Tuesday, May 24, 2011

Amway is still a scam

What follows is my misadventure into An Amway seminar.  Let's get the obvious stuff out of the way.  I don't trust these people or the company they work for.  They would tell you they don't work for a company, they work for themselves.  OK.  I'll bite.  I'm going to argue semantics with an idiot.  For the program to work for you, you have to devote yourself to buying only their products, at apparently some savings to you.  If you want to make money, you have to get others to buy their products from you.  To make more money you have to inspire your underlings to have others buy products from them.  To help you along the way, they encourage you to buy their endless collection of inspirational materials.  So in the end all you get is some products that (I hope) work and a little compensation for all your efforts.  They get an ever growing demand for their product with little advertisement and growth that is paid by you.  Minimum wage workers are better off!


I arrived at the hotel at 11:51 because I was told the seminar started at 12:00.  Reception informed me that they had several seminars scheduled for that day but none for Amway.  I called my source and was told the seminar was under the name of Efinity.  RED FLAG No. 1: hiding behind another name does not bode well for my confidence in their reputation.


I then find out it's starting at 14:00, not 12:00.  I missed church for no good reason.  I found out later that I was not misinformed of the time.  When I paid $20.00 for my ticket, I was shocked to see that the time printed on it was, in fact, 12:00.  RED FLAG No. 2:  these people are either (A) incompetent enough that they can't plan ahead and stick to their own schedule before printing the tickets or (B) are so close with one another that the change in time was made for the sake of all involved.  Did they even change the time on the website?  How were people supposed to know about the change?


Oh, wait.  RED FLAG No. 3.  I paid $20.00 to get in!  That's really poor recruiting.  I'm here to find out what they are about and to see if I want to get involved and before I can hear anything, I have to buy them dinner?  I get it, speakers need to be paid for their time, just like preachers at church conferences.  The difference is that while the preacher is taking time out of their life to speak on spiritual principles and is compensated by the voluntary offerings of the listeners; these people, who should be so successful that they don't need my charity, are requiring me to pay them a set amount before they can tell me how great it would be for me to join the program.


That's three Red Flags and they haven't even started yet.


So the ticket says 12:00, the door says 14:00, but they didn't actually start until 14:36.  They're Dominicans.  If they had started on time I would have been shocked.


They start with a video.  The setting is a busy Indian city, lots of traffic and lots of rain.  Somehow a bolder ends up in one of the streets, blocking the flow of traffic.  People honk their horns in frustration.  Some kids get it in their heads to move the bolder.  They try and try but it doesn't move.  Other kids see them and are inspired to join in the effort.  They try and try but it doesn't move.  The adults see this and get out of their cars to help the kids and together they move the bolder and traffic flows once more.  Draw whatever conclusions you like.


At 14:40 someone takes the stage and stirs the crowd to cheers.  Apparently the proper response to "how are you doing?" is "excited!". Oh and we were all forced to greet those sitting around us to get to know one another better.  Yeah, that worked.


At 14:45 she tells us that their focus has always been God, Family, and Work.  Funny since the only mentions of God were in passing, "thank God that...". Family was mentioned more than God, but always as what values they gave us and what they allowed us to achieve, never what we gave back.  Work, was the only thing of the three that was heavily preached, you slack and you don't grow. There is a reason for this but I'll get into this later.


Anyway, she mentions that we are of many faiths.  What?  She's speaking in Spanish to room full of Hispanics, almost all of whom are Christians (Catholics or Protestants).  She must have believed this herself since her opening prayer ended in the name of Jesus.


14:47 they played the Star Spangled Banner.  OK ...


On 14:51, Johnny Mathis finally took the stage.
He was been with Amway for 20 years.  Was an engineer working for the power company in the Dominican Republic.  This is supposed to impress us but if you've ever lived in the Dominican Republic, you know how broken the power grid is.  He's also a Diamond.  I assume this is a high rank, but how could I possibly know.  Diamonds, Emeralds, Quick Silvers, Level 60 Black Mage, 7th Prestige Brigadier General, whatever.


Endless proverbs:
  • The greatest dreamers and achievers were once called crazy.
  • Amway doesn't work for lazy folk.  But if you follow instructions and work hard, you can't fail.  It's easier than childbirth because this comes with instructions.
  • Appreciation is more important than failure.  So give it where it is due.
  • Always remember: (1) This is a business, (2) You are an executive in it.
  • People are known not for what they started but what they finished.  How many unfinished things are there in your life?  Wright them down. (include the broken sink)
  • "I used to be depressed by my checking account, now I look at my checking account when I'm depressed."
  • If your going to make mistakes, make new ones.  Don't repeat the old ones.
  • Your income is not determined by your position, but by your investment and hard work.
  • You are your first client.
  • You have to inspire those under you.  
  • I've seen some make it in 4 months because they jumped in all the way and others who take 10 years and 4 months.  The difference is that the former was all in and made it earlier, the later was so-so for 10 years before deciding to get serious.
  • If you're broke, you can't give advice.
  • Don't take advice from broke people.
  • If you're broke you should take less leaser time.
  • Your spouse needs to be involved.  It would be nuts for one to work their buts off for half of it to be consumed by the uninvolved spouse.
  • All financial decisions should be consulted with your spouse so that together you can make the best choices.
  • Don't spend what you make back on food or other things.  Reinvest in your education and into the business.
  • Changing habits is hard.  But without change, you always get the same results.
  • Change your environment if it isn't helping you advance.
  • Change your online habits, don't waste time chit chatting and reading poems.  If you're going to be online, network and grow.
  • While your at it, look out for your health.
  • Define your goals at short medium and long ranges.
  • Keep an agenda.  You need to know what you're doing ahead of time or you're wasting time.
  • You've got a business, use business cards.
  • A leader is someone who has decided they no longer need someone to tell them what to do.  You know you've made it when you don't need someone to nag you to do the right thing ahead of time.
  • Never exaggerate.  It's bad for business.

