Looks like IBOs do a good job of soiling Amway's already battered reputation?
http://www.complaintsboard.com/complaints/amwayquickstar-c96965.html
On weekend while we went shopping, my husband and I met this person by name Ram Yellamanchi. He started a conversation with us with regards to a product we were looking at buying in the store. He inquired about my husband's nature of job and later phoned us that next day trying to inquire if my husband can spend few hours after his work for his company. We asked him if it was network marketing like Amway, he said he didn't even know what network marketing is and mentioned it was not Amway.
We asked him about his companies website and nature of job and told him if we find it interesting, we might think of it. That next day he phoned us a dozen times asking us to attend a seminar his senior team lead was giving. It was at sheraton. We asked this guy a million times about the nature of the job and stuff, he told us that his companies website is yellamanchalis.com.
When we phoned the hotel to find out what exactly the seminar was all about, we were told it was an e-commerce seminar.
Later when we went in there, we were taken by surprise to see that it was indeed Amway. It was such a waste of time and the most disgusting part is that the guy lied to get us to that seminar.
I have friends who work for Amoco and we order stuff through them and we liked the products too. Sadly because of people like Ram, the company loses its reputation.
Tuesday, August 31, 2010
Thursday, August 26, 2010
Amway Global - Just The Facts Please?
When I was first recruited for the Amway opportunity, I was tricked into attending a meeting. My second brush with Amway wasn't due to trickery, but filled with lies. One of my upline outright lied. Stood on stage and told the audience that nobody made a profit from tools. Some uplines wanted control of their downline's lives. Let's look at some other facts:
Most IBOs quit in less than a year
Most IBOs never sponsor a downline
Almost all IBOs who purchase tools end up with a net loss
Average IBO earns only $115 a month (including diamonds who drive the average up)
Some diamonds make more money from selling tools that from Amway
Some diamonds are not qualified but still rake in tool profits
Amway's name is soiled in North America
Most Amway products are sold to IBOs and not customers
There are few new diamonds in North America (some groups are shrinking)
Some diamonds lost homes due to foreclosure
A prominent triple diamond was in bankruptcy proceedings
Most IBOs quit in less than a year
Most IBOs never sponsor a downline
Almost all IBOs who purchase tools end up with a net loss
Average IBO earns only $115 a month (including diamonds who drive the average up)
Some diamonds make more money from selling tools that from Amway
Some diamonds are not qualified but still rake in tool profits
Amway's name is soiled in North America
Most Amway products are sold to IBOs and not customers
There are few new diamonds in North America (some groups are shrinking)
Some diamonds lost homes due to foreclosure
A prominent triple diamond was in bankruptcy proceedings
Tuesday, August 17, 2010
Amway Global - What The FTC Says About MLM
Multi-Level Sales
The FTC released a Consumer Alert regarding Multi-Level Marketing Plans in 10/1/2000. This information is provided under a cooperative agreement between the Better Business Bureau and the U. S. Federal Trade Commission (FTC), which has prepared this information.
"The Bottom Line About Multilevel Marketing Plans"
Multilevel or "network" marketing plans are a way of selling goods or services through distributors. These plans typically promise that if you sign up as a distributor, you'll receive commissions - for your sales and those of the people you recruit to become distributors. These recruits sometimes are referred to as your "downline."
Some multilevel marketing plans are legitimate. However, others are illegal pyramid schemes. In pyramids, commissions are based on the number of distributors recruited. Most of the product sales are made to these distributors - not to consumers in general. The underlying goods and services, which vary from vitamins to car leases, serve only to make the schemes look legitimate.
Joining a pyramid is risky because the vast majority of participants lose money to pay for the rewards of a lucky few. Most people end up with nothing to show for their money except the expensive products or marketing materials they're pressured to buy.
