As an IBO, I mostly had a negative cashflow, primarily because ofthe tool purchases. Tools are generally standing orders, voicemail, functions, and other meetings, and books. While some will argue the value of the tools, it is still apparent that the tools are the main reason why the vast majority of IBOs end up with a net loss at the end of the month.
Because most IBOs are unable to generate enough sales, they end up purchasing most of their own sales. With a lack of sales, an IBO can only profit in turn, by recruiting (sponsoring) downline to leverage volume. Of course, when you finally have enough downline, they are taking the losses in order for you to profit. In this model, Amway's opportunity can be seen as questionable from a legal standpoint. While Amway defenders cite the 1979 FTC ruling, that ruling found that Amway was not a illegal pyramid because of their sales requirement. I believe that groups operating primarily as a "buy from yourself" concept are doing so illegally.
But what is concerning and scary is how IBOs seems to disregard to justify their negative cashflow. You move your 100 PV. If you are typical, that 100 PV is mostly from your own consumption and you end up with a 3% bonus, which is about $10 a month. If you are attending functions, buying books and standing orders and using voicemail, you have a negative cashflow. You will likely be taught to justify this as an investment into your business. What I find ironic is that prospects are often told that the Amway opportunity has little or no overhead. Then when you get started, you are told that a business owner needs to invest in their busines.
Investments into a business would be okay, except that it is a rare thing for any of these IBOs to recapture their investments and turn a profit. For most, they will realize this and quit, or hang on and lose tens of thousands of dollars over a number of years. IBOs and prospects should lok at things objectively and ask themselves honestly, what is my business cashflow like? Am I funneling my job income into this business (moneypit) or are there real prospects of turning a profit? If your motivation hangs on a dream and a prayer, maybe you need to sit down with an accountant and truly analyze your business profit and loss statement. If you don't know what that is, you need to find out right away!
Monday, February 28, 2011
Saturday, February 26, 2011
My Job Doesn't Pay Me What I Am Worth?
One of the things I observed and I believe is still taught today, is that Amway recruiters and IBOs 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.
Sadly, many will join and end up with a net loss, even after putting in an honest effort.
When you stop and 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 $90 in bonus money (30%). Middle men in your upline take about $80, 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?
Would you have joined knowing that out of $90 in bonuses you generated, for moving 100 PV, that your uplines would get most of the bonus? What happened to their saying of do the work and get paid? Or are the uplines saying "you do the work" - "so I can get paid"?
Let's say you worked really hard for a couple of years. You finally reach platinum and you earn maybe $40K or 50K (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? Is Amway paying you what you are worth?
Sadly, many will join and end up with a net loss, even after putting in an honest effort.
When you stop and 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 $90 in bonus money (30%). Middle men in your upline take about $80, 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?
Would you have joined knowing that out of $90 in bonuses you generated, for moving 100 PV, that your uplines would get most of the bonus? What happened to their saying of do the work and get paid? Or are the uplines saying "you do the work" - "so I can get paid"?
Let's say you worked really hard for a couple of years. You finally reach platinum and you earn maybe $40K or 50K (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? Is Amway paying you what you are worth?
Friday, February 25, 2011
Where Are The Diamonds?
How many diamonds are there in Amway? I don't know for sure. Nobody knows for sure except Amway and Amway isn't telling. I once emailed Amway to ask this question and I was told to ask the person who invited me to a meeting. An Amway supporter once wrote a post on his propaganda blog decrying Amway critics for creating an "echo chamber" effect where people searching for information will be mislead about how many diamonds there are in Amway. Of course, he doesn't criticize the corporation for not publishing this valuable and controversial piece of information. He wrote a blog post claiming there are about 4000 Amway diamonds worldwide. While that may or may not be true, given this Amway supporter's propensity for lying, it certainly doesn't speak well about the number of Diamonds in the US and Canada. Nobody seems to be able to name at least ten new diamonds who came out of North America in the last 5 or six years.
On one of the Amway PR blogs, I posed a question (several years ago) and Anna Bryce of Quixtar (at the time) stated that there were 160 Diamondships in attendance to 2006 Diamond club. Assuming there were some absentees, there might be a few more than 160 Diamonds in Amway North America. 160+ Diamondships in nearly 50 years of existence is not much to get excited about. Also, in Amway, a diamond is not forever. Diamonds fall out of qualification, probably more often than a new one emerges.
