Friday, April 13, 2012

Amway platinum's income

A common question a prospect has when looking at the Amway IBO business plan is how much does an Amway platinum really make. The brochure given to them says the income for

Q12's & above is about $55,000/yr

so the prospect thinks that is what a platinum makes and all the platinums paraded at the end of the open meeting business plan actually makes.

If you look at the 6-4-2 plan, it shows a platinum makes about $2,700/month. They also say in the plan that if you maintain that for 12 months, you get additional bonus of $20,000 and your income will be over $50,000/yr. Those numbers are correct, provided you have that exact 6-4-2 business.

But here is the truth:

It is a highly impractical example and it is 100% sure that you will not go platinum with a 6-4-2 business.

To really understand the plan, you need to do some math. The way your bonus is calculated is through differential, not your total PV. What this means is that if you have lot of width (personally registered IBO's) and the volume coming from each leg is roughly the same, like the 1300 PV shown in the 6-4-2 plan, then you will make money.

But now (especially with the philosophy/technique of tap-rooting) your upline will take all your contacts and put them in one leg for you, one below another, and build depth. Yes, it helps build stability to your business that way, but the security and the money is only for your upline initially (provided he has other legs). You are, of course, still "learning". Your upline will try to find someone who will build another leg by himself. It may be you, or someone below you. Let us say, you are really fortunate and your upline built 1 solid leg for you (which in itself is highly unlikely). Now you have 1 leg with 4000 PV and let's say, you did 150 PV yourself. Do you know how much money you will make?

Your maximum total will be around:

4150 PV * 3 BV/PV * 21% = $2,614.50

(21% is the PV bracket for 4000 PV to anything below 6000 PV)

Is that the money you make? NO. That is the money paid to your entire group.

Your downline went 4000 PV, so he and the group below him will make a total of

4000 PV * 3 PV/BV * 21% = $2,520

So your check from Amway will be for

$2,614.50 - $2,520 = $94.50.

Great income, eh?

The lesson is - you should not be in the same PV bracket as any of your downlines. If you are, then you won't make much money.

Do you know how many legs majority of the Amway platinums have?


So how much money will they make?

With two legs, the maximum you can make is when both your legs do equal PV. Let us say, they both are 4,000 PV and your total is 8,000+ PV and you crossed 7500 PV that month. Now you are in 25% bracket and both your legs are in 21% bracket.

The money you will make is (assuming you do 150 PV yourself):

(8150 PV * 3 BV/PV * 25%) - (2 legs * 4000 PV * 3 BV/PV * 21%) = $1072.5

Not bad money, but 99% you won't go platinum this way. You will have one 6000 PV leg (23%) and you will scramble for some PV to go 7500, so you will end up stocking up 1500 PV worth of products and lose about $1000+. Or your downline will go 7500 PV and you won't have anything on the side and you will be a "pushed silver" i.e. someone who went 7500 (called 'silver' when you go 7500 PV first month) without doing any work.

They you will realize you need to build a 2nd leg to make money. Only when you build a strong 2nd leg you will see some money. That is a LOT of hard work, so don't believe it if they say money will come easy to you. When you have two strong legs and build a third leg, you will see some good money coming in. Of course, there are people (0.0001% of 'active' IBOs) who have built 6 & more legs, but just know the facts before you "go for it".

Amway/BWW justifications

If you have read my other posts, you know how professional Amway diamonds and IBOs are when it comes to telling lies. But in their minds, they always justify the lies they are telling as truths, and that too, very convincingly. You see, when you lie, your conscience is pricking you from the inside, so you try to justify to yourself and to others that you are actually not lying.

If you listen to Kumar and Anjali's diamond story, Kumar says he had to 'somehow' get people to functions. If the function is in Gatlinburg, Tennessee, which is 14 hours away from New Jersey (where Kumar and his prospect/downline live), then he would tell the function is "6 plus" hours away. Kumar justifies this by telling he is not lying and 14 is indeed "6 plus". Yes, 14 is "6 plus", but you see, that is the amount of truth in many statements made by Amway diamonds and IBOs.

When they quote the average incomes for Q12's they always quote like
Q12 platinums & above - $55,000/yr
So people think that an average Q12 platinum makes $55,000/yr. WRONG! They added all the Q12's and above, which means all emeralds, diamonds and above too, so there are a few people whose incomes are huge that will skew the average for Q12's higher!

Another example: a common 'prospecting' statement used by Amway IBOs to strangers is
"Hei, you look familiar. Have we met before?"
even though they know they never met this person before. Again their conscience is hurting when they lie that way. Amway diamond Vishal Jain justifies this nicely by telling
"Of course, I have seen human beings before. He has 2 eyes, 1 nose, 1 mouth, 2 ears, so he does look familiar. Every human being looks familiar to me."

These are just two examples, but many statements made by Amway/BWW guys are as truthful as the above.

The irony is that Amway IBOs think they are actually doing good to people by making them do anything for Amway/BWW, so they justify to themselves that lying to their prospects/downline is actually OK.

Tuesday, December 14, 2010

Why many Amway/BWW IBOs stay confused

I was thinking today why I did not quit any earlier than I did! This is what happened to me (and I guess this is what happens to many IBOs who do not make money).

Initially you get attracted to something some speaker says, or something you listen on a CD or you are impressed by a particular IBO's qualifications. You start getting around the system as a naive, new IBO and want to believe that everything they say from stage is actually true. From the outside, i.e. as an IBO who is simply new and excited, everything looks very exciting, everyone looks very happy, everyone loves you and talks nicely to you - there is nothing negative. Your upline actually may give you enough time to soak into the system. You may not have even sponsored anyone, but you stay excited for the first few months.

