Amway - Get Rich Quick?

I get a good laugh out of IBOs when the talk about Amway not being "get rich quick". If that was how the opportunity was pitched, then why did you join, knowing that Amway's reputation was less than spotless? Seems that many IBO recruits have some kind of need, such as more income, which is why they join Amway in the first place. They join in hopes of making a few extra dollars, and hopefully the business will bloom into a big one where the money rolls in by the barrel full while you sit on a beach sipping mai tais.

Obviously, Amway must have been pitched as having the possibility of creating wealth in 2-5 years or whatever they show prospects these days. I don't think much has changed over the years. The problem in my informed opinion is that too many IBOs think they can create wealth with their Amway business. The sad reality is that in most business structures in Amway, the money is simply taken out of the pockets of downline ans redistributed to upline. This is done by downline having product loyalty. Product loyalty to Amway and the tools systems.

Many IBOs join to get extra time and money, but instead they give up much time and money from their jobs, which benefits upline. Not counting IBOs who do nothing, the remaining will likely buy their 100 PV, and consume voicemail, standing order, books and functions. It would be rare for an IBO to actually make enough Amway money to cover the cost of the tools, much less make a net profit. But I believe uplines will tell you that Amway is not get rich quick, because they want you yo expect to spend several years in the system, all the while lining upline pockets with tools profits.

On most cases, you will not get rick quickly in Amway. You will probably not get rich slowly in Amway either. It is very likely that you won't get anything in the Amway opportunity except a net loss, especially is you are dedicated to your upline's teaching system.

Amway Global - Join Amway And Profit Right Away?

One of the things that the presenters hit upon when showing the plan was how you had a great advantage in joining Amway because you could avoid overhead expenses and profit right away. Plus they threw in the tidbit about saving money thru Amway.

But it appears that IBOs do not profit right away, moreso if they are on the system of voicemail, cds, books and seminars. What's troubling is that IBOs are taught that they should not profit right away. That businesses commonly take years to profit, and that any profits should be invested into more tools. So the business is promoted as being one where you can profit right away, and then upline changes the mindset of profit into Amway being a long term venture. This is often refered to as a bait and switch technique.

It is common for Amway promoters to target needy folks. People who could use an extra buck or more. Someone who is looking for ways to make more money, but not necessarily by working another job. Thus upline will promote the Amway as low risk, easy to get started and no expenses. Then when an IBO commits, the mantra then changes to long term business, reinvest profits, etc etc.

My upline used to tell us that the promise of money got us in, but becoming better people, helping others and long term firendship is what the business is really about. Really? How many people would join and spend all that money to accomplish these goals? Not that these are bad things, but they are contrary to the pitch of joining to own a business.

If you are involved or considering getting involved, I encourage you to ask your sponsor tough questions about this. To ask where the profits are if you're been involved for more than a month. Don't allow them to shuffle the answer under a rug. If they can't or won't answer you, then you have a big decision to make. Stay involved in a business that is losing money, even though profits were promoted as easy, or keep trusting someone who won't give you a straight answer.

Amway Global Average Income $115/Month?

Amway reported that the average IBO income was $115 a month in 2001. As far as I know, there hasn't been an updated figure. The $115 is not really accurate as Amway disregarded about 1/3 of all IBOs as the $115 per month only included "active" IBOs. Some Amway apologists of course, make ridiculous arguments that someone who asks his brother to buy something is active an thus makes $115 for simply asking a question. Of course we know that to receive a bonus, an IBO must qualify by moving at least 100 PV in volume.

But wait, an IBO who moves 100 PV will likely get $9 or $10. How can an average IBO receive that much income? It is my guess that adding in Amway Crown Ambassadors and other high pins into this figure makes it much higher than the reality for most IBOs. If you look at the 6-4-2 plan, it assumes that all IBOs in that move 100 PV, yet the majority of them only receive the 3% bonus, or about $9 or $10 or so.

How much volume would you have to move to actually earn about $115 in a month, which is average? If you sponsored 4 downline and you and your downline all moved 100 PV, you would receive about $90, and each downline would get about $9, thus your bonus would be $54. (Based on each IBO doing 100 PV, 300BV and you are in the 6% bracket). But if you were to sponsor 5 downline, all doing 100 PV, 300 BV, you would receive about $162, and you would pay out $45 to downline. You would have a gross income of $117 a month.

So if you are able to gain and maintain 5 downline, all move 100 PV and about 300 BV each, you would then be in the 9% performance bracket and you would gross about $117a month. You would be considered average or above.