If you're thinking about joining what appears to be a legitimate multilevel marketing plan, take time to learn about the plan. What's the company's track record? What products does it sell? Does it sell products to the public-at-large? Does it have the evidence to back up the claims it makes about its product? Is the product competitively priced? Is it likely to appeal to a large customer base? How much is the investment to join the plan? Is there a minimum monthly sales commitment to earn a commission? Will you be required to recruit new distributors to earn your commission?
Be skeptical if a distributor tells you that for the price of a "start-up kit" of inventory and sales literature - and sometimes a commitment to sell a specific amount of the product or service each month - you'll be on the road to riches. Often consumers spend a lot of money to "build their business" by participating in training programs, buying sales leads or purchasing the products themselves. Too often, these purchases are all they ever see for their investments.
Your Responsibilities-
If you decide to become a distributor, you are legally responsible for the claims you make about the company, its product and the business opportunities it offers. That applies even if you're repeating claims you read in a company brochure or advertising flyer. The Federal Trade Commission advises you to verify the research behind any claims about a product's performance before repeating those claims to a potential customer.
In addition, if you solicit new distributors, you are responsible for the claims you make about a distributor's earnings potential. Be sure to represent the opportunity honestly and avoid making unrealistic promises. If those promises fall through, remember that you could be held liable.
Evaluating a Plan-
The FTC suggests that you use common sense when evaluating a multilevel marketing opportunity and consider these tips as you make your decision:
Avoid any plan that includes commissions for recruiting additional distributors. It may be an illegal pyramid.
Beware of plans that ask new distributors to purchase expensive products and marketing materials. These plans may be pyramids in disguise.
Be cautious of plans that claim you will make money through continued growth of your downline, that is, the number of distributors you recruit.
Beware of plans that claim to sell miracle products or promise enormous earnings. Ask the promoter to substantiate claims.
Beware of shills - "decoy" references paid by a plan's promoter to lie about their earnings through the plan.
Don't pay or sign any contracts in an "opportunity meeting" or any other pressure-filled situation. Insist on taking your time to think over your decision. Talk it over with a family member, friend, accountant or lawyer.
Do your homework! Check with your local Better Business Bureau and state Attorney General about any plan you're considering - especially when the claims about the product or your potential earnings seem too good to be true.
Remember that no matter how good a product and how solid a multilevel marketing plan may be, you'll need to invest sweat equity as well as dollars for your investment to pay off.
The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad."
The FTC released a Consumer Alert regarding Multi-Level Marketing Plans in 10/1/2000. This information is provided under a cooperative agreement between the Better Business Bureau and the U. S. Federal Trade Commission (FTC), which has prepared this information.
"The Bottom Line About Multilevel Marketing Plans"
Multilevel or "network" marketing plans are a way of selling goods or services through distributors. These plans typically promise that if you sign up as a distributor, you'll receive commissions - for your sales and those of the people you recruit to become distributors. These recruits sometimes are referred to as your "downline."
Some multilevel marketing plans are legitimate. However, others are illegal pyramid schemes. In pyramids, commissions are based on the number of distributors recruited. Most of the product sales are made to these distributors - not to consumers in general. The underlying goods and services, which vary from vitamins to car leases, serve only to make the schemes look legitimate.
Joining a pyramid is risky because the vast majority of participants lose money to pay for the rewards of a lucky few. Most people end up with nothing to show for their money except the expensive products or marketing materials they're pressured to buy.
If you're thinking about joining what appears to be a legitimate multilevel marketing plan, take time to learn about the plan. What's the company's track record? What products does it sell? Does it sell products to the public-at-large? Does it have the evidence to back up the claims it makes about its product? Is the product competitively priced? Is it likely to appeal to a large customer base? How much is the investment to join the plan? Is there a minimum monthly sales commitment to earn a commission? Will you be required to recruit new distributors to earn your commission?
Be skeptical if a distributor tells you that for the price of a "start-up kit" of inventory and sales literature - and sometimes a commitment to sell a specific amount of the product or service each month - you'll be on the road to riches. Often consumers spend a lot of money to "build their business" by participating in training programs, buying sales leads or purchasing the products themselves. Too often, these purchases are all they ever see for their investments.