The first time you may face a confusion is if there is an up line promotion or leadership, like a 600 PV or 1000 PV leaderships. In my experience, you may qualify first time for these events one of two ways:

  • by simply buying the products yourself. I, my sponsor and 4 of my downlines qualified this way for several 600 PV and 1000 PV leaderships. You can hear on double diamonds Kumar & Anjali's CDs/tapes that Kumar also qualified this way for his first 600 PV leadership. You can also hear him say that the first time he qualified silver, many of his down lines were made to buy several water treatment systems... it is very funny when you hear him say that he did lamaze classes (push... push...) on his down lines when he went silver. Yes, funny to hear, but think about how many of those down lines were affected.

  • If you are lucky, your up line might have sponsored some of your friends for you and you actually have a group. In my experience, most IBOs in this category have no clue how they qualified for the leadership. They are simply excited.

If you qualified via the first way - Then you go to a leadership event, but if you have any conscience, you are actually a bit confused. You know you have stocked up products, but your upline actually recommended that you buy products and attend the leadership. You were told by BWW to listen to your uplines, but then stocking products does not feel right to you. You have a net loss of about $1000 (assuming you bought only 300 PV extra) or $2100 (assuming you bought 700 PV extra), but your up line says the leadership event will help you. You go to your first leadership event and then learn that several people have qualified like you. So you actually feel better - like diamond Sanjiv Sahay says on his CDs "Misery loves company". But if you are smart, you can connect the dots and conclude quickly that if people buy products at 600 PV, then they also buy products for bigger pins. This is where BWW/Amway uses the well known human psychology:

"If a lot of people do something, then you will go with what they are doing, instead of doing what is right."

I was no exception!

Many nice IBOs comment on my blog telling that they are not like this, or their upline is not like this. I don't believe it, because I was in this long enough to associate with so many leaderships and I clearly saw that for several years, BWW itself acknowledges that people do it. Only that papa Bill Britt is so blind to such practices! By simply asking 10,000 people at a function from stage "Did any one of you buy extra products for your upline?" and people shouting "No", he thinks it does not happen!

The second confusion that may happen to IBOs is with 9-5-3-BiB itself. Many of them do these steps diligently, but still do not get any results. They hear from stage that "the answer to the problems in your business is in the 9 core steps. Don't look outside." I used to ask my upline how to get better results and how many plans I should show to reach a goal, and his "safe" answer was:

"Do whatever it takes to achieve your goal. If it meant showing 30 or 40 plans in a month, then do it."

While this is very nice to say and very nice to hear, I wonder how many people have actually done this without having a large group already. If you think you will show 40 plans in a month with C list, please do it and then come and tell me how many people you contacted to do it. What were your results in signing them up?

If your upline abuses any rules, like the customer sales reporting, then IBOs again get confused. Do they listen to their uplines, as they say from BWW stage, or should they go with their conscience and do what is right?

I experienced all the above confusions for several years... Why I did not quit any earlier than I did, I don't know! I think BWW is very good in keeping the IBOs, even the confused ones, in for several years! One should really be impressed how well BWW keeps people in!

Saturday, December 11, 2010

BWW function promotion lies and horrors

Winter conference/dream night is coming soon and I am sure there are promotions after every open meeting for the function. Ah, how many lies to promote the function!!!

First lie: the number of people who are expected to attend. They usually hype the numbers.

In BWW, they usually conduct the East coast function in Richmond, VA at the Richmond coliseum. Different IBOs say anywhere from 17,000 to 30,000 is the number of people expected to attend. If you read the wikipedia page on Richmond coliseum, the capacity is clearly mentioned as

13,553 (concerts)
11,992 (basketball)
11,088 (hockey)

Even if there are chairs on the floor adding 2000 people, it still comes to only 15,000.

Same deal in California. The function usually happens in San Jose civic auditorium. The IBOs claim that 6,000 to 8,000 people are going to attend. The capacity of the auditorium is clearly mentioned as 3,000!

Second lie: they say about 15 to 20 multi-millionaires and "financially free" people are going to come and teach.

These are unqualified statements, especially in California, Texas and mid-West functions, because most speakers are only emeralds. Most of them have full-time jobs, so they are not financially free. Also many of them are fake emeralds - Amway itself accepts this on their blog here. Also many diamonds are not really even millionaires, forget "multi" millionaires. I accept that some guys qualify, maybe two or three speakers, in these smaller functions.

Third lie: Nobody makes money by a prospect attending function.

Lot of people make money. First of all, many of the coliseums are free to rent because the coliseum makes money via parking and food sales (I know at least this is true for Richmond coliseum). Second, they ask you who your upline emerald and diamond are before buying a ticket. Many of your uplines and mainly, the function speakers do get paid from the money you paid to purchase the function ticket.

Fourth lie: The event is already sold out.

The BWW guys will sell tickets, even if the coliseums are full. In my experience, only once there was an overflow situation in BWW in east coast for about 100 or 200 people (long time ago, when John & Jennie Bell Crowe and Jack & Magee Spencer were still in BWW)! There are usually hundreds or thousands of empty seats in all functions!

Fifth lie: The next major function is one year from now.

Major functions happen once every 3 months. The open meeting speakers simply say "when is the next winter? next year... so you need to wait one year to attend the next function." So what about the spring leadership? (Oh, am I forgetting that it is a different function?)

Sixth lie: The speakers at the function.

They usually show pictures of the top BWW diamonds and say they will all be there. Maybe this is true for East coast functions, but for California and Texas functions, not all diamonds speak!

