In my personal experience and even now, I see evidence from IBOs that lying is still a big part of the script for those who are recruiting new IBOs. A business built on lies is a house built on a shaky foundation.
If your upline has lied, did you simply ignore and overlook it? Did you see slide shows of wealth as "proof" that Amway works? Do you know if your upline actually owns any of that stuff and is it typical or simply some exceptional diamond who has trappings but tries to imply that alll diamonds and big pins have all of those goodies?
Some of the lies:
We don't make any money until you do
We don't make money from tools
Save 30% by becoming an IBO
The business is easy
All you need is six
Diamonds pay cash for everything
Jobs are for losers
98% for people are dead or broke by age 65
95% of small businesses fail in the first year
**Have you heard any of these statements? Have you been fed lies or half truths (lies)?
If these statements sounds familiar, it may be a red flag for you. I urge you to at least verify any questionable claims made by upline or by those recruiting you into the business. Get bonafide proof of financial success. While uplines may say it's not your business, it certainly is if you are being asked to trust the upline leadership and to follow their advice. You should know how successful your uplines are and whether or not following them is indeed worth your time, investment and efforts. If your upline dodge your questions, you should think twice.
Friday, February 4, 2011
Thursday, February 3, 2011
Why So Many IBOs Quit?
Someone posed this question on another blog so I thought I would address it here. Why do so many IBOs quit? To me, the answer is very obvious. Because what Amway recruiters promote rarely comes true. They show the best case scenario. not the likely outcome. It's like showing only the lottery winners.
Many Amway recruiters discuss a "shortcut" to retirement, fabulous toys, mansions, cars and vacations. They show an unrealistic model of how Amway works. Just sponsor 6 who sponsor 4 who sponsor 2 and everyone does 100 PV and in 2-5 years you will be a diamond making well over $100,000 a year which will roll in forever while you sit on a beach sipping exotic drinks. Okay, maybe I made it sound a little better than how some presenters show the plan, but still, many prospects really believe they will be financially free in a few years and living on easy street happily ever after.
But once the registration kit is busted, then the new IBO realizes that 100 PV may cost up to $300 a month. Attending meetings and finding people to show the plan is hard, especially when past IBOs may have tricked people into attending a meeting, or lied about the Amway opportunity. The cost of standing order and functions starts to mount. The IBO then starts to realize, that what he/she joined for was more time and money, ironically is what they have less of once they get involved in Amway, particularly if they are participating in a "system" such as BWW, WWDB, or N21.
This IBO then realizes that the good life they though was within their grasp really isn't. Then they quit. Now many IBOs sign up and do nothing. These folks don't usually have a complaint as they got what they put into the deal. But many worked the system hard only to not get any tangible rewards. Some disappear into the nite, and some come back to comment or blog about their experiences.
But the bottom line is that so many IBOs quit because, in my informed opinion, the Amway prices are generally too high, the reputation of Amway precedes itself and makes recruiting downline next to impossible, and the ongoing cost of the system starts to become a drain on the family finances, not to mention the time spent away from family and friends in order to attend meetings, plans, functions, etc.
The system doesn't work, so they quit. It's as clear as crystal to me.
Many Amway recruiters discuss a "shortcut" to retirement, fabulous toys, mansions, cars and vacations. They show an unrealistic model of how Amway works. Just sponsor 6 who sponsor 4 who sponsor 2 and everyone does 100 PV and in 2-5 years you will be a diamond making well over $100,000 a year which will roll in forever while you sit on a beach sipping exotic drinks. Okay, maybe I made it sound a little better than how some presenters show the plan, but still, many prospects really believe they will be financially free in a few years and living on easy street happily ever after.
But once the registration kit is busted, then the new IBO realizes that 100 PV may cost up to $300 a month. Attending meetings and finding people to show the plan is hard, especially when past IBOs may have tricked people into attending a meeting, or lied about the Amway opportunity. The cost of standing order and functions starts to mount. The IBO then starts to realize, that what he/she joined for was more time and money, ironically is what they have less of once they get involved in Amway, particularly if they are participating in a "system" such as BWW, WWDB, or N21.
