According to Amwayers, one of the most common justifications they employ when defending their business is the assertion that the military, the church, or your work is a pyramid scheme. Even though Amway was ruled not to be illegal in 1979, that judgement, as far as I am aware, was based on the premise that independent business owners (IBOs) provided goods and services to clients who were not affiliated with Amway. I'm curious as to what a review of some of AMO's current teachings would reveal. In my opinion, the buy from yourself concept is an unlawful product-based pyramid scheme, but that is a topic for another discussion. When it comes to the military, the church, or my place of employment, there is a distinction between an organisational hierarchy and a pyramid.
It is possible (but appears to be extremely rare) to generate money in the Amway business by primarily selling products to customers. However, in order to progress through the levels, particularly the more wanted ones such as emerald or diamond, you must sposnor downline. As a result, in order to achieve and maintain these higher levels, you will require a large number of downline members to move volume for you. A typical diamond-ship will most likely have a minimum of 600 IBOs and more likely a thousand or more downline IBOs, according to industry standards. While many independent company owners (IBOs) may take a casual attitude to their businesses and fail to move much volume, a higher pin would necessitate a core group of motivated and dedicated IBOs who "do the job" and move the volume.
Because they are typically those who become entangled in the system, which consists of standing orders, voicemail, books, and functions, it is unfortunate that it is usually the most hardworking and dedicated IBOs that suffer the biggest losses. In this company, hard labour does not always translate into tangible results. Furthermore, because workers frequently leave the company, you are continuously working to find replacements in order to keep the volume moving forward. Unfortunately, many people do not realise that it will always be necessary to have approximately a thousand or so IBOs to maintain a diamond. When you factor in attrition, it would take thousands of people over a long period of time to support a diamond in the rough.
In order to obtain diamond status, someone would need to form a group that is able to keep up with attrition in order to continue to expand. Unfortunately, after a number of years, thousands of IBOs would have to be making nothing or incurring losses in order to support a diamond. A win-win situation in which the diamond makes money together with all of his or her downline is something I have never heard of. As a result, Amway has drawn similarities to a pyramid structure. There are some individuals that are making money, but it is usually at the price of their downline in the form of increased volume and tool sales, among other things. This is the way things are, and this is how the compensation plan is designed. Many people feel that you can "choose" to be successful, but this is not true since you require the infrastructure of your downline to support you. Ultimately, and this is the most important point, most business building IBOs experience losses, even when they work hard and follow their upline's recommendations. More stories like these can be found on the internet than I can keep track of. Even the most ardent of Amway defenders cannot demonstrate that they have made any significant contributions to the company.
When constructing a pyramid, hundreds of blocks will be required to construct the lower levels, yet just one block will be required to construct the topmost top of the pyramid. What gives you the impression that you will be the top block?
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