Wednesday, April 29, 2009

Amway - Do Uplines Use Amway As A Bait And Switch Scam?

One thing I have noticed over the years is IBOs talking about how great Amway is and how they will be rich and retire early. They also talk about how they are nicer people, better spouses and perhaps even a Christian as a result of their involvement in the Amway business opportunity. This is a nice side benefit if it is true, but people are recruited into what appears as a business opportunity. A business opportunity that is touted as low risk with potentially great rewards.

But is the opportunity one that produces results? Amway's own numbers suggest that it is not. After disregarding IBOs who don't do anything, the remaining IBOs average $115 a month, which I believe includes the big crown ambassadors who may earn millions. Thus the median income of an IBO is probably much lower than the average.

I believe that many upline use a cleverly disguised bait and switch scam on their unsuspecting downline IBOs. They use talk about dreams and display a "diamond" lifestyle which allegedly is no job, waking up at noon, taking naps, fabulous vacationsm fancy cars and clothing, and a host of other luxuries. This can be confirmed by many and there is a function, currently called "Winter Conference" that used to be called "Dream Nite". Dream Nite was supposed to expand an IBO's mind to allow them to see what is "possible" (Not what is likely) if they build the Amway business.

The business is also made more attractive when the recruiter says low overhead, no employees, not as many problems as a conventional business. But what most IBOs soon discover is that building an Amway business comes with a hoard of practically insurmountable challenges. The Amway name has a pretty bad reputation in the US. One mention of the name Amway usually is enough to turn off a prospect, and sponsoring is very difficult. The products are generally priced high compared to other retailers, thus IBOs must find ways to justify the prices. It is also why a small percentage of Amway products are actually sold to people who are not IBOs. There is also a big issue with the cost of voicemail, standing order and functions. These expenses can run an IBO literally bankrupt after a while. At a minimum, many IBOs build up debt purchasing these materials while some Uplines profit lavishly from selling these materials.

The bait and switch part of the scheme, is when uplines switch their teaching from the dreams and monetary wealth to how the business has helped you make more friends, the business has made you nicer, the business made you a better person, the business is not about money. That is a load of horse manure. Business is about making money. Most people would not have joined the Amway opportunity to learn to be nice or to make friends. They join to make money. Unfortunately, joining your upline in the Amway business more likely costs you money instead of making money.

A clever bait and switch scam?

1 comment:

Anonymous said...

been having a hard time lately deciding which one of your entries is the best. might be this one! :p