This IBO then realizes that the good life they though was within their grasp really isn't. Then they quit. Now many IBOs sign up and do nothing. These folks don't usually have a complaint as they got what they put into the deal. But many worked the system hard only to not get any tangible rewards. Some disappear into the nite, and some come back to comment or blog about their experiences.
But the bottom line is that so many IBOs quit because, in my informed opinion, the Amway prices are generally too high, the reputation of Amway precedes itself and makes recruiting downline next to impossible, and the ongoing cost of the system starts to become a drain on the family finances, not to mention the time spent away from family and friends in order to attend meetings, plans, functions, etc.
The system doesn't work, so they quit. It's as clear as crystal to me.
Wednesday, February 2, 2011
Amway Questions And Answers
Question: What are the chances a person can start from scratch and become a Diamond?
Answer: A tiny tiny fraction of 1%. I might add that achieving diamond and maintaining diamond are two separate issues.
Question: Why are tapes/cds, books, and meetings common in this business?
Answer: Because upline allegedly wants train downline via these tools,
The sad reality however, is that many upline make far more income from the sale of these tools and meetings than from Amway.
Question: Do tapes, books, and meetings offer value as well as a money-back guarantee?
Answer: Supposedly they do, yet for some reason, yet you see the items sold for pennies on the dollar on ebay. You also do not see a steady stream of successful results from those who use the system/
Question: Are prices for your products offered on Amway.com competitive?
Answer: Generally, Amway prices are not competitive with Walmart or other big stores because Amway must overcharge their cost by about 30% or so in order to pay out their bonuses.
Question: What makes the Amway Independent Business Ownership Plan legal while some businesses perceived to be similar are illegal?
Answer: Because Amway has products moving and there is no actual payment for recruiting. It must be noted though, that many IBOs make little or no effort to sell stuff, and much emphasis is on recruiting.
Question: Should a business dispute occur with another IBO, what options do they have?
Answer: To quit or go through a company arbitration process.
Question: I’ve heard rumors that I have to “follow the system” (listen, read, and attend) to get help from my upline. Is there any truth to that?
Answer: Technically, this is optional, but many many uplines will make it a defacto requirement. i.e. Tools are optional but so is success.
Question: I heard some Emeralds and Diamonds have quit their businesses. Is that true?
Answer: This is true. And some who quit admitted that as much as 90% of their income came from selling tapes/cds and tickets to meetings
Question: What is the difference between "the system" and "the business"?
Answer: The system is basically a secret but more lucrative business than the Amway business.
Question: Is one IBO organization or group better than another?
Answer: Just about all organizations claim they are “the best”. If you base “the best” on their miserable results, they are more similar than not.
Question: How much money can I really earn? How fast?
Answer: The average IBO, according to Amway, earns $115 a month and that is gross income for “active” IBOs. After business expenses, most IBOs have a net loss.
Question: Am I “in Amway” or am I really an "Independent Business Owner"?
Answer: You may be called “independent”, but in reality, you are more like a commissioned sales person.
Question: When I search Amway on the Internet, I find some negative stuff. What's up with that?
Answer: Because the vast majority of people make nothing or lose money. Many people were lied to when recruited. Over the years, you develop a bad reputation that way.
Question: Is the business plan today as valid as it was 20 or 30 years ago?
Answer: You are more likely to fail these days, unless you are only interested in buying and selling a few products. This is because the system expenses nearly guarantee net losses for most IBOs.
Question: Am I required to hold certain beliefs to be accepted?
Answer: no you are not required, but some “tools” organizations push religion and politics at meetings, which is against corporation rules.
Question: Odd as it may sound, I’ve heard some rumors that Amway Global/Quixtar is a cult. Is there anything to that?
Answer: Yes, many compare the Amway meetings to a cultlike atmosphere.
Answer: A tiny tiny fraction of 1%. I might add that achieving diamond and maintaining diamond are two separate issues.
Question: Why are tapes/cds, books, and meetings common in this business?
Answer: Because upline allegedly wants train downline via these tools,
The sad reality however, is that many upline make far more income from the sale of these tools and meetings than from Amway.
Question: Do tapes, books, and meetings offer value as well as a money-back guarantee?
