Wednesday, June 21, 2017

The 6-4-2 Plan?

Let’s break down the 6-4-2 plan (Re-print)

Basically, it’s a plan to go direct (platinum) and all you need to do is sponsor 6 of these direct groups and you’re a diamond and will retire early and life in luxury right?

Assumptions: 1PV = 2.5BV. 1PV costs about $2.70.

The 6-4-2 plan has the premise that you do 100 PV, and you sponsor 6 frontline who do 100 PV. Your six frontline in turn sponsor 4 (24 IBOs) each who do 100 PV. And each of these 4 IBOs sponsor two IBOs (48 IBOs).

So your direct empire looks like this:

1 platinum Sponsored 6 who sponsored 4 who sponsored 2 6 1300 PV groups Sponsored 4 who sponsored 2 24 300 PV groups Sponsored 2 48 100 PV IBOs

Total 7900 PV. 7900 PV = (1 PV = 2.5 BV) 19750 BV. 19,750 BV @25% = $4937.50 per month. Annualized = $59,250. Add Q12 bonus 69,250 (platinum group yearly income, not counting retail sales profit. Cost of product (approximate) $21,300 per month or $255,960 per year to maintain 7900 PV.

The platinum must pay his 6 1300 PV groups. 6 frontline 1300 PV = 3250 BV = $390 per month, or $4680 per year. $4680 x 6 = 28,080.

The Platinum keeps 69,250 – 28,080 = 41,170 (net, but not including operating and system expenses, but this includes the Q 12 bonus)

Now, the 6 frontline must pay their 4 IBOs who sponsored two. 300 PV = 750 BV = $45 Per month, or $540 per year. Thus the 6 frontline earn $4680 per year but pay out $2160 downline for a net of $2520 per year, or $210 per month.

Ok, and then each of the IBOs who earn $45 per month or $540 per year must pay their downline (2 each) $7.50 per month, or $90 per year x 2 = $15 month or 180 per year. Thus the 300 PV IBO earns $30 per month or $360 per year.

Let’s review:

1 platinum earns $3430 per month, or $41,170 per year 6 1300 PV IBOs earn $210 per month, or $2520 per year 24 300 PV IBOs earn $30 per month, or $360 per year 48 100 PV IBOs earn $7.50 per month, or $90 per year This is before taxes and expenses, but also does not include retail profits, but hey, we teach buy from yourself right?

OK, let’s look at tools expenses. Let’s say only the platinum, the 6 frontline and the 4 each who sponsored others are on tools (Fair assessment?) That would be 31 IBOs out of a group of 79 IBOs on tools or 39% of the group, and remember that all of these IBOs do 100 PV every month.

Tools cost: KATE, Website, standing order, book of the month, open meetings, monthly functions, major functions (some IBOs have to fly to functions), gas, incidentals, babysitters. Let’s estimate these tools and other expenses to be $160 per month (Very conservative IMO). $160 per month = $1920 per year.

Now let’s review the group NET income.

1 platinum $3430 - $160 = $3270 per month, or $39,240 per year 6 frontline (1300 PV) $210 -$160 = $50 per month, or $600 per year 24 (300 PV) $30 - $160 = <$130> per month loss of $1560 per year 48 IBOs earn $7.50 per month or $90 per year.

Group income = $69,250. Group Tools expenses = (31 x $160 = $4960 per month, or $59,520 per year) Group profit = $9,730 for the year.

79 IBOs putting in 10 hours per week = 790 hours per week or 9480 hours per year.

These IBOs on average made a whopping $1.02 per hour for the year collectively. Or………

The Platinum made $78.48 per hour

6 frontline IBOs made $1.15 per hour

24 – 300 PV IBOs lost $3 per hour

48 100 PV IBOs made 17 cents per hour.

Monday, June 19, 2017

Critical Mistakes Made By Amway IBOs?

In professional sports, whether it be football, basketball or baseball, there are many close games. In close games, a critical mistake made will likely cost your team the game. A good example of this would be a football team trying score the winning touchdown but they commit a game changing turnover. Or a baseball pitcher slips and throws a fastball up in the zone and it gets hammered for a home run. Or a basketball player shooting fouls shots but missing in the last minute of the game. A critical mistake nearly assures you of failure.

In my opinion one of the most critical mistakes that many IBOs make is to ignore the bottom line when analyzing their Amway businesses. I recall, in my experience, business building IBOs, sadly, taught by their uplines to ignore losses, or to view losses as investments into their businesses, or that money is really not important, because you keep building the business and the "money will be there", which is not true. Some uplines may teach that the business is really about making friends or being a nicer person. All of these things may be nice side benefits of reading personal development books or attending functions, etc., but when running a business, the most important goal should be to turn a profit. The sole purpose of a business should be to sell a product or service for a profit. Period.

For many IBOs, their businesses consist of listening to standing orders, attending functions and meetings, but not focused on selling products and earning a net profit. And for most IBOs, nobody can blame them as upline may give them bad advice and because the Amway business is person to person selling, it is so inefficient that many groups end up teaching IBOs to simply buy their own volume and get others to join the business. For groups who operate primarily in this manner, you are probably running an illegal pyramid business because new and existing IBOs can profit only by continuing to add more downline IBOs in the hope that they too, will buy their own volume and sponsor others.

When you look carefully at the business plan, whether it is 6-4-2, 9-4-2 or some other variation, the majority of these business building IBOs will have low volume and likely to earn only about $10 a month. But to earn that $10 a month, you are likely to have to spend $300 on products, and if you are on standing order, voicemail and functions, then you likely spend anywhere from $150 to $250 monthly (or more) to participate in the teaching system. Thus these IBO's bottom line is a net loss! It is only when you are able to sponsor many downline that your losses will get smaller and you will only profit when you have a sizable downline. That means your bottom line is a loss. And while Amway defenders will argue that Walmart doesn't even give you $10 a month, you can certainly get more products from Walmart for $300 than you can get from Amway for the same price. Walmart will match any advertised price on a product that they and a competitor may carry. Also, Walmart's advertising reaching millions of people, which is much more effective than person to person. While Amway runs some ads now days, they do not directly drive customers to IBOs. The vast majority of IBO business is still to themselves and their downline, and not to non IBO customers.

I challenge IBOs to look objectively at their bottom lines. It is likely a net loss. If it is, ask your upline how long this is expected to last. Set hard goals and if you are doing what is advised by upline and results do not improve, you may have to ask yourself what will change to make your business profitable? Basically, if you aren't adding active downlines and customers regularly, you aren't going anywhere and are likely to be running your business at a loss month after month after month. It won't take long before you realize that you have lost thousands if not tens of thousands of dollars. Uplines often say insanity is doing the same thing over and over and expecting different results.

As a former IBO with a 4000 PV business with eagle parameters, I was not making a net profit. I saw my bottom line and although doing and achieving what my upline advised, there was little to no money. I decided the effort, time and money invested wasn't worth it. Plus my upline started to interfere in my personal life. I saw my bottom line and wasn't satisfied, and I left Amway. I later discovered the lies my upline had fed me to keep me in the business and to keep me buying tools. It is why I started blogging. For now, my bottom line is to get the truth out about the tools scam run by upline. That is Joecool's bottom line.

Friday, June 16, 2017

Friends For Life In Amway?

I read on another blog recently written by an IBO, that your real friends would not walk away or cease to be your friends because of involvement in Amway. I do not believe your good friends would abandon anyone because of their involvement in Amway. However, they might avoid you for a while if you are always talking about Amway, or bugging them to join Amway. They might also feel that it is the IBO who has deserted the friendship in order to attend the endless number of Amway meetings and conventions.

As a former IBO myself, I know that I sacrificed many birthday parties and backyard barbeques. Our upline told us that these minor sacrifices would pay us back a hundredfold in the future. Looking back, not a single IBO crossline or my sponsor, ever got any significant payout from Amway. I believe that some IBO's relationships with friends and family may suffer, but not because of their involvement in Amway per say, but because the IBO is putting the relatiionships on hold while they pursue their Amway dream. It's almost like a friend who leaves home to attend an out of town college. Eventually they come home and your friendship is still there.

As an IBO, I remember our upline telling us that we needed to separate ourselves at times, to avoid negative. I believe this is still true today, based on what I see coming from current IBOs. IBOs might call it "association", where they think they are "hanging out" with successful people, but the reality is that the masses of IBOs are broke dreamers hanging out with each other.

Ironically, our upline taught us that we as IBOs were all friends for life. I recall a high level WWDB leader commenting that an IBO who "quits" is leaving their friendship, therefore the remaining group is not responsible for the failed relationship between current and former IBOs. When an IBO says friends for life, what they really mean for most is that you are friends for life as long as you never quit Amway. This is one of the reasons why Amway has been compared to a cult.

Shortly after leaving the Amway business, my dad passed away. Not a single person upline or crossline called or visited to pay their respects or to express their sympathy. Friends for life indeed.

Thursday, June 15, 2017

Mind Your Own Business?

One of the things I heard as an IBO, and still witness today, is IBOs telling prospects that their income is none of your business. That you can refer to the compensation plan and see that you are compensated for volume. That your effort will yield different results than their efforts. All I can say is what a load of baloney. If you are researching the Amway business opportunity and the person contacting you won't disclose financial details of their business, red flags should pop up all over the place. Sure if your potential sponsor is new, they may not have much to share, but are they willing to share or claim that it's a trade secret?