He mentioned some failings among the leadership in the Dominican Republic.  But that doesn't mean the business was bad, just the leadership.  He assures us that things have changed, that they are more transparent now, and that compensation and bonuses are distributed differently.  While this is all reassuring, I can't help but think of all the "excited!" individuals who were involved before.  Their excitement and commitment did not save them from getting screwed.


He spells out what you need to succeed:
  • Education (through Enfinity): Amway doesn't work, you got to make it work for you.  Continuous training through Cd's and other materials is crucial.  So you have to pay them to inspire you to pay them.  Apparently results are not enough to inspire you and maintain you as an efficient worker.  It's like preaching at church, only it's more expensive and includes God a little less.
  • Amway.  A reputation 51 years and running.  They grant you virtual offices with endless expansion.  Of course all they are providing is infrastructure and products.  You do all the leg work, get paid on commission and receive no benefits.
  • Investment:  Again, you're an executive so you have to invest if you want to make a return.  And don't always commit to the minimum.  You don't have it, find it, or borrow it.  That's right, build up a debt if you have to in the hopes that your returns can pay back the loans and still leave some over.  Of course, you're encouraged not to "waste" any of Amway's payments to you; you should invest further into the company or into your education by buying more materials from Efinity.

The most brutally honest thing that he said (pay attention boys and girls because this one is important) is that only 5% of Amway's population is growing.  Only 5 percent are meeting or exceeding their goals.  The rest are just getting along day by day.  RED FLAG No. 4.  No company could survive that!  If 95% of the workforce isn't doing what they are supposed to, the company goes bankrupt.  The reasons I suspect that they don't is because they have low overhead.  Their supply never exceeds the demand, it's always even with it.  They only supply for orders that have been secured.  Aside from creating the products, they have no expenses.  Shipping is paid by the customers, and all employees are independent contractors, paid only on commission, with no benefits, and they have to pay for their own training.  And let's not forget the income from holding pep-rally conferences.


At 16:24 we break for a 10 minute recess.  Reconvened at 16:46.  They did a short sales demonstration of how to properly convince people to buy their products.


From 16:50 to 17:12 they had a parade of members stand up, walk accross the stage and sit down.  First those with 300 points, then those with 600, and so on, then there were other conditions and ranks, maybe 10 rounds of people standing, walking accross the stage and sitting dowm again.  Some of them stopped to say something inspirational, many stopped to say who their sponsors were.  Almost all of them got up at leaste twice.  They were calling out so many overlapping cattegories, it was only natural that many got up as often as they did.


At 17:12 someone took the mic to talk about the Benefits of Efinity.  This is their continuing education and motivation branch.  They have books and Cd's on how to reach the next level.  Because they know the way to success and they are willing to tell you, but you need to pay for it.  If they are financially indipendent, why are they taking your cash?  They're getting richer and you're getting poorer.


At 17:27 Johnny Mathis takes the stage again.  The original plan was for his wife to do the second part but she couldn't make it.  He did say that she wanted to be there.  He didn't say why she couldn't be.  i have to wonder if this is related to the seminar being moved from 12:00 to 14:00.


He begins to tell us his testamony.  Starting in a poor Dominican neighbrhood, getting through college and becomeing a successfull engenneer for the power company.  Things went so well, he dropped it and got into Amway full time.  Yeah, I buy that ... Not!


As he tells his story he gives us more proverbs:
  • Motivation lasts until the first obstacle.  Motivation is not enough.  You must be convinced, convicted.
  • If you commit, it doesn't leave room for negativity.
  • Attitude is everything.  If you're in a bad place and you insist you don't belong there, you'll eventually work your way out.
  • Success is measured less by how much you take in and more by how many people you help.
  • Economic independence doesn't mean quiting a job you love, it just means you can do it under less financial pressure; you might even do it for free.
  • If you don't move, neither does the group.
  • If the group doesn't move, move them.  Remind them why they signed up.
  • Each convention should not be to fill your tank, but it should be to reach the next level.

The event concluded at 18:20.  I walked in with vague reservations.  I walked out with confirmed dread.  I'm just going to say it: Amway will not work for you.  Amway will NOT work for you.  Especially in this economy.  They make money from what you buy, what you sell, and what you get others to sell.  They get even more if you opt into paying for Cd's and books.  Oh, and they have no risk; they don't need to produce if you don't sell.  You can only make money if you sell enough and if you get others to sell more.  YOU bear all the risk as far as your time, your money and your peace of mind.


The only highlight to that day was that as I left the seminar, I saw a blood drive sign on my way to the bus stop.  I donnated blood the next day.  It cost me no money, just a little time, and a little pain.  I even got a free apple juice and Fig Newtons.  And on top of everything else, someone's life might be saved by the blood I gave.  Really puts things in prospective.

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