Seventh lie: This is a lie told before the function to all new guys. The up line cautions the new IBO by telling "You need to use grocery store approach in the function. When you go to grocery store, you only pick up what you want. You don't care about rest of the stuff... like, if you are a vegetarian, you do not care about the meat section. Same way, take what you want from the function and do not worry about the rest..."

This is typical cult training, because initially many things told from stage will not make sense to you. Some points will make you mad, but your up line already prepared you, so you ignore it. Remember, whatever each speaker tells from stage is exactly what BWW is. There is no grocery store approach. While you may initially ignore them thinking grocery store approach, BWW will bombard you the same statements with CDs and more functions soon. The more you hear something, the more you believe it to be true. So if you don't like even one thing at the function, then be wise and walk away! Otherwise you will soon lose your identity with BWW training and will believe whatever they say!

So like Kumar sings on his CD, I want to sing the Hindi movie song "la la lai lai... la la lala lai.. lai... lie... lie..."


Ok, next some of the horrors I experienced in BWW functions and conferences:

1. There are huge queues that people form roughly 7 to 8 hours before each session begins on Fridays and Saturdays. Many IBOs do not sleep in their hotel rooms on Friday nights; they simply wait outside the coliseum door, sometimes in open! (Usually new IBOs stay in hotel room and their uplines stand in queues and get the new IBOs some front seats.) While front row mentality is good, what I always saw was "front row hooliganism". Many IBOs will crush you, shove you aside, jump over you, cut lines mercilessly and run a 100-metre dash once the coliseum door opens! Then there are "security" IBOs to police these guys. Many IBOs reserve multiple seats, when the "BWW policy" is 2 seats per person - one for yourself and one for your spouse or down line. But many times, many IBOs fight and take multiple seats! This is prime example of how much BWW IBOs are brain washed! (I was no exception when I was in BWW, but I was always irritated by this.)

2. Night owls: The function timings are already too late - they end around mid night. But they do not leave you after that. They take you to upline diamond night owl, which goes up to 1:30 AM. Then your up line emerald or platinum will hold another night owl till 3 AM. So forget your sleep. (XS and rhodiola never helped me stay up for anything :-).)

3. Noise inside the function: Amway business may not be for you, if you hate noisy environments. Pretty much all Amway meetings are purposely made very noisy - to show excitement and "attract" new people. Functions are especially extremely noisy.

4. IBOs rushing to cheer for diamonds: Before every speaker starts speaking, several IBOs rush to the front to cheer for them. IBOs run like crazy to create an "excited" environment. If you are not careful, you may be stepped on and crushed.

5. Food: You have to pretty much survive on nutrilite food bars for all 3 days. Your up line will load you with them, but by the time you eat your 3rd bar, you will be craving for some proper food. You dare not step out, especially if you are a new IBO. Your up line will come rushing after you to see where you are going. (You know, you may miss some important point the speaker is making.) If you brought any "ethnic" food inside the function and eat it, your upline will make some indirect comments about you in the night/day owl so you better not eat anything nice for those 3 days.

6. Your outputs: well, this is embarrassingly "cult"ish. They ask you not to go for #1 or #2 because, again, you may miss a golden statement. So empty your bladder and bowels before going in. You need to hold it for 4 hours minimum. (Tip to get good seat: Go inside without emptying your bowels. You can clear all the people around you pretty quickly :-)).

7. Veteran IBO: If you are a seasoned IBO without any new people the function pretty much "stinks" for you. But you dare not keep a sad face. You will be severely chastised by your up line.

8. Cheering: You need to rotate your hand above your head and say "uh......... uh... uh.. freedom" and punch your fist in the air - else you won't be "part of the team" ... and in some cases scream "flush that stinking job" after that... (don't flush it too soon!)

9. Photos: If you do not like to take too many pictures of yourself with others, let your up line know strictly. They will force you to take pix with several "top leaders".

10. Music: If you do not like to party and dance, skip the music sessions before the training sessions. They are extremely noisy! Your up line may not allow though, because you are not setting the right example for your down lines...

With that said, there are lot of good points covered in the conference... very good training on many things! Except most people in BWW do not follow them. What they teach from stage and what is actually practiced were totally different in my experience! What a pity that I believed and did whatever they taught from stage and put up with my horrible up lines, and still did not succeed after several years! (By the way, I am not sitting with just my underwear and blogging now like diamonds say about bloggers like me, in case you were wondering...)

Thursday, December 09, 2010

To my fired up cross lines

Well, I am quite shocked to see how many people I thought to be "core" IBOs (i.e. people who listen to their uplines and the system) actually are spending more and more time on blog sites like mine :-). Some of them leave threatening comments. Some of them send me nice emails. Some ask me whether I am "man enough" to publish their comments - ah, typical Amway statements from "core" IBOs repeating statements they heard on CDs!

Funny thing is - you fired up IBOs are not listening to your "upline leaders". Haven't you active IBOs heard that you are not supposed to read "negative" web sites? By the way, are you done with your 9 core steps today that you are coming here and spending time? Go and look at your calendar first. Also you are forgetting Bill Britt's teaching about dilution, that you should "cap the negative". Listen to your CDs first and follow them. You first go at least Q12 platinum without buying extra products and without forcing a single down line of yours to stock up products - then I will acknowledge your "success".

I feel sorry for many of you active IBOs as well. You haven't honestly sat down and done your income/expense calculations. Some of you guys have been in for 10 years and not yet Q12 platinums. How could you guys show the plan to someone else and tell the other fellow that you would help him go platinum in 3 to 6 months? (Or has it reduced to 2 to 4 months now?)

