I had some thoughts about the Amway opportunity this morning and it made me chuckle as I was thinking. Imagine going to the bank for a loan and when asked for income verification, you show the loan officer a copy of a check you received a year ago. Or better yet, show the loan officer a picture of your home or your car and ask the bank to consider that as proof of collateral. You would likely be escorted out of the bank by a security guard. Or imagine showing the loan officer the 6-4-2 plan when applying for a business loan. You'd be laughed out of the bank.
But IBOs are recruited with these tactics. They are shown pictures of mansions and fancy cars. It implies that the upline diamond has attained these trappings with income they receive from Amway. Then the 6-4-2 plan or a similar version will be shown as a very simple and manageable way to achieve these pipe dreams. Looking back, I fell for it and believed it could be done. I also believed that my diamond was free when the evidence suggested otherwise.
I always wondered why the diamonds were always out showing the plan to people and why they could walk away from their businesses and live in luxury, but none of them opted to do so. Since the thought of doing nothing while money rolls in is a dream, why doesn't anyone choose that option? Of course, the IBOs will claim that their upline diamonds choose to work and help downline out of the goodness of their hearts, but now I can see that it is far more likely that diamonds keep working because they have to.
The attrition rate in Amway is significant, thus anyone who would choose to walk away might have income for a while, but attrition would turn the business into nothing very quickly. A diamond's stability is only as solid as are his platinums. We know that it is very very common for platinums to drop out of qualification or to quit altogether. And if platinums can drop out in a blink of an eye, so too can a diamondship. I believe my former diamond doesn't have any of his originally qualified platinums who still qualify, and I believe most of them have quit. Try taking that to the bank.
Anway, just sharing some of the funny thoughts I had this morning. Hope you have a good one!
Tuesday, June 14, 2011
Thursday, June 9, 2011
Amway Is Number One!
I saw this anonymous comment today on another Amway forum and could not resist reporting it. Absolutely hilarious! (Bold emphasis mine)
http://www.unhappyfranchisee.com/will-amway-make-you-annoying/
Anon on June 9th, 2011 7:00 am
“I don’t really want to debate just throw some things out there”
In other words, I don’t really want to have to consider another viewpoint, you should just drink the Kool aid like I did
“1. Why should shekhar tell you how much he’s making”
Shekhar is promoting Amway as a moneymaking opportunity but he’s never made a profit. We just want to see how much we can lose each month like you and Shekhar”
“Amway is the #2 in making millionaires. (#1 is microsoft)”
Amway is #1 at making up bogus claims and getting naive Ambot zombies to repeat them as fact. Seriously, where did you get that bs.
98% of all amway products are purchased by their Ibos and the other 2% by their mothers. According to research the average ibo has an IQ just 12 points above clinical retardation. 10% of all ibos are killed each year by irate neighbors, exfriends and spouses who just can’t take it anymore.
See how easy it is?
http://www.unhappyfranchisee.com/will-amway-make-you-annoying/
Anon on June 9th, 2011 7:00 am
“I don’t really want to debate just throw some things out there”
In other words, I don’t really want to have to consider another viewpoint, you should just drink the Kool aid like I did
“1. Why should shekhar tell you how much he’s making”
Shekhar is promoting Amway as a moneymaking opportunity but he’s never made a profit. We just want to see how much we can lose each month like you and Shekhar”
“Amway is the #2 in making millionaires. (#1 is microsoft)”
Amway is #1 at making up bogus claims and getting naive Ambot zombies to repeat them as fact. Seriously, where did you get that bs.
98% of all amway products are purchased by their Ibos and the other 2% by their mothers. According to research the average ibo has an IQ just 12 points above clinical retardation. 10% of all ibos are killed each year by irate neighbors, exfriends and spouses who just can’t take it anymore.
See how easy it is?
Wednesday, June 8, 2011
Time To Fire The Coaches?
Every time a professional sports season ends, we see losing coaches fired. It's very common as the goal is to win, especially when team owners expend millions of dollars to achieve the goal. If a new coach takes over a really poor team, he is ususally given some time (a few seasons) to effect positive change. Eventually, that coach is expected to win or at least be competing for a championship. If not, that coach will also eventually be fired as well.
