Skip to main content

Recession signs...AMWAY commercials!

What is a good sign that the economy is not doing as well as it could be? A few weeks ago I was watching the boob tube and caught a commercial where the claim was made that their company helped people build businesses. Not a new claim but near the end the advertiser revealed themself as "Amway Global" and I chuckled. Amway is what I like to call a legal pyramid scheme. Anyone that knows how it works, you get recruited by an Amway "business owner" who was previously suckered...I mean recruited by another "business owner" at some time in the past, they sold you on the idea of having the "freedom" to work as you want to work in "your own business". Usually, as an initiate unaware of how they plan to help you start "your business" you are invited to attend a meeting at a hotel, if you don't have money to go don't worry usually the recruiter will offer to pick you up and drop you home. When you finally get to the "event" you realize within minutes that you are in for something cult like. Usually various individuals are paraded out and recognized as top business owners with various titles commensurate with their level of achievement in the business. As the meeting gets to the meat of the matter you realize that a) this isn't about starting YOUR business it is about you working on theirs b) it requires that you essentially become a sales man and c) Amway sits back happily taking a cut of every sale you make as their loyal low paid/relative to the profit you bring from product sales footperson. Well Amway is able to avoid being a true pyramid scheme by actually paying out some money to the ants at the bottom of the pyramid but by no stretch of the imagination is that amount the road to freedom that they promise. Doing well requires that you dedicate yourself to the sales business and to recruiting others (from whome you get a commission if they start selling) this makes you into essentially a zombie, biting others to keep the spread of death going...meanwhile none of you are doing the business YOU wanted to start but are making money for Amway.

I know about the details of the scam ...er business because when I was consultant at Chase I was approached by one of their agents who claimed to be an attorney (why he was doing this on the side I don't know) he offered to bring me to the meeting (the only way I was going) and within minutes I knew I had wasted my time doing even that. At the time I wanted information on how to start MY business (incorporation, taxes, marketing...etc.) but Amway as stated before is not interested in what you want, it is what they want you to do for them. This takes me back to the commercial which I've now seen about 4 times since the first time, indicates to me that the number of people who are having difficulty making ends meet is going up and Amway is targeting these people who think it is a good time to start a business (historically it is only good for a few niche businesses!) it appears the wolf is out on the grass lands ready to cull some sheep. I provide this story to those that may have been approached to attend a meeting only as caution, you may be able to make money but the "business" Amway is selling really is not about your personal dream fulfilled in the way you might have envisioned before hand.

http://en.wikipedia.org/wiki/Pyramid_scheme

Comments

dig4truth said…
Not sure if I fully agree with you. I've heard from many, that just like all businesses, as long as you have a product or service that someone wants or needs, then you have a legit business. In addition, I find it strange that a so called "business cult" has presence in over 78 different countries and territories. From what I know, Ada, MI is on the map just because of that business. Museums, stadiums, and other landmarks are named after the owners.

I have heard that countries like Korea are fighting malnutrition thanks to the Nutrilite brand and through the concept of Free Enterprise that we know in our country, is spurring in these new countries. As I sit here in this cafe, I am reminded of Free Enterprise by the owner I see that is here, and her two employees. Both take a roll in Free Enterprise, but only one calls the shots. I've heard that Amway Global is not for everyone. You don't like sales, you won't make money right out of the chute! You have to retail, and that's just a fact. There isn't any head hunting fee like some businesses. Compare this business to a pyramid, you might as well throw the Government of every nation right in there as well. Who's at the top? Exactly. The one making all the money.

It's because of that, the concept of network marketing is not a pyramid. Anyone can make as much or as little as they choose. At least that is what I understand.

Interested in your thoughts.
David said…
The argument that a legit business is one that offers a service or product to feed a demand would be questioned by the American government as it continues the billion dollar fight against illegal drug imports and sales! Surely the person you reference meant to apply some qualification, for as it is written the statement represents the ulimate "lessez fair" free market.

I didn't want to get into a discussion over weather or not Amway is a pyramid scheme other than to point out the similarity in the sales and marketing process that both employ. (I didn't say it was one, only that it was "like" one. ;)) As I stated in the post, it is legal, however what I found most interesting is the appearance of the commercials at this time of an economic down turn in America. Also, it is true that if you have your own ideas for business that don't have anything to do with selling Amway's arguably over priced products for them, you will not be able to pursue those dreams and must instead focus on running the Amway business by proxy through you. Doubtless Amway is doing quite well with this business model and the success you alluded to (but which I've not confirmed) may be indication of that success but that doesn't negate the point that selling business for Amway means NOT selling or marketing the business that you might have had in mind before being recruited by an Amway representative.

