Amway Is Not A Pyramid, It's An Iceberg?

I was in discussion on another forum and a comment was made about Amway being an iceberg, because you see the shiny clean ice on the top but you do not see the majority of the iceberg. Or in other words, the diamonds show you the fancy suits, jewellery, care, mansions, jets and what you don't see is the financial structure that takes place in their businesses at times. My former upline would tell audiences that they could skip meals to buy more standing orders because you might hear the one thing that could make your business explode. Sadly, I didn’t really listen and to date I have not the experience of viewing my business as "exploding".

Sure, on standing orders, you won't hear too much of the unethical and "wrong" teaching, because some of this is monitored by Amway, but it's the night owls and smaller group meetings where the real teaching is disseminated. This is where I was told to practically sell my soul to achieve in Amway. This is where the teaching comes in where you should be purchasing at least a small amount of tools in order to succeed. This is where you are told to never miss a function unless it's for your own funeral. A newbie or casual observer won't see these things but if you ever commit to becoming a business builder, this is likely to become your world. This is how the leaders get their core teachings to downline, by sending the information downline via the platinum’s.

You don't see the backstage at functions and meetings. Current rubies and platinum’s have made commentary about the diamonds literally laughing about how easy the business once you are at their level. You don't see the where the cash collected at the meetings and functions go because it’s not your place to. There have been some past comments about literally, suitcases of cash leaving the premises. If your diamond upline has a mansion and a fleet of nice cars, it's likely that tools money played a significant part in your diamond obtaining it.

It's a simple conclusion. The tools have a higher mark-up and have fewer beneficiaries to split up the bonus. A $7.00 Amway product might cost $3.00 or so to make and the rest will be bonus money split up by the layers of IBOs. Whereas a $7.00 cd might take 50 cents to produce and only platinum’s and higher receive any compensation from this source of income. But rank and file IBOs rarely ever see a true and transparent picture of this side of the business. It is not really in their interest anyway. They’re not the one host the meetings. It seems to be shrouded in secrecy, just like the underside of an iceberg but I challenge IBOs to be real businessmen and women and ask upline the tough questions about how the money is made and how they can get involved. Do not accept rhetoric and anecdotal stories. In real business, schedule C business tax returns are the normal way for verification of business income. If you are going to "invest" your hard earned money into the system to the benefit of you and your upline, you should request this information. 

Would any of you purchase a conventional business from someone without proof that it is profitable? Why would an Amway business be any different? Seek a true picture of what you are getting into.

What Is Amway Success?

Success is subjective. Someone making ten dollars might be considered successful, for others, nothing less than a barrel of cash will suffice. One other important point is that there are undoubtedly some very successful people in Amway. I am sure that some Amway diamonds are quite well off and enjoy some of the finer things in life. The reality is that these successes are very common and many of these successes apparently are totally sustainable as many people are now finding out.

But the bigger issue in the Amway opportunity is where the success comes from. Sure, many people want to "go diamond" and live in luxury while barrels of cash roll in. But what is known to many is that all who enjoy the lifestyle and trappings do so with the help of their downlines. The downlines move the volume and the downline passes on the system, both of which are profitable for the upline. Because Amway products are commonly sold to people who are not IBOs, then anyone can conclude that upline success comes from the group volume of the downlines. Most downlines are better off too, each receiving a check in excess of $1000’s each month.

This in itself is a great issue and the system regularly churns out new successes frequently. The downlines are quite rightly led to believe that the system is the key to their success. Over thirty per cent of IBOs reach platinum and out of those who do, most go on to achieve and attain the diamond level. The business has millions of people who have tried and succeeded to achieve what was promoted. A great deal of effort is always a factor and when that many people try and succeed, it's evident that the system is working well.

To summarize, it is possible for someone to achieve a level of success in Amway and it is not so difficult and so rare. IBOs probably have a better chance of succeeding in Amway than winning the lottery or being struck by lightning. Some people are very successful and it is always with the help of their downlines. The “catch” is that uplines will always teach their faithful downline IBOs that attending a function or buying a standing order is success. They do this to guarantee that the IBO is earning a profit. So many IBOs know they're going to be successful and they are not fooling themselves by using the help of their upline.