Remember that your sponsor will receive a financial benefit from your purchases and/or sales for the life of his/hers and your business. Volume that you move, plus your downline volume will be a part of your sponsor's and upline's volume. For that kind of reward, you'd think that people would be open to sharing. Now I'm not suggesting you ask to see the sponsor's personal job income, but surely, you'd want to know what kind of time, effort and expenses you might expect, along with the kind of expected results that your potential sponsor may be experiencing so you can decide whether it's worth the investment of time and money, especially if you will be encouraged to purchase training from the upline.

If your potential sponsor has a downline, and has been around for a month or more, wouldn't you want to know what their results and expenses are? It's perfectly reasonable to ask and expect a response. Since Amway leaders often talk about duplicating, wouldn't you want to know what you would be duplicating? I wouldn't want to put in 12 hours a week plus a few hundred in expenses if the likely result would be a net loss. Now I understand that a new business might not prosper right away but what are the indicators that a profit is coming? If you have trouble selling and sponsoring downline, you will more than likely never make a net profit. If you are selling and sponsoring, but still not profiting, then what? Are the tools and training expenses eating up all your profits?

It is my conclusion that uplines and potential sponsors don't share this information because it would not be attractive to prospects. Most IBOs run at a loss, especially if they have tools and training expenses and they might be putting in a tremendous effort. We know that some diamonds have financial difficulty. We also know that some, possibly many diamonds make more money from the tools and training than from Amway. I believe that the Amway opportunity is a far cry from how it's presented with the mansions and sports cars. I believe the reality is a sad one. If you are told by your potential sponsor that their business income and/or results are none of your business, you should pack up your bags and run!

Tuesday, June 13, 2017

Most Amway IBOs "Do Nothing"?

I see and hear this quite frequently, that most IBOs do nothing and quit. Quite often, it's some Amway apologist using this as a defense as to why the average earnings of an IBO is so low. Even if many IBOs "do nothing", they are still registered IBOs, and therefore count if you are measuring an "average". What Amway apologists like to do it exclude those who achieve nothing, but at the same time, count the high achievers in the average, thus giving a false impression of what the earnings are for a rank and file IBO. A better way in my opinion, would be to exclude the lowest and highest earners. That will give a more accurate idea of what someone can expect to earn in Amway.

But let's look at the term "do nothing". I cannot accept that most people do absolutely nothing. They were open enough to talk to someone about a business. They were motivated enough to be looking for something. They were motivated enough to (likely) attend a presentation and they were motivated enough to spend money on a starter kit. I would add that in many cases, groups such as BWW, WWDB or Network 21 for example, will add on somem charges to that starter kit, which may include some tools or possibly a ticket to the next function. If you actually visit the Amway website, you will see that actual enrollment costs less than $100. With the motivational groups tacking on fees, startup kits might cost several hundreds of dollars. That being the case, I can't accept that people did all of the above, paid to join and then let the starter kit sit there collecting dust.

It would be my educated theory that many people "achieve nothing". but they don't "do nothing". A more likely scenario in my opinion, is that people sign up, and they do contact others, try to sell the business or some products, but because of past IBO behavior, they encounter the term scam or pyramid, and an extremely low rate of people open to joining Amway. Knowing that you cant "go diamond" without sponsoring, many or possibly most IBOs try to get others to join. Because a lot of Amway products are not competitively priced and because of previous reputation issues, it is a very tough sell for new people. In my opinion, this is why Amway is growing faster in foreign countries, because IBOs have not yet damaged the name of Amway. Keeping this is mind, it is my guess that the real life average income is about $100 a month, not the $200+ that Amway recently reported, as they conveniently excluded over 50% of the IBO sales force.

If people are saying that all these folks "did nothing", ask them how they could possibly know if someone "did nothing". The answer is that they don't know. In my time as an IBO, I saw people come and go, some doing little, some doing a lot, but I never saw a single person sign up and not even open the starter kit or at least try to prospect and/or sell. I believe the Amway system is simply flawed and the low achievement levels of IBOs in general is a product of that flawed system. You're welcome to try and prove me wrong (but you can't).

Monday, June 12, 2017

Buy From Yourself And Get Others To Do The Same?

As an IBO, our group was often told that selling products were not that important. Just buy from yourself and get others to do the same. When prospecting, you ask if someone likes selling and if they say no, you say "great, this business is perfect for you". Or if someone says they like selling, you say "great, this business is perfect for your". Keep in mind that a business exists to sell a product or service for a profit. I believe Amway folks forget about this fact.

People naturally do not like selling stuff to people, thus the adaptation to being your own best customer or buying from your own store. While it's fine to support your own business, it is not true that a McDonald's owner would never eat at a Burger King or other sill claims. Do you believe that a McDonald's owner would only eat food sold at his own restaurant? I guarantee you that isn't true. I know someone who owns a very popular pizza franchise and she says she never eats at her own restaurant because she's sick of eating pizza. You make money selling pizza so you can have other options.

Another things that Amway IBOs are probably not aware of is that buying from yourself and getting others to do the same without real sales to actual customers is running a illegal pyramid scheme. Another MLM company Herbalife, was investigated by the FTC and while they were not shut down, they were fined and had to change their operations because the FTC found that they lacked sales to legitimate customers. Herbalife is now forced to track retail sales with a compliance monitor watching their moves. There are stories of Herbalifers trying to fudge sales and Herbalife higher ups encouraging people to sign up as preferred customers instead of business builders. That suggests to me that Herbalife is basically admitting they are a sham. If they had legitimate demand, they would run a campaign to recruit more business builders who would in turn, sell products to customers who want their products.

So Amway IBOs, are a majority of your PV sales to yourself or to customers? Are your customers your family anf friends who are somewhat reluctantly buying products from you, if at all? If you are just buying and using your own products, you are actually not entitled to an Amway performance bonus. On the bright side, it seems that Amway just ignores this requirement and pays bonuses anyway. But without legitimate demand, sales and revenues dry up when the markets begin to get saturated. Amway's sales hit a peak at 11.8 billion in 2014 and has gone into a downward spiral since. In 2016, Amway sales dropped 7% to 8.8 billion which was preceded by a dounble digit drop in 2015.

With sales and revenues down, that can only mean there are less sales and volume, therefore there are less Platinums and diamonds that can be supported. But Amway prospects will never know because once you earn diamond recognition, Amway never updates it. Once a diamond, always a diamond, if you will. Thus the leaders that are Bing worshipped on stage might not even be diamonds anymore.

In the end, I write this post to give you food for thought. Too many prospects and IBOs are not aware of these issues but they certainly should be,




Friday, June 9, 2017

The Obvious About Amway?

It is my feeling that most IBOs and prospects are likely nice people, motivated to want more out of life, and willing to do some work. Sadly for most, their experience in Amway is making nothing or losing money, likely because of the tools and functions that are promoted by the upline. I applaud IBOs and prospects for being willing to do something to make more money for their families, but all too many IBOs and prospects simply miss the obvious red flags and get sucked into a system where they cannot win.
I was an IBO at one time. I had ambitions and dreams, many of which I accomplished after leaving Amway.

Let me explain. If you buy some lottery tickets, you do so hoping to win but you know realistically that your chances of of winning the big jackpot or some significant prize is slim to none. While Amway isn't a game of chance, your chance of success is very slim. We know that many IBOs sign up and do nothing. We know that many IBOs may try but end up quitting very soon after starting. We know that few IBOs ever last more than a few years. Knowing that, you can assess that long term sustainable success in Amway is difficult at best.

But it's obvious to those in the know when you see the "plan". If you see one person become a platinum with 78 downline (in the common 6-4-2 plan), and you know that many do nothing or do a little and quit, then you know that you need to have maybe 200 IBOs go thru your business to become a platinum, and who knows how hard it will be to maintain that level. My former sponsor was a platinum but never hit Q12 and often fell below 7500 PV. Last I heard, he was 2500 PV after nearly 20 years in the business. Factoring in tools and business expenses, I believe the net losses of my former sponsor is staggering. And my former sponsor was able to personally sponsor over 100 downline.

The next obvious thing that IBOs and prospects miss is the functions. If you've been around or attended functions, you'll likely see an audience of thousands with one or a couple of speakers. That will probably never change. And if you can assess that situation, you can see that only 1 in thousands will ever reach thet coveted diamond level. And out of those who reach the level, there's a good chance that they cannot maintain the level for the reasons I have outlined above.

While Amway apologists claim that many people sign up to get products and to make a few dollars a month, I think that is total BS. Have any of you ever seen a presentation where your option was a buyers club membership or where you make a $100 a month? I saw yachts and mansions and talk about the diamond being financially free (a myth). To those who see thru the deception, the reality is obvious. It's just a matter of whether you see it or not.

Thursday, June 8, 2017

Signs That You Have Become An Amway Drone?

Sometimes it happens to the nicest of people and it oftens happens slowly and subtly. These are the signs that you are becoming indocrinated and you are likely annoying your friends and loved ones at this point. It may not be apparent right away but the change occurs and eventually becomes very noticeable to those who know you. I hope this helps:

*You're driven to recruit everyone you know. You may even resort to deception or outright lies to get people to meetings. Before you know it, your family and friends avoid you like the plague. You end up spending time at malls, coffee shops, and other public placse scouting for recruits. You almost become phony in talking to people and feigning interest in other people and their interests. You will do anything to get someone to "see the plan".

