Friday, January 13, 2017

Is Amway Like Gambling?

Let me make a disclaimer right off the top so Amway defenders don't try to discredit the post without reading it. The Amway opportunity is not a game of chance. But I will go on to explain how and why the opportunity can be compared to gambling and why the diamonds can be seen as a casino or the "house". In either case, the fact that Amway is not gambling, but yields lower success rates than gambling speak volumes.

In the Amway opportunity, the odds against someone going diamond are astronomical. Literally millions of people have attempted to build an Amway business in North America over the years and diamond club for North Anerican diamonds a number of years back had 160 diamond-ships represented. Certainly some north american diamonds may have turned down a free trip to Hawaii but I'm guessing that's not a big number.

The odds are also stacked in favor of the diamonds. Casinos are not built by winners, but by the hoards of losers. Just as a diamond business is not built by having a foundation of winners, but layers and layers of IBOs who are losing. The Amway opportunity is simply set up that way. Look at your common 6-4-2 plan or whatever version your group uses. The newest or biggest layer of IBOs make very little and when you factor in expenses such as functions or standing orders, the losses can be staggering.

A diamond, like a casino will attract many young dreamers who think they can conquer the world and will get rich. They use bright lights and profile former winners just as Diamonds show off fancy cars and testimonies to lure in recruits. The newness of the opportunity gets you excited, just as someone walking into a casino might feel the excitement with the sounds of the casino. All you need is some effort and little luck right? Sadly, that excitement is all too often replaced with the harsh reality that most must lose in order for there to be a few winners, both in casinos and the Amway business.

Like casinos and diamond uplines, there is much caring for active IBOs and for players who are spending their money in casinos. But once you walk out of the casino, there is no special treatment, just as an IBO who stops building a business or stops being core quickly becomes forgotten. In Amway, people who said they were lifelong friends were never heard from again once an IBO missed a few meetings. If you re-emerge, you will find the love again, just as you will get free drinks when you start gambling again.

And yes, there are some exceptional people who can scratch out a nice living by gambling but they are few and far between, just as there are diamonds, but diamonds also have thousands of people who wanted diamond but could not achieve it. Those who can finally make it usually have an exceptional blend of skill and a bit of luck. Some even cheat/lie in order to gain a bigger edge, both in gambling and in Amway.

Like a gambling "system", the Amway opportunity has "systems". In either opportunity, the system doesn't work for the masses. There are an exceptional few who can make it work. Except in gambling, most people understand that the odds are stacked against them. In Amway, many new IBOs are told that anyone and everyone can succeed when it simply is not true.

Can you fulfill your dreams by gambling or with the Amway opportunity? The answer is yes, but the reailty is that few will ever do so. Like casinos and Amway diamond-ships, both are built on the backs of those who lose, not on those who win.

Thursday, January 12, 2017

Amway IBO Expenses?

Many uplines will use slightly deceptive recruitment tactics when getting new people to see or register into the Amway business. One of the common things was how joining Amway has very little risk, no or very little overhead. This is true, if an IBO is not involved in any of the system related training. However, it is the goal of many if not most uplines to get as many IBOs involved in the system as possible. This is probably because selling standing orders, voicemails and seminars has a higher profit margin for uplines than the actual movement of Amway product volume. And that's because Amway tools have a higher profit margin for upline because Amway doesn't share in the tool profits. So some newbies might join thinking Amway won't cost them much, only to find out that 100 PV might cost them more than $300 a month. They may not be aware that standing orders and functions never end and can add an additional cost of up to several hundreds of dollars more per month. Uplines will then justify the expense by saying the IBO is investing in his/her business or that these tools are vital for their success.

New IBOs, and especially IBOs who are single should seriously think about the cost of being a business building IBO before joining. Many or most prospects don't know that building an Amway business using system tools and "coaching" can cost them up to $500 or more each month. A single person more than likely cannot possibly consume 100 PV worth or products on a monthly basis unless they almost exclusively consume XS drinks and Nutrilite vitamins. And secondly, how many singles or prospects were consuming cases of energy drinks and vitamins ($300 monthly) before being presented with the Amway business? How many people were willing to fork out hundreds of dollars for a weekend function that may require airfare and hotel stays? I don't think too many people like this exist. But I believe they do so because they have been sold a dream of financial freedom, of early retirement and not having to work a job anymore. But the evidence would suggest that once the dream disappears or reality sets in, how many (former) IBOs continue to purchase Amway products and attend seminars?

