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Sunday, August 29, 2021

The Real Amway Scam?

 Amway has been in business for quite some time. For a while after the company's founding, it wasn't uncommon for people to knock on doors and sell items they had purchased through a radio flyer. This was done as a way to supplement their income. There was no substantial training programme, as far as I am aware, and the company did not have the negative connotations that it does now, either. However, in today's society, when individuals refer to Amway as a fraud, they are usually referring to the motivating leaders and the systems that they have set up to support them. I believe that the systems were originally created as a legitimate mechanism to train distance groups, but that the cash and authority that systems provided attracted some upline leaders who turned out to be con artists. As a result, I believe that many, if not the majority, of systems are infected. I have personally experienced and continue to hear accounts of IBOs being pressured to go into debt or forgo fundamental family needs in order to purchase more system supplies, which I believe is unethical. Amway's involvement in this is based on the fact that the company was aware of the abuses yet did nothing to address them.

But, when you look at the programme in its entirety, what are the benefits? Many Amway apologists are eager to point out that many Independent Business Owners ("IBOs") "do nothing," which may be true, but for the purpose of argument, let's not even examine the ones that do absolutely nothing. Take, for example, the 6-4-2 recruiting strategy that many organisations employ. It consists of 1 IBO and 78 downline members, each of whom does 100 PV. This concept also appears to presume that independent business owners (IBOs) will be a part of the system, presumably since non-system IBOs often do not have the dedication to constantly moving and selling things. For one thing, many systems tell IBOs that they are successful even though their business is losing money. One platinum, purportedly the break-even point for system IBOs, and 78 non-platinums, who spend money on items and end up with a net loss if they are not loyal to the system, are represented in 6-4-2.

It goes without saying that system expenses differ depending on the system you are a member of. I've heard IBOs say that their system expenses can range from as little as $75 per month to more than $1000 per month for hard core, completely dedicated IBO systems. I've issued a challenge to anyone who can demonstrate an actual platinum group in which the collective group produced a net profit after system expenses have been taken into consideration, which no one has ever done before. Anyone who disagrees with this statement has never stepped forward to prove them wrong. However, I do not believe that a group of prosumers or "buy from yourselfers" will ever be able to generate a profit as a result of their combined efforts.

As a result, Amway IBOs and prospects should keep in mind that the system is frequently the source of failure for many IBOs in the company. A commitment to any system will almost certainly result in you incurring a net loss as an IBO, regardless of how good the system is. Is it still possible to be successful? Yes, but your chances of winning a large lottery prize are comparable to those of someone who wins a large lottery prize. At the very least, purchasing a lottery ticket will not take up a lot of your time.

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