You're encouraged to develop an unreasonable, irrational zeal for the products. Even so far as to justify the quality of toilet paper or to call the products prestigious. You may even argue the quality of energy drinks or about phytonutrients, something you may not even know about. You will argue about concentration or rationalize paying more for common everyday cleaning products to promote your Amway business.

A whole bunch of demands, promises, or subtle threats of failure are made if you don't try hard enough. You "must" participate in the promotional material and motivational seminars. i.e. If you quit, you are a loser destined to die broke and unhappy. Or you let someone steal your dream. These ridiculous claims are how your upline keeps you hooked. Not making enough money? Listen to more cds and attend more functions! Not sponsoring downline? Listen to more cds and attend more functions! Having trouble selling products? Listen to more cds and attend more functions!

Because the system is touted as the way you're going to make yourself fantastically rich, you're under pressure to drop any conflicting or competing interests such as your bowling league or golf club. Nothing else in life has importance except for the quest of financial freedom. All activities in your life must enhance your Amway business and have an affect on your financial future. No other activities matter to you unless it affects your financial future. Even family and friends may be shunned in your quest for the holy financial grail. This is true even if Amway is causing you to lose money each and every month. But you are a "winner" because you're in Amway.

Your upline soon becomes your most trusted friend. Your thoughts and feelings are shaped in part by the cds, meetings and functions. People who you may have trusted all your life suddenly becomes secondary in your life because of your undying loyalty to your upline.

Do you recognize these behaviors? If you're like this, you have become an Amway drone.

Wednesday, June 7, 2017

Upline Wants My Success?

One of the biggest loads of BS that upline diamonds often tell their groups is that they really want success for their downline IBOs. It's very obvious to me that your upline diamond doesn't give a rat's ass about your success as long as you are buying tools and attending functions. The bottom line is they make money when you buy tools and attend functions and they make nothing if you don't. Your dedication is money in the bank for the upline diamonds. They will tell you that you are a warrior or a fighter to make you feel good, but behimd the scenes they could care less. You might even see someone commended by upline for buying extra cds or making an extraordinary effort to attend a function. That's because they want everyone to do the same.

Now I believe your direct sponsor probably does care about you succeeding, but technically, your sponsor is supposed to train and motivate you free of cost, which is why your sponsor can benefit if you purchase or move enough volume. The problem with this is that your sponsor is also very likely to be immersed in the tools system which takes away income from his/her business to feed the upline diamond. IBOs are taught things like "success" is right around the corner or delayed gratification because it keeps people hanging around in the business longer than they otherwise would.

If you take a close look, you will see that the advice given from stage at functions or big meetings are so generic that it usually does not apply to you as a person and if so generic, then you can get that same advice on a cd. Yet, the diamonds expect IBOs to attend major functions every three months. I suppose to supplement their Amway income. These diamonds are not mentors. They don't analyze individual businesses and your personal skills. How can they guide you in this type of business without knowing these details? They can't. They give you feel good information or tell you some inspiring story to keep you around "that much longer" because they need tool income to survive themselves.

Think about it. Your upline wants your success or do they want your money? Practically anytime you receive "help", it costs you. Open meetings, attitude sessions, functions. Every one of these has a cost of time and money with no direct cause and effect of people succeeding and receiving the mythical residual income. If your upline says this, ask how they can assure that it happens, aside from a dedication to functions and cds? The Amway business is supposed to be about selling products and getting others to do so also. How much training do you really need for this? If people actually made a decent side income selling Amway stuff, there wouldn't be a need for endless cds and functions. A growing bank account is great motivation.

Food for thought. If you actually went diamond, your leaders would get less tool money. Do they really want your success or are they just saying it? The answer is obvious to me.

Tuesday, June 6, 2017

Working Hard In Amway?

I believe there's a gigantic myth that people who ultimately fail in Amway simply didn't work hard enough and ended up quitting too early. Based on personal experience and observatioons of others, I truly that that to be NOT TRUE. Now I agree that many IBOs do nothing, but generally, these folks don't complain and their losses are generally limited to the sign up fee or kit. Most do not seek refunds and chalk up the loss as a learning experience.

I myself, put in some months of very dedicated work towards building a business. I had a decent sized group and was headed for platinum. But the fact of the matter is that even though my group was growing, I wasn't making a net profit. I seriously doubt that any of my downline made a net profit, primarily because of the business and tools expenses. I drove the miles, I showed the plan and I attended all the meetings and functions. I did what I was advised by my upline. My net profit at 4000 PV was little to nothing with a net loss when all the business expenses were factored i such as gas money, etc.

My upline also did a lot of work, and he put in the hours, drove the miles and attended everything. He told me his net profit was not any of my business. (If you hear that, it's a huge red flag). I suspect my upline and sponsor also broke even or lost money despite working very hard and doing what they were advised to. I later read the assessment made by the Wisconsin attorney general Bruce Craig, who examined the tax returns of platinums in his state and they averaged a net annual loss of $900. While the study is a bit dated, the business has not really changed except that there are more expenses and tools associated with the business today, then back when the study occured.

I also question the validity of Amway defenders who claim that people did not work hard enough or did not run their business properly. I seriously doubt that anyone has done a comprehenseive study of people who actually made an effort to build an Amway business, to determine why they may not have the success they desired. However, I can make my own conclusions. Many IBOs are taught to buy from themselves with little sales. They're taught to buy tools, even when they aren't making progress in the business. People who are struggling in Amway are often told that they need to sponsor more people, show more plans. (A struggling business opens new stores to improve business?).

In my opinion, hard work and success in Amway have little relationship. Sure, there is work needed. But working hard doesn't assure you of anything. You need to be able to develop a following. Just working hard has nothing to do with long term sustainable success. There are plenty of examples of hard workers who lost money. What I believe happens, is that IBOs get excited, get started and contact people and show plans. But Amway has the reputation of "pyramid" or "scam" and people quickly get discouraged and stop building the business. Those who try to sell AMway goods find that a month's supply of multi vitamins ($80) double x is a tough sell, or $50 cases of bottled water. They also get discouraged and quit.

Only those who can somehow recruit and replace those quit end up having a chance to grow their group large enough to sell them tools, which then makes selling Amway less important. But I don't buy for a minute that people simply do not succeed in Amway primarily because they don't work hard or smart enough. I challenge anyone to prove that a lack of work is the reason for Amway failure. The system is designed for only a few to succeed. Examine the 6-4-2, there is 1 platinum and 78 downline, and that's assuming everyone "did some work".

Monday, June 5, 2017

Joecool's Amway Challenge?

I often hear stories and testimonies about how some people (usually newbies) have this incredible belief in Amway, their sponsors and their LOS, such as WWDB or Network 21. Being that many, possibly most IBOs are sponsored by a friend or family member, means that there is an inherent trust in the sponsor or upline. If that were not true, then we would likely see many more complaints about Amway and/or the uplines and lines of sponsorship.

But an important facet of being an IBO is to have a dream. Don't let "naysayers" steal your dream, is what many IBOs are told. But what is that dream? Is is a dream (a long term attainable goal) or a wish such as winning the powerball lottery? Many prospects and IBOs want to succeed. They are willing to work hard, and are very dedicated, I would say that these folks usually will end up failing, not for lack of effort, but for a flawed MLM/Amway system that cannot possibly reward more than a few. The famed 6-4-2, 6-4-3 or some other variation of the plan will illustrate that only 1 in 100 or so can be "platinum". And that's with nobody quitting. Factor in attrition and "do nothings" and it might be 1 in 200 who can reach platinum. Even if the whole world signed up for Amway, that fact doesn't change.

Do you really believe in Amway and your line of sponsorship such as WWDB or Network 21? If you truly believe in Amway and your mentors, I challenge you to do one of these things. If you can't or won't, then I question your level of commitment. I question your belief. I'm not here to steal your dream. I am just challenging you.

Take your 6-4-2 or 9-4-2 or 6-4-3 plan to a loan officer at a bank and show them the plan. (Hey, it will help you be CORE) Ask the loan officer for their opinion of the plan and see if you can get a business loan based on the Amway plan. If not that, try seeking the advice of a real millionaire (Someone who has a net worth of a million bucks) and see if they think the 6-4-2 or other Amway (version) plans can work and whether they think Amway is a good idea. Heck, try asking your church Pastor. My church Pastor said Amway had too many false hopes and promises to be considered a viable business option.

How strong is your belief in Amway? Strong enough to take my challenge? Or will you ignore this and go on fooling yourself?

Friday, June 2, 2017

Is Amway Reaching Market Saturation?

http://globalnews.amway.com/pressroom/news-release/news/amway-announces-2016-sales

ADA, MICH., USA (Feb. 8, 2017) – Amway today announced sales of $8.8 billion USD for the year ending Dec. 31, 2016, a decline of 7 percent when compared to 2015 figures. The direct seller increased sales in seven of its top 10 markets, but experienced softening market conditions in China.

“Across the world, Amway did well in 2016,” said Amway Chairman Steve Van Andel. “We experienced sales growth in several top markets, saw double-digit percentage growth in nine additional markets, and continued to evolve the business in China as we seek to take advantage of shifting market conditions and achieve the market’s long-term growth potential.

“Above all, we are pleased to see the continued and growing relevance of the direct selling model in today’s marketplace as people place real value on personal recommendations, and technology enables our distributors to connect with customers at any place at any time.”

Joecool's commentary: Amway's 7% decline follows two previous years of double digit declines. At it's peak, Amway had revenues of 11.8 billion and has been in a downward spiral since. While the Amway corporation tries to put positive spin on this, it signals to me that Amway is reaching a point where they cannot prevent the inevitable.