Answer: Supposedly they do, yet for some reason, yet you see the items sold for pennies on the dollar on ebay. You also do not see a steady stream of successful results from those who use the system/
Question: Are prices for your products offered on Amway.com competitive?
Answer: Generally, Amway prices are not competitive with Walmart or other big stores because Amway must overcharge their cost by about 30% or so in order to pay out their bonuses.
Question: What makes the Amway Independent Business Ownership Plan legal while some businesses perceived to be similar are illegal?
Answer: Because Amway has products moving and there is no actual payment for recruiting. It must be noted though, that many IBOs make little or no effort to sell stuff, and much emphasis is on recruiting.
Question: Should a business dispute occur with another IBO, what options do they have?
Answer: To quit or go through a company arbitration process.
Question: I’ve heard rumors that I have to “follow the system” (listen, read, and attend) to get help from my upline. Is there any truth to that?
Answer: Technically, this is optional, but many many uplines will make it a defacto requirement. i.e. Tools are optional but so is success.
Question: I heard some Emeralds and Diamonds have quit their businesses. Is that true?
Answer: This is true. And some who quit admitted that as much as 90% of their income came from selling tapes/cds and tickets to meetings
Question: What is the difference between "the system" and "the business"?
Answer: The system is basically a secret but more lucrative business than the Amway business.
Question: Is one IBO organization or group better than another?
Answer: Just about all organizations claim they are “the best”. If you base “the best” on their miserable results, they are more similar than not.
Question: How much money can I really earn? How fast?
Answer: The average IBO, according to Amway, earns $115 a month and that is gross income for “active” IBOs. After business expenses, most IBOs have a net loss.
Question: Am I “in Amway” or am I really an "Independent Business Owner"?
Answer: You may be called “independent”, but in reality, you are more like a commissioned sales person.
Question: When I search Amway on the Internet, I find some negative stuff. What's up with that?
Answer: Because the vast majority of people make nothing or lose money. Many people were lied to when recruited. Over the years, you develop a bad reputation that way.
Question: Is the business plan today as valid as it was 20 or 30 years ago?
Answer: You are more likely to fail these days, unless you are only interested in buying and selling a few products. This is because the system expenses nearly guarantee net losses for most IBOs.
Question: Am I required to hold certain beliefs to be accepted?
Answer: no you are not required, but some “tools” organizations push religion and politics at meetings, which is against corporation rules.
Question: Odd as it may sound, I’ve heard some rumors that Amway Global/Quixtar is a cult. Is there anything to that?
Answer: Yes, many compare the Amway meetings to a cultlike atmosphere.
Tuesday, February 1, 2011
You're In Amway Or You're A Loser?
One of the things that Amway owner Rich DeVos once said was that you should not call someone a loser just because they don't agree with you about the Amway oppportunity (not verbatim). I find this so ironic when simple math bears out the fact that an average business building IBO is losing money. How did I conclude this? Well, Amway reports that an average IBO earns about $115 a month gross income. This figure excludes IBOs who sign up and "do nothing".
A business building IBO who subscribes to standing order, attend functions, open meetings, has voicemail and reads a book a month has expenses that exceed $115 a month, therefore an average business building IBO is losing money. But ironically, these same IBOs who are losing money mistakenly believe that everyone else is a loser. I remember when I was "gung ho" about Amway, I used to think the same way. I almost felt sorry for people who weren't in Amway, as if IBOs have the secrets to life anf finances unlocked and those who say "no" are simply dooming themselves to financial disaster in their golden years.
I believe that uplines used the term quitter, failure, or loser as a subtle means of applying pressure to prevent IBOs from leaving the business. Nobody wants to leave thinking they have suddenly gone from being a winner to being a quitter or loser with no hope in life. I believe this strategy also contributes to Amway's reputation issues. I know that prospects have also heard this term in the past. In fact, I recall an online dialogue where an IBO was prospecting someone online and was very courteous until the prospect declined the invitation to be sponsored. Just like Jekyl and Hyde, the IBO starts calling the prospect a broke loser who wouldn't have accomplished much anyway. Talk about damaging the reputation and basically taking away any future chance of doing business with that prospect.