Things to note: Only 1 in 5 IBOs are able to sponsor even one downline. IBOs who sponsor multiple downlines are likely to be less than 1 in 5. Also, even if you can sponsor 5 and reach the 9% level, which would be a notable achievement in Amway, you would probably still have a net loss when if you calculate in taxes, voicemail, books, cds, standing order and functions.

Still think you can simply "choose" to succeed?

Amway Global - "At Least A Founder's 3%"

Amway's biggest defender usually goes by the moniker of "IBOFightback" or "Insider". He and his supporters often criticize the critics of Amway, citing outdated information and/or experiences. We are often told to check the credibility of the person who is writing. Well, here's an interesting coincidence. Could the David Steadson who is listed here: http://www.amquix.info/steadson_hits_3_percent.html
be the famous IBOfightback?

If it is, then maybe he was right when he said he was at least a founder's 3%?

No, it couldn't be IBOfightback, he is from Sweden. :-)

Amway Global - A Foolproof Way To Earn Income?

So many IBOs talk about Amway being the best business around or the best way to earn income. Their tenacity in defending the business is almost scary at times. But the way Amway is promoted by the motivational groups is no different than the people who want to sell you the secret of buying real estate with no money, or selling you income earning strategies. Many of these opportunities are promoted on infomercials, while Amway functions serve as infomercials.

The major function formerly known as dream nite, now known as winter conference is one where the diamonds show off their alleged wealth. They show videos of nice cars, jet skis, mansions, and other trappings, and then tell the audience they can have all of this and more, if only they will do what upline teaches.

It is like a live version of an infomercial. But what many do not notice about the infomercials (when showing success testimonials) is that it most often says "unique experience", your experience may vary. It is more like Amway than you think. Achieving a sginificant level in Amway, such as Emerald or higher, probably qualifies as a unique experience.

If you really think about it, if someone were really making so much money doing something, why wouldn't they continue to do it instead of taking up so much of their valuable time promoting it? Is it because they make more money promoting it than doing it? I will guess it's the latter and not the former.

Amway Global - Own A Business And Get Paid What You Are Worth?

One of the things I saw and I believe is still taught today, is that Amway recruiters will talk about people's jobs and how you can only earn what the job is worth, and not what you are worth. Then they tell you to join the Amway business as a means to rectify that situation.

When you stop and really think twice about this, you have to wonder. If your employer doesn't pay you what you think you deserve, you are welcome to offer your services to a higher bidder. If you are unable to find a higher bidder, then you either need to increase what you have to offer, or you have overestimated your value as an employee. But at least as an employee, you have a paycheck that you can depend on, and more than likely, you know when your paydays are.

Now you get excited about being a business owner. Are you now paid what you're worth? Or at least, are you on your way to being paid what you are worth? Have you even asked or thought about what you are worth? Most IBOs, not counting the ones who "do nothing". end up moving 100 PV and getting $10 back from Amway. If they are on the system, they are likely to have spent over $100 a month to participate. Are you now "paid what you are worth?". You are in the negative, and even adding some downline is unlikely to change your situation significantly.

When you spend about $300 to make 100 PV, Amway gets paid. When you earn your 100 PV, Amway will give back about $75 in bonus money. Middle men in your upline take about $65, leaving you with $10. Are you paid what you are worth? Who did the work and who got the lion's share of the reward?

Let's say you worked really hard for a couple of years. You finally reach platinum and you earn $50,000 (before taxes). After taxes and business expenses, let's say you net $25,000. Have you now earned what you are worth? A platinum is in the top 1% of all IBOs and they net maybe $25,000 to $30,000. Are they paid what they are worth? If you can't answer yes to any of these questions, you have to ask yourself if the whole thing is worth it?

Amway Global - Myth - Shop With Amway And Save 30%?

One of the things I saw at an Amway presentation, and I believe many still tout this, that shopping with Amway will save you 30%. Of course, I have yet to see any price comparisons to verify this claim. In fact, I believe if you made an opposite claim, that shopping with Amway costs you 30% more, that would probably be more accurate. I believe that Amway recruiters make this claim because to the audience, it only makes sense to join Amway because you will save 30%. Unfortunately, it is a recruiting tactic. Simply walk down the aisles at Walmart and tell the audience with a straight face that you will save 30% on average, but purchasing from Amway instead of WalMart. WalMart boldly makes a claim that families shopping there regularly will save $2500 a year, which is more than the average IBO earns. Amway makes no such claim that I know of. I believe this is an LOS recruiting trick.

If you stop and think about it, Amway must charge at least 30% or more on top of their overhead and profit in order to pay the IBO bonuses. I sincerely doubt that Amway suffers losses to pay out bonuses. Add in shipping and the cost goes up. I believe that the save 30% by shopping with Amway is a myth. If not, I challenge IBOs to put forth a reasonable price comparison to prove me wrong.