I know of many former IBOs and I don't know of any who purchase Amway products on a regular basis and I don't know of ANYONE who has ever forked out money to attend an Amway/AMO function after they stopped being an IBO. Amway's numbers bear out this claim as there is very little sales to people who are not IBOs. The IBO salesforce is responsible for consuming the lion's share of Amway's products and services. I myself have purchased an Amway product or two since I left the business. But I did so only to humor friends who were still in the business. They have all since quit. It is very reasonable to conclude that once the desire to build the business stops, the desire to purchase Amway products also stops.

Most eager young and motivated people who sign up often do not realize that these IBO expenses exist. While Amway acknowledges that these tools and systems expenses are optional, the uplines who promote the tools may suggest that it is insanity to attempt to build an Amway business without the tools or strongly encourage new IBOs to partake. A common statement was that we "needed" to be at the next function no matter what. Missing it would set your business back six months. New IBOs and prospects don't know better so they will often conform. Sadly, there is ZERO unbiased evidence that the tools and seminars do anything to increase IBO volume and/or the sponsorship rate. In my informed and experienced opinion, the tools are ineffective and the vast majority if IBOs would be better off handing their upline a monthly check for $100 and not building the business or buying any products.

IBOs and information seekers should be awar of these potential IBO expenses and determine if the expenses would be worth your while. Keep in mind that someone upline profits handsomely from the tools, even if you do not make a cent from your Amway business. You should have your best interest at heart, no matter what your upline tells you.

Wednesday, January 11, 2017

The Amway Wealth Illusion?

One of the things my upline taught us ad nauseum was that we needed to have faith in our business and in our upline. That we needed to believe that we were going to be successful. IBOs are told that they should act successful even if they are still working their way up the ranks in the business. It is why they ask (require) IBOs to wear suits and business attire to all meetings and functions. This is one of the weird quirks about the business in my opinion. I live in Hawaii and I remember a function they held in the middle of July in a high school auditorium and there was no air conditioning. I think my suit needed special cleaning because it was completely saturated with persiration.

Anyway, with this part of the year, soon there will be thousands of IBOs shuffling off to a function called dream night, or in some cases, winter conference. The tickets are about $60 to $80 and includes a dinner. What IBOs are often unaware of is that many venues will allow you to run these conferences for $20 to $25 per person. The rest of that ticket prices goes directly into your upline's pockets. Anyway, the dream night function will feature slide shows of mansions, yachts, jet skis, sports cars, fabulous vacations and other trappings of wealth.

What many IBOs don't realize is that this display of wealth is just that. There is no bonafide evidence to indicate that these diamonds actually own all of those toys and goodies. The diamonds probably won't verbally confirm it either, because these toys and goodies may not really be owned by them. It could be rented, or maybe some upline corwn ambassador may own the mansion, but IBOs will assume that these trappings of wealth are common once you reach diamond. As an IBO, I never actually knew how much a diamond really earned. I just assumed it was a lot because we were shown all of these goodies and just assumed all diamonds had these kinds of lifestyles.

If I posted a picture of a mansion and a jet and said I owe it all to my earnings as a blogger, people would cry foul, that I am lying or making things up. And they would be right. Well, I would guess that many diamonds are doing the very same thing if they appear on stage and implying that they have jets and mansions. As I said, someone may own a mansion and a jet, but to imply that this is a part of the typical diamond lifestyle is a stretch. The evidence is there. Some diamonds have lost their homes to foreclosure. My old LOS diamonds (WWDB) taught us that diamonds pay cash for everything, including homes. Now confirmed as a blatant lie. Who knows what else they may have misrepresented?