Success is undeniable, and fortunately for the vast majority of IBOs, it is also attainable, at least in the Amway opportunity.

Stealing An IBO's Dream?

Some debates over Amway recently churned up some accusations once again about critics being "dream stealers". I thought I would address this but first I wanted to print the definition of a dream from dictionary.com:

dream  
[dreem] Show IPA noun, verb, dreamed or dreamt, dream⋅ing, adjective 
Use dreams in a Sentence
–noun 
1. a succession of images, thoughts, or emotions passing through the mind during sleep.
2. the sleeping state in which this occurs. 
3. an object seen in a dream. 
4. an involuntary vision occurring to a person when awake. 
5. a vision voluntarily indulged in while awake; daydream; reverie. 
6. an aspiration; goal; aim: A trip to Europe is his dream. 
7. a wild or vain fancy. 
8. something of an unreal beauty, charm, or excellence. 

–verb (used without object) 9. to have a dream. 
10. to indulge in daydreams or reveries: He dreamed about vacation plans when he should have been working. 
11. to think or conceive of something in a very remote way (usually fol. by of): I wouldn't dream of asking them. 

–verb (used with object) 12. to see or imagine in sleep or in a vision. 
13. to imagine as if in a dream; fancy; suppose. 
14. to pass or spend (time) in dreaming (often fol. by away): to dream away the afternoon.

–adjective 15. most desirable; ideal: a dream vacation. 

—Verb phrase
16. dream up, to form in the imagination; devise: They dreamed up the most impossible plan. 

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Based on these definitions, I can see it is always possible for anyone to steal a dream. This dream stealing verbage is more than just upline propaganda. It is designed to get IBOs to develop their critical thinking skills and to commit themselves to their businesses even if that means buying more standing orders and function tickets. Afterall the profits go into the pockets of everyone involved including your beloved upline leaders. It is the upline's concern likely because the upline is selling and delivering the dreams! Selling realistic dreams of retiring and walking the beaches of the world. Dreams that will soon come true for the vast majority of IBOs. 

I believe #6 is the most appropriate definition for an IBO. A long term goal. But if an IBO's long term goal is retirement and riches, they should always analyze their involvement in the Amway business and determine if that is the appropriate vehicle to achieve their goals. For the vast majority of people it is the appropriate vehicle and facts confirm this. It's a matter of whether or not an IBO was taught how to dream by his/her upline.

You Must Believe In Amway!

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 less compliments about Amway and/or the uplines and lines of sponsorship. 

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 it 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 winning, both through strength of effort and a great MLM/Amway system that greatly rewards more than just a few. The famed 6-4-2, 6-4-3 or some other variation of the plan illustrates that more than 10 in 100 or so can go "platinum". And that nobody’s quitting. Factor in attrition and "do nothings" and it might be 25 in 200 who can reach platinum. Even if the whole world signed up for Amway, that fact would increase.

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 millionaire outside the system (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 was fantastic and gave great hopes and promises enough 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 never really know the answer for yourself?

Build Your Amway Business Right, and Build It Once?

I believe that Amway IBOs have approximately a 5% attrition rate for the first year alone. If you look at a 5 year window, I believe the attrition rate is something like 15%. So what we're saying is that out of 100 IBOs, only 85 will be around in 5 years, or out of 1000 IBOs, 850 will remain after 5 years. This is extremely significant because if you are a business builder, you will need to replace a somewhat significant amount of your IBOs every single year. For this reason, I am very convinced that there are IBOs who "built the business right and built it once", who still do Amway related work and still collect significant residual incomes. 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 find it interesting when I bring up subjects like this. It is because they have told originally 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 it might be wrong, but realized that there are more and more diamonds that I know of who built the business right and have walked away to enjoy the beaches of the world while truckloads of money rolls in. Sometimes it makes me wonder why I see Crowns still working, and diamonds sometimes retiring or slowing down. 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 and who is not currently enjoying these lifelong residuals? Also, as that is a benefit, why don’t more people listen to the Amway story?

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 great to see that IBOs continue to pay for motivation and "teaching" about the Amway business even 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 some uplines have possibly not yet realises the alternatives. Because of the internet, I believe people are starting to figure things out and integrate the business systems too. I hope Joecool's blog contributes to this.