During Amway's years of "strong" growth, it appears to have been done in foreign and new territories. But once these other countries start to figure out what the US already has, it's expected that sales will eventually decline. I believe Amway's products are generally overpriced and not competitive but IBOs seeking to "go diamond" typically won't mind shelling out cash for products when they think Amway will make them wealthy. When the dream fades, so goes the desire for Amway's products.

I believe Herbalife is starting to see a similar decline as their China market saw a decline this past quarter.

It will be interesting to see what happens going forward. I can't say I'll be sad to see a "legal" product pyramid whose "leaders" have scammed tens of millions of people over the years start to see serious decline to a point where their "diamond lifestyles" take a serious hit. I wonder what the diamonds are saying these days now that the corporation is seeing serious declines?

Wednesday, May 31, 2017

Amway Diamonds Are Just Actors?

In my opinion, Amway diamonds are nothing more than actors. They portray a role and while they might be envied by their downline, when the lights are turned off, what remains? I believe most diamonds are simply middle class people portraying lifestyles of the rich and famous. We could debate whether or not a diamond has an easy job. Heck, I could concede that speaking at functions can be better than a 9-5 job, but the volatility of an Amway business can make a diamond live under greater stress than someone with a regular and predictable job.

My former diamond used to iive in a middle class neighborhood and he told the group that he was buying a property in an exclusive gated community and was going to build himself a nice home. He said his home would be on a hill right above a nice beach where he could enjoy his hobby of spearfishing and the ocean. I don't know if he ever built that home but last I heard, he is living in the State of Washington. Makes me wonder why he would move there when he was allegedly building his dream home in Hawaii near one of his favorite beaches. (Maybe the cost of living is cheaper there?)

Think of the diamond this way. It is a fact that most diamonds are not Q12 (which means they have diamond qualifications for all 12 months of Amway's fiscal year). A Q12 diamond averages about $600,000 from Amway (source: Amway.com) but only a small percentage of diamonds are Q12. The other average non Q12 diamonds average about $150,000 a year and they augment that income with tools scam income. So an average diamond might make in the range of $250,000. You may thing they are "rich" but after business expenses are considered, plus taxes and family medical and dental insurance, and other miscellaneous business expenses, a diamond is not financially capable of buying homes in cash, having exclusive golf club memberships and buying ferraris in cash. What is likely is that a diamond lives a middle class lifestyle while acting like they are rich. I had a conversation with a former emerald who told me that most of her emerald income (or diamond for that matter) comes in the form of an annual bonus so her monthly income was relatively small.

There might be diamonds who are wealthy. But if they truly are, it is because they are at a level higher than diamond and they are also very likely to have income from sources other than Amway. We know that back in 2009, Greg Duncan a WWDB triple diamond filed for chapter 7 bankruptcy in Montana and it is public record. He had homes foreclosed. This man stood on stage when I was an IBO and told the audience that anyone who makes a loan is "stupid". I wonder how Mr. Duncan felt when he reneged on his multiple home loans, despite having a triple diamond income from Amway of about $40,000 a month?

For these reasons, I say Amway diamonds are just actors. Some better than others, but in the end, when the lights and shut off, they are not much better off financially than someone with a good paying job. In fact, I have read in several places that truly rich people don't show off their wealth. That is food for thought isn't it?

Tuesday, May 30, 2017

Is Amway Like Las Vegas?

I had an interesting inspiration recently. I thought of Amway like Las Vegas. Amway defenders will swoop in and claim that Amway is not gambling, therefore, not a valid comparison. But even with that, I still say Amway is like Las Vegas. The diamonds parade around on stage, trying to display the appearance of success and that "anyone" can do the same. To that, I say "anyone" can put a few dollars in the mega bucks slot machine and hit the big jackpot.

While the diamonds portray some dream lifestyle, so does Las Vegas. The strip hotels are fabulous and opulent in luxuries. Just walking through some of the newer hotels can leav you in Awe. And all of this can be yours for the right price. You can get almost anything you want in Vegas if you have enough money. In Amway, you can get almost anything you want if you can fool enough people into believing in you, allowing them to follow your ause and sign up somewhere in your downline

While Vegas might be legendary while the glitz and glamour, the casinos are full of people willing to lose their hard earned money in the hopes of shrinking it rich. The same thing applies in Amway, except that most Vegas visitors understand that the deck is stacked against them and that winning would be great but not expected. In Amway, the downline are led to believe they will all make it big and be on stage as emeralds and diamonds. The stark reality and the insidious part of Amway is that the hotels and can luxurious and opulent while the streets of Begas are littered with homeless people and the casinos are full on people losing money each and every day.

Las Vegas was not built on winners and the Amway diamonds are not built on winners. Amway is built on millions of people churning and quitting. While in Amway, they hope or believe they will eventually "make it". In the meantime, they spend money on products and training that they would have not otherwise, and that doesn't factor in the loss of time. At least in Las Vegas, even if you lose money, you probably had a good time and and a few complimentary meals or perks. The same cannot be said of Amway.

Tuesday, May 23, 2017

Signs That You're Sucked Into Amway?

Sometimes it happens to the nicest of people and it oftens happens slowly and subtly. These are the signs that you are becoming indocrinated and you are likely annoying your friends and loved ones at this point. It may not be apparent right away but the change occurs and eventually becomes noticable to those who know you. You think you are doing what it takes and developing your ability to succeed in Amway so you may not notice that you've become "one of those Amway people"

You're driven to recruit everyone you know. You made your name list and you're working it hard! You may even resort to deception or outright lies to get people to meetings because saying "Amway typically will not work. Before you know it, your family and friends avoid you like the plague. You end up spending time at malls or book stores or coffee shops and other public placse scouting for "sharp" recruits. You almost become phony in talking to people and feigning interest in other people and their interests because that's how it's done in Amway!

You're encouraged to develop an unreasonable, irrational zeal for the products. Even so far as to justify the quality of toilet paper or to call the products prestigious. You may even argue the quality of energy drinks or about phytonutrients, something you may not even know about. Even when there is contrary but concrete evidence, you continue to defend your Amway goods because it is your ticket to "freedom"!

A whole bunch of demands, promises, subtle threats of failure if you don't try hard enough are made in the promotional material and motivational seminars. i.e. If you quit, you are a loser destined to die broke and unhappy. Or you let someone steal your dream. These ridiculous claims are how your upline keeps you hooked. While the pressure can b subtle, it can still be powerful. After all, nobody wants to be labeled as a "loser".

Because the system is touted as the way you're going to make yourself fantastically rich, you're under pressure to drop any conflicting or competing interests such as your bowling or tennis league or golf club. Nothing else in life has importance except for the quest of financial freedom. All activities in your life must enhance your Amway business and have an affect on your financial future. No other activities matter to you unless it affects your financial future. Even family and friends may be shunned in your quest for the holy financial grail. And this is in spite of your business generating $10 a month in income while you spend $250 on cds, books, voicemail and function tickets.

Your upline soon becomes your most trusted friend. Your thoughts and feelings are shaped in part by the cds, meetings and functions. People who you may have trusted all your life suddenly becomes secondary in your life because of your undying loyalty to your upline. You shun the advice of (formerly) trusted family and friends because they are "broke minded" or have an "employee" mentality.

Do you recognize these behaviors? Hopefully you aren't displaying these behaviors, If you do, you have been sucked into Amway.

P.S. Joecool will be traveling to another part of the world for the next week (with my job income) so I may not have access to post new comments or new articles until next week. Until then, enjoy this new article and I'll try to check in before the end of my trip.

Aloha!

Monday, May 22, 2017

Amway Is Inconvenient?

Looking back at my IBO days, I can now laugh at some of the weird stuff we did and believe it or not, I have reason to believe that my old LOS, WWDB still teaches some of this and some other major groups also teach it. I believe some of these practices were the reason why some people refer to the Amway business as cult or having cult like qualities. If you recognize some of these practices, you might be in an unethical group and you should ask your upline the tough questions and possibly reconsider or reprioritize your involvement in the business.

Late meetings. Our upline was into late meetings, many occuring after midnight. I suppose it was a show of loyalty and dedication to the upline and the system. In reality, it made most people angry at their jobs because they had to wake up early to go to work. For me it made me mad at our upline because the meetings taught us nothing of substance and it just made us tired. Our upline used to talk about time being important but it was never important enough to make him show up on time for his own late night meetings. Another cult like factor - sleep deprivation. Our upline described this practice as Amway being a business of incovenience, designed to weed out the weak and undedicated.


Submission to upline was one of the things we were told. Our group was told that upline would never purposely lead us astray so we should trust them and never try anything without checking upline. Afterall, upline had experience and probably had all the answers. Some of this checking upline included asking permission to get married, buy a car or a home, or even something as small as purchasing a camera. The upline said maybe someone upline might have advice on how to get a good deal on a camera so no harm in checking upline before making a purchase. It is my guess that upline didn't want your disposable income being spent on anything other than standing orders and functions.

Secrets. Anytime we asked about how much income uplines may have been earning, we were either told it's none of our business or shown a photocopy of a 5 year old bonus check that someone upline may have received. Our proof that the business worked was upline showing off pictures of sports cars and mansions. Of course we now find that some WWDB diamonds had homes foreclosed, and one prominent triple diamond had some dealings in bankruptcy court. Looking back, I suspect that many diamonds have mortgages, which would not be a problem except that these leaders scoffed at the stupidity of having a loan. That diamonds pay cash for everything, including homes. My former sponsor still lives in a run down rented home beause he won't purchase a home unless he's got the cash. My former sponsor is a physician so I find his position on buying a home preposterous. His oldest child, a son probably grew up deprived of his parents because of dedication to the system and the functions.