Your Responsibilities-
If you decide to become a distributor, you are legally responsible for the claims you make about the company, its product and the business opportunities it offers. That applies even if you're repeating claims you read in a company brochure or advertising flyer. The Federal Trade Commission advises you to verify the research behind any claims about a product's performance before repeating those claims to a potential customer.
In addition, if you solicit new distributors, you are responsible for the claims you make about a distributor's earnings potential. Be sure to represent the opportunity honestly and avoid making unrealistic promises. If those promises fall through, remember that you could be held liable.
Evaluating a Plan-
The FTC suggests that you use common sense when evaluating a multilevel marketing opportunity and consider these tips as you make your decision:
Avoid any plan that includes commissions for recruiting additional distributors. It may be an illegal pyramid.
Beware of plans that ask new distributors to purchase expensive products and marketing materials. These plans may be pyramids in disguise.
Be cautious of plans that claim you will make money through continued growth of your downline, that is, the number of distributors you recruit.
Beware of plans that claim to sell miracle products or promise enormous earnings. Ask the promoter to substantiate claims.
Beware of shills - "decoy" references paid by a plan's promoter to lie about their earnings through the plan.
Don't pay or sign any contracts in an "opportunity meeting" or any other pressure-filled situation. Insist on taking your time to think over your decision. Talk it over with a family member, friend, accountant or lawyer.
Do your homework! Check with your local Better Business Bureau and state Attorney General about any plan you're considering - especially when the claims about the product or your potential earnings seem too good to be true.
Remember that no matter how good a product and how solid a multilevel marketing plan may be, you'll need to invest sweat equity as well as dollars for your investment to pay off.
The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad."
Wednesday, August 11, 2010
Amway Global - Never Quit! Maybe IBOs Need To Reconsider?
One of the things my upline told our group, and I believe it is still taught today, is that you should never quit. Now it isn't Amway the corporation who is teaching this, it is the upline LOS leaders who teach IBOs to never quit. For those who may be seeking information or are being prospected as an IBO, I will translate "never quit" for you. What your upline means by "never quit" is "if you stop buying training materials, I will lose valuable income that pays for my mansions and other luxuries that I lord over you at functions". While it is not a verbatim translation, that is what the underlying meaning is likely to be.
In many businesses, there comes a time when a real business owner will quit, cut their losses and start another business or find some other vehicle to earn a living. A real business owner might also determine what is costing him the most money and can be expendable, and reduce those expenses to make a profit. In most Amway businesses, losses are directly attributable to the purchase of support materials and training such as voicemail, standing orders, functions, books, etc. Most IBOs, if they simply purchased products they needed and sold a few products, would likely make a profit.
IBOs should consider rejecting upline advice if they are following that advice and there are not profits, especially when you consider that some uplines are profiting from your purchase of support materials.
It is a conundrum though, when upline tells their faithful downline IBOs that they should trust upline as they have their best interest at heart. They may also tell the downline that they will succeed if they listen to upline advice and do the work. Ironically, when things go wrong, upline will say you should be a business owner and discern what is helpful or not helpful advice. What a pile of poo these uplines are pushing. They are telling downline to listen to their sage advice and their valuable experience and then avoiding any responsibility for bad advice ot advice that doesn't work by saying the new IBO should disregard what doesn't work. If that's the case, why should the downline buy any support material? How would a new downline know what advice to use and what to disregard?
If your upline tells the group to "never quit", maybe you should reconsider.....
In many businesses, there comes a time when a real business owner will quit, cut their losses and start another business or find some other vehicle to earn a living. A real business owner might also determine what is costing him the most money and can be expendable, and reduce those expenses to make a profit. In most Amway businesses, losses are directly attributable to the purchase of support materials and training such as voicemail, standing orders, functions, books, etc. Most IBOs, if they simply purchased products they needed and sold a few products, would likely make a profit.
