Anatomy of Deceit - Analysis of an Amway Critic

[ibofightback]

http://www.thetruthaboutamway.com/anatomy-of-deceit-analysis-of-an-amway-critic/

MichMan puts his claim to have reached platinum under serious doubt by commenting on JoeCool's original post ...

Joe, good analysis.

Now, you go on to admit that not all IBOs have expenses, but seriously MichMan, do you believe a Platinum group is structured 6-4-2 with 78ibos? And that personal product use is a business expense?

[MichMan]

It is the math that I found interesting. The structure of the example below is irrelevant to to total volume produced. The Platinum could be 6-4-2 or 2-4-6. It really doesn't matter. Look at the volume created on both sides, the product side and the tool side.



Friday, May 8, 2009
Amway Global - Analysis Of A Platinum Group

The plan assumes that IBOs all move 100 PV. 100 PV costs about $300, thus each month, this group would spend $23,400, or $280,800 annualized. Amway takes in the $23,400 in sales and returns about 33% in bonuses, thus the bonus on $23,400 is $7722, or $92,664 annualized. These bonuses are returned to the IBOs based on their volume with IBOs receiving various amounts based on their level. The majority of IBOs will receive $9 or $10 and a select few will make some significant money.

Now let's say this same group purchases tools such as standing order, KATE, functions and other system materials. Lets say the average business building IBO spend on average $200 a month on tools. This same group would spend $15,600 a month on tools, or $178,200 a year. NONE of this money is returned to the IBOs, thus somewhere upline keeps ALL of the profit on the tools.

Thus this group spends $23,400 a month on product and $15,600 on tools. That is a total of $39,000 a month a group of IBOs spends on products and tools. Annualized, this same group spends $468,000 on product and tools.

Amway gives back about $7722 a month in bonuses or $92,664 a year in bonuses and the LOS such as WWDB, BWW, or Network 21 gives back zero to the IBOs.

And here was my ENTIRE response (not your edited one):



MichMan said...

Joe, good analysis.

Some will state that not all of the ibos will be part of the system and spend the $200 per month on tools as you show in your example.

And that is why the AMOs teach YOU to be a leader. "You should stock up on them since your group may not do it."

In other words, ibos are taught to be a leader and buy extra tools/tickets/etc to promote to their group.

For instance, when a new contacting CD comes out, you are encouraged to purchase 10-20 for yourself. "But if you want to grow, what are you going to do when you sponsor someone and you have none left? You need another 10 on hand for that person you sponsor. Don't make them wait days or weeks to get started. Be the leader! You can't sell a thousand dresses unless you buy a thousand dresses!"

Three months later at the next major function, you find out that the CD has changed. And the process starts all over again.

You are encouraged to buy another 20 for yourself and even more for your group... because you're the leader!

May 8, 2009 11:16 AM

http://thefactsabouttheamwayopportunity.blogspot.com/

[ibofightback]

So are you implying the average Platinum group spends more than $22500/mth on tools?

[MichMan]

The ratio of tools versus products is pretty close to what I experienced.

You really don't notice how much is being spent on tools until your group gets large.

Why don't you go Platinum then tell us what your ratio is in N21.

[ibofightback]

The ratio of tools versus products is pretty close to what I experienced.

1. Just to clarify, you're saying your group spent as much on tools as they used/sold on Amway products?

Why don't you go Platinum then tell us what your ratio is in N21.

One group does not a useful statistic make, whether it's your group or my group. Also a pointless exercise, given statistics for groups like N21 and WWDB are already publicly available. (admittedly without loose tools) Mind you, if I recall correctly I did publish full tool statistics for an Emerald on Qblog way back when. N21 and WWDB statistics are nothing like you experienced, and neither were the Emerald stats.

And that's not even accounting for the fact that in todays world, if I have the urge to have 40 prospecting CDs like you mentioned, I can just buy an MP3 for $25 and burn as many as I want.

[MichMan]

The ratio of tools versus products is pretty close to what I experienced.

1. Just to clarify, you're saying your group spent as much on tools as they used/sold on Amway products?

I believe the example above is $23,400 versus $15,600. And I said that in my experience that ratio was pretty accurate.

And I also suggested that YOU go Platinum and let us know what the ratio is in N21 in YOUR group, especially now that you have unlimited downloads on contacting cds.

[ibofightback]

I believe the example above is $23,400 versus $15,600. And I said that in my experience that ratio was pretty accurate.

Given 20 active IBOs in a new platinum group (and this is barest minimum volume, so therefore new), that means each serious IBO is averaging $700+/mth? Give or take a bit for a handful of less active ones.

And I also suggested that YOU go Platinum and let us know what the ratio is in N21 in YOUR group, especially now that you have unlimited downloads on contacting cds.

Why, are you suggesting the "official" statistics are lies? They've been accurate in my experience.

No mp3s in this part of the world alas. Heck, for the last year there hasn't even been any contacting cds ....

[Bridgett]

I don't visit "joecool's" site, so regarding his "analysis," I only know what he's written based on what was posted on this thread, as well as what was posted at TTAA.

Being well-versed in the Amway business here in the States, and being in the LOA that "joecool" used to be in, I can say, confidently, he is talking out of his 1996-less-than-a year-as-an-Amway-distributor butt.

Surprise, surprise.

[TB 2 IBO]

Just so you yall, there are topics that people find stupid, ridiculous and irritating for various reasons. The tools stuff is one area I despise. Probably as much as IBOFB like to agree with conservatives.

[ajgannon]

Speaking of tools, did IBOFightBack ever do Part II of the "Lets talk about tools" post on The Truth About Amway?