Losing money is success. Many times, our group was told that losing money was a sign of success. It was success because we were investing in our futures. That the business really is not about money but about friendships. I suppose upline taught this because everyone was losing money so it was nice to hear that success was around the corner, and that we were all nicer people and on our way to success if we just attended more functions and bought more standing orders. People who sold off some of their personal property were edified if they did so to attend a function. Obviously these folks were not advised to run their business within their means. Upline even said that going into debt was okay, but only if the debt was to invest in the business or to buy extra function tickets.

While some of these practices seem bizarre, I believe it is because the upline advice was self serving and meant to channel their downline's dollars into tool purchases. It is the only conclusion I can make.

Friday, May 19, 2017

Amway Prospects Deceived?

I was thinking about how propsects are invited to see the plan. In many cases, there will have been a bit of deception or half truths told in order for an IBO to get a prospect in front of the plan. But then I thought about the plan and how much deception was used in the plan itself by the speaker.

IN many cases, IBOs and new prospects are deceived right from the beginning. The speaker might make some small talk, and get the prospect to agree on certain issues, such as income tax and insurance eating away at your paycheck, etc. When a prospect hears this, it will make sense and they will agree and trust the speaker somewhat. Afterall, the speaker has been built up to be a financial whiz and all. And much of what the speaker says makes sense, at least on the surface.

Then the deception begins.............

The speaker might talk about IBOs saving 30% on products righ from the start, which is false. Here's some information debunking that age old myth:
http://www.amquix.info/Save30_myth.html Not only do many products cost more, factor in shipping and handling fees and it's not evebn close in many cases.

Then the speaker might talk about 98% of people being dead or broke by age 65, which is not true. The speaker might talk about 90% or more of small businesses failing in the first year. These little factoids (which are untrue) are apparently used to make other opportunities seem flawed in comparison with the Amway opportunity. Readers and prospects really need to do some research and due diligence and they will easily see through the mistruths.

The speaker might then talk about how the Amway opportunity is cheap to get started, and has little or no overhead. But the problem is that many dedicated IBOs will get hosed as their upline will begin to teach them that they need to invest in their business in the form of voicemail, book of the month, standing order and attending all meetings. These expenses nearly guarantee that an IBO will end up with a net loss of income. What's more, upline may teach that this is success! In many cases, the speakers don't care abot the prospects. All they care about is getting people signed up and on the system. Sure they may loan cds to newbies, but once an IBO wants more, they are likely told that "serious" business owners buy their own tools.

So a question for IBOs and prospects. Is it a good opportunity when you have been lied to or deceived right from the outset?

Wednesday, May 17, 2017

Amway And Personal Responsibility?

One of the disturbing things I have noticed about Amway IBOs and IBO leaders is how they wlll tell downline to trust them. To trust them as they have already blazed a trail. No need to re-invent the wheel. Just ride the coattails of your upline to success. The system is proven. Many IBOs take this to heart and put forth tremendous effort. Then when they fail, upline will shun them and tell them that the failure is their own. That they are personally responsible for failure.

Now I am not talking about IBOs who sign up and do nothing, or never place an order. I do believe that the fact that many IBOs sign up and do nothing brings concerns about how these IBOs were recruited, but I di not recall ever seeing an IBO do nothing and then complain that Amway was a scam or anything like that.

I have found, however, that many people who are critical of Amway and the systems, put forth much effort, did everything they were told, and did not find the success that upline promoted, or in some cases, guaranteed. My former sponsor was still active, last I heard and has been in Amway for over 15 years. I do not believe he has ever gone beyond platinum, and I know that he was never a Q12 platinum. Some Amway apologists might see being a platinum as a bonus, but when you are hard core sold out to the systems, platinum is a break even or make a small profit business. Factor in that time spent by husband and wife and these folks are breaking even or making a fraction of minumum wage. Is this the dream that will allow you to buy mansions with a cash payment?

What is also disturbing is how people will tout the system as responsible for any success, but hide the vast majority that the system doesn't help. Sure, some will succeed in Amway, but for every success, there are hundreds if not thousands who fail. And if you consider diamond as the benchmark of success, the failures could be in the millions. As I said, some succeed, but very very few in relation to the number who try. Going diamond is probably less common in the US than winning the lottery.

Succeed and the systems and upline take credit, but fail or quit and it is your own responsibility. Are these the kinds of leaders or mentors you want advice from? Where's the personal responsibility of the leaders and mentors? There are many stories of IBOs doing exactly what they were advised, only to lose money and/or fail. Where's the responsibility of the leaders? The tools system is win win for the upline leaders with the downlines getting a lose lose situation.

Tuesday, May 16, 2017

The Endless Amway Training?

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 cent 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

Monday, May 15, 2017

The Real Amway Business?

I have been reading some ongoing debates about whether the system income for higher pins is more than their Amway bonuses. I believe the systems such as BWW, WWDB, N21 or LTD, does generate more profit for upline than the sale of Amway products. How the system income is divided though, is still a mystery as it doesn't appear that there are bonafide written contracts explaining how tools income is split up among the higher pins. There is also the debate of whether diamonds themselves or their "corporations" receive the profit, which is laughable as a defense.

But it's very easy to determine that more income is made from the system than from Amway. If you move $100 worth of Amway products, Amway will pay about $33 back in the form of bonuses. These bonuses will be split among the Amway IBOs (middlemen), depending on your level. On the other hand, if your group bought say 20 cds at $5.00each, the system will profit about $90 as cds cost about 50 cents each to produce in bulk. Some Amway apologists will cite the fact that some groups sell cds for $2.50 or $3.00. While this is true, there is a "member's fee" which must be paid. And when you add in the member's fee, the profit for the system is the same or possibly higher! Even when you factor in the system employees, you can easily see the math and determine where the real money is made.

If you buy a major function ticket for $125, the cost of that function might be in the neighborhood of $25 to $30 per attendee, so the system may generate $100 profit on a $125 sale. I believe the smaller functions such as open meetings, books and voicemail have smaller profit margins, but still overall, it's easy to conclude that the profit from the system is greater than profits generated by moving Amway products. I might add that the sales on these functions are often made in cash, thus who knows if the diamonds are even paying the IRS taxes on these sales.

The only question is how much each individual earns. I have "heard" that platinums get a discount on the sale of standing orders and cds, but I have never heard of a platinum sharing any profit for functions, voicemail, or any of the other materials. This is puzzling to me as I believe the platinums do the most work in the system, helping downlines.

So for the lower level IBOs, if you move $300 in Amway sales (Approximately 100 PV), you will receive about $10 or 3% while upline enjoys the rest of the $90+ in bonuses from Amway. And then when you purchase and move tools volume, you receive nothing and some of your uplines enjoy all of the profit. While I don't see any problem in upline making a profit for selling training materials, I see a problem in the fact that the tools don't work. So few IBOs progress to levels where an actual profit is earned that the use of tools cannot be justified. Amway supporters will point out the new platinums emerging each year, but do not mention the platinums who do not re-qualify.

Based on my observations, I can only conclude (quite easily) that there is substantially more profit from the sale of support materials for upline to enjoy, and I can also conclude that the support materials are ineffective in training downline IBOs so they can progress to higher levels of the business. But as PT Barnum once said, a sucker is born every minute.

Friday, May 12, 2017

""Anyone"" Can Succeed?

One of the "false hope" things my upline used to tell our group was that everyone was going to succeed. That although things are tough, one day we will all be at diamond club together looking back at the struggles and laughing. Well, nothing could be further from the truth. One of the things that Amway promoters like to state is that "anyone" can succeed", but in the same line of reasoning, I could also say that "anyone" can win the lottery. The same thing can apply to not "everyone" can succeed in Amway and not "everyone" can win the lottery. Amway is not a game of chance like the lottery, but this still applies and ironically, the outcomes from participation is similar to a lottery. Few winners and masses of losers.

Using the term "anyone can succeed" is simply a statement that gives people hope. It appears that Amway promoters love to use the psychology of giving people hope as a means of recruiting and retaining IBOs. Hope is what keeps people motivated. The problem with the Amway opportunity, is that it is false hope. It is very easy to see that in most groups, the majority of downline IBOs will lose money. The majority of active IBOs, if they receive a bonus, will get only about $10 a month from Amway. If they use voicemail, or subscribe to standing order, they are already at a net loss for the month. Never mind the open meetings, major functions and other monthly expenses associated with the Amway business.

I believe it is hope that makes gambling popular. One pull on a slot machine handle can change your life. Many IBOs believe that one good run of business can change thir lives. Unfortunately, the Amway business has not appeared to have produced much fruit in North America. It seems that any new success is simply replacing older pins who no longer qualify. In my opinion, it is a telltale sign that Amway has stopped reporting North American sales. I'm sure if sales were up, they would stand on their rooftops and trumpet out such success. But Amway has seen double digit decreases in sales each of the last few year. Are people beginning to see through the Amway fa├žade?


To summarize, "anyone" can succeed. But that simply means that you never know who the next platinum or diamond may be. You don't know where they will come from. And it is unlikely to be a new recruit. If you are using a system such as N21, WWDB, or BWW, then I can say with certainty, that "everyone" cannot succeed.