In Amway. there are many diamonds and above who have been around for more than ten or twenty years. They have been selling their systems for many years. making handsome profits which they use to fund their "diamond" lifestyle. But where are the success that make it a worthwhile investment? There are fewer new Amway diamonds in North America than there are powerball lottery winners. While Amway is not a game of chance, it seems that a game of chance with overwhelming odds produces more success than the Amway business opportunity.
While Amway zealots and supporters like to cite all the new platinums, keep in mind that platinum is the level where you break even or make very little profit. Only a platinum who is not on the system is likely to have a nice profit. A fully dedicated system platinum expends so much to run and maintain the group, plus their own system expenses that it's easy to conclude that platinums do not make enough where it's worth all the time and effort. A platinum couple would likely net more money working part time minimum wage jobs. And even with the emergence of new platinums, unless Amway is growing by leaps and bounds (not likely in North America), then new platinums are more than likely simply replacing old ones who do not qualify anymore. With such instability at the platinum level, how can anyone "walk away" and collect income while sitting on the beaches of the world?
So is it time to jettison some of these upline leaders/teachers? Millions of IBOs come and go through the business within a handful of years but the number of new diamonds (North America) can be counted on my fingers. It is not possible that all the motivated and ambitious IBOs end up lazy and incompetent to the point where notable success is a tiny fraction of 1%. Surely the system mush be broken of ineffective. A coach cannot continue to lose and blame the players. Sooner or later, someone must examine whether the coaches are effective or not. In the case of the Amway business, I'd say the coaches (diamonds) are miserable failures. The facts are there, it's a matter of whether you believe the facts or not.
In Amway. there are many diamonds and above who have been around for more than ten or twenty years. They have been selling their systems for many years. making handsome profits which they use to fund their "diamond" lifestyle. But where are the success that make it a worthwhile investment? There are fewer new Amway diamonds in North America than there are powerball lottery winners. While Amway is not a game of chance, it seems that a game of chance with overwhelming odds produces more success than the Amway business opportunity.
While Amway zealots and supporters like to cite all the new platinums, keep in mind that platinum is the level where you break even or make very little profit. Only a platinum who is not on the system is likely to have a nice profit. A fully dedicated system platinum expends so much to run and maintain the group, plus their own system expenses that it's easy to conclude that platinums do not make enough where it's worth all the time and effort. A platinum couple would likely net more money working part time minimum wage jobs. And even with the emergence of new platinums, unless Amway is growing by leaps and bounds (not likely in North America), then new platinums are more than likely simply replacing old ones who do not qualify anymore. With such instability at the platinum level, how can anyone "walk away" and collect income while sitting on the beaches of the world?
So is it time to jettison some of these upline leaders/teachers? Millions of IBOs come and go through the business within a handful of years but the number of new diamonds (North America) can be counted on my fingers. It is not possible that all the motivated and ambitious IBOs end up lazy and incompetent to the point where notable success is a tiny fraction of 1%. Surely the system mush be broken of ineffective. A coach cannot continue to lose and blame the players. Sooner or later, someone must examine whether the coaches are effective or not. In the case of the Amway business, I'd say the coaches (diamonds) are miserable failures. The facts are there, it's a matter of whether you believe the facts or not.
Thursday, June 2, 2011
The Diamond Illusion?
One of the things I noticed after walking away from the Amway business was how IBOs and higher pins try to create an illusion of wealth. They are told to wear suits to all of their meetings, act as if they are already successful in Amway, as if acting the part will make it so. Some IBOs are taught to fake this success, or "fake it till you make it". I suppose this is taught so prospects will be enticed into looking at the business or possibly joining because they see success and want a piece of the action. It is why many aspects of functions are about attaining wealth, quitting your job and showing off the diamond lifestyle.
