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Thursday, August 26, 2021

What's The Big Deal About Amway?

 I have debated with Amway supporters over the years, and I have yet to understand what they find so appealing about the Amway opportunity. Is it possible that some of these Amway defenders are so naive or delusional that they truly believe that a business in which one out of every few hundred people has a chance to make a profit while the vast majority of the remaining IBOs lose money is a good opportunity? I'm not referring to those who sign up and then do absolutely nothing. Many independent business owners (IBOs) sign up and invest a significant amount of time, effort, and money only to discover that the system does not work (particularly in the United States), and they make the business decision to quit and/or to pursue other opportunities.

There are, of course, some people who make money with Amway products. If no one profited from the opportunity, the opportunity would be lost forever. However, the majority of upline success can be attributed to the exploitation of the downline as a whole. As a result, upline earns income from the PV volume of their downline, as well as from tool purchases. I mean, even a lottery has winners, you know what I mean. Even ponzi schemes and other dubious opportunities have a few successful participants. This is not to imply that Amway is illegal; rather, it is to point out that the way the opportunity is set up, those who profit do so primarily at the expense of their trusted downline members.

As far as I am aware, there are no groups in which all IBOs can win and make a profit at the same time. Assuming the existence of some fringe groups that are solely focused on retail sales, while these groups can be profitable as a group, they are either non-existent or few and far between in number. This is due to the fact that the majority of IBOs are affiliated with a LOS such as WWDB, BWW, LTD, or N21, and all of these organisations appear to be focused on recruiting new IBOs. Yes, they may sprinkle in some suggestions for selling products, but their "training" materials are primarily comprised of motivational speeches, feel-good stories (whether true or not), and the theme of never giving up while continuing to acquire additional tools. The primary goal of the tools is to motivate and educate you on how to recruit more Independent Business Owners (IBOs), which is critical to Amway's continued existence.

Some uplines have the audacity to begin teaching their downlines that their Amway business is not about making money, but rather about saving your marriage, making you a nicer person, or providing some other diversion to keep you from thinking about how much money you are losing month after month after month. Some organisations even incorporate religious and political themes into their functions and meetings. As far as I can tell, the typical business-building IBO enrols, receives some tools, and attends a few functions before discovering that the products are difficult to sell because they are not priced competitively with other retailers, and that a damaged reputation is nearly impossible to repair. These IBOs have realised that they are not going anywhere, and they have decided to walk away, considering their losses a valuable life lesson. However, it appears that many uplines who have lied and deceived in the past are continuing to do so today, often by simply revising history to their own advantage (i.e. lying about making any profit on tools).

There are many IBOs, prospects, information seekers, and detractors who read this blog. My question is very straightforward. What is it about the Amway opportunity that is so appealing? For the majority of people, it is simply a waste of their time and money. However, while I'm sure there are people out there who "did the work once" and then sat back and collected barrels of Amway money while sipping Mai Tais on the beaches of Jamaica, I don't personally know anyone who has done that. Crown ambassadors are still working as hard today as they were many years ago, and some are dying while still on the job, as I have witnessed. There have been reports of diamonds losing their homes to foreclosure, a prominent diamond entering bankruptcy, and a hoard of WWDB diamonds purportedly selling off mansions that they allegedly paid for in cash in the past. (It is abundantly clear to me that their way of life is simply not sustainable.)

Is there a benefit in the business for a typical independent business owner? There are some lottery winners, just as there are some diamonds in the rough. The presence of a lottery winner does not imply that it is a good idea to spend your money on lottery tickets. Amway is not a good business opportunity because it promotes the lifestyle of diamonds. However, while Amway is a business and not a game of chance, the outcomes of both are eerily similar: a small number of winners and millions (or more) of losers in both cases.

What is it about the Amway opportunity that is so appealing? It's not there in my opinion.

Amway is a firm that has been in business since the 1950s and engages in direct sales. It is now one of the most successful multi-level marketing (MLM) firms in the world and has a presence in more than one hundred countries and territories. Amway, despite its scale and global reach, has been the subject of controversy and criticism, particularly from former distributors who allege that the company's business model is unsustainable and that its claims of financial success are misleading. In particular, former distributors have claimed that Amway's promise of financial success is based on a pyramid scheme.


Exactly why is everyone talking about Amway? The following are some of the most important things to keep in mind:


Amway's business strategy is built on multi-level marketing, which means that distributors are incentivized to bring other people into the company so that they can receive commissions on the sales of those new distributors' products. This can result in a structure similar to a pyramid, with individuals at the top generating more money than those at the bottom of the structure. Because only a small fraction of distributors are able to make a considerable income from the MLM model, its detractors contend that the business model is fundamentally exploitative and cannot be maintained over time.


Amway's product line consists of a diverse assortment of goods, including those that cater to one's health and appearance as well as their homes. Some former distributors have expressed their dissatisfaction with the quality of these products, stating that they are overpriced and do not fulfill their advertised purposes. Others have brought up the fact that a number of these things may be obtained from other places, at lesser costs, and they have pointed this out.


attention on Recruiting Some people believe that Amway places an excessive amount of attention on recruiting new distributors rather than on selling the actual products that they manufacture. According to them, this results in a culture of pressure and manipulation in which distributors are encouraged to make false promises and overestimate their revenue potential in order to recruit others into the business. They say this results in a culture of "pressure and manipulation."


The possibility of achieving one's financial goals and gaining independence is one of the most appealing aspects of the Amway business opportunity. Former distributors, on the other hand, have asserted that this promise is deceptive and that it is highly doubtful that the great majority of people who join the organization will make an income that can be considered significant. They contend that the expenditures of engaging in the company, such as making purchases and going to events, frequently outweigh the potential revenues that might be made by doing so.


Amway has been accused of running a pyramid scheme in a number of different nations over the course of its history, and its distributors have also been accused of being misled about the possible earnings they may make by selling the company's products. Despite the fact that the corporation has not been found responsible for any criminal activity, the legal problems that it has faced have added to its reputation for being controversial.


In a nutshell, the thing that makes Amway such a big deal is that it is a firm that has a business strategy that has been criticized in the past and has been the subject of legal disputes. Some people have been able to achieve their goals by becoming Amway distributors, while many others believe that the company's claims of being able to achieve financial freedom are both deceptive and unachievable. Before determining whether or not to spend your time and money in a certain business opportunity, it is critical to conduct a thorough analysis of the dangers involved as well as the possible benefits.


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