Thursday, May 11, 2017

Looking Behind The Amway Scam?

One of the things that Diamonds and some other leaders do to attract new IBOs is to put on a dog and pony show. They want prospects to think that you can consume Amway products and get others to follow your lead and in a few years, you will be set for life financially, speaking on stages and securing the future for generations to come. They might use props such as pictures of mansion. slideshows of cars, jets, yachts. It looks impressive but based on what I know now, nobody knows whether the diamonds actually own this stuff or if they are simply showing you a slideshow of "lifestyles of the rich and famous". The reality is very likely that many diamonds are actually living in debt or bonus check to bonus check. It is a fact that more than half of NBA basketball pros end up broke within years after they stop playing, and they earn much more than diamonds. Why would a diamond be different than the average Joe, especially when they appear to live beyond their means?

In the few cases where diamond income was exposed, we can see that they were not making the kind of money they would have you believe. Triple diamond Greg Duncan was making about half a million a year from Amway. A nice income for sure, but not what people would think, and not enough to save Mr. Duncan from chapter 7 bankruptcy. David Shores lost a home to foreclosure. Another diamond, unnamed but documented in the book "Amway Motivational Organizations, Behind the Smoke and Mirrors", talks about a diamond who had a gross income of over 3 million dollars, and a net of about $320,000. This diamond was in debt, had back taxes owed to the government, and was working hard to portray the diamond lifestyle.

Some of these leaders also use religion or Christianity as a means to justify their involvement in the business. For those who know, the Bible is clear that the love of money can lead to destruction. When you have functions such as Dream Night, what does that say? I would also like to note that in cases where these diamond's financials were exposed, there were no significant contributions to charity. I wonder if these charlatans talk a good game but do not contribute time or money to worthy causes? Where are the ten thousand dollar checks they talk about donating to charity? These leaders often refer to themselves as mentors, but any help they provide to downline results in some kind of compensation for them. This is not a mentor, but more like a paid consultant who is not getting effective results.

Behind the nice suits and the glitz of the functions, I believe that IBOs and prospects would see a world they truly would not want to be a part of. A world where deceit is practically needed to succeed. Where you take advantage of people who trust in you. Where you pretend to be wealthy and free, but in reality a slave to the mighty dollar. Where you traded a 9-5 job for a job that works the graveyard shift. If you look objectively behind the facade, you might see what I see.

Tuesday, May 9, 2017

Amway Financial Freedom?

Financial Freedom! That was one of the major battle cries when I was recruited for the Amway business. You gain control of time and money by creating residual or passive income. That is true financial freedom. You wake up at noon, no job, and just do whatever you please, whenever you please. I remember the speaker saying that broke/unemployed people also had freedom, but it was different because they were broke and could not afford to go golfing or do other activities that required money on a regular basis.

I am assuming that this is still the case for many IBOs. Of course, upline leaders may toss in a disclaimer that you don't get rich quick as an IBO, but the pitch apparently still contains the financial freedom and residual income theme, based on my experiences with IBOs. IBOs still think they will be rich. Also, 2-5 years sounds like "get rich quick" to me.

But hey, financial freedom would be a great thing, don't get me wrong. Who wouldn't want to be 35 years old with enough cash to never have to work again? I mean I could spend some time imagining how fun that would be. It would also be fun to imagine what you would do with all the cash if you hit the powerball lottery as well. But for the starry eyed IBOs, I simply have a few questions for you to ponder. A few realistic questions that you should be asking yourself. The answers to these questions will tell you a lot.

1. Who in your group or upline truly has achieved financial freedom? Have you seen their financials or simply a display of wealth such as mansions and fancy cars? Mansions and fancy cars could just be a massive pile of debt. Not too long ago, there apparently were diamonds who had their homes foreclosed, and a triple diamond who was in bankruptcy proceedings. Find out if anyone in your group/upline has actually achieved the success that they are using to recruit you. Also, if they are financially free, why do they work at function after function? Traveling and speaking might not be a traditional job, but it is still work, nonetheless.

2. Even if you find someone who is retired and golfing everyday because of Amway residual income, ask yourself what the likelihood is that you will be able to achieve the same results. If diamonds are still working, what chance do you have of success if you are new or experienced in Amway, and have few or no downline. More than likely, your chance of winning the lottery will be greater than your chance of achieving a significant residual income from your Amway business. Also, I don't know of any Amway retirees who built their business once and walked away with any significant residual income from Amway. Do you?

Sunday, May 7, 2017

Beware Of Amway Mentors?

In recent weeks, I have received various emails from Amway IBOs and prospective Amway IBOs asking for my opinion and advice on whether to join Amway or what I thought about Amway. I never tell anyone directly that they should not join or join, but I offer them my thoughts and experiences and allow them to at least make an informed decision about Amway and the Amway systems such as WWDB, BWW, LTD, Network 21 etal. Many people are not familiar with these systems and the system leaders are typically diamonds and above and although they do not present actual credentials, most people assume they are wealthy beyond belief and should be worshipped and given the utmost respect.

However, I have seen chinks in the Armor. I saw a triple diamond file chapter 7 bankruptcy and lose homes to foreclosure. Another "lesser" diamond in WWDB also lost a home to foreclosure. A very valid question I have is how they can lose homes to foreclosure when they cry out on stage that diamonds pay cash for everything? What is also stunning is that the triple diamond only made $40,000 a month. Now that's a great income but is that what you would think a triple diamond would make from Amway? How can you afford mansions and jets and a fleet of sports cars when you earn about the equivalent of minimum wage in the national football league? The answer is you make additional money by selling your downline voicemail, CDs, books and seminar tickets, along with charging them for meetings and other events. More on that to come.

Amway leaders often present themselves as "mentors" but mentors don't make money from the people they mentor. For example, my grandfather teaching me to have character or to be a good man would be mentoring. Someone charging me for voicemail or books and CDs and making money even if I lose my shirt can hardly be considered a mentor. I would say that person is a paid consultant who has no accountability for my results in Amway. As far as I know, no Amway upline has refunded money because you lost your shirt following their advice. I hear stories at times about people losing a lot of money and while they can return seem Amway products, I don't hear stories about refunds from the "tools scam".

And that's the worst part about the Amway "mentors". They have never been held accountable for the massive numbers of people who have spent money in WWDB, BWW, LTD or Network 21 and didn't make money despite doing everything their "mentors" or upline leaders advised. Also, there is no documented evidence that the system of books and CDs and seminars do anything to help IBOs make money, unless you're selling these materials. My advice to Amway prospects and potential IBOs - Beware of Amway "mentors"

Friday, May 5, 2017

Amway Nearly Guarantees Failure?

What many Amway and MLM IBOs do not realize is that the Amway/MLM compensation plan nearly guarantees failure for most IBOs. There, there will always be some people who make money in Amway. Some might even make a nice income, but they are few and far between. But for Amway. all you need to do is look at the 6-4-2 plan and you can easily see how few people can actually succeed.

We know that in the 6-4-2 plan there are 79 IBOs doing 100 PV. We know that many IBOs do little or do nothing, thus a group where 7500 PV is moved, then one can conclude that you would need more than 100 IBOs. I believe many platinum groups consist of 150 to 200 IBOs. Many of these folks quit and need to be replaced, so the platinum is often very busy showing the plan and recruiting downline. In the end, out of these 150 to 200 IBOs, there is one who is making a decent income (the platinum). Well, that platinum represents less than 1% of IBOs. Even if the entire population of the world signed up for Amway, that rate of success would not change because it simply takes that many downline to make a platinum.

Based on the evidence supplied here, you can make a claim that joining Amway or an MLM nearly guarantees your failure. The only exception would be an IBO who signs up and only sells products to actual non IBO customers. These folks can make a profit, but are highly unlikely to make any significant income. However, most IBOs end up joining Amway with an AMO attached (AMO = Amway Motivational Organization) such as WWDB or Network 21. These folks are for profit companies that sell training and motivational materials. But if the system only allows for a fraction of 1% to be "successful" at any given time, no amount of training or motivation will make it better.

The upline leaders who sell these tools often deceive their groups that anyone and possible everyone in the room can succeed. It's simply not true. The system is set up for a limited number of successes. You cannot become a platinum or higher simply by choosing to do so or by wanting it bad enough. Hard work may help but still doesn't guarantee you anything. The system is multi level and it can only yield a small number of "success", just as there can only be so many officers in the Army. Working harder can help someone advance, but the number of leaders (platinums) will only increase relative to the numbers of lower level IBOs. Do the math and the sad picture becomes more and more clear.

Thursday, May 4, 2017

Should I Join Amway Or Not?

Recently, I've gotten this question posed to me via email quite a bit recently. My contact information is on this blog and some information seekers have asked whether I think they should join Amway or not. Unfortunately, I cannot answer this question for anyone. What I can do however, is provide information and share my personal experience so anyone considering the Amway business can make a fully informed decision.

Here's a few suggestions I would make to prospective Amway IBOs. Obtain an Amway product catalog or g to www.amway.com and look at their product line and pricing. Ask yourself if you would honestly use these products as a customer if you were not going to be involved in Amway. Try asking a few friends or relative if they would be interested in these same products for the quoted prices. What I found was that Amway products are generally not priced competitively and I could usually get more product at a cheaper price shopping at local retail stores instead of Amway.