Some Amway supporters talk about the thousands of people who may have achieved success thru this opportunity. They don't mention however, the MILLIONS who may have been harmed by participating in this wonderful opportunity, albeit possibly from a motivational organization and not necessarily from Amway, Quixtar or Alticor. Although the motivational organizations have mostly been allowed to operate freely to cause this harm, and blemish the corporation's reputation.
The point being missed here is that the more diamonds there are, it is likely that there will be more and more people who lose money. Nearly all diamonds that I know of hard sell their cds, seminars and other support materials. Thus the more diamonds there are, the more downline, and probably more people on the system. The vast majority of people on the system lose money because of the system expenses. A lack of sales to non IBOs almost guarantees a loss for IBOs because the only way to increase volume without sales is to increase downline who then suffer the losses for you. The more diamonds there are, the more lower level IBOs there are, and more IBOs who make little or lose money in order to support these higher pins.
Where are all the diamonds? Are they hiding? Or becoming extinct?
On one of the Amway PR blogs, I posed a question (several years ago) and Anna Bryce of Quixtar (at the time) stated that there were 160 Diamondships in attendance to 2006 Diamond club. Assuming there were some absentees, there might be a few more than 160 Diamonds in Amway North America. 160+ Diamondships in nearly 50 years of existence is not much to get excited about. Also, in Amway, a diamond is not forever. Diamonds fall out of qualification, probably more often than a new one emerges.
Some Amway supporters talk about the thousands of people who may have achieved success thru this opportunity. They don't mention however, the MILLIONS who may have been harmed by participating in this wonderful opportunity, albeit possibly from a motivational organization and not necessarily from Amway, Quixtar or Alticor. Although the motivational organizations have mostly been allowed to operate freely to cause this harm, and blemish the corporation's reputation.
The point being missed here is that the more diamonds there are, it is likely that there will be more and more people who lose money. Nearly all diamonds that I know of hard sell their cds, seminars and other support materials. Thus the more diamonds there are, the more downline, and probably more people on the system. The vast majority of people on the system lose money because of the system expenses. A lack of sales to non IBOs almost guarantees a loss for IBOs because the only way to increase volume without sales is to increase downline who then suffer the losses for you. The more diamonds there are, the more lower level IBOs there are, and more IBOs who make little or lose money in order to support these higher pins.
Where are all the diamonds? Are they hiding? Or becoming extinct?
Tuesday, February 22, 2011
Amway Sales Up For 2010?
http://www.prnewswire.com/news-releases/amway-parent-grows-to-92-billion-in-2010-116396994.html
ADA, Mich., Feb. 17, 2011 /PRNewswire/ -- Amway's parent company, Alticor Inc., reported sales exceeding $9.2 billion for the year ended December 31, 2010, a 9.5 percent increase over sales of $8.4 billion in 2009. The 2010 performance results mark Alticor's 10th sales increase in the last 11 years.
Amway said growth was fueled by strong 2010 results in China, the company's largest market, as well as healthy gains in India, Korea, North America and Latin America.
The company, which is privately held, does not generally release individual market sales or disclose profitability.
"Our message of free enterprise and individual opportunity continues to resonate across markets and across cultures," DeVos said. "We're proud to help entrepreneurs take the first step towards business ownership, and to support them with brands that are becoming better known every day."
The company announced that category sales of NUTRILITE approached $4 billion, attributed to overall growth in the category as well as increased visibility for NUTRILITE in 2010. Major campaigns included "Color Yourself Healthy," a global awareness program that promoted the benefits of plant ingredients for optimal health. Global sponsorships focused on major sports teams and well-known athletes continue to build brand awareness for NUTRILITE.
ARTISTRY skin care and cosmetics led beauty category sales for Amway. The company cited a successful launch of ARTISTRY Intensives Renewing Peel, the first product in a new Intensives line of skin care products designed to provide professional results at home. Masstige brand beautycycle™ successfully launched in Europe and Australia, targeted to consumers who are looking for high-quality skin care and cosmetics products containing natural ingredients.