IBOs should consider rejecting upline advice if they are following that advice and there are not profits, especially when you consider that some uplines are profiting from your purchase of support materials.
It is a conundrum though, when upline tells their faithful downline IBOs that they should trust upline as they have their best interest at heart. They may also tell the downline that they will succeed if they listen to upline advice and do the work. Ironically, when things go wrong, upline will say you should be a business owner and discern what is helpful or not helpful advice. What a pile of poo these uplines are pushing. They are telling downline to listen to their sage advice and their valuable experience and then avoiding any responsibility for bad advice ot advice that doesn't work by saying the new IBO should disregard what doesn't work. If that's the case, why should the downline buy any support material? How would a new downline know what advice to use and what to disregard?
If your upline tells the group to "never quit", maybe you should reconsider.....
Tuesday, July 20, 2010
Amway Global - The Problem With Amway Defenders?
There is a big division between critics and defenders in the Amway business. I believe that critics play an important role in providing information to the information seeking public. Some promoters of the opportunity are less than honest about what they present and in fact, discourage prospects from seeking more information. It is true that a "rogue" critic who may just be mad at the world may not provide that factual information, but many critics are simply sharing their experiences so others may see the hazards and problems that plagued their experience, and prospects can look out and possibly avoid these same pitfalls.
There are a few supporters, in particular, one who has made it his personal mission to defend Amway, apparently pro bono. But these supporters, are they truly helping the cause? These Amway defenders set up google alerts so they can be notified each and everytime someone writes something about Amway. When there's new information posted, they drop into the blog or forum to quickly "clear up" what they consider to be misconceptions about Amway. In some instances, these so called defenders such as IBOFightback or Bridgett, drop into a conversation unwanted. They drop into an established online community to set them straight about Amway. Instead of setting anyone straight, they simply tick off a host of online community members who are now 100% sour on Amway.
It is my opinion that the Amway defenders like IBOFightback and Bridgett do more harm to the Amway name than good. Imagine you are sitting at a bar with some buddies and someone brings up Amway into the discussion. Some guy across the room comes running over to your gang and says you are all obviously wrong and misled about Amway. Do you invite the guy over to talk with you or punch him in the nose? I'm not saying they don't have a right to publish their own blogs and stories, but to drop into an established forum and trying to "set them straight" is like an unwanted house guest. Ironically, they are currently whining about some potential damage caused by critical statements about Amway but completely ignore how much personal and financial damage has been done to people by untrue positive information about Amway, such as the ability to retire before the age of 30 with lifelong residual income. Who is accountable for that damage?
There are a few supporters, in particular, one who has made it his personal mission to defend Amway, apparently pro bono. But these supporters, are they truly helping the cause? These Amway defenders set up google alerts so they can be notified each and everytime someone writes something about Amway. When there's new information posted, they drop into the blog or forum to quickly "clear up" what they consider to be misconceptions about Amway. In some instances, these so called defenders such as IBOFightback or Bridgett, drop into a conversation unwanted. They drop into an established online community to set them straight about Amway. Instead of setting anyone straight, they simply tick off a host of online community members who are now 100% sour on Amway.
It is my opinion that the Amway defenders like IBOFightback and Bridgett do more harm to the Amway name than good. Imagine you are sitting at a bar with some buddies and someone brings up Amway into the discussion. Some guy across the room comes running over to your gang and says you are all obviously wrong and misled about Amway. Do you invite the guy over to talk with you or punch him in the nose? I'm not saying they don't have a right to publish their own blogs and stories, but to drop into an established forum and trying to "set them straight" is like an unwanted house guest. Ironically, they are currently whining about some potential damage caused by critical statements about Amway but completely ignore how much personal and financial damage has been done to people by untrue positive information about Amway, such as the ability to retire before the age of 30 with lifelong residual income. Who is accountable for that damage?
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.
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?
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”.
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