Hello There, Guest!

  •  Previous
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • ...
  • 8
  • Next 
  •  
Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Profit
#31
MichMan Wrote:Asking Questions
Here are some important questions to ask
your sponsor and distributors at different
levels of the organization. Their responses can
help you detect false claims about the amount
of money you may make and whether the
business is a pyramid scheme.

1. What are your annual sales of the
product? How much product did you sell
to distributors? What percentage of your
sales were made to distributors?

One sign of a pyramid scheme is if
distributors sell more product to other
distributors than they do to the public.


This one jumped off the page at me, because most higher-level pins have very little sales-to-the-public; especially compared to downline sales. That's because as an organization grows truly BIG - the retail stuff gets handed off to downline IBOs simply because at the Emerald level, you have your hands full with your sponsored people.
 Reply
#32
Blind following???

The fact that prospects are encouraged to ask tough (an potentially embarrassing) questions is equated with blindly following someone? Really? I think the purpose of asking those questions would be to KEEP the prospect from following somebody blindly.

You should be happy that mlms in the US are fairly unregulated. If Amway was regulated by franchise law there would be many mandates on what could and could not be said. 1- Income projections would be prohibited. 2- Names and contact information on current and former distributors would be made available to prospects 3- There would be a "cooling off period" after seeing the plan before a prospect could sign up 4- Amway would have to make records available to prospects from all of their distributor lawsuits (Ouch!)

I think the purpose of the FTV guidelines is for people to protect themselves against unscrupulous mlms or distributors, versus having a government agency have to regulate the industry with countless mlm mandates.
 Reply
#33
Deb Wrote:
MichMan Wrote:Asking Questions
Here are some important questions to ask
your sponsor and distributors at different
levels of the organization. Their responses can
help you detect false claims about the amount
of money you may make and whether the
business is a pyramid scheme.

1. What are your annual sales of the
product? How much product did you sell
to distributors? What percentage of your
sales were made to distributors?

One sign of a pyramid scheme is if
distributors sell more product to other
distributors than they do to the public.


This one jumped off the page at me, because most higher-level pins have very little sales-to-the-public; especially compared to downline sales. That's because as an organization grows truly BIG - the retail stuff gets handed off to downline IBOs simply because at the Emerald level, you have your hands full with your sponsored people.


I agree. But Amway does provide those statistics to Platinums and up.

I remember see the report of Billy Florence (I believe) posted on the internet. It showed how much he personally was retailing and how much his group was retailing. (The group was 93 percent buy-from-yourself IIRC)
 Reply
#34
Asking those questions of just one person (or even a few more) is too small of sample size to get an accurate picture of what the potential is for the inquisitive prospect.
 Reply
#35
... then again, maybe asking those questions would help a prospect find the right up-line to work with. :dontknow:
 Reply
#36
MichMan Wrote:Blind following???


I meant *you* blindly following, by leaning on an FTC "recommendation" that is nonsensical.

How does knowing what I make, sell, how many I sponsored, how much time I took to do so, and how much money I spent satisfy this quoted doozy:

"It’s important to get a complete picture
of how the plan works
"

Everyone one ELSE seems to understand that the "plan" DOESN'T work.

It is "blindly following" because you offer no argument or rationale as to *why* you agree with the FTC's position; you only cite examples that are really not "the same" as building an Amway business, to make your position *seem* reasonable.

You just say, "Here's what the Feds think, so I have great support, and you [Tony], are not alone!" WTH?

Is the liklihood of a prospect's success in this business affected if these questions are asked...and answered...by their sponsor, if the sponsor is a Diamond with a founders-qualified business?

How about if the sponsor is a founder's 3%?

How about if the sponsor IS a Founder's Qualified Diamond, but these questions were posed by a prospect back when the Diamond was only at 3%?

What if they aren't asked at all...or answered at all...in either of the three cases above?

No bearing...none at all, except...MAYBE...for a psychological advantage that might be gained by someone with the poor constitution that would require it...

These are not just inappropriate questions in the context of Amway (or a sponsoring Amway IBO), they also provide zero information that would be necessary for a prospect to go about creating a profitable Amway business.

More importantly, YOU can't explain why they *would* be sensible in the context of Amway. You just "think" they are, and now have the Government (oh, the wisdom... Rolleyes ) to back you up.
 Reply
#37
1- Of course it is important whether the person(s) showing you the plan are successful and whether they have accomplished what is being shown on the board. You are in real estate.... So you interview with the franchise of company that tells you that they have a plan to help you can make $100,000 in your first 2 years in the business. After you start asking questions, you find out that the franchise owner did not do it. And none of his agents have done it either. You have a second interview with the a different owner within the same franchise. They show you the same 'plan' but that franchise has many people who have accomplished what they showed you in the time frame shown. Which franchise would most people rather be associated with?