It is more likely that you are a loser because you're in Amway than not. Prove me wrong if you disagree.
A business building IBO who subscribes to standing order, attend functions, open meetings, has voicemail and reads a book a month has expenses that exceed $115 a month, therefore an average business building IBO is losing money. But ironically, these same IBOs who are losing money mistakenly believe that everyone else is a loser. I remember when I was "gung ho" about Amway, I used to think the same way. I almost felt sorry for people who weren't in Amway, as if IBOs have the secrets to life anf finances unlocked and those who say "no" are simply dooming themselves to financial disaster in their golden years.
I believe that uplines used the term quitter, failure, or loser as a subtle means of applying pressure to prevent IBOs from leaving the business. Nobody wants to leave thinking they have suddenly gone from being a winner to being a quitter or loser with no hope in life. I believe this strategy also contributes to Amway's reputation issues. I know that prospects have also heard this term in the past. In fact, I recall an online dialogue where an IBO was prospecting someone online and was very courteous until the prospect declined the invitation to be sponsored. Just like Jekyl and Hyde, the IBO starts calling the prospect a broke loser who wouldn't have accomplished much anyway. Talk about damaging the reputation and basically taking away any future chance of doing business with that prospect.
It is more likely that you are a loser because you're in Amway than not. Prove me wrong if you disagree.
Monday, January 31, 2011
Amway Pays Me To Shop?
One of the silly arguments some Amway enthusiasts and IBOs will use is the line that WalMart doesn't pay them to shop and Amway does. It's a silly comparison in that Amway is a business opportunity and WalMart is a discount retailer. It is also silly because WalMart could raise their prices 30% and give you a 3% rebate amd WalMart profits would go through the roof. Let's give a couple of examples.
Satinique shampoo costs around $8.00 for a 10 ounce bottle.
Suave shampoo costs $1.99 at WalMart for a 20 ounce bottle.
Even when you factor in a 30% rebate ($2.40), you still come out several dollars ahead of the satinique. Granted, not every single product at WalMart will be cheaper than Amway's, but generally, overall, you will save a lot more shopping at WalMart than you could "earn" by shopping via Amway. Also, unless you are at the 25% level, you will get a much smaller rebate. Most IBO, is they qualify, will only receive a 3%rebate. Also, it would appear that less than 1% of IBOs ever reach the 25% level so those IBOs are not common, and many who reach that level are unable to maintain the level.
For those IBOs who subscribe to "buy from yourself", you could simply purchase $70 worth of goods and hand the WalMart cashier $100 and receive $30 change. You can call that your rebate and be better off! LOL
In my opinion, you can get much better value by shopping at WalMart and using a cash back credit card. Do the math. Not only would you save a lot of money, you can get cashback using American Express or Discover. "Live better, save money" is Walmart's slogan. What is Amway's? So now you know? LOL
Satinique shampoo costs around $8.00 for a 10 ounce bottle.
Suave shampoo costs $1.99 at WalMart for a 20 ounce bottle.
Even when you factor in a 30% rebate ($2.40), you still come out several dollars ahead of the satinique. Granted, not every single product at WalMart will be cheaper than Amway's, but generally, overall, you will save a lot more shopping at WalMart than you could "earn" by shopping via Amway. Also, unless you are at the 25% level, you will get a much smaller rebate. Most IBO, is they qualify, will only receive a 3%rebate. Also, it would appear that less than 1% of IBOs ever reach the 25% level so those IBOs are not common, and many who reach that level are unable to maintain the level.
For those IBOs who subscribe to "buy from yourself", you could simply purchase $70 worth of goods and hand the WalMart cashier $100 and receive $30 change. You can call that your rebate and be better off! LOL
In my opinion, you can get much better value by shopping at WalMart and using a cash back credit card. Do the math. Not only would you save a lot of money, you can get cashback using American Express or Discover. "Live better, save money" is Walmart's slogan. What is Amway's? So now you know? LOL
Tuesday, January 11, 2011
Another Possible Way To Earn More Than IBOs?