I only state my experience as caution to those who are sold the idea that they would be running their business concept when in reality they will be little more than low level sales agents for the multi-national conglomerate that is Amway global and its specific line of products.


Thanks for stopping by.
Aus Ex IBO said…
I agree with dig4truth, Amway in itself is a good business with great products. The problem is the tools business that goes with it. If your intention is to make some extra money retailing products, Amway might be for you. There is nothing wrong with networking, but if you expect to recruit all your friends and have them do all the work, expect to be disappointed.
Well certainly David wouldn't have accomplished much either in Amway or his own field, before trying to criticize a $8 billion operation in 78 countries, growing tremendously since last 50 years.... I am sure, an intelligent qualified business owner would trust Better Business Bureau, FTC, Dun&Brad Street, thisbiznow, Olympic atheletes, etc and other credible authentic sources like BoA, OfficeDepot, IBM, Dell... If one has heart surgery, he goes to a heart surgeon who has knowledge & experience, not to a plumber, just because they both deal with pipes... You need a team of attorneys & lawyers to defend/criticize a multi-billion dollar multi-national operation, not some rinky-dinky blogger
Anonymous said…
I got ripped off by Amway! I caught the bait and lost $150 in membership fees. In the end, I learned that Amway benefits the top dogs, and feeds off of the "guys at the bottom." Yeah, $8 billion is sales thanks to all the suckers who lost $150 in membership fees like i did!

Amway is a selfish, pyramid business that benefits the few in the top while it starves the multitudes in the bottom. It looks like Pre-Revolution France to me!

Unfortunately, our world today continues to see mass poverty as millions starve to death every year, regardless of Amway or any other MLM. The true fair business will happen when Jesus Christ returns to the Earth and sets up his Kingdom of Heaven on Earth, where all peoples will have peace and no more starvation until then, Lord your kingdom come soon!
Xavier said…
This comment has been removed by the author.
Xavier said…
I don't agree with you. I heard of the Amway business all my life, but I never put much interested in the concept because I grew up in industrial era, which is work hard for a company 20yrs and retired. Well the concept does not work anymore big company are cutting their cost and going out of business. For example I was laid off from a banking company and work in sale now a part time job selling phones. I became an Ibo(independent Business Owner) about three years and I'm glad I did because while I had a great job I thought I would never loose I build the Amway business on the side, and I never thought it would became my bread and butter. I personally believe individuals make this business work; I'm amazed the company like Alticor gives me chances to sell from their inventory with a 30% profit in the products plus the benefit of residual income. My statement to people is so what if it takes you a year of two to build a clientele of 100 to 200 people that buys from you toothpastes, detergent, gel, vitamins, make up, dish soap etc. Which in fact are going to buy anyways from their local Wal-Mart why not buy it from you. You will be making a dicent income. I'm have not become wealthy from this business, but it helps paying my son health insurance and groceries, and car payment. I also enjoy helping other people do what I have done. I was attack by closed friends when I started this business I have hear a lot of "no”, “I would not buy from you.”, “that business does not work”, is a pyramid scheme" I hear it all. My answer to thoses critics is my check I received every month are real, plus the profit I made from the products I sell. The pyramid scheme is the government, the big companies such as Wal-Mart, target, etc,,,I don't hear them saying to anyone join us and make money with us. I understand that our business may not be for everyone, but is unfair to say that it does not work or that it is a pyramid. This industry it been approved by congress. Think about this Mc Donald’s is a Network business as well. The reason you don't see everyone owning a McDonald it take too much money to own one. This business is for people like me who did not have a lot of money to invest. Well I keep having great experiences with Amway, I'm glad Jay Van Andel and Steve DeVos decided to make this concept a reality. Like a I say I'm a wealthy person Yet  and I don't drive a Mercedes Benz or BMW , but it help me pay my Chevy Malibu, and who knows I made become wealthy one day, I don't think I can offend anyone dreaming that one day I can be wealthy, stress free and my own boss. : ) it great to dream!!!Well those are my thoughts Xavier St Bellini
Tony Morales said…
Hello, Anonymous: (1 of several sequential comments)
(hope you can read them all completely)

My apologies for not addressing you with your name, but I could not find it.

My name is Tony Morales, from P.R. and Florida and I have been an AMWAY IBO and entrepreneur for 22 consecutive an uninterrupted years, having made this my career, along with my beloved wife, both of us also being Christians and believing that JESUS CHRIST IS coming back to earth to set up HIS kingdom here.

We DO NOT mix our business with politics or religion out of respect to other ideologies or political views

As a Christian, I have learned through the WORD to praise; and not to criticize, complain or condemn.