I personally know more than 10 people who built the business to very successful levels and later quit. They had more success than me, but they did not take the effort to let the public know about the truth. I am not telling what happened to me is what happens in every line of sponsorship, but I believe it is close to what happened to me. Otherwise, how could some of you guys who qualified silvers and platinums, have a grand total of 10 people at the function? And how come 90% of the platinums do not qualify Q12 the same year and many do not go Q12 for several years after they went platinum? Why doesn't every emerald go founders emerald the same year?

As much as so many of you cross lines and down lines of me are frustrated, you go and look at the dreams on your refrigerator. How many have come true? How many dreams have you taken off your refrigerator? What about the time frame it took you to reach any goal?

My dear cross line, please don't tell me your upline's success. I want to know about your success.

And don't think that it is because of my blog that you are not succeeding. The simple fact of the matter is "show 12, sponsor 2" does not work and has not been working for several years. "Tap rooting" did not "transform" your business! "XS technique" does not still bring 10 guests to every open meeting. These are just temporary promotions to keep people excited!

You will simply not accept the truth now, because you believe so much that this would work for you!

All I hope with my blog is that IBOs who are thinking about taking advantage of their downlines will be a bit scared. They know that their names could become quite notorious on the internet if they play around with their downlines' lives. My upline violated several cardinal rules. I have every reason to believe that many uplines are like that.

If you are building your business very honestly, then do it by all means and succeed. Let your down lines write blogs about how "wonderful" you are.

And listen to this - you guys did not go through the hell we went through. If your upline is so wonderful and so successful, GOOD FOR YOU. If you want to brag about your upline, you start your own blog (you don't need to pay $200 for it like you need to pay when you sign up with Amway; starting a blog is truly free) and write good things about your upline. Let your positive blog come up higher in google, before negative blogs like mine. I will write what I want in my blog about my experiences and my opinions. Deal???

Rather than coming to my blog and asking me whether I am "man enough" to publish your comment, I want to ask you the same question. Are you "man enough" to stop the problem at its source? You know who my uplines are! You should confront them as to why they do such horrible things to their down lines and create a bad name for Amway and all of you honest (and not fake pin) IBOs and your super-honest upline leaders who have not got any of their downlines to stock up even 2 PV for their goals. Is it making sense to you?

Wednesday, December 08, 2010

Funny Amway Blog

I came across this very funny official Amway blog "Once a diamond, always a diamond":

It is a hilarious read. Read it before proceeding.

I thought only my upline hid the facts. But I did not expect that Amway itself hides the facts. Ok, to rephrase - they are not lying, they are just not telling the truth.

Not only that, this Amway employee also confirmed another hunch of mine, which is, whether IBOs are succeeding or not, they justify the poor results very well!

Analogies are wonderful. They paint a mental picture that convinces you instantly. My upline is very good at it. They used to tell in meetings that nobody makes money by you attending a function. But one student prospect of mine figured out the speakers get paid and questioned my upline later. My upline responded by asking the prospect whether his professors get paid to teach him. The prospect replied YES and my upline told it is the same deal here and speakers get paid to teach. OK, agreed. But why do you need to lie in the first place telling nobody makes money by you attending function?

Another funny thing I noticed last year was the list of mentors award winners in the ACHIEVE magazine. There was one page full of names, but Amway combined the 2 year founders diamonds and 2 year founders emeralds. So that way the diamonds who only qualified for the emerald bonus could not be clearly identified :-). Ok, it is still good money $150,000 bonus. Yes - they showed the success. But how many emeralds and diamonds were not there on that page? If that list was shown, it would probably span 20 pages I guess!

Also why can't I find anywhere amway global North America's sales figures for 2010? It is now one global brand and they announce only the global growth. I believe the total sales in North America has probably fallen and they cannot admit it.

Amway does not explicitly lie like my uplines or many BWW folks. They still do hide the truth to a large extent and from their blog above it is very clear that you cannot completely trust what they say!

Sunday, November 07, 2010

Analogies always to the rescue!

Amway diamonds and emeralds are very good with analogies. The analogies are so convincing when you hear them that you think you are a fool to think otherwise. But they are very carefully crafted.

One striking example of this analogy trap I remember is with respect to the corporation name change. As you might know, quixtar was originally Amway business. Amway then changed to quixtar when it went online. Then they realized that quixtar brand name was not flying too good, so 10 years later they decided to go back to the old name Amway and put a global behind it and call it 'Amway global', to make it sound like a new business. So now the business is called Amway global.

One diamond, named Sanjiv & Shauna Sahay made 2 CDs at different times about handling objections.

The first one was made when the name was quixtar. One of the questions you used to face from a prospect those days was "Is quixtar not the same as Amway?" To handle this question, Sanjiv suggested the following analogy to be used by IBOs:

IBO: "Do you know who makes Lexus?"
Prospect: "Toyota"
IBO: "Why don't they call it as 'toyota plus'? Why do they call it a different name?"
Prospect: "But lexus is different..."

The prospect is now confused. (One of my uplines' favorite statement was 'If you cannot convince them, confuse them'.)

Then the IBO can really nail the prospect by telling

"See quixtar is a different brand, just like lexus is a different brand. It is as ridiculous to say quixtar is just amway, like it is telling lexus is same as toyota."

(Of course, many times the prospect does not get convinced with this and finds some other reason not to sign up. But you see, whether the prospect gets convinced or not, all the IBOs, who are already in and are themselves confused, are now convinced. Because once you sign up, you need to defend your decision to sign up - so you look for reasons to defend your decision. The main job of these analogies is to keep the confused IBOs in for longer, rather than use them on new prospects.)

Then the name changed from quixtar to amway global. Sanjiv Sahay made another CD about handling objections. In this one, he uses another analogy.

"What does microsoft name itself when it goes to India? you know... they name it Microsoft India, you know. They don't call it, you know... is that correct, you know? Same thing here, you know. We are creating one global brand, you know... you know... One amway global brand you know..."