Start a blog! Joecool's blog currently gets about 250 to 300 site visitors per day, although I run my blog as a public service (no profit). Start your own blog and start earning!
http://finance.yahoo.com/career-work/article/111747/ways-to-make-extra-money-in-2011?mod=oneclick
The anonymous blogger behind Lazy Man and Money defies his site's name. He works about 14 hours a day on weekdays and then puts in nine hours on Saturday and Sunday. But his hard work is paying off -- his blog earns him enough to support his lifestyle; back in 2008, he estimated his annual earnings at around $30,000. But it's tough for part-time bloggers with full-time jobs to keep up with all the demands of a lucrative blog. "There's simply a lot more [to do] than what the average reader sees," he says.
Even if the blog itself doesn't generate a six-figure salary, it can lead to other money-making opportunities, such as consulting or speaking gigs. Silicon Valley Blogger at The Digerati Life has carved out a successful niche as the expert on personal finance and technology in Silicon Valley. While she says she didn't earn much during the first six months of her blog's life, she received her first $100 check from Google AdSense shortly after that point, when she was getting around 600 unique visitors a day. She now earns money from her blog-related consulting, as well.
http://finance.yahoo.com/career-work/article/111747/ways-to-make-extra-money-in-2011?mod=oneclick
The anonymous blogger behind Lazy Man and Money defies his site's name. He works about 14 hours a day on weekdays and then puts in nine hours on Saturday and Sunday. But his hard work is paying off -- his blog earns him enough to support his lifestyle; back in 2008, he estimated his annual earnings at around $30,000. But it's tough for part-time bloggers with full-time jobs to keep up with all the demands of a lucrative blog. "There's simply a lot more [to do] than what the average reader sees," he says.
Even if the blog itself doesn't generate a six-figure salary, it can lead to other money-making opportunities, such as consulting or speaking gigs. Silicon Valley Blogger at The Digerati Life has carved out a successful niche as the expert on personal finance and technology in Silicon Valley. While she says she didn't earn much during the first six months of her blog's life, she received her first $100 check from Google AdSense shortly after that point, when she was getting around 600 unique visitors a day. She now earns money from her blog-related consulting, as well.
Wednesday, December 8, 2010
Signs Of A Pyramid Scheme
http://www.michigan.gov/ag/0,1607,7-164-34739_20942-208400--,00.html
Use Common Sense and Consider These Tips
The pyramid scheme disguised as a multi-level marketing opportunity is not always easy to spot, but is just as much of a scam as the chain letter. Here are some tips to consider before participating in a multi-level marketing program:
Avoid any program that focuses more on recruitment of new people rather than the sale of a product or service to an end-user consumer. If the opportunity for income is primarily derived by recruiting more participants or salespersons rather than by selling a product, the plan probably is illegal. Several courts interpret greater pressure on members to sponsor new recruits than to market company merchandise as evidence of an illegal pyramid.
Be skeptical of plans that claim you will make money through continued growth of your "downline" -- the commissions on sales made by new distributors you recruit -- rather than through your own sales of products.
Be cautious about specific income or earnings claims. Many programs boast about the incredibly high earnings of a few top performers ("thousands per week" or a "six figure income"). The reality is that most of the people recruited into the organization are not making anywhere near those amounts and most actually lose money.
Beware when presented with "testimonies" from other distributors. These "success" stories rarely reflect reality.
Be cautious about participating in any program that asks distributors to purchase expensive inventory. There are horror stories of people with a basement or garage full of merchandise that no one will buy.
Make sure the product or service offered by the company is something you would buy without the income opportunity and the product or service is competitively priced. Illegal pyramid schemes often sell products at prices well above retail or sell products that are difficult to value, such as health and beauty aids, new inventions or "miracle" cures.
Never sign a contract or pay any money to participate in a multi-level marketing program, or any business opportunity, without taking your time and reading all of the paperwork. Talk the opportunity over with a spouse, knowledgeable friend, accountant or lawyer. If you feel that you are being subjected to high-pressure sales tactics or are not being given enough time to review the details, go elsewhere.
When questions are raised about pyramids, comparisons may be made to corporations where there is one person at the top who makes the most money. What they fail to state is that corporations do not seek to recruit an unlimited number of employees or pay employees based on recruiting new employees.