I would also try to truly understand how the bonus schedule works and the costs associated with it. For example, your lowest bonus level would be 100 PV. 100 PV is roughly $300 in personal use and/or retail sales. Does a married couple typically spend that much each month on toothpaste, household cleaners and laundry detergent? For me, the answer is "no". Imagine being single and expected to go through that dollar amount of products.

You should also be fully aware of how much it will cost to be an independent business owner, or "IBO". For example, your upline or "mentor" will expect you to read books, listen to cds, subscribe to a voicemail system, and attend meetings and functions. These "tools" have a cost and it will typically cost about $200 or more for someone to be involved with Amway and to get "training". What many prospects are not aware of is your sponsor is supposed to train you at no charge, because they get to leverage any volume you produce. What many people also don't know is that upline and your "mentors" often earn significant incomes from selling these tools and that they make large profits, regardless of whether you make any profit and they profit even if you go bankrupt. There is also no unbiased evidence that the training is effective in producing results for you.

As an IBO, you are restricted by Amway's rules, which can inhibit sales. For example, you are not allowed to advertise your business or products unless you can specific approval from the Amway corporation. You are not allowed to sell products on ebay or craigslist so you have that handicap. Basically, you act as a commission only sales person for Amway whose only recourse is to sell products by word of mouth, typically to family and friends (ever see anyone get wealthy doing this?).

Lastly, if you do join and you move 100 PV, and participated in all the training, you will spend (approximately) $500 a month minimum, less any retails sales you are able to generate, and you will get about $10 from Amway. That $10 is compensation for all the time and effort needed to move that product volume. Typically, you will spend about 10-20 hours a week in your Amway business if you are even halfway serious. Conversely, you could get a 1% cash back credit card and earn $5 for doing nothing other than spending about the same amount that you did on Amway related goods, but with a cash back card, you likely spent very little of your time.

I could go on and on, but I've presented a few points about Amway that I believe will allow most people to make an honest and informed decision about the business. My contact information is on my profile for this blog if anyway has additional questions or thoughts about the Amway business. In the end, it is still ultimately your decision on whether to join or not.

Wednesday, May 3, 2017

Part Time Work Or Amway?

Many people pitch Amway as an easy, and somewhat shortcut to riches. It's all over the internet, it's what I saw as an IBO, and I have good reason to believe that many still pitch Amway in this manner. I believe that people want to believe that you can create wealth part time in 2-5 years. IBOs and prospects may be told "it's not get rich quick", but 2-5 years to quit your job and live off residual income sure sounds like the pitch of a get rich quick scam. It is what has contributed to Amway's current reputation.

A typical IBO (not counting those who do nothing), according to the "plan" will consume and possibly sell some goods on their way to 100 PV, which will earn them about a $10 bonus from Amway. There might be some profit from sales to customers, but there are also expenses involved in running a business. If an IBO is on the system, then their expenses might run from $100 or so to $500 a month, depending on level of commitment (brainwashing). In the end, a falwed system and generally non competitive pricing and products leads to most IBOs eventually quitting. The vast majority of IBOs on the system will wind up with a net loss, even with a tremendous amount of effort. Seems that effort has no relationship with success in Amway. Based on my experience, deception and lies seem to be a better way to succeed in Amway than by hard work.

But what if someone basically worked a part time job instead of Amway? If someone simply got a 20 hour a week job at $10 an hour (not that difficult), someone could earn about $800 a month gross income, or about $9600 a year. In ten years, even with no raises in salary, that person would have earned close to $100,000 more income. That money, if invested into a diverse portfolio can be the nestegg that allow someone to retire early, or to retire more comfortably than most. And that salary is guaranteed if you work the hours.

In Amway, there are no assurances of anything, even if you work 40 hours a week. The only assurance if that you will help your upline earn more than yourself by moving products. If you are on the system, you are basically paying your upline (via tool puchases) for the priviledge of boosting your upline's volume. It is why uplines teach you to "never quit" and to be "core". These virtures help assure your upline of profits, but does little for the rank and file IBOs. I write this blog post just to stimulate thought amongst IBOs and prospects. There are better and easier options than the Amway opportunity. If you are reading this, you are looking at one potential alternative. It's your job to decide.

Tuesday, May 2, 2017

Time And Money?

Time and money. When you control both, you are free. At least that's how the business was pitched to me as a prospect. It made sense at the time. If you have enough money, then you don;t have to have a job and go to work every day. Having enugh money allowed you to control your time. It sounded like a great deal to sleep late every day and not have any financial difficulties. It sounds so simple. Join Amway, 2-5 years and there you are.

But for most people, joining Amway (and the systems)ironically robs you of what you desire most. Time and money. For those wanting to build a business, you may be told you need to invest in your business, and while that may be true, I do not believe there is any bonafide evidence that can support the relationship between the investment of time and money into the Amway business and earning a significant income. Many people have invested years and thousands of dollars into the business only to end up with nothing. My sponsor was a physician who spent many days away from his practice (lost income) and his oldest child (son) probably didn't see him very much since he was out showing the plan every nite.

Diamonds give the appearance of being filthy rich with nothing to do but golf abd go shopping but we are now seeing evidence that diamonds may not be all that. Home foreclosures, bankruptcy, former diamonds speaking out, diamonds moving their groups out of Amway, diamonds possibly selling their homes and downsizing. I believe that there are possibly many - a - diamond who is in financial difficulty and they have not escaped the tough economy as they may have implied in a meeting.

Also, if diamonds were so free and filthy rich as they like to portray, why don't any of the bigger pins ever walk away from the business and live on the beaches of the world that they like to talk about? Why are they always attending and running functions? I am guessing tha most of them are working these functions - because they have to. I suspect that some of these diamonds are in debt trying to portray a lifestyle that they truly cannot afford.

If you are joining Amway to gain more time and money, I urge you to make sure you are keeping track to see if you are gaining time and money, but if you look carefully, you will probably find that what you desire more of, is what you actually have less of. That is, time and money.

Monday, May 1, 2017

Amway Success?

When I was a young IBO, I saw the plan and thought it was realistic to go direct and to find six (6) downlines who could do the same thing. I didn't know the realistic chances of doing this, but the presentation made sense so I went with it. I basically built my group on excitement and it seemed like the system could work. Sadly, as I climbed the ranks, my bottom line did not change. I did not "net" $200 at the 1000 PV level, and I did not "net" $1000 a month at 4000 PV as my upline taught. I had the parameters they taught, but the reality was my leaders taught everyone to pump what little profits we earned into buying more tools.

My leaders also taught people to get out of debt, which was good advice on the surface, but at the same time, any disposable income left over was to be channeled into tools, and for those who did not escape debt, they were told it was okay to go deeper in debt, but only if it was to "invest" in their businesses by purchasing more tools. Thus it certainly appears that upline's advice was purely self serving and had nothing to do with an IBO's individual success.

I was in WWDB and they (upline) said that WWDB was breaking the most new diamonds and that WWDB diamonds were the most profitable. So here it is more than a dozen years later, where are all these new diamonds? Aside from from foreign diamonds, there are (I believe) less than 4 new diamonds from WWDB in the US from the time I left the business. Now I may be wrong, but even it was a few more than 4 new diamonds, that is a miserable success rate given the amount of cash spent by downline on tools and the claims made my upline about the tools.

We have also seen some WWDB diamonds end up in home foreclosures. Where is the integrity and financial acumen these leaders boasted about? Where is the success and long term financial security available to everyone that was touted? I believe more diamonds and emeralds fell out of qualification than new pins emerged. The business was promoted as one that would stand the test of time. Sadly, I believe WWDB and the Amway opportunity as promoted by WWDB has been a miserable failure. There is little success to speak of, just he same old tired diamonds showing off a lifestyle that some of them apparently can no longer afford. Where is the success?

It is years later and we are still waiting.......

Friday, April 28, 2017

Because My Upline Said So?

When I was sponsored into Amway, it was by a friend. It wasn't my closest or best friend at the time, but there was still an element of trust. It was enough trust where I took his word as the truth, especially when it was related to the Amway business. I later started to see flaws and inconsistencies in what my sponsor and upline said, but at first I took things at face value, because it seemed to make sense and it seemed sincere.

For example, when my upline said they had our best interest at heart, and that they would do their best to help us succeed, it made sense. You build depth and solidify your business. Seems sensible. It seemed perfectly reasonable and sensible until I later learned how much money my upline was potentially making on tools. My upline (WWDB) stated explicitly that no profit was made on the sale of functions and tools, thus it only made sense that upline wanted downline to succeed. Knowing that there was no profit motive on tools, you'd trust that upline truly wanted the downline to succeed. Let me clarify that upline said there was tool profits, but that profits did not benefit the diamonds, and that the profits were reinvested back into WWDB to make the functions better and cheaper. As it turned out the no profits from tools was an outright bold faced lie told by WWDB upline. To this day, noone has ever been held accountable for these lies and it has since been forgotten.

Based on things written and information available on the internet, I have reason to believe that WWDB continues to teach the same stuff today, as they did 15 years ago. They teach that IBOs should purchase homes in cash, that jobs are no good, that the wife should stay home, that WWDB IBOs have a 2% divorce rate compared to 60% for the rest of the world. Some IBOs are so flippant that they believe that only Amway IBOs have integrity in this world.

What is scary is that so many downline get systematically brainwashed into thinking that everything but Amway is no good and that only IBOs are good. Some of these folks are good and hard working, but they have been caught up in a systematic scam. They believe their upline qithout question and anything said by upline is the gospel truth and everyone else is wrong. These folks also censor information and worship their leaders. It is why so many people compare some Amway groups to a cult.