(Yes, Sanjiv Sahay uses those many 'you know' when he is talking. If it was irritating for you to read those many 'you know's here, then imagine listening to a CD made by him with half the talk being just 'you know's... and pay $7.50 plus tax for that CD!!!)

So who is the fool here? The guy who Amway IBOs calls as a LOSER, or the Amway IBO himself???

Sunday, August 22, 2010

BWW emerald pact

One statement that attracted me initially to BWW was that the emeralds and above had a pact i.e. an agreement, that if something were to happen to an emerald, then the BWW leadership will help the 3 legs to remain at least platinums. I thought that once I build to emerald, then I will have the promised residual income. Only now I realize that this is a BIG lie.

I know of one emerald, let me call them BBX (letters are transposed), who was very inspiring and motivating. When I was active in the business, I used to look up to them a lot, because they were local to me. They were not my upline, but were part of my upline diamond's team. We also used to attend PASE (Product And System Education) meetings at their home every Friday evening and we could watch them and their kids in close quarters. They were one of the biggest reasons for me to stay in the business during my initial years. I still respect them for who they were.

I saw this emerald and his wife struggle to go diamond. He tried all kinds of self-motivation techniques. He had a big electronic clock in his living room with a count down to the day he would qualify diamond. He even flew to Russia when the Amway business opened there. He thought he could break at least one leg quickly in the new Russian market. He gave me a Russian plan DVD that he made with the help of a translator for me to use with my Russian prospects!

This emerald became inactive a few years ago. When his wife called me telling they will no longer be hosting PASE meetings at their home, she told they were going through some personal situation. But I don't think that is the only reason they left. Honest people like BBX could never stay in a deal like Amway/BWW for long, that too with a dishonest person like my upline diamond. I had to go to another emerald's PASE meeting in my local area... I and my wife were so sad for many years after they left!

After a few years, somehow I did not see BBX's name in the Amway global magazines as q12. I know that he at least had 2 big North American q12 legs (1 in San Jose and another in Minneapolis) when I became inactive, but BBX's name was missing even before I quit. His downlines names appeared in the magazine as q12s though and they went to ACHIEVERS trip!

What could have happened to BBX's IBOship? What happened to the "emerald pact"? I think that my upline diamond just suckered the 2 legs as his personal legs and let the 3rd leg quit.

Whatever "pact" BWW has is all ultimately a lie. These guys just give empty promises. The worst thing is you can't even make sure that the people who give you promises will be part of BWW few years later. If you know Kanti and Hemi Gala, then you know what I am talking about. They were EDCs with BWW, who are no longer part of BWW.

The whole thing is a big bottomless pit full of lies - once you get in, you just keep going deeper and deeper and deeper! Slowly you become part of it and you don't even know you are becoming a liar. The cult-like brain control they have with CDs, books, meetings, kate, etc., will give you no time to think rationally. You just become like a robot, trying to repeat the same statements, and soon lose your identity! And if you finally realize you do want to become inactive in the wonderfully "residual" business, you don't even get peanuts for all the hard work you did.

Tuesday, August 10, 2010

An innovative prospecting approach

When you are in the Amway global/BWW business, every few years, they come up with a new technique. The way they promote it is that it is going to "transform" your business and you are going to have huge success if you follow it.

When I was active in the business, they did several promotions like this. The first one I remember was when XS introduced new flavors. Greg Duncan made a CD titled "XS energy drink sells like a million bucks". There was lot of excitement and I thought I was going to make it with XS. My upline encouraged me to buy and stock up cases and cases of XS and retail it.

Then came another promotion - to sponsor 2 legs every month for 3 straight months. They called this promotion 6-in-90.

Then came along the useless product called PERFECT WATER and all the false claims about it. They hyped it and made people buy cases and cases of perfect water. Kate messages from WWDB and Dean Kosage's downlines started pouring in... Fellows like Bill Hawkins passionately promoted perfect water in their CDs. After a few months the hype slowly came down. Amway had to prohibit IBOs from doing the tip tests and making all the false claims.

Then came "tap rooting" which is structurally same as "stacking" except that the IBOs are introduced to each other before getting sponsored in depth. Most IBOs actually did not follow this rule and eventually it looks like this technique did not work for majority of the IBOs as well. Because...

the latest promotion that BWW is doing is actually completely new. This is something that you have never heard of. It is to go to someone in the stores, start a conversation and slowly ask, "Hei, do you use energy drinks?" Whatever they say, your response is to ask them - "I am a distributor for the top selling online energy drink brand in the U.S. I am looking for some help to distribute my product. Are you interested in making extra income outside what you do?" If they say YES, you exchange contact information. If they say NO, then try to sell them XS on the spot and at least make a retail sale... all IBOs are now carrying a cooler with a dozen ice-cold XS cans in them! The promise is that IBOs are bringing 10 to 12 guests to open meetings every week using this approach and every IBO can have a 100 people in their team in the next 3 months!!!

Whether the IBOs profit through this approach or not, the uplines are moving lot of XS in their group and making plenty of money!

(Maybe Greg Duncan really needs some help with moving XS now, after all the financial challenges he is going through!)

No matter what new technique these guys come up with, the North America Amway business has reached a plateau for the past 7 years. They need to combine international sales with North American sales in all their annual reports to make it look like the North American business is growing.

Quixtar started out as one of the top 5 retailers in early 2000s and is falling down every year - they are down to rank 35 last year.

Sunday, August 08, 2010

Amway helps you save 30% on average

One of the very first lies told to new prospects looking at the Amway business plan is that they can save 30% of their spending money by re-directing their buying power from other stores to their own business. This is told at every plan. The gullible prospect signs up listening to this, thinking he will save 30%.