Beware when the products or services are simply vehicles for recruitment. The products may be gimmicks and/or overpriced, but even high quality products may serve as a cover for recruitment activities.
Your Responsibilities:
If you decide to become a distributor, remember that 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 are simply repeating claims you read in a company brochure or advertising flyer. If you decide to solicit new distributors, be aware that you are responsible for any 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 you could be held liable.
If you join a pyramid scheme disguised as a multi-level marketing program, your decision will affect not only you, but also everyone you bring into the program. Many people devote a substantial amount of time trying to market these worthless ventures. Ultimately, if a multi-level marketing opportunity sounds too good to be true, it probably is.
FOR GENERAL CONSUMER COMPLAINTS, CONTACT THE ATTORNEY GENERAL'S CONSUMER PROTECTION DIVISION
If you have a general consumer complaint, please file a complaint with the Attorney General's Consumer Protection Division at:
Consumer Protection Division
P.O. Box 30213
Lansing, MI 48909
517-373-1140
Fax: 517-241-3771
Toll free: 877-765-8388
www.michigan.gov/ag (online complaint form)
Use Common Sense and Consider These Tips
The pyramid scheme disguised as a multi-level marketing opportunity is not always easy to spot, but is just as much of a scam as the chain letter. Here are some tips to consider before participating in a multi-level marketing program:
Avoid any program that focuses more on recruitment of new people rather than the sale of a product or service to an end-user consumer. If the opportunity for income is primarily derived by recruiting more participants or salespersons rather than by selling a product, the plan probably is illegal. Several courts interpret greater pressure on members to sponsor new recruits than to market company merchandise as evidence of an illegal pyramid.
Be skeptical of plans that claim you will make money through continued growth of your "downline" -- the commissions on sales made by new distributors you recruit -- rather than through your own sales of products.
Be cautious about specific income or earnings claims. Many programs boast about the incredibly high earnings of a few top performers ("thousands per week" or a "six figure income"). The reality is that most of the people recruited into the organization are not making anywhere near those amounts and most actually lose money.
Beware when presented with "testimonies" from other distributors. These "success" stories rarely reflect reality.
Be cautious about participating in any program that asks distributors to purchase expensive inventory. There are horror stories of people with a basement or garage full of merchandise that no one will buy.
Make sure the product or service offered by the company is something you would buy without the income opportunity and the product or service is competitively priced. Illegal pyramid schemes often sell products at prices well above retail or sell products that are difficult to value, such as health and beauty aids, new inventions or "miracle" cures.
Never sign a contract or pay any money to participate in a multi-level marketing program, or any business opportunity, without taking your time and reading all of the paperwork. Talk the opportunity over with a spouse, knowledgeable friend, accountant or lawyer. If you feel that you are being subjected to high-pressure sales tactics or are not being given enough time to review the details, go elsewhere.
When questions are raised about pyramids, comparisons may be made to corporations where there is one person at the top who makes the most money. What they fail to state is that corporations do not seek to recruit an unlimited number of employees or pay employees based on recruiting new employees.
Beware when the products or services are simply vehicles for recruitment. The products may be gimmicks and/or overpriced, but even high quality products may serve as a cover for recruitment activities.
Your Responsibilities:
If you decide to become a distributor, remember that 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 are simply repeating claims you read in a company brochure or advertising flyer. If you decide to solicit new distributors, be aware that you are responsible for any 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 you could be held liable.
If you join a pyramid scheme disguised as a multi-level marketing program, your decision will affect not only you, but also everyone you bring into the program. Many people devote a substantial amount of time trying to market these worthless ventures. Ultimately, if a multi-level marketing opportunity sounds too good to be true, it probably is.
FOR GENERAL CONSUMER COMPLAINTS, CONTACT THE ATTORNEY GENERAL'S CONSUMER PROTECTION DIVISION
If you have a general consumer complaint, please file a complaint with the Attorney General's Consumer Protection Division at:
Consumer Protection Division
P.O. Box 30213
Lansing, MI 48909
517-373-1140
Fax: 517-241-3771
Toll free: 877-765-8388
www.michigan.gov/ag (online complaint form)
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