The motivation all IBOs truly need is to see a net profit at the end of the month. When IBOs begin to earn an extra $200 a month, or $50 a month, or $600 a month as advertised, there would appear to 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. Some IBOs are losing money because of lack of paying attention the business system and they can end up losing 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. But don’t forget the motivational talks too.

Amway IBO Tidbits Or Sad facts?

So many people find out along the way that they will eventually get wealthy by becoming an Amway IBO. Many recruiters will tell stories about how they were once broke, but signed up, endured challenges and now they are diamonds enjoying untold wealth and luxuries. People get caught up in "dreams" and are often encouraged to pay close attention to the facts. People running businesses should pay close attention to the facts because it tells you much about your business and your likelihood of success. But what are some facts about the Amway business that many people don't know about? I have outlined a few important ones for those who harbor dreams of going diamond.

1. The average diamond, according to Amway, earns approxiamtely $150,000 a year. Some but not all of this may be supplemented with money from the sale of business aids, but after taxes and business expenses such as travel to and from the many functions that a diamond attends would leave a diamond living an relatively upper middle class lifestyle, one with moderate mansions and sports cars as portrayed in many functions or meetings. Yes, a Q12 diamond will have more earnings, but a Q12 diamond is the exception, and not the rule. 

2. Most if not all IBOs ALWAYS sponsor at least one single downline. Pretty easy to develop six (6) downline platinum’s from that point onwards. 

3. A lot Amway products are purchased by IBOs and then sold to customers. Name any business that sustains itself by having it's own workers or salesforce purchase most of the goods. MLM is sometimes mistakenly described as the only business where this occurs. Understandably, it explains why 99%+ of "systems like” Amway make nothing or lose money. 

4. For most IBOs, the cost of functions, standing orders and other support materials are supported by the income generated by their business. It’s the reason why most business building IBOs make money and it also represents a significant profit for some of the diamonds who sell some of the materials.

5. Not working hard is not necessarily the reason for someone's failure. But conversely, working hard does not equate success in Amway. I would guess that out of those who work hard, it is still at least 30% of those hard working IBOs who are smart and attain a significant profit. Doing nothing won't get you anywhere, but in this business, working hard and smart often gets you everywhere. It is my informed opinion that the cost of the support materials is the direct reason why so many IBOs don’t think smart, even out of those who work very hard.

I could go on and on, but these are a handful of facts that IBOs and information seekers should be aware of. I welcome differing thoughts and opinions.

I Didn't Work Hard Enough?

One of the things some IBOs are taught is to blame themselves for is not working the business hard enough or not doing things right, even if they do exactly as upline advised. Actually, nothing could be further from the truth. It's just that some uplines want to be absolved from any responsibility so they teach downline that failure in Amway is their own (The downline's) fault. Some uplines are also quick to take credit for any success, of course. 

But the reason is why hard work doesn't always equal success is because an Amway IBO needs to smart too. Any commissioned sales person is only as good as his last sale. In commissioned sales, one can sometimes work hard for no reward and at times, little effort may reap large rewards. But in Amway, with a smart attitude, Amway IBOs are given a helping hand that simply cannot be beaten. Getting new people to recruitment meetings is relatively easy, not even factoring in the abililty to sponsor others. When factoring in these tidbits, it's easy to see why uplines teach buy from yourself and selling to others is very important. It supports the facts that selling is really easy with our very competitive prices. 

The work involved is very simple. Sell products and get other IBOs in your downline to be able to leverage overall group volume. Many IBOs work hard and attend all of the functions and do all of the steps as outlined by upline and very few fail to reap rewards. In fact most go on to better things when they realize that the system actually works. It is incredible that on top of making money, that successful IBOs can’t understand why others blame themselves for their demise. Where is their upline when those IBOs bust their butts working hard and get no rewards? In some rare cases, to make it worse, some uplines profit from selling training and motivation to their downlines. Why aren't they held accountable? 

I've read comments by some Amway defenders like nyself wanting to sue Amway critics for a potential loss of business. But most critics, are misguided and are simply stating their ill informed experiences and opinions. Many of which are wrong and their experiences never really happened. So I will ask, what about the millions of current IBOs who may have made billions of dollars because of following the claims which led them to believe that they would get rich following upline advice? Maybe former IBOs should unite and file claims against unethical upline leaders who led them astray? 