Slowly, the new IBO hear statements like "Make sure you buy the high PV/BV items - focus on nutrilite and artistry - these give you the maximum value for your money." Coming from an Indian background like mine, people neither used vitamins, nor high-end beauty products. Even if I were using vitamins, I would be using a basic one like centrum. So this is not "anyway" money I was spending before. I have to spend more money to buy the products. Then the IBOs start defending and justifying telling how much goes into each amway product. The truth is that the amway deal is full of deception and lies and you learn about it only as you learn more and more.

(Guys like Kumar claim that as you go up in the Amway business, all you see is more integrity and more honesty. I don't think so - if this is the case, then why did Larry Winters, John Crowe & Joe Markewicz leave BWW? High up in Amway is as ugly as high up anywhere else. I think the Gala group also has a bunch of issues, especially with highly egoistical maniacs like Kumar, Sugeet Ajmani and Vishal Jain. It is just a matter of time before the issues come out.)

Coming back to the 30% savings, here are two comparisons:

Comparison 1 - Omega-3

Nutrilite balanced health omega-3 (IBO cost: $16.57 for 90 soft gels)
Trader Joe's molecularly distilled odorless omega-3 (Retail: $8.99 for 90 soft gels)

Nutrilite has 150 mg of EPA and 150 mg of DHA per soft gel.
Trader Joes' has 400 mg of EPA and 200 mg of DHA per soft gel.

Moreover Nutrilite is not odorless, meaning some people (like me) get the bad smelling fishy burps and/or after-taste and smell. Trader Joe's product works better for me! In this case, Nutrilite's product is actually not as good in quality as Trader Joes. All the purification processes and quality control done by Nutrilite is also done by Trader Joes.

I am no genius, but if you do the Math, Nutrilite is actually 84% more expensive than Trader Joe's and has only half the omega-3 (and the fishy burps).

Let's say the IBOs again defend by telling, you can get money back with nutrilite and not with trader joes. Alright - let us say you are in that smallest of smallest minority who reaches the 25% level, hopefully by building a big group and not buying your way through... Then you get back

25% of $21.20BV = $5.30,

so your net cost is

$16.57 - $5.30 = $11.27,

so you are still paying 25% more for Nutrilite!

Comparison 2 - Conjugated Linoleic Acid

Nutrilite CLA 500 (IBO cost: $51.97 for 180 soft gels)
Trader Darwin's CLA (Retail: $14.99 for 90 softgels = $29.98 for 180 soft gels)
(Trader Joe's sells Trader Darwin's.)

Nutrilite - 500 mg CLA per soft gel
TJ - 740 mg CLA per soft gel

Again, Nutrilite has 48% less CLA per soft gel and costs 73% more...

Like Kumar says "Where is the mystery? The Math is here. The numbers are clear - they don't lie. You have an extremely high chance to lose lot of money in Amway. Moreover the business makes you a super-hypocrite by making you lie at every plan. As you keep telling the same lie over and over again, you believe it is the truth. All it takes is an honest and objective evaluation like what I have done here and being man or woman enough to admit that you were dumb to join the business!"

I should thank Amway for one thing. Before Amway I used to believe that I was very smart and intelligent. But now I know I am not really "that" smart as I thought, because if I were smart, I would not have joined Amway in the first place. Thanks to Amway for making me humble!

Thursday, July 08, 2010

Sugeet Smooth Liar Ajmani

There is a diamond in Kumar team named Sugeet Ajmani. Very nice guy, very entertaining guy and very funny too!

I attended his seminar in San Jose. He made 2 statements that made me feel sick at that time! Now I realize how smooth and how clever these guys are at lies!

(1) Sugeet Ajmani told
"Guy A and guy B join the business today. 'Guy A' makes $50/month one year from now and 'guy B' makes $5000/month one year from now. What is the difference? They both look alike. They both have similar jobs, similar education, similar family life and everything else is similar, except their businesses. What is the difference?"

Many people agree that 'guy B' did not work as hard as 'guy A'.

My income was more like A's income, but I had worked my BUTT off for several years for making the pathetic income I did. At that time, I thought I had not worked hard. But now I realize that there is no 'guy B' in Amway. He does not exist.

If I recall, the entire seminar had about 1000 people. A good 30% of the room was all new people. There were about 20 or 25 platinums, including fake dinosaur platinums. Maybe 2 or 3 guys were making more than $5000/month and they have been in Amway for more than 15 years or so!


The 2nd comment he made really made me mad! Sugeet Ajmani told
"There are 3 kinds of prospects. Just 3.
A, B, C.

A is 10% of the people. You call them for anything, they will come. You call them for business, they will join you. Very easy people. Anybody can sign them up.

B is 80% of the people. Skeptical, but nice people. They give you a hard time, but they either sign up or not, depending upon how you handle them. It depends on whether you are doing the 9 core steps, 5 night a week, 3 powers and board in the bedroom.

C is 10% people. They will not join anything with anybody. You need to be careful and just run away from them."

He made nice drawings for these 3 types of people on the board.

Let us assume that the ratios are correct. I did not even want to sign up any B's. I was thinking "forget about the B and C people. Where are the A people? I have been showing 10 to 15 plans every month for the last 3 years; I have only 1 leg with 1 IBO out of all those plans."

The correct ratio as far as Amway is concerned is like this:

A - 1%
B - 2%
C - 97%

Simple question: has Sugeet signed up the A's and B's in his business? Is he signing up 90% of the people he shows the plan to?

The answer is a BIG NOOOO!

Lovely, logical, appealing and very smooth lies and deception.

Friday, June 18, 2010

Amway business is like a vending machine!