But as time passes, more and more evidence has become available which shows that the diamond level (and higher) may not be all it's promoted to be. There are stories of diamonds quitting the business, diamonds fighting and suing each other over tools income, diamonds having homes foreclosed or going bankrupt. A book written by Ruth Carter about a diamond who was her former employer showed a diamond with a gross income of over a million dollars, yet this diamond apparently was broke, living in debt but continuing to portray success while on stage. The diamond was appearing to be financially successful but had overdue taxes, credit card debt, and littelt equity in their (mortgaged) home.
What many IBOs and prospects see on stage are pictures of the easy life, early retirement, no job, fancy cars and homes, fancy vacations and exclusive things in life. All of these can be achieved by joining Amway and going diamond right? Amway reports that the average diamond earns less than $150,000 and that is before taxes and business expenses. When you sit down with a calculator, it is easy to see that it is virually impossible for most diamonds to have what they portray. Amway apologists will claim that their groups don't do this, but basically, the function that is currently called "dream nite" is where the theme was the lavish goodies that diamonds have, and you can have, if only you will build the business.
So why do the diamonds put on this show? Simple, because it's a recruiting tool. People won't want to join if you tell them to work hard, achieve diamond and live a middle class lifestyle. Unfortunately, I believe that a diamond income will mostly provide a middle class lifestyle and not that of a jetsetter. Do the math and it's very clear. Also, one should note that much of a diamond's $150,000 income is in the form of a one time annual bonus, thus a diamond's monthly income might be quite low. Many people don't know this and believe the illusion they see on stage.
This blog and this post is to clear up some of the illusions behind a diamond lifestyle. It is very likely not what you think it is.
But as time passes, more and more evidence has become available which shows that the diamond level (and higher) may not be all it's promoted to be. There are stories of diamonds quitting the business, diamonds fighting and suing each other over tools income, diamonds having homes foreclosed or going bankrupt. A book written by Ruth Carter about a diamond who was her former employer showed a diamond with a gross income of over a million dollars, yet this diamond apparently was broke, living in debt but continuing to portray success while on stage. The diamond was appearing to be financially successful but had overdue taxes, credit card debt, and littelt equity in their (mortgaged) home.
What many IBOs and prospects see on stage are pictures of the easy life, early retirement, no job, fancy cars and homes, fancy vacations and exclusive things in life. All of these can be achieved by joining Amway and going diamond right? Amway reports that the average diamond earns less than $150,000 and that is before taxes and business expenses. When you sit down with a calculator, it is easy to see that it is virually impossible for most diamonds to have what they portray. Amway apologists will claim that their groups don't do this, but basically, the function that is currently called "dream nite" is where the theme was the lavish goodies that diamonds have, and you can have, if only you will build the business.
So why do the diamonds put on this show? Simple, because it's a recruiting tool. People won't want to join if you tell them to work hard, achieve diamond and live a middle class lifestyle. Unfortunately, I believe that a diamond income will mostly provide a middle class lifestyle and not that of a jetsetter. Do the math and it's very clear. Also, one should note that much of a diamond's $150,000 income is in the form of a one time annual bonus, thus a diamond's monthly income might be quite low. Many people don't know this and believe the illusion they see on stage.
This blog and this post is to clear up some of the illusions behind a diamond lifestyle. It is very likely not what you think it is.
Tuesday, May 24, 2011
Amway Myths About The BBB
So many IBOs continue to perpetuate myths about the Better Business Bureau (BBB) and other factors as evidence that Amway is a good opportunity. What does the BBB do? What does the BBB say about their ratings?
http://www.bbb.org/us/Business-Accreditation/
If a business has been accredited by the BBB, it means BBB has determined that the business meets accreditation standards which include a commitment to make a good faith effort to resolve any consumer complaints. BBB accredited businesses pay a fee for accreditation review/monitoring and for support of BBB services to the public.
BBB Code of Business Practices represents standards for business accreditation by BBB. Businesses based in the United States and Canada that meet these standards and complete all application procedures will be accredited by BBB. The Code is built on the BBB Standards for Trust, eight principles that summarize important elements of creating and maintaining trust in business.
