the Amway Compensation Model explained
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- čas přidán 13. 07. 2024
- Here I explain the Amway compensation model in a simplified manor. As an accompaniment to my video on how I was almost recruited to a mastermind group using Amway to create cashflow, titled 'watch this before you join that mindset group', I created this video so you can comprehend how money is actually generated in this multilevel marketing (MLM) scheme - because I was definitely curious how it all works.
To answer the question I posed of how many people (spending $400/month ie. 100PV) you need to recruit to make $50,000 annually (or $4200/month), this is 70 people. I stopped at 75 as I feel I had illustrated the point that you need to recruit a LOT of people to actually make any significant money.
Note: I do NOT touch on the "break-away" part of the model, which is where when a person beneath you (downline) outperforms you they 'break away' and form their own "business". I confess I am not sure if this happens at any BV level or just beyond the top tier of 7500PV. I think when this happens, Amway still pays 6% of the downstream business back to you as compensation, but I could definitely be wrong on this.
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You lost me at they spend $800 themselves
Lol you should have watched the whole video.
Yes it real I live in HAÏTI
They’re not overspending, their redirecting where they spend the money. People spend most of the check at Walmart and target for consumable goods, why not just run that through your business and get money back?!? Build an asset for yourself and not a corporation. That’s an E quadrant mindset you have.
Use to be $200 spent per month per household.
The old Egyptian would be proud of the business structure!!!
Those pyramids are still standing after thousands of years. I wonder if the corporate office towers will last that long?
@marcallard510 ... NOPE. Not a pyramid. In what Pyramid does someone below the guy at the top make MORE MONEY than the guy at the top. Social Security is a pyramid. People coming on after the first person are paying for the first person. A company you work for is a pyramid. What employee makes MORE THAN THE CEO? None. You don't understand this and the narrator of this video does not either. TOTALLY OUT TO LUNCH. She just cost a lot of people their chance at an opportunity to raise their income, because she "EXPLAINED" it all.
Ja ,und heute bewundert Millionen Menschen weltweit!! was ein Weltwunder astronomisch und heute in der modernen Welt nicht möglich nachzubauen , denk mal drüber nach was ein Meisterwerk!! Und sklaven konnten es niemals bauen ,what a Dream Team
Gizeh phyramids ,was ein Meisterwerk, und heute reden sie noch immer davon !! Dream Team Building
@@ctaylor5682 ich bin ein Amway IBO ☺️
Thank you for being a professional and discussing the major component when doing due diligence and breaking down the comp plan. Millions of people struggle to grasp that this is the only deciding factor to determine whether or not you should decide to embark on a entrepreneurial journey. Even in traditional business you wouldn’t borrow a million dollars without knowing how you will pay back the loan. Network marketing is the only industry where that goes out of the window and in true fashion since it’s regular people who are being propositioned with no business background whatsoever. This compensation plan is flawed. 30yrs ago a high net earner realized and took the best part of the plan and removed all of its flaws to create over a 104 consecutive quarters of upward growth even during the recessions. How? Because understanding the business model first and how it functions for the average person will determine the success of a business.
Best comment here!!!!! 👏🏼👏🏼
Who is the high net earner
Loved it. Clear and concise. Thanks : ]
Super helpful and clear in explaining the model. Just what I was looking for, for real. Thank you. I hate MLM's. :)
lol this doesnt explain anything. just how the numbers work. mlms aren’t the issue. leadership and how people scale their business is whats lacking in a networking model. amway is genius. the fact that this girl said its not for me, is an employee mindset and statement . all business owners need to scale, plain and simple. how you scale and the integrity of it, is the issue. owners scale with employees and buildings and products and services. amway allows you to leverage their compensation plan and collaborate with other entrepreneurs. but most people build it like a “mlm” or a pyramid structure business which i reality is your job. you work a job. your marketing, or recruiting, or helping them create dollars . lol. the guy at the top makes the most money in a job. here, you can out perform the person above you, below you, near you, thats called performance base opportunity. either way, dont get into business if you don’t believe in the free enterprise system of creating income and adding value to the market. i run many businesses and amway is a company i leverage but i partner with a leadership system called world wide group in north america but they are world wide now. my experience isnt most peoples experience because most people shouldnt be in business for themselves. employees are the ones putting a bad name in all of business.
oh and ive been to every meeting there is possible from real estate to insurance to networking opportunities like amway. amway is just a product based distribution. they dont teach how to run the business. focus on the people who are helping you run the business. thats what makes the difference. if im trying to be a professional basketball player. its going to help the NBA. anything else isnt in the same conversation. thats what most people run into. hope this helps and you shouldn’t convince people to be in business nor should you “get” people into business to benefit you. thats what owners do in the pyramid structure business do. they hire people to help build their dreams and their futures. plain and simple. job people will only see what they see as a benefit. business people see what they see and that’s opportunity
It's because you have not yet understood the business model.
Don’t hate it, just say I’ll pass 🤷🏻♂️ I have friends who have dad great success with it. Best wishes in your business endeavors 🙏🏼
Great explanation 😊 I enjoyed it.
It is a proofed system over many, many years! Many people are very successful, so there is no discussion about it.
Hey hi! Just wanna say great thanks for sharing this compensation plan!!!
21% with multiple legs is a done deal for you:) god bless you. Appreciate for sharing
Thank u..very well explained
Thank you so much for explaining this!
I learned I don’t like Amway and fell in love in 11 minutes. Her mannerisms are adorable.
That is because she told you what you wanted to hear.
@@sandponics I actually wanted to hear Amway was not multi-level marketing and that I should sign on.
The following is my own personal view of the Amway business. I cannot predict what others may think or do, and can only suggest that everyone conduct their own research and apply due diligence in whatever choices they may make.
In commerce, manufacturers design and make products or provide services. These products or services are then moved through wholesalers such as Amway, who distribute the products to their registered retailers, known as Independent Business Owners or IBOs. The IBOs then sell the products to customers. This process is known as multi-level marketing. There are also levels of retailers (IBOs) similar to the roles of directors, managers and sub-managers etc in conventional corporate business, except that each IBO is an independent contractor, rather than a salaried employee. Each IBO is paid based on the volume of commodities and services moved through their business, just as any conventional shopkeeper is. Amway has simply developed highly efficient and effective methods of moving products and services from the manufacturer to the consumer and paying their associates electronically.
Also in some locations, customers can apparently order products directly online rather than ordering through their local IBO, which is how the business was conducted in the past. Online ordering and home delivery are among some of the wonders of modern technology that many people have now become familiar with from many different suppliers.
Some Amway associates also promote and sell training materials, such as books and attendance at meetings