An analogy statement that is often made in the Amway business is this:

"Amway business is like a vending machine. If you go to a coke vending machine and it requires $1 for a can of coke and you put in 95 cents, then what do you get? You get nothing. Even if you song and dance after putting 95 cents, nothing comes out. Same thing in Amway. If you do almost all the work required, that is, if you do almost all the 9 or 10 core steps but not quite all of them or not quite all the time, then you get nothing. It is either everything or nothing."

This is a statement that needs to be told to every prospect at the time of signing up, but as usual, Amway IBOs lie to new prospects and get them signed up!

This is why Amway is a stupid loser's proposition. Now, let us say, a top-grade new graduate makes $60,000/yr in his first job. Then how idiotic would it be to tell a guy who only has mediocre grades to tell that he will make either $60,000/yr or nothing! If I am a mediocre guy, I would at least expect a pay of $50,000/yr or $40,000/yr.

One has to think why this statement is made. It is made so that people who are doing all the work and not getting results, still feel that they are missing something! If

someone is showing 3 plans per week,
doing 300 PV per month,
selling 50 PV customer volume per month,
listening to 1 CD a day,
reading daily for 30 minutes,
attending all associations,
counseling monthly,
is accountable and
listens and leaves kate messages regularly,

then the top Amway guys claim that it should work for him! That is, you have put in the $1 in the coke machine. Sadly the coke can does not come out from the Amway vending machine!

I put in the full $1 for 3 years, week after week, month after month, year after year, only to find that the Amway vending machine does not deliver the coke, as promised! The only thing it delivered was a big hole in my bank account and credit card debt!

Wednesday, June 16, 2010

Amway can save you tax money!

You will hear this statement from your upline often: "You now run a business, so you can take tax deductions." While it is true that you can take all the business expenses as tax deduction (not tax credit), realize that you first need to spend the money for the business. You also need to have the proof that you indeed spent it for the business, and not for personal use or pleasure.

If you spent $10,000 for your business in one year because of meetings, travel, hotel stay, etc., then you can claim that as a tax deduction from your overall gross income. Typically you will get a third of that money you spent in Amway as tax refund. If you are in that fortunate 0.01% of the people who made some money with Amway, then this helps. But you cannot keep taking these deductions for more than 3 years if your Amway income sucks! (i.e. if you are in the majority 99.99%.)

Majority of the people (99.99%) can take these deductions only for the first 3 years. After that, your CPA will tell the IRS is not going to be happy with your deductions for $10,000 when your 1099-MISC shows an income of $700. IRS can actually declare that you are running a hobby, not a business, if you take so much deduction for the pathetic income you are making through Amway. At this time all the uplines "recommend" that you go with what your CPA says!

But they do not tell you this when you sign up! All you are told is only that you have tax breaks and if you are as gullible as me, then you think it is a great benefit!

Translations of lies to truth

If you have been to any pin recognition in Amway meetings, then you hear the new pin winners talk passionately about how they achieved their goal the previous month or previous fiscal year. You will usually know the pin winner's numbers by watching how many people are cheering for them when they go up on stage. (To convince others that the new pin winner has lot of group, everyone in the meeting, including cross lines, are urged to scream and cheer for the new pin winners.)

You will typically hear these statements:

  • We just followed what our uplines recommended us.
  • We made a decision to get it done and it happened.
  • Miracles happened in our business and we got it done.
  • We made a promise to our uplines and got it done.
  • We saw our childrens' sad faces and did it for them.
  • We loved our upline so much that we got it done for them.
  • We love our downlines so much that we wanted to set the right example for them.

Do you know HOW most people who make such statements reached that new pin then? The truth, the transalation of all the above statements in most cases is:

We purchased more than 50% of the products ourselves and/or forced our down lines to buy extra products and somehow qualified for the new pin at the last minute!

How do I know? Because I qualified every pin from 600 PV, all the way to platinum, exactly this way. But when I went on stage, I made those wise statements that sounded cool. All the guys in my uplines' team, including my upline, qualified this way and made similar statements.

These guys are professional liars who teach others how to become professional liars, who in turn teach others to become professional liars!

Saturday, May 22, 2010

Amway professional sales (lie) training

A wonderful book that my upline recommended me was "Confident conversations - easy answers to 38 tough questions" by Brad DeHaven. Cost: $12.95 and of course, I bought from upline, not from Amazon, so paid the full money!

I loved this book when I was in Amway/BWW. But now I am ashamed that I used all the manipulation techniques this book taught. (Of course, I did not succeed even with the tricks taught in this book.)

Some questions and answers this book has. The questions are the ones coming from prospects and answers are taught to IBOs.

The 1st technique is answer a question with a question. The second is easy answer, followed by a question. (I don't have the patience to type everything, but manipulation and dodging is professionally taught to IBOs.)

Qn 1: "What is it?"
Qn for qn: "It is private franchizing. Are you familiar with it?"
Easy answer: It is a brand new industry designed specifically for the internet. I am part of a group of entrepreneurs who are very successful. Are you familiar with internet-based businesses?
(Only the new untrained guys will say it is Amway out of fear and not knowing what to say.)

Qn 2: Can you tell me more about it?
Qn for qn: "Absolutely! I would like to meet you and share this info. I have Tue or Thu free. Which works better?"
The book says they key is to start your answer with "absolutely", so the prospect thinks you are agreeing with him. But actually the IBO want to meet with the prospect in person!
Amway trains you to always tell two YES options, never YES/NO. They ask "Tue or Thu?" and never "do you want to meet me?"

