback use this weak and feeble defense shows just how desperate they have become. They have no defense against facts so they resort to weak anecdotal stories with no basis in reality. It may be why the Amway business appears to be shrinking in the US. The truth cannot be hidden any longer.
If the Amway oportunity was compared to a gym owner, wouldn't that be a better comparion? On that point, if you were recruited to be a gym owner, wouldn't you demand to know how other gyms are doing financially? Wouldn't you want to know the likelihood of success if you were to open a gym? Wouldn't you need to know about operating expenses and potential income before you even thinking about buying a gym?
What if you were told that maybe only 9 or 10 out of 10,000 gym owners make enough income to live on? If more than half of the gyms went out of business in their first year, would you still be interested? If the greater majority of gym owners lost money, would you still be interested? If the majority of gym owners lost money, and many lost lots of money, would that interest you?
Wouldn't any investor with an ounce of business savvy look at this gym opportunity and run in the opposite direction? The fact that Amway defenders like IBOFightback use this weak and feeble defense shows just how desperate they have become. They have no defense against facts so they resort to weak anecdotal stories with no basis in reality. It may be why the Amway business appears to be shrinking in the US. The truth cannot be hidden any longer.
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.
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.
Tuesday, April 6, 2010
Amway Global - Panhandling More Lucrative Than Amway?
I just happened to come across this article. It is about panhandling. Based on Amway's "average" income of active distributors, it appears that panhandling might also be more lucrative than becoming an IBO. $10 to $130 in 5 hours shows some potential. Averaged out, that would be about $65 in 5 hours and about $260 in 20 hours. That is more than double of the average income of an active IBO! Of course these results are not scientific, but since we are talking about averages, we can speculate can't we?
http://media.www.dailyemerald.com/media/storage/paper859/news/2008/11/25/News/Peddling.For.A.Pretty.Penny-3561405.shtml
Sexton and Mathew "Huggy" Miller, 21, both said they asked anyone for money, but said it always brought varied results. Some people would give as much as $5 to $50 at once. "You can make anywhere from $10 to $130 in five hours," Miller said. Sexton generally stopped once he hit $20 because it was usually all he needed.
http://media.www.dailyemerald.com/media/storage/paper859/news/2008/11/25/News/Peddling.For.A.Pretty.Penny-3561405.shtml
Sexton and Mathew "Huggy" Miller, 21, both said they asked anyone for money, but said it always brought varied results. Some people would give as much as $5 to $50 at once. "You can make anywhere from $10 to $130 in five hours," Miller said. Sexton generally stopped once he hit $20 because it was usually all he needed.
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