It is a bit scary but it's happening on this very day. A sad sight to see.

Wednesday, April 26, 2017

Amway Is "Fair"?

One of the bogus things my upline taught us was that the Amway opportunity was fair. That it was a completely level playing field. On the surface, that sounds right because "everyone starts at zero". While everyone does start at zero, the compensation plan is unfair to those who "do the work" and in my opinion, should be revamped so lower level IBOs make more money. It would probably help with IBO retention and maybe, some higher level leaders wouldn't have to work so hard to keep replacing people who quit. It is my informed opinion that many IBOs quit because they aren't making a profit. Real profits would motivate people to stay involved in the business.

If you are a new IBO, then you might not be really familiar with the Amway compensation plan. Amway pays out about 30+ percent of their gross as bonuses. Thus if you move 100 PV in goods, or about $300 in sales, then Amway pays out about $100 in bonuses. You as a new 100 PV IBO, would receive about $10 and your uplines, some of whom don't even know you exist, will split up the remaining $90 in bonuses. It truly is not a case of doing the work and getting paid. You are doing the work so upline gets paid. To add insult to injury, upline wants you to purchase materials (functions and other tools) that tries to convince you that this is a good deal.

And something very significant to think about. In what other sales profession are you compensated so low (3%)? I can only think of real estate, but in real estate, your sales are likely in the hundreds of thousands of dollars. In just about any other sales related profession, you get a much higher cut than 3%. Yes, your bonus or commission can be higher if you move more volume, but then you are likely receiving more money because you are now exploiting people doing 100 PV who get only $10 back. In other words, your profits come from your downline's pockets.

Even after you consider the unfair compensation, you must factor in the cost of tools. Most uplines promote tools (cds, voicemail, functions) as vital to an IBO's success. Some uplines push the tools harder than others. But the tools purchases will often be the primary cause of IBO financial losses because the cost of tools will normally exceed an IBO's bonus. It is very common in the US for monthly tool purchases to exceed $200 a month on average, and very very few IBOs will ever reach a high enough level in the Amway compensation plan to earn enough just to break even. Also, the tools apparently do not work. There is no unbiased evidence to suggest that tools have any causal relationship to IBO success.

With Amway's crappy reputation and the unfair compensation plan, IBO retention is poor. Many IBOs sign up and do little or nothing, and most IBOs don't even last a full year before they quit. What happens is IBOs begin to figure out that recruiting downline is next to impossible and therefore, generating more volume is nearly impossible, even for individuals with skills. If you are a new IBO or a prospect, I encourage you to sit down and really look at the math and factor in the cost of tools. There are many ways to earn a dollar, I just don't feel that Amway is an efficient way to do that.

Tuesday, April 25, 2017

Your Upline Helps Themselves To Your Money?

Over the years, I have encountered many IBOs and they often have a common theme. They trust their upline and in some cases, consider them "mentors". Now in a business venture, it might be good to have a mentor or someone to teach and guide you, but in the Amway opportunity, most of the upline mentors make money off those who they mentor. That is a major conflict of interest but IBOs simply fail to see it. Just about any "help" you receive results in compensation for someone upline. A true mentor relationship in my way if thinking would be perhaps a grandfather teaching his grandson how to be a good man or how to have a good work ethic.

When an IBO sees the plan in a big meeting or function, the speaker will often be built up as a financial guru, and possibly as an expert on how to succeed in Amway. An IBO may hear something about the trail was already blazed by upline and you just need to follow the trail. Don't re-invent the wheel, just copy what upline did. But as I have said many times before, duplication sounds easy and looks good on paper, but in real life, the vast majority of IBOs run into problems that they simply cannot overcome, such as the bad reputation that the Amway name has in the US. High prices for products don't help either. And since most IBOs don't do much and most can't sponsor a downline, how can you build a growing business?

What is troubling however, is that IBOs are taught to trust upline and do as they say (defacto requirement), but they are also taught that failure is their own shortcomings, even when they do exactly what upline (their mentors) told them. It is also troubling that many uplines will tell their faithful followers that they need to purchase more and more tools (voicemail, cds, seminar tickets). In some cases, an upline may advise their downline to sacrifice basic family needs to buy these tools. I saw some IBOs who were advised to skip meals to buy a cd, or skip paying the mortgage to be able to attend the next big function. The results are devastating for some.

I might also add that as a newer IBO or prospect, you may have heard that "everyone starts at zero", or that it's a level playing field. It is not. As a new IBO, you will likely be in the 100 PV bracket. Since Amway pays out about 33% in bonuses, your upline(s) will split up about 30% in bonuses off your efforts while you get a 3% bonus. That doesn't sound very level to me. In addition, you as an IBO are paying for this priviledge when you buy tools. You are being taught that this unfair distribution of bonuses is a level playing field when clearly it's not. Why should people upline get the lion's share of those bonuses simply because they signed up before you?

So each IBO should look at things objectively and see if your upline is actually helping you or simply helping himself by giving you advice that ends up in profit for himself with little or nothing for you. Has your business and abilities been carefully assessed? You certainly won't receive that kind of help in a function or on a cd or in a book. When your upline advises you to do more PV or to buy more tools and functions, they are simply helping themselves to your money.

Monday, April 24, 2017

Is Amway A Scam?

I've seen many debates recently on why some people think Amway is a scam. Normally a defense of all this is that the abuses or the scam part of business, being the tools, is not the fault of Amway. It is true that Amway the corporation does not scam anyone, or sell them these tools. However, the groups such as WWDB, BWW, or Network 21 are run by IBOs. They are run by Amway IBOs. Even though the Amway corporation is a seperate entity from these tool companies, these tool comapnies are still run by Amway IBOs and they use the Amway opportunity to capitalize on the downline as customers of the tools.

While there is nothing wrong with some personal development and motivation, I believe there is a lack of honesty and tranparency in how the tools business is administered. For example, how many IBOs actually know exactly how to qualify for a cut of the tools income and is there a specific compensation plan for these tools? Allegedly, there are some documents explaining this but I do not believe the rank and file IBOs know about the details. In cases where diamond income was revealed, diamonds made significant income from the sale of tools. Some diamonds make a lot more from tools than from Amway. Also, since a diamond recognition is forever, even non qualifying diamonds can be getting significant income from Amway.

So why the label of scam? Because so few people actually make money from the Amway opportunity. Amway defenders like to cite that most IBOs simply do nothing. While it may be true, this in itself represents a problem with the recruitment process or the recruiters. Even if you examine a big function where there may be tens of thousands in attendance, I wonder how many have a net gain after expenses? I would guess the answer to that is a fraction of 1%. Amway's own numbers reveal this. $115 a month average gross income. And .5 (one half of one percent) of IBOs reach the Gold/Platinum level where you earn about $1000 a month gross income, or near the equivalent of full time minimum wage.

And to gain this full time minimum wage proposition, you must overcome incredible challenges, including being able to replace IBOs who quit, and to replace them ast enough so your volume doesn't diappear. Thus some IBOs, desperate to sponsor, resort to tricks and deception to get people to see the plan. I experienced it myself. These actions, coupled with a low success rate, make it seem like a scam for most, especially when the tools are claimed (by the tool sellers) to be a bonafide means to success in Amway. Add all of these up, and over the years, you develop the reputation of "scam". Amway can do more to restore their reputation, but it is unknown to the public in general what and if anything is being done about the abuses.

Friday, April 21, 2017

Join Amway And Become Annoying?

Many people see the Amway plan, and get unrealistic dreams of attaining incredible material wealth and retiring in a few years. I find it strange that nobody has been able to point out anyone who actually got in, worked a few years and then walked away from the business and is now enjoying buckets of cash rolling in while they spend their days on exotic beaches sipping mai tais. The more likely scenario will be debt, higher credit card bills, and boxes of unused cds and other various unused Amway products.

So why would someone joining the business become annoying? It's because to the average person, it beomes clear that to achieve this, you need to find "six" people. Thus to find six people, you need to make contacts to show the plan. Cold contacts of people on the street would be unlikely, even for the boldest of people, so new IBOs start lookin at people they know. They start with people they are familiar with, or family and friends. They may also think their family and friends will want to get rich with them.

Sadly for most new and enthusiastic IBOs, they will find that they are shunned by family and friends. Over the years, IBOs have done too much damage to Amway's reputation and overcoming this challenge is too much for the rank and file IBOs. They will hear stories of failures and opinions that Amway is a pyramid and/or a scam. Of course, IBOs will have "canned" answers to respond to from their upline. One of the humorous ones is that Amway is praised by the BBB or the FTC and is the shining example of an MLM. To those familiar with this line of reasoning, it can become side splitting humorous. Other silly comparisons will be comparing Amway to gym memberships or that 90% of small businesses fail. They forget that more than 99% of Amway businesses fail.

At first, the family and friends may humor the new IBO, but relentless persistence can eventually turn ugly. This is where uplines will teach the new IBOs to avoid "negative" and to shun these family and friends. This is why some people charge the Amway leaders with being cult - like. It's at about this point where IBOs might realize that Amway products are costly and try to sell off some of them to reduce their own costs. Often times, sympathetic family and friends might make a token purchase to show support. but that can get old in a hurry also. Most IBOs will eventually quit and make amends with family and friends, but some lose friendships for good.

To information seekers and new IBOs, hopefully this message is food for thought......