Qn 3: Is this Amway?
Qn for qn: No, this is not Amway, but what is your understanding of companies like Amway?
All IBOs are trained to answer this question with a NO.
In my experience for about 5 years with Amway, all the people who asked this question were negative and never sat for plan. So no matter what you say after this really does not matter. (They have smelt the Amway in you!)

Qn 4: Is this an MLM deal/pyramid?
Qn for qn: What is your experience with MLM/pyramid?
(Again, they r taught never to say YES/NO. The IBOs are taught to ask questions to prospects, so they never answer prospect's questions.)
My experience - they have smelt you!

Qn: What are my odds of making it with this biz?
Qn for qn: What are your odds of making it without it?

I love this one -
Statement from prospect: I am not interested.
Qn from IBO: thank you for being honest. Which part are you not interested in?

qn: How much money are you making?
Qn for qn: How much money would you like to make?
(Truth is the IBO is not making much... hehe.)

Prospect: I have seen this before.
Qn: What exactly did you see before?

This is nice:
Prospect: Do I have to sell?
IBO: Do you like to sell?
Prospect: Yes/No.
IBO: Great! You will love this business. You need to meet this person at the business presentation who made it in this business and he is exactly like you.

Prospect: Do I have to buy 100 PV every month?
IBO: Do you want to make a PV check every month?
(100 PV costs about $300. PV check for that will be about $7. So the IBO is asking you, essentially, do you want to spend $300 to make $7.)

Prospect: I have always shopped at Costco/Walmart. How does this compare?
IBO: Does Costco/walmrt offer an opportunity to make money?
(Truth - Amway products are very expensive compared to Costco/walmart.)

Tip in the book: What you promote is what your prospect will investigate.
(These days there is so much crap about all the big pins that most IBOs cannot promote the open meeting speakers! :-).)

Another technique in the book to handle any question: I know how you feel. I felt the same way. Let me tell you what I found out. (and then fart whatever you want :-).)

The IBOs will always try to leave some information behind with you, so that they can force their way into your house one more time for a follow up. If you say you are not interested in the biz, they will try to sell you some products or get some of your friends' names and numbers. So if you do not take the information packet, they really have no chance with you.

Wednesday, May 19, 2010

PMA lies

Amway guys very conveniently use PMA techniques to lie and cheat nicely.

When I was in Amway/BWW/Quixtar, my upline would always ask me which speaker I liked the most, which CD I liked the most, which product I loved to use. The basic idea is to manipulate gullible new IBOs into thinking what they like, rather than what they do not like. The usual question after functions is "Which speaker did you like the most?" If you start saying whom you did not like, they will immediately cut you off and restate the question "Tell me whom you liked." Uplines already get a lot of training to manipulate, whereas most new prospects/IBOs do not have any sales and manipulation training.

You dare not speak negative in any meeting. Slowly you are programmed to tell lots of lies, because by not telling what you do not like, you are forced to tell something positive about everything.

Just attempt a statement like "I did not like double-x because I threw up after taking it" and watch the reaction in your upline's face. They will look at you as though you are an ALIEN. When it actually happened to me and I complained to my upline, they cajoled me and told I should consume it in between meals, not after meals. I still threw up. Then you know what my upline did? In one of the leadership events, my upline lady (read bitch) told

"Some of you have put so much junk in your body that you cannot consume good natural products like double-x. Stop eating junk food and program your body and mind to eat double-x."

The funniest thing is my uplines themselves were always having trouble eating double-x. They usually need a carbonated XS immediately after eating double-x to burp the gas and indigestion out. They do not touch double-x or food bars in functions because they cause indigestion and/or constipation! And these guys tell me that I have a junk body! Hypocrites!

By the way, Amway IBOs claim double-x does wonders. If you tell it is expensive, they say "Chemotherapy and radiation are more expensive than double-x." So that means double-x cures cancer? If you ask them this question, they will not answer directly, but they make this statement to scare people. This is the "scare and sell" approach.

A simple question I want to ask is "If Amway does not give so much PV/BV to double-x, would any upline promote its wonderful benefits?"

The answer is NO. So your health is not really the primary motivation. At the end of the day, the PV/BV is what matters, no matter how much your upline claims they have the BEST interest in their minds and hearts.

The master liar Kumar says "Buy the PV and bury it in your backyard. I don't care. Just do 300 PV!"

There is a simple product called Nutrilite Daily. It costs very little and is good enough for a daily vitamin. Not much emphasis is given to this product because it does not have much PV/BV and it usually lasts 3 or 6 months. If you talk too much about Daily, your upline won't give you any chance to talk :-).

Tuesday, May 11, 2010

Lie - anybody can go diamond

Usually the BWW diamonds make a statement like this from stage:

"We believe in you. You can go diamond. Come join us!"

and if you ask them in person, they will tell

"Absolutely, you can go diamond. I believe anybody can go diamond."

The truth as told by Sugeet Ajmani in a leadership event was this:

"80-20 rule applies to everything.

You put 10 names in your list; only 2 sit for plan. 8 will never see the plan from you.

You show 10 plans; only 2 sign up. (that too if you show it to the "right" ppl) 8 will never sign up.

You sign up 10 people; only 2 will do something. 8 will never do anything.

You have 10 people in your group; only 2 will get results. 8 will never get results.

You have 10 people getting some results, only 2 will go platinum. 8 will never go platinum.

Out of 10 platinums, only 2 will go emerald. 8 will remain platinums forever.

Out of 10 emeralds, only 2 will go diamond. 8 will remain emeralds forever.

This matches very well with the success ratio that Amway tells, something like 0.00012% of the people reaching the diamond level. Sugeet, Kumar and all the other fellows - please tell this truth to all your prospects and IBOs. Please put this statement on every CD BWW makes. The truth was finally accepted by a BWW Diamond!