BBB accreditation does not mean that the business’ products or services have been evaluated or endorsed by BBB, or that BBB has made a determination as to the business’ product quality or competency in performing services.
Businesses are under no obligation to seek BBB accreditation, and some businesses are not accredited because they have not sought BBB accreditation.
**As far as I know, Amway has a satisfactory rating from the BBB. What so many IBOs do not take note of is that a good rating from the BBB has nothing to do with the viability or profitability of the Amway business opportunity. IBOs should also note that they as "independent businesses" are not Amway. Why uplines continue to perpetuate this fallacy is puzzling to me.
http://www.bbb.org/us/Business-Accreditation/
If a business has been accredited by the BBB, it means BBB has determined that the business meets accreditation standards which include a commitment to make a good faith effort to resolve any consumer complaints. BBB accredited businesses pay a fee for accreditation review/monitoring and for support of BBB services to the public.
BBB Code of Business Practices represents standards for business accreditation by BBB. Businesses based in the United States and Canada that meet these standards and complete all application procedures will be accredited by BBB. The Code is built on the BBB Standards for Trust, eight principles that summarize important elements of creating and maintaining trust in business.
BBB accreditation does not mean that the business’ products or services have been evaluated or endorsed by BBB, or that BBB has made a determination as to the business’ product quality or competency in performing services.
Businesses are under no obligation to seek BBB accreditation, and some businesses are not accredited because they have not sought BBB accreditation.
**As far as I know, Amway has a satisfactory rating from the BBB. What so many IBOs do not take note of is that a good rating from the BBB has nothing to do with the viability or profitability of the Amway business opportunity. IBOs should also note that they as "independent businesses" are not Amway. Why uplines continue to perpetuate this fallacy is puzzling to me.
Thursday, May 19, 2011
How To Become A Millionaire?
Amway isn't listed as one of the factors. LOL The diamond lifestyle also doesn't match what the article says:
http://financiallyfit.yahoo.com/finance/article-112626-9481-5-5-easy-steps-to-becoming-a-millionaire?ywaad=ad0035&nc
1. Only Marry Once
According to "The Millionaire Next Door" by Thomas J. Stanley, Ph.D and William D. Danko, Ph.D, the average millionaire is married with three children. The wives of these millionaires are good budgeters and most often described as even more frugal than their husbands. Interestingly, according to Stanley and Danko's survey, half of these wives do no work outside the home and of those who do, they are most likely teachers.
One upside of only marrying once is avoiding the costs of divorce and of subsequent weddings. The cost of a divorce depends on many factors including income, attorney fees, court fees, and the assets a couple has and how they are divided. The average wedding cost in the United States in 2010, according to The Wedding Report.com, was $24,070.
2. Live Off One Income
One of the advantages of having a life partner is the potential to pull in two incomes. If you are able, consider structuring your set expenses based on only one income, and save what comes in from the other income. Doing so strengthens your financial position in two ways: In case of an emergency or if one partner loses their job, you will not only have less set expenses to cover, but you will also have built up your net worth as a safety measure.
3. Choose the Right Career
According to The Millionaire Next Door, "self-employed people make up less than 20% of the workers in America but account for two-thirds of the millionaires." The book goes on to list an average of 45 to 55 hours spent working per week, so by no means is this the self-employed fantasy of playing golf while your business grows.
The idea of the "right" career can encompass a myriad of factors. Ideally, this would be a career you enjoy, otherwise you likely won't be putting in the dedication required to be successful. The right career would also coincide with overall working trends, or at least not work directly against them. For example, starting a career in typewriter manufacturing may be something you are passionate about, but it would likely suffer due to the current technological trends.
4. Put Your Money in Appreciating Assets
According to Stanley and Danko, the millionaires in their survey invested nearly 20% of their realized household income each year. Nearly 20% of the household's wealth is held in "transaction securities such as publicly traded stocks and mutual funds" and the millionaires tended to rarely sell their equities. Only a very small number of the millionaires surveyed had ever leased a car; few even drove the current year model. Half of those surveyed had lived in their homes for more than 20 years, which, as the authors point out, means they have likely enjoyed "significant increases in the value of their homes."