I ask IBOs and prospects who may be attending dream night, to watch with a critical eye. What is being implied with the display of wealth? Analyze if those goodies can be purchased with a diamond income ($150,000 plus some tool income). Ask yourself if this lifestyle is truly sustainable? Ask yourself if you can live with yourself if deception is a part of earning your diamond lifestyle?

Tuesday, January 10, 2017

Are Amway Diamonds "Broke"?

I recently read an article on what constitutes wealth. Some say an annual income of $100,000 would make them wealthy, some say assets exceeding $4 million would do it, and some estimated that $2 million would make them "rich". Of course, everything is relative and someone earning $25,000 a year would think that $100,000 a year is wealth, etc. College students might think $40,000 a year is awesome because many have little money to begin with. I'm sure someone like Bill Gates would not consider $4 million to be astonishing. It's all relative. If you are content with what you have, you are likely relatively well off already.

But let's talk about Amway diamonds. I say diamond because it is basically the pinnacle of success. It is the crowning achievement of the 6-4-2 plan (or other variations) that many groups show. The average diamond earns about $150,000, according to Amway. Now $150,000 sounds like a lot of money to young people or to those with lower wage types of jobs, or those who are just starting out in their careers. But we also know that diamonds earn income from the sale of tools. Some groups advertise (verbally) that someone might earn $100,000 a year from the tools/speaking income.

Let's be generous and say the diamond earns $300,000 a year from Amway and tools income. Income tax and medical insurance for the family will eat up about 40% of that right off the top, leaving about $180,000. Fantastic you might say? Well, a diamond certainly would live in a million dollar mansion, which would give you about a $6000 a month mortgage or $72,000 a year, leaving $108,000. (Although many - a - diamond pays for their homes in cash) Fantastic right? Well, diamonds are constantly traveling to various functions, flying first class and staying only at 5 star hotels right? So an average of 1 trip per month with a family, first class and a 5 star hotel would probably cost about $5000 or more per trip, or about $60,000 a year, now leaving $68,000 for this diamond's yearly budget. A good diamond with a family surely consumes 300 PV per month for household goods, or about $900 a month or about $11,000 a year, leaving $57,000 for the rest of the year. A good diamond is often a Christian who would faithfully tithe 10% of his income, or about $30,000 a year, leaving the diamond with $27,000 a year, or about $2250 a month to pay for their monthly electric and utility bills, gas, car payments, meals and entertainment.

Yes, some expenses may be slightly higher or lower, but what I am trying to illustrate is that even an above average diamond with tools income is more likely to be broke than wealthy if they live the lifestyles porttrayed at functions such as dream night or other major functions. Do the math. It is unlikely that diamonds pay cash for everything and it is unlikely that fabulous lifestyles can be sustained on a diamond income. There is plenty of evidence out there. Diamond's homes foreclosed, diamonds behind on income taxes, a prominent triple diamond in bankruptcy proceeding, many diamonds selling off their homes in a bad real estate market.

I truly believe that it is quite possible for many diamonds to be broke or deeply in debt. My numbers certainly won't apply to all diamonds but it certainly paints a picture that diamonds don't want you to see.

Sunday, January 8, 2017

Amway Is Ageless?

Hi everyone, JoeCool is back from vacation. I took a fabulous 2 week vacation in international locations and had the time of my life. Looking forward to another similar vacation nex year as well. And guess what? I paid for this trip with my J-O-B income and had sufficient time off to take the trip and recover from a little jet lag after. I'll be back a work in a few days but I've been off this blog for a while so I decided to update it.

It seems that no matter how much time passes, or what year it is, Amway hadly changes. What I mean is people (prospects) continue to be deceived by Amway IBOs about the Amway opportunity and about the income potential. Basically, Amway is ageless. If I had gone to sleep in 1996 (ala Rip Can Winkle) and woke up today, I would find that Amway and the Amway business is basically the same. Yeah, you can order online now but the basic premis of the business has not changed. What I mean is that the focus of the IBOs is still on recruiting and trying to get people to see the plan.