You mention in your comment that you got ripped off? by AMWAY????,... but how could that be, if you have 180 days (that is 6 months) to return your membership for a FULL refund of your membership fees if you are NOT satisfied with your experience?

Some IBO's get in and then get out.
We got in, and stayed in.

I can assist you with getting the right information, obviously from the source itself, so you may have an informed status of this industry and of this legally bound (Yes, legally bound) company, which operates in over 75 countries and territories and is larger than Yahoo.
It is a debt-free company (which only a few can claim so) and sales were approximately US$8.2 billion in 2007-2008.
(Yes, The recession year)
Up from approximately US$7.4 Billion the year before.
This year's numbers will be made public and broadcasted on the news in the following weeks.

The fact that we have Partner Stores like Bank Of America and SEARS, along with IBM, Office Depot, DELL and APPLE should clear up any uninformed hearsay.

Maybe in your particular situation you were not willing or did not set aside time to do what needs to be done to attain success in this industry, (which by the way; is exactly what needs to be done in ANY industry to achieve ANY level of success) ; but I can assure you that like with any other venture, this requires work to accomplish success.

It is NOT a freebee, nor is it a scam.

By working it, I am referring (but not limited) to:

HAVE A REASON TO START
INVEST (initially, and continually)
ASK FOR GUIDANCE (as we DO as Christians)
START
ASK FOR GUIDANCE (not assuming we know it all)
WORK (because it is not easy, it is simple)
ASK FOR GUIDANCE
HAVE SETBACKS (as every endeavor has, including spreading The Gospel)
ASK FOR GUIDANCE
CONTINUE WORKING (not expecting it to be magical)
ASK FOR GUIDANCE
HAVE SETBACKS CONTINUALLY (as every endeavor has)
ASK FOR GUIDANCE (for continued education)
KEEP WORKING (nothing is FREE)
ASK FOR GUIDANCE
ACHIEVE SUCCESS EVENTUALLY (be proud of your achievements)
TEACH OTHERS (this no traditional business owners out of the franchising industry will do)

(Achieving success in this business or industry could take you maybe a year or 2 or 3 or 5 or even 30 or 40, which is what we coincidentally do in our jobs or professions anyway, with the notable difference of a good or not so good retirement fund, pension, plan or income)

Our income is residual and inheritable.

I can sense your disappointment with probably the person or IBO's with whom you started, but it seems arbitrarily unfair to relay that frustration towards the company, when they train and instruct ALL of US with their RULES and GUIDELINES to build an AMWAY business, and it is each individual who decides how to create trust or distrust with the potential IBO's he or she contacts to start them in their own business, and believe me; IT IS your (or mine) own business.

Make no mistake about that.



(...to be continued...)
Tony Morales said…
...CONTINUED...

Make no mistake about that.

The Amway company pays, and they pay well above any other industry out there, MLM or not.
That is; to the average individual like me, who did not have a Summa Cum Laude from a College or University.

In 50- years, NOT ONE BOUNCED CHECK IN ANY COUNTRY.
Can everyone say that about the company which pays their check?

Their Annual Revenues ARE NOT from memberships, which is the smallest part of their income.

Those US$8.2 BILLION (dollars) worldwide come from the sale of the highest quality guaranteed products you can find at the best price and cost per use.

Having uninterrupted success and leadership for 50 CONSECUTIVE years (probably older than you and I); is quite impressive, for any company.

Being approved and validated by the US Better Business Bureau, The Federal Trade Commission, and the Dunn & Bradstreet Report for more years than you can probably believe, states trustworthiness and market leadership and strength.

Not only IS IT NOT a PYRAMID, it is exactly the OPPOSITE.

Anyone and everyone begins exactly at the same starting point, and at the top, there is enough room for as many successful IBO's as there are.

It is not a cult, either; as many uninformed critics and unsuccessful former IBO's try to make people believe.

Time will prove them wrong, and will prove AMWAY right, although critics will never recede, due to personal pride and basic ignorance.

Pyramid schemes have many on the bottom pushing someone on the top, not moving real products, nor having a legality to operate.

The only 'LEGAL' pyramid, unfortunately; is the government

AMWAY is used by the legal authorities to measure and see if other MLM companies are legally bound, an if they are; then they may operate under the same strict guidelines these legal authorities have AMWAY legally bound by to operate.

Why is it so difficult for you and all other critics to understand that AMWAY IS LEGAL?
Because it would prove they do not have arguments against it. And their pride is too large to recede.

There have been many many IBO's who have not followed the rules and have done things we or the company does not approve.
That only means, where there are people, there will be challenges.