The end result? These people put a financial priority on assets that will make them money, from their homes to their businesses.
5. Don't Live the Millionaire Lifestyle
Warren Buffett's frugal lifestyle (especially relative to his net worth) is the go-to example for this point. The average value of the surveyed millionaires' homes was $320,000. The bottom line is, those who spend their money on non-appreciating assets cannot put that same money in an asset that will net them a return and increase their wealth. If it is important to you to build your financial worth, stop spending it on new cars, toys and clothes. (The Oracle of Omaha has a net worth in the billions, but his lifestyle is not as rich as you may think.)
The Bottom Line
Becoming a millionaire is easier than ever. While this is a dream that will take work and discipline to achieve, it isn't as far out of reach as you might think. Be smart with your money and before you know it, you'll be able to count yourself among the world's wealthier citizens.
http://financiallyfit.yahoo.com/finance/article-112626-9481-5-5-easy-steps-to-becoming-a-millionaire?ywaad=ad0035&nc
1. Only Marry Once
According to "The Millionaire Next Door" by Thomas J. Stanley, Ph.D and William D. Danko, Ph.D, the average millionaire is married with three children. The wives of these millionaires are good budgeters and most often described as even more frugal than their husbands. Interestingly, according to Stanley and Danko's survey, half of these wives do no work outside the home and of those who do, they are most likely teachers.
One upside of only marrying once is avoiding the costs of divorce and of subsequent weddings. The cost of a divorce depends on many factors including income, attorney fees, court fees, and the assets a couple has and how they are divided. The average wedding cost in the United States in 2010, according to The Wedding Report.com, was $24,070.
2. Live Off One Income
One of the advantages of having a life partner is the potential to pull in two incomes. If you are able, consider structuring your set expenses based on only one income, and save what comes in from the other income. Doing so strengthens your financial position in two ways: In case of an emergency or if one partner loses their job, you will not only have less set expenses to cover, but you will also have built up your net worth as a safety measure.
3. Choose the Right Career
According to The Millionaire Next Door, "self-employed people make up less than 20% of the workers in America but account for two-thirds of the millionaires." The book goes on to list an average of 45 to 55 hours spent working per week, so by no means is this the self-employed fantasy of playing golf while your business grows.
The idea of the "right" career can encompass a myriad of factors. Ideally, this would be a career you enjoy, otherwise you likely won't be putting in the dedication required to be successful. The right career would also coincide with overall working trends, or at least not work directly against them. For example, starting a career in typewriter manufacturing may be something you are passionate about, but it would likely suffer due to the current technological trends.
4. Put Your Money in Appreciating Assets
According to Stanley and Danko, the millionaires in their survey invested nearly 20% of their realized household income each year. Nearly 20% of the household's wealth is held in "transaction securities such as publicly traded stocks and mutual funds" and the millionaires tended to rarely sell their equities. Only a very small number of the millionaires surveyed had ever leased a car; few even drove the current year model. Half of those surveyed had lived in their homes for more than 20 years, which, as the authors point out, means they have likely enjoyed "significant increases in the value of their homes."
The end result? These people put a financial priority on assets that will make them money, from their homes to their businesses.
5. Don't Live the Millionaire Lifestyle
Warren Buffett's frugal lifestyle (especially relative to his net worth) is the go-to example for this point. The average value of the surveyed millionaires' homes was $320,000. The bottom line is, those who spend their money on non-appreciating assets cannot put that same money in an asset that will net them a return and increase their wealth. If it is important to you to build your financial worth, stop spending it on new cars, toys and clothes. (The Oracle of Omaha has a net worth in the billions, but his lifestyle is not as rich as you may think.)
The Bottom Line
Becoming a millionaire is easier than ever. While this is a dream that will take work and discipline to achieve, it isn't as far out of reach as you might think. Be smart with your money and before you know it, you'll be able to count yourself among the world's wealthier citizens.