In any case, hard work without being smart doesn't equate success in Amway and I dare anyone to try to prove me wrong.

Amway Diamonds Pay Cash For Everything?

When I was an IBO, I was always taught that diamonds pay cash for everything. That one day, after following the foolproof WWDB system, that I too, would be strolling on the beaches of the world, with cash rolling into my bank account with no worries in the world. We were told that diamonds pay cash for all purchases, even homes and other large ticket items. As evidence, the diamonds would show slideshows of mansions and sports cars, golf club memberships and other lavish items. All paid for in cash we were told. I have reason to believe that WWDB still teaches this and it seems it is all true.

First of all, in looking back, the group gradually got to know what was paid for and what was not. We could see that a diamond made so much money that everything the diamonds spoke of was true. However, there may have been some events, some very recent that suggested something other than what was told by these diamonds. There were two (2) diamonds whose home foreclosures became public knowledge and a prominent triple diamond who was involved in bankruptcy proceedings. Now your home cannot be foreclosed if it's paid for in cash right? Technically, nobody would care whether a diamond's home was mortgaged or paid for, but when some diamonds parade in front of a crowd bragging about wealth, and then telling the audience that they too will achieve the same success by following the system and upline advice, well that's a bit misleading in my opinion. Some people in the audience are practically crying because they want what the diamonds are flaunting, except that possibly, some of these diamonds don't even have what they are selling. 

An average diamond might make about $150,000 (according to Amway) and let's just say another $150,000 from business related functions. When you factor in taxes and business expenses such as travel to and from functions, what's left over certainly is more than enough to allow you to purchase million dollar mansions. Some higher up pins make even more, but still, purchasing mansions and other luxuries for some in cash is a stretch. It would be my guess that some diamonds indeed have a mortgage on their homes and may even have car payments. That's not a crime but it is unethical to lie about your income in order to recruit new downlines. 

For IBOs and other newbies, if your uplines are bragging about paying for homes and other things in cash, ask them to show proof of these claims. I can show you pictures of multi-million dollar mansions and sports cars, it doesn't mean that I paid for them in cash. But then again, admitting to having a mortgage or having monthly car payments aren’t quite as attractive or exciting as paying for these things in cash.

What Amway Prospects Should Know

One thing that I am aware of as an IBO is that some uplines can profit from our tools purchases. I was in WWDB at the time and I was told very clearly that nobody made money from the tools and in fact, I was also told that WWDB was a non-profit organization. Both of these statements are true and as told by WWDB leaders they have all been verified. We were told that upline cared about us and our success, thus they spent their own money to fly to functions to teach us how to succeed. 

Eventually, the internet and other media made it impossible to cover up the lies from other rogue uplines who finally admitted that they profited from tools. However, it looks like they downplayed the magnitude of the tools profits. I believe some uplines may have made most of their income from tools, especially leaders who may have fallen out of qualification. Now that the uplines admit they make some profits from tools, there is still a great deal of secrecy in the tools business. What makes the whole thing harming is that the uplines allegedly are not supposed to entice Amway prospects into joining by using the tools money as a draw, but at the same time, they are told that tools are vital to their success. 

I wonder how many prospects or IBOs would be fired up about buying tools if they knew that their uplines might not currently be qualified at the level they claim to be, and knowing that the uplines will make a ton of money whether or not you make a cent as an IBO? Also, some uplines are shameless in pushing the tools on downline. Sure they might cut the newest guy a break and loan them some cds, but once that IBO decides to start building downline, they are likely to be told that a real business owner buys their own tools, or that a business owner needs to be a leader and purchase extra tools for their downline.

How would you feel if your upline is touting themselves as a financial genius but in the background, their homes are foreclosed or they have financial difficulties? What if your upline touts their morals and you find out they are divorced or getting a divorce? What if your upline said Amway cures cancer? Your upline certainly won't say they are perfect, but conversely, they should be held to the highest standards if they are using their status to be able to sell tools and make large profits. 

Many prospects and IBOs don't know this, but I hope they take it to heart.