Brand building continues to be a significant focus for Amway around the world. "Our distributors are realizing the benefits of our global investment in building our brands," said DeVos. "It is easier for them to sell products that consumers already know to ask for by name." To increase consumer access to its brands, Amway expanded its physical presences across the globe to complement its direct selling business model.
The company also unveiled a new Amway brand identity in 2010, highlighted by the opening of the Amway Center, home to the National Basketball Association's (NBA) Orlando Magic, which became the first high-profile venue in North America to showcase Amway's new brand identity.
Operationally, the company took steps to evolve into a true global enterprise – leveraging technology to improve supply chain efficiencies, help distributors run their businesses more efficiently and gain consumer insight vital to developing strong customer relationships. Said Van Andel: "We are a global business, with 90 percent of sales outside the U.S., and we are taking necessary steps to support customers worldwide."
ADA, Mich., Feb. 17, 2011 /PRNewswire/ -- Amway's parent company, Alticor Inc., reported sales exceeding $9.2 billion for the year ended December 31, 2010, a 9.5 percent increase over sales of $8.4 billion in 2009. The 2010 performance results mark Alticor's 10th sales increase in the last 11 years.
Amway said growth was fueled by strong 2010 results in China, the company's largest market, as well as healthy gains in India, Korea, North America and Latin America.
The company, which is privately held, does not generally release individual market sales or disclose profitability.
"Our message of free enterprise and individual opportunity continues to resonate across markets and across cultures," DeVos said. "We're proud to help entrepreneurs take the first step towards business ownership, and to support them with brands that are becoming better known every day."
The company announced that category sales of NUTRILITE approached $4 billion, attributed to overall growth in the category as well as increased visibility for NUTRILITE in 2010. Major campaigns included "Color Yourself Healthy," a global awareness program that promoted the benefits of plant ingredients for optimal health. Global sponsorships focused on major sports teams and well-known athletes continue to build brand awareness for NUTRILITE.
ARTISTRY skin care and cosmetics led beauty category sales for Amway. The company cited a successful launch of ARTISTRY Intensives Renewing Peel, the first product in a new Intensives line of skin care products designed to provide professional results at home. Masstige brand beautycycle™ successfully launched in Europe and Australia, targeted to consumers who are looking for high-quality skin care and cosmetics products containing natural ingredients.
Brand building continues to be a significant focus for Amway around the world. "Our distributors are realizing the benefits of our global investment in building our brands," said DeVos. "It is easier for them to sell products that consumers already know to ask for by name." To increase consumer access to its brands, Amway expanded its physical presences across the globe to complement its direct selling business model.
The company also unveiled a new Amway brand identity in 2010, highlighted by the opening of the Amway Center, home to the National Basketball Association's (NBA) Orlando Magic, which became the first high-profile venue in North America to showcase Amway's new brand identity.
Operationally, the company took steps to evolve into a true global enterprise – leveraging technology to improve supply chain efficiencies, help distributors run their businesses more efficiently and gain consumer insight vital to developing strong customer relationships. Said Van Andel: "We are a global business, with 90 percent of sales outside the U.S., and we are taking necessary steps to support customers worldwide."
Monday, February 21, 2011
Amway Or Working At McDonalds?
When you visit the Amway Global blog, they have a section I believe called "by the numbers". When you click it, it takes you to "Thisbiznow" and shows the average income of "active" IBOs to be $115 a month - and that's after disregarding about 1/3 of the IBO sales force as they are not "active". I believe that this figure is based on a 2001 survey done by the corporation (And Amway supporters complain and bemoan critics for not having current information).
One of the things I often hear from Amway supporters is a comparison of Amway and franchises. (McDonalds in particular). First of all, unless I am mistaken, Amway is not a franchisor, and their salesforce (IBOs) are not franchise owners. This is simply a trick used by some lines of sponsorship to make you feel nice and important (I guess). So there is no valid comparison between an IBO and McDonalds. If Amway were franchising businesses, I am sure they would tell you so.
But let's look at one very telling comparison between Amway IBOs and McDonalds. In Hawaii, the minimum wage is $7.25 an hour. If someone were employed at McDonald's for $7.25 per hour, and they worked 5 hours per week, or 20 hours in a month, their gross income would be $145.00! That's more than 30% more than an average IBO receives from the Amway opportunity! For you average IBOs out there - want a 30% raise? Get a 5 hour per week job at McDonalds! Go Big Mac!