I still do not see much emphasis on actually selling Amway products by most IBOs. You know who does the most selling? The upline diamonds who sell IBOs voicemail, cds, seminar tickets, open meeting tickets and other tools that the diamonds profit handsomely from. I still can see that diamonds keep their tool profits on the down low as they don't want the sheep to get wise to the scam. hey think that the diamonds actually make their money from Amway but the truth is that a very significant income is made by diaonds elling tools. Think about it, the mark up on tools is much greater than the markup on Amway products and the tools income in only shared by the higher up Amway distributors, not with the rank and file.

People still quit Amway in hoards and most people quit presumably because the business wasn't "all that" and possibly because the IBOs were losing money because of tools and business expenses. Amway actually works as designed. It extracts money from downline in the form of product and tool purchases and funnels it up the organization (or pyramind) to the higher ups such as the diamonds and above). Whether you agree or not, that's what Amway is designed to do and that's exactly what happens. Even though I quit Amway around 20 years ago, not much appears to have changed. Amway is timeless.

Friday, December 23, 2016

Joecool Is On Vacation

To my loyal blog readers, Joecool will be traveling and walking the beaches of the world for the next couple of weeks. Guess what? I'm paying for it with my J-O-B income and not from Amway. I'll be visiting several different countries and taking in the sights and experiences.

I'll be checking in to publish comments occasionally but there won't be any new articles until after the first week of January. I'd like to take the time to wish everyone a Very Merry Christmas and a safe and Happy New Year!

See you all in 2017! Joecool out!

Thursday, December 22, 2016

The Amway Systems?

If you are an IBO or being recruited to be an IBO, it is almost certain that you are being recruited by an IBO in a "system". Now the system will likely have a name such as Network 21, WWDB, BWW, LTD or some others. Most if not all of these groups or systems will claim they are the best, fastest growing, or the most profitable. Now we know that they all cannot be the fastest growing or whatever. Most if not all of these systems will advise their IBOs to participate in their system. The system generally consists of websites, voicemail, books, cds, standing order cds, seminars and perhaps other workshops. The pressure to participate may varyt amongst groups, but it appears that the more you participate, the greater the pressure placed on you. Sort of like the analogy of boiling the frog.

All of these system companies are for profit companies, and generally the profits go to the diamonds and higher pins who own and run these companies. Some of the system diamonds earn most of their income from the sale of these tools. Now these system promoters may tell you that the system is vital to your success and some may claim that you cannot succeed without them. However, these system companies profit from selling you these materials whether you as an IBO profit or not. These systems profit even if you work hard and still go broke. While the system owners may claim that all success is attributable to the system, the same claim can be made of an even greater number of failures. Even the IBOs who put in an earnest amount of effort have an insignificant rate of success, perhaps lower than 1%. It is easy to conclude this because many and possibly most platinum businesses will consist of 100 or more IBOs. The platinum level is allegedly where an IBO breaks even or starts to make a small profit. Factor in the people who come and go (quit) and it is easy to conclude that the vast majority of IBOs either make nothing or lose money.

When you factor in the system expenses, then the number of IBOs who lose money goes up significantly. Looking at the 6-4-2 plan or whatever version your group uses, the lower levels of IBOs will earn less than $50 in a month, with most IBOs earning less than $20 per month. These IBOs won't even earn enough to cover the cost of their voicemail. If an IBO is participating in all of the system tools such as functions, it is nearly guaranteed that these IBOs will lose money due to the system expenses.

My conclusion is that the system just does not work. There is no unbiased documentation that suggests that the system works. Sure there may be some biased testimonials, but that would probably be it. If you are an active IBO, you can easily see if the system works as there would be new platinums, emerelads and diamonds emerging frequently, but that is not the case. It seems Amway is declining in the US and therefore, any new success (pins) will simply be replacing former pins who fall out of qualification or those who quit. The system does not work. However, I also came to the conclusion that nearly all of these financial systems do not work, including real estate gurus, Kiyosaki etal. It is why when they show success testimonials, there is usually a diaclaimer saying "unique experience".

In most if not all of these systems, including the Amway systems, apparently success is a unique experience. My conclusion? The system is broken. The system does not work. Some people can succeed in spite of the system, but they do not succeed because of it.