The REAL way to build an AMWAY business CORRECTLY is to show and present the opportunity (WITHOUT DENYING IT IS SO, OR DECEIVING ANYONE TO LURE THEM TO ANY MEETING) as it is.
Teach them how to SELL products (to make money legally and honestly)
To sponsor new IBO's and TEACH them to earn income themselves.

A sponsor DOES NOT make monies OFF of an IBO in his group. AMWAY pays a sponsor FROM AMWAY'S PROFIT, AFTER the sponsor moves volume him or herself (so it won't operate as a pyramid); and has registered clients.
We do not recruit IBO's so they sell or work for us or for our benefit.
This is not only false, it is not even possible, nor is it moral.
The training and learning tools ARE TOTALLY OPTIONAL, and not required to start or operate an AMWAY business.
In your job, the training tools are required, whether you like it or not; because you are NOT your own boss.

(...to be continued...)
Tony Morales said…
...continued...

...your own boss.

Last, but not least:
FOR SOMEONE TO STATE THE AMWAY BUSINESS DOES NOT WORK, MUST HAVE BEEN WORKING IT CONSISTENTLY FOR AT LEAST A REASONABLE AMOUNT OF YEARS (as you would a job or profession) TO BE ABLE TO SAY SO.

AND PROVE IT.

THIS MEANS DOING THE FOLLOWING DAILY:
(including, but not limited to:)

*SELL PRODUCTS
*SHOW THE OPPORTUNITY
*CONTACT A POTENTIAL CUSTOMER OR IBO
*READ AMWAY CORPORATE MATERIAL/TRAINING TOOLS
*ABIDE BY AMWAY RULES & CONDUCT GUIDELINES
*OPERATE IN FAIR COMPETITION WITH OTHER MLM's

So, my fellow bloggers, before throwing rocks and stones to what we DO NOT LIKE APPROVE OR UNDERSTAND; are we offering a better opportunity to people starting their own business?
Will we pay their bills if we convince them to NOT build a successful AMWAY career?
Have we consistently built an AMWAY business at all?
Do we have all the answers?
Do we know all the facts?

My dear and beloved brothers and sisters:
Think before you speak, and have all the facts before you write, because you could be portraying yourselves as only gossipers, not serious business people.

May you have a blessed and successful year in your field.

Blog to you soon,

Tony Morales
AMWAY DIAMOND IBO
IBO Since 1987
(The comments here DO NOT represent those of AMWAY GLOBAL or any of its IBO's or any affiliates or any Partner Stores.

Popular posts from this blog

Highly targeted Cpg vaccine immunotherapy for a range of cancer

Significance?


This will surely go down as a seminal advance in cancer therapy. It reads like magic:

So this new approach looks for the specific proteins that are associated with a given tumors resistance to attack by the body's T cells, it then adjusts those T cells to be hyper sensitive to the specific oncogenic proteins targeted. These cells become essentially The Terminator​ T cells in the specific tumor AND have the multiplied effect of traveling along the immune pathway of spreading that the cancer many have metastasized. This is huge squared because it means you can essentially use targeting one tumor to identify and eliminate distal tumors that you many not even realize exist.

This allows the therapy for treating cancer to, for the first time; end the "wack a mole" problem that has frustrated traditional shot gun methods of treatment involving radiation and chemotherapy ...which by their nature unfortunately damage parts of the body that are not cancer laden but …

Engineers versus Programmers

I have found as more non formally trained people enter the coding space, the quality of code that results varies in an interesting way.

The formalities of learning to code in a structured course at University involve often strong focus on "correctness" and efficiency in the form of big O representations for the algorithms created.

Much less focus tends to be placed on what I'll call practical programming, which is the type of code that engineers (note I didn't use "programmers" on purpose) must learn to write.

Programmers are what Universities create, students that can take a defined development environment and within in write an algorithm for computing some sequence or traversing a tree or encoding and decoding a string. Efficiency and invariant rules are guiding development missions. Execution time for creating the solution is often a week or more depending on the professor and their style of teaching code and giving out problems. This type of coding is devo…

AgilEntity Architecture: Action Oriented Workflow

Permissions, fine grained versus management headache
The usual method for determining which users can perform a given function on a given object in a managed system, employs providing those Users with specific access rights via the use of permissions. Often these permissions are also able to be granted to collections called Groups, to which Users are added. The combination of Permissions and Groups provides the ability to provide as atomic a dissemination of rights across the User space as possible. However, this granularity comes at the price of reduced efficiency for managing the created permissions and more importantly the Groups that collect Users designated to perform sets of actions. Essentially the Groups serve as access control lists in many systems, which for the variable and often changing environment of business applications means a need to constantly update the ACL’s (groups) in order to add or remove individuals based on their ability to perform certain actions. Also, the…