When people look at the Amway strategy, it appears to make some sense. You need to recruit six people to go direct, and you will have residual and willable income for the rest of your life if you do so in 2-5 years. You will then be financially independent, and you will be able to spend your days roaming on exotic beaches while checks continue to arrive. A lot of people are drawn in by this and decide to take a closer look and possibly even give Amway a try. After all, who wouldn't want financial independence as well as the flexibility to pursue some of their most cherished ambitions? Isn't it true that only a fool would pass up such an opportunity?
While Amway appears to be a sound business model on paper, a number of factors conspire to ruin this plan for financial independence and infinite fortune. As I've written on this site over the years, I've challenged Amway fans to name a few of people who are financially independent and spending their time wandering the beaches while the money flows in. In line with expectations, no one has been able to identify a single person who has achieved some level of success in Amway and is now content to sit back and enjoy the money that continues rolling in. We've even witnessed crown ambassadors pass away while remaining actively engaged in the business.
So what is it about IBOs that prevents them from achieving their goals? In my perspective, the deck is stacked heavily against them at this point. A rare individual may indeed become diamond, but such an occurrence is extremely rare and on par with winning the lottery in terms of rarity (even though Amway is not a gambling enterprise). I'll go ahead and list the reasons why IBOs are participating in a game they can't win, despite the fact that they believe they can. Unfortunately, this is the terrible part: the upline is encouraging the downline to "never quit" despite the fact that they will "never succeed."
The system is designed such that only a small number of people will be successful. Even under the normal 6-4-2 plan, where everyone performed well enough to qualify for a bonus, there is one person at the top of the pyramid with 78 downline who earns less than the average. In reality, the vast majority of IBOs do little or nothing. When you visit Amway.com, you may view income declarations that illustrate how few people make it to the upper levels. Only a minuscule fraction of one percent of the population achieves the highest levels. Even achieving platinum status is a significant accomplishment, and platinums may not even generate a net profit as a result of company expenses.
Product packs, brochures, CDs, books, voicemail, and functions are all examples of business expenses that can mount up to large costs over the course of a single month. If you want to achieve financial independence, you'll be expected to participate in the educational system, and these expenses will more than likely be the source of your business losses. Keep an eye out for upline members that encourage you to go into debt in order to purchase training.
The products, as a whole, do not compete well in the market. Sure, the Amway Independent Business Owners (IBOs) may try to sell you on the fact that their products are concentrated or of high quality, but let's face it, consumers aren't interested in high-grade soaps and home cleaners. Everything about the equivalent products that you can obtain at Target or WalMart for a fraction of the price is fine, in fact. When your products are unable to compete on an equal playing field, on what basis do you expect to be able to sell these things? As a result, many independent business owners (IBOs) become "self consumers" and end up with no genuine customers.
Amway's reputation has been tarnished. The vast majority of people are either personally acquainted with or know of someone who has had a negative experience with Amway. People have formed an unfavourable opinion of Amway as a result of IBO actions in the past. It's possible that those who have been duped or lied to in the past have contributed to this problem. Combine it with the fact that so few people truly make money, and this business becomes an almost insurmountable obstacle to overcome. Even those who succeed frequently find themselves out of qualifying within a short period of time.
These considerations lead me to the conclusion that the Amway business opportunity is a game that IBOs simply cannot win, even if they learn from their upline and exert considerable effort. And the longer you play, the greater the magnitude of your loses. Before pursuing any business opportunity, make sure you have done your homework.
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