2- You are in word of mouth marketing. What a better testimonial than saying "I make a profit of $____ per month!" I think people would be more attracted to Amway if the person showing them the plan could honestly say, "I consistently earn $500 per month after expenses" than telling a prospect that they can be rich in 2-5 years.

3- Regarding the 2-5 year plan, my problem with it has nothing to do with the government- it is called "ethics." Amway is part of the Direct Selling Association. Here is what they say about earnings claims:

Earnings Representations
No member company shall misrepresent the actual or potential sales or earnings of its independent salespeople. Any earnings or sales representations that are made by member companies shall be based on documented facts.


So basically, Amway distributors should not be showing a 2-5 year plan unless it is documented. (versus simply repeating anecdotal success stories) Failure to follow this guideline is a violation of industry ethics.

Just be glad that the FTC didn't pass this when they tried:

Earnings claim information. If the company or distributor makes earnings claims (which includes "quality of life" claims such as pictures of boats, expensive cars, homes, etc.), an earnings claim statement must be provided which discloses the beginning and ending dates when the represented earnings were achieved, the number and percentage of all distributors who achieved that level of earnings within such time period, and any specific characteristics applicable to the person making the earnings claim that differ from the characteristics of the prospect (e.g., a different geographic location).

So my question is this- Why is there such resistance to taking the high road? Why shouldn't Amway (all AMOs included) operate the business with the highest morals in the industry?
 Reply
#38
MichMan Wrote:I remember see the report of Billy Florence (I believe) posted on the internet. It showed how much he personally was retailing and how much his group was retailing. (The group was 93 percent buy-from-yourself IIRC)


I have that document and it said no such thing. It showed how much his group was ordering personally, either for personal use or retailing, and it showed how much was customer orders made online.

In my experience customers who order personally from an IBO far far exceeds those who place orders online themselves.

Nowadays, in the US and UK at least, there are incentives to actually then register that information with Amway. There wasn't at the time of Florence's affidavit.
 Reply
#39
Can you post the document. I would like to see if it is the one to which I was referring. The one I am talking about was more specific. It was a pdf file of the actual printout given to Diamonds at Diamond Club. (it might have been of Chris Brady's group, not Florence)
 Reply
#40
MichMan Wrote:1- Of course it is important whether the person(s) showing you the plan are successful and whether they have accomplished what is being shown on the board. You are in real estate.... So you interview with the franchise of company that tells you that they have a plan to help you can make $100,000 in your first 2 years in the business. After you start asking questions, you find out that the franchise owner did not do it. And none of his agents have done it either. You have a second interview with the a different owner within the same franchise. They show you the same 'plan' but that franchise has many people who have accomplished what they showed you in the time frame shown. Which franchise would most people rather be associated with?


You posit one thing and then provide examples of something else all together. Is it important that the person showing you the plan is successful, or just that there are successful examples to point to?

The latter I agree with, except of course with startups. I'm currently involved in launching a franchisor and we're not going to have any franchisees to point to as successful - because there are no franchisees yet.

Quote:2- You are in word of mouth marketing. What a better testimonial than saying "I make a profit of $____ per month!" I think people would be more attracted to Amway if the person showing them the plan could honestly say, "I consistently earn $500 per month after expenses" than telling a prospect that they can be rich in 2-5 years.

Of course. And at open plans, generally the person can say that.

Quote:So basically, Amway distributors should not be showing a 2-5 year plan unless it is documented. (versus simply repeating anecdotal success stories) Failure to follow this guideline is a violation of industry ethics.

It is documented. Plenty of people have gone diamond in less that 5 years. Even in the US. Even with taking the start point as "join date".

I've never seen anyone suggest "Join, wait 2-5 years, you'll be Diamond!" - it's always been about working hard and consistently for 2-5 years

Quote:Just be glad that the FTC didn't pass this when they tried:

They didn't "try". They put it out for discussion and then decided since there were so few complaints/problems with legitimate MLMs (namely DSA members) that it was unnecessary and overly burdensome.

Quote:So my question is this- Why is there such resistance to taking the high road? Why shouldn't Amway (all AMOs included) operate the business with the highest morals in the industry?

Who is resisting?
 Reply
  •  Previous
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • ...
  • 8
  • Next 
  •  

 
Forum Jump:


Users browsing this thread: 1 Guest(s)