One of the things I often hear from Amway supporters is a comparison of Amway and franchises. (McDonalds in particular). First of all, unless I am mistaken, Amway is not a franchisor, and their salesforce (IBOs) are not franchise owners. This is simply a trick used by some lines of sponsorship to make you feel nice and important (I guess). So there is no valid comparison between an IBO and McDonalds. If Amway were franchising businesses, I am sure they would tell you so.
But let's look at one very telling comparison between Amway IBOs and McDonalds. In Hawaii, the minimum wage is $7.25 an hour. If someone were employed at McDonald's for $7.25 per hour, and they worked 5 hours per week, or 20 hours in a month, their gross income would be $145.00! That's more than 30% more than an average IBO receives from the Amway opportunity! For you average IBOs out there - want a 30% raise? Get a 5 hour per week job at McDonalds! Go Big Mac!
Wednesday, February 16, 2011
Anonymous From Scarborough Canada Entertains Joecool
My of my regular readers here knows that there's an anonynous cowardly blogger from Scarborough Ontario Canada who has left threats and insults on my blog almost ad nauseum. I gave him my contavt information but he was too chicken to contact me. He is apparently a low level IBO who has a entry level job in a bank. Here's a humorous set of comments he recently left ony my blog. Enjoy!
Anonymous said: "That's why you didn't make the kind of money you were hoping to make. When I registered a thought came to my mind quite early on; instead of me finding 6 people who find 4 who find 2 each, why don't I just find one person who will find 6 people who find 4 who find 2 each? After-all, I still get 7500 PV and 50K/year!!! Sadly, as I found out, in doing so, I would net out only about $700/month instead of $5700/month. Structure is the key baby! BIG DIFFERENCE! So, I got serious about it and went for my 6 people! Did it all go just as advertised? No, but I earn a good $4000-4500 per month. Do I plan to stop here? No! I plan to go 100K/year by December 2011. So remember, business structure is vital for profitability. Stop whining and get to work!"
Anonymous said: "My Amway expenses are WAY FAR from wiping out my monthly Amway earnings. Or are you referring to my general, every day expenses? If yes, then there really is nothing to argue about. The same can be said about anyone whose job income also equals my Amway monthly income. For your information, I make almost twice as much from Amway than any other job I ever had."
Anonymous said: "Buddy Joe, my J.O.B was from 9 in the morning till 6 in the evening, Monday to Friday, working as a customer service representative. I was making about $2360/month. So don't you think that maybe, JUST MAYBE, $4000/month from Amway isn't a little bit, JUST A TINY LITTLE BIT, MORE than $2360? So what if I earn $4000/month you ask? Buddy Joe, I think that you're aware of $4000 figure being TOO REAL TO YOU, it's just that you were nowhere near that and now you're bitter about it. Why am I there and you aren't? Don't know and don't want to know. All I see is your bitterness and complacency. So shut up!"
Joe's commentary: So my anonymous friend in making $4000 a month from Amway? Of course he provides no evidence and not even an anecdotal explanation of how he makes $4000 a month. Of course, $4000 a month isn't much when you still have to pay for medical insurance and your other business expenses. Not to mention, I earn a lot more than that from my job. But anon from Canada, thanks for your entertaining tirades! I truly enjoy what you add to my blog! :-)
Anonymous said: "That's why you didn't make the kind of money you were hoping to make. When I registered a thought came to my mind quite early on; instead of me finding 6 people who find 4 who find 2 each, why don't I just find one person who will find 6 people who find 4 who find 2 each? After-all, I still get 7500 PV and 50K/year!!! Sadly, as I found out, in doing so, I would net out only about $700/month instead of $5700/month. Structure is the key baby! BIG DIFFERENCE! So, I got serious about it and went for my 6 people! Did it all go just as advertised? No, but I earn a good $4000-4500 per month. Do I plan to stop here? No! I plan to go 100K/year by December 2011. So remember, business structure is vital for profitability. Stop whining and get to work!"
