I believe that Amway IBOs have approximately a 50% attrition rate for the first year alone. If you look at a 5 year window, I believe the attrition rate is something like 95%. So what we're saying is that out of 100 IBOs, only 5 will be around in 5 years, or out of 1000 IBOs, 50 will remain after 5 years. This is extremely significant because if you are a business builder, you will need to replace half of your IBOs every single year. For this reason, I am very doubtful that there are IBOs who "built the business right and built it once", who no longer do Amway related work, but still collect significant residual income. I would guess that significant income could be defined as being enough to live a lifestyle in the top tax bracket (for the US) without having to report to a J-O-B.
Now I understand that some IBOs take it personally when I bring up subjects like this. It is because they have been deceived by some upline diamond or big pin who has sold them on a dream of financial prosperity for life if they will only work hard for 2-5 years. I once thought so too, but realized that there isn't a single diamond that I know of who built the business right and walked away to enjoy the beaches of the world while truckloads of money rolls in. Kinda makes you wonder why you see Crowns still working, and diamonds actually quitting or resigning. I have asked the question many times and it has never been answered. Can anyone name a few people who built their business right and built it once who is currently enjoying these lifelong residuals? Also, if that were a benefit, why doesn't Amway say so?
Instead, you have a constant and endless flow of motivation being sold to IBOs. This motivation comes in the form of cds, books, meetings, functions and other things like voicemail messages. It's sad that IBOs have to continue to pay through the nose for motivation and "teaching" about the Amway business when there are cheaper and more efficient means of communication. For example, why would you need an expensive voicemail when a facebook group account can disseminate messages to your group in seconds at no cost? It is because the uplines want to extract every possible sent from their downline. Because of the internet, I believe people are starting to figure things out and avoid the systems altogether. I hope Joecool's blog contributes to this.
All the motivation IBOs truly need is to see a net profit at the end of the month. If IBOs actually earned an extra $200 a month, or $50 a month, or $600 a month as advertised, there would be no need for motivational speeches. The IBOs would simply look at the growth in their finances and they would keep going. The poor retention rate is easy to explain. IBOs are losing money because of the system expenses and they lose their motivation to continue. If you are an IBO or a prospect, stop and think for a minute. If you are making an extra $200 a month with minimal effort, would you need functions and other materials to motivate you? Or would you have intrinsic motivation from the profit? All the motivation you will ever need is a net profit. Take that to the bank.
4 comments:
Build and retire, and I suppose residuals keep rolling themselves in, huh? I bet Brig Hart will vehemently beg, no, insist, to differ.
The bigger it gets, the harder it is to maintain. Take it from a former Plat.
I'm an MD by profession, and very recently became an IBO in Miami. I already surpassed the $600.00 extra income a month barrier, you mentioned (and with minimal effort also), keeping Amway separate from my practice, meaning I started it with the $164.00 needed to sign up. However, I feel I need more training, more "functions and other materials and motivational speeches"; I didn't became an IBO to get $600.00 extra a month. I want to get where my Diamonds are, peace of mind, much more than those $600.00 extra, and the time and trips to enjoy it. Maybe I will continue working when I get there, I don't know yet. I am not there yet. And apparently, none of you didn't make it there either. On another token, I have seen, and personally known, IBOs going from 3% to Diamond in 2 and 3 years, as well as Platinums and Emeralds. I also know where they came from, and it was not from money. I haven't known of more than 5% people leaving their organization in those years, but do know how the 95% staying is moving up. Maybe you didn't have the great leaders we do, or the patience to fight for your dreams, I don't know. might be you should try been part of Team Global. What I do know is that I see the results of the effort put into the personal business that I haven't seen anywhere else. I encourage you to reconsider joining Amway again.
What part of the country is Team Global? I haven't heard of any new diamonds in the US recently. Also, going diamond doesn't mean you make a lot of money after your taxes and expenses are factored in. My sponsor was a doctor and I'm certain he's lost a significant amunt of money over the years. He went platinum pretty quicky, in about a year and he's been nowhere near that for a long time.
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