Monday, May 16, 2011
Ten Plain Truths About Amway and MLM
http://www.falseprofits.com/Americanscam.html
Ten Plain Truths
1. 99.9% of all people who join Amway/Quixtar and other multi-level marketing schemes like it never earn a profit. The losses are so large that these schemes cannot be called a legitimate "business opportunity."
2. To get people to join a MLM scheme in which nearly all will lose requires deception. The promoters do not tell the truth.
3. The people at the top hide basic facts from recruits such as average income, actual costs of doing business, drop out rates, and how much of the total bonus money they receive. They also do not reveal the source of their money, most of which comes from selling "training" materials. Often, their income is from recruits in other countries.
4. Very little of the MLM products are ever actually sold to consumers. The people who buy these products do so as part of investing in a "business opportunity." The business is therefore not "direct selling." It is actually about promoting a bogus business opportunity.
5. More than 50% of all people who join these schemes quit in the first year. Trying to make money from recruiting is therefore a long and costly effort. When a person starts out to build a 'downline" they are already at the bottom of someone else's very large downline. Only a tiny few can ever be at the top.
6. Those few that start at the top of the scheme or who climb to the top make their money directly from the losses suffered by all the latest recruits.
7. The training and motivation seminars, books and tapes are a secret business run by the top promoters of the scheme. Buying tapes and books does not increase a person's chances for success. It only adds to the losses.
8. The people selling the books and tapes are not necessarily successful in the MLM business. Rather, they make most of their money selling the recruitment materials. Claims that they are successful and that the business is a "great opportunity" are false.
9. The schemes recruit more and more people every year, but also many quit. So the scheme can run for many years before it must find other areas with more people to recruit. The longer is operates, the more people it has harmed.
10. The main reason the government of the United States does not investigate these schemes for deception and unfair practices or for running pyramid schemes is that leaders of these schemes contribute huge amounts of money to the politicians' political campaigns. Consumers, therefore, must look out for themselves. Just because a particular MLM such as Amway/Quixtar is not prosecuted by the government does not mean it is legitimate or that you will ever make any money from it.
Contact: Robert L. FitzPatrick
Ten Plain Truths
1. 99.9% of all people who join Amway/Quixtar and other multi-level marketing schemes like it never earn a profit. The losses are so large that these schemes cannot be called a legitimate "business opportunity."
2. To get people to join a MLM scheme in which nearly all will lose requires deception. The promoters do not tell the truth.
3. The people at the top hide basic facts from recruits such as average income, actual costs of doing business, drop out rates, and how much of the total bonus money they receive. They also do not reveal the source of their money, most of which comes from selling "training" materials. Often, their income is from recruits in other countries.
4. Very little of the MLM products are ever actually sold to consumers. The people who buy these products do so as part of investing in a "business opportunity." The business is therefore not "direct selling." It is actually about promoting a bogus business opportunity.
5. More than 50% of all people who join these schemes quit in the first year. Trying to make money from recruiting is therefore a long and costly effort. When a person starts out to build a 'downline" they are already at the bottom of someone else's very large downline. Only a tiny few can ever be at the top.
6. Those few that start at the top of the scheme or who climb to the top make their money directly from the losses suffered by all the latest recruits.
7. The training and motivation seminars, books and tapes are a secret business run by the top promoters of the scheme. Buying tapes and books does not increase a person's chances for success. It only adds to the losses.
8. The people selling the books and tapes are not necessarily successful in the MLM business. Rather, they make most of their money selling the recruitment materials. Claims that they are successful and that the business is a "great opportunity" are false.
9. The schemes recruit more and more people every year, but also many quit. So the scheme can run for many years before it must find other areas with more people to recruit. The longer is operates, the more people it has harmed.
10. The main reason the government of the United States does not investigate these schemes for deception and unfair practices or for running pyramid schemes is that leaders of these schemes contribute huge amounts of money to the politicians' political campaigns. Consumers, therefore, must look out for themselves. Just because a particular MLM such as Amway/Quixtar is not prosecuted by the government does not mean it is legitimate or that you will ever make any money from it.
Contact: Robert L. FitzPatrick
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