Anonymous said: "My Amway expenses are WAY FAR from wiping out my monthly Amway earnings. Or are you referring to my general, every day expenses? If yes, then there really is nothing to argue about. The same can be said about anyone whose job income also equals my Amway monthly income. For your information, I make almost twice as much from Amway than any other job I ever had."
Anonymous said: "Buddy Joe, my J.O.B was from 9 in the morning till 6 in the evening, Monday to Friday, working as a customer service representative. I was making about $2360/month. So don't you think that maybe, JUST MAYBE, $4000/month from Amway isn't a little bit, JUST A TINY LITTLE BIT, MORE than $2360? So what if I earn $4000/month you ask? Buddy Joe, I think that you're aware of $4000 figure being TOO REAL TO YOU, it's just that you were nowhere near that and now you're bitter about it. Why am I there and you aren't? Don't know and don't want to know. All I see is your bitterness and complacency. So shut up!"
Joe's commentary: So my anonymous friend in making $4000 a month from Amway? Of course he provides no evidence and not even an anecdotal explanation of how he makes $4000 a month. Of course, $4000 a month isn't much when you still have to pay for medical insurance and your other business expenses. Not to mention, I earn a lot more than that from my job. But anon from Canada, thanks for your entertaining tirades! I truly enjoy what you add to my blog! :-)
Tuesday, February 15, 2011
The Motive Behind "The Plan"?
I’m not sure whether this plan was carefully crafted out or whether it just evolved, but the way some uplines show the plan is cleverly designed to suck people into their systems. If you aren’t aware or careful, it’s easy to get caught up in the excitement of the presentation. The presentation if full of deception and I will try to point out these items in my analysis.
The speaker may talk about how he once thought he was “doing okay” in life. That he was making a living and able to meet his financial obligations. But he thought there might be more. One day he saw the plan and it changed his life. He did not realize he had gotten into a rut of going to work and going home every day and looking forward to his 2 weeks off each year. (This is relatable for many) That time and money are so important in life. Control of time and money is the key to success. Many people have lost of money but work all day and nite. Or people have time but are broke and can’t do much. The speaker might mention dreams or goals such as having an extra $500 a month or more. What would you do for an extra $500 a month. What about an extra $50,000 a year? Wouldn’t it be nice to have the wife stay home with the kids instead of leaving the family to go to work? Like the “Leave it to Beaver” days? (This gets the women excited)
The speaker will likely mention something about the economy and how prices always go up. The speaker may mention the 4 “I’s” that suck money out of your paycheck. The four I’s are Interest, Income Tax, Insurance and Inflation. The speaker may talk about how the government will take their cut and so on until you get yout “net”. The speaker may mention how so many Americans are dead or broke by age 65, and that social security will collapse. (This instills fear in many people).
The speaker might also go on to mention how so many marriages are falling apart in the US because of financial stress. That couples work so hard that they have no family time and it hurts marriages. That people work so many hours these days that they are married to their desks. The “manager” of the office is the first one there and the last one to go home. That despite all of this work and effort, people are falling into debt. Credit cards maxed out, loans, trying to keep up with the Joneses. (Many people can relate to this)
But now, because he was looking for opportunity/open minded one day, he saw an opportunity. This opportunity changed his life and can do the same for you! The speaker now wakes up at the crack of noon. His wife stays home with him and the kids. They take nice vacations and they do what they want when they want. (Of course, who doesn’t? But is this true?) The opportunity takes advantage of the internet and allows you to leverage your time and money so that you can create a residual walk away income. (But nobody walks away do they?)
This is approximately the point in the presentation where they mention “Amway” At this point, the speaker will defend Amway, stating that if you can make money, does it matter.? If you can save money, does it matter? The speaker may go into the product line and mention partner stores and will likely show a 6-4-2 plan or a variation of it. In every case, they will show a best case scenario, not what is likely. Many prospects will leave thinking “all I need is six”. They don’t understand how unlikely it is to sponsor six platinums and there is no mention of the retention rates, the income most IBOs can expect, and firm questions will be deflected to the prospect’s inviter. The speaker may also discourage you from speaking to friends and family as they may have a bad experience but the diamond is successful and knows more about Amway than your family and friends.
Joe’s commentary: So the speaker becomes very relatable from the start. His situation in life will be like many in the audience. He will talk about doing okay,. But wanting more or looking for more. He talks about debts and many in the audience will also relate. They get people to think about dream cars or vacations. He talks about walk away income, but doesn’t mention that very very few ever make significant money and apparently, not many actually walk away either. They say you will make money and save money by doing the business. It’s hard to argue against that,.except most people will not make money or save money. In fact most people, if they participate fully or partially in the training system, they will lose money. For the dedicated IBOs, many of them LOSE LOTS OF MONEY. The plan is crafted out to sound sensible and relatable, but many IBOs will give it a try and shortly after, will realize that the system doesn’t work, that the reputation of Amway IBOs is soiled and sponsoring people or even getting people to see the plan is a barrier that most people simply cannot overcome. At least if you know what’s going on, you may be able to avoid the trap.
The speaker may talk about how he once thought he was “doing okay” in life. That he was making a living and able to meet his financial obligations. But he thought there might be more. One day he saw the plan and it changed his life. He did not realize he had gotten into a rut of going to work and going home every day and looking forward to his 2 weeks off each year. (This is relatable for many) That time and money are so important in life. Control of time and money is the key to success. Many people have lost of money but work all day and nite. Or people have time but are broke and can’t do much. The speaker might mention dreams or goals such as having an extra $500 a month or more. What would you do for an extra $500 a month. What about an extra $50,000 a year? Wouldn’t it be nice to have the wife stay home with the kids instead of leaving the family to go to work? Like the “Leave it to Beaver” days? (This gets the women excited)
The speaker will likely mention something about the economy and how prices always go up. The speaker may mention the 4 “I’s” that suck money out of your paycheck. The four I’s are Interest, Income Tax, Insurance and Inflation. The speaker may talk about how the government will take their cut and so on until you get yout “net”. The speaker may mention how so many Americans are dead or broke by age 65, and that social security will collapse. (This instills fear in many people).
The speaker might also go on to mention how so many marriages are falling apart in the US because of financial stress. That couples work so hard that they have no family time and it hurts marriages. That people work so many hours these days that they are married to their desks. The “manager” of the office is the first one there and the last one to go home. That despite all of this work and effort, people are falling into debt. Credit cards maxed out, loans, trying to keep up with the Joneses. (Many people can relate to this)
But now, because he was looking for opportunity/open minded one day, he saw an opportunity. This opportunity changed his life and can do the same for you! The speaker now wakes up at the crack of noon. His wife stays home with him and the kids. They take nice vacations and they do what they want when they want. (Of course, who doesn’t? But is this true?) The opportunity takes advantage of the internet and allows you to leverage your time and money so that you can create a residual walk away income. (But nobody walks away do they?)
This is approximately the point in the presentation where they mention “Amway” At this point, the speaker will defend Amway, stating that if you can make money, does it matter.? If you can save money, does it matter? The speaker may go into the product line and mention partner stores and will likely show a 6-4-2 plan or a variation of it. In every case, they will show a best case scenario, not what is likely. Many prospects will leave thinking “all I need is six”. They don’t understand how unlikely it is to sponsor six platinums and there is no mention of the retention rates, the income most IBOs can expect, and firm questions will be deflected to the prospect’s inviter. The speaker may also discourage you from speaking to friends and family as they may have a bad experience but the diamond is successful and knows more about Amway than your family and friends.
Joe’s commentary: So the speaker becomes very relatable from the start. His situation in life will be like many in the audience. He will talk about doing okay,. But wanting more or looking for more. He talks about debts and many in the audience will also relate. They get people to think about dream cars or vacations. He talks about walk away income, but doesn’t mention that very very few ever make significant money and apparently, not many actually walk away either. They say you will make money and save money by doing the business. It’s hard to argue against that,.except most people will not make money or save money. In fact most people, if they participate fully or partially in the training system, they will lose money. For the dedicated IBOs, many of them LOSE LOTS OF MONEY. The plan is crafted out to sound sensible and relatable, but many IBOs will give it a try and shortly after, will realize that the system doesn’t work, that the reputation of Amway IBOs is soiled and sponsoring people or even getting people to see the plan is a barrier that most people simply cannot overcome. At least if you know what’s going on, you may be able to avoid the trap.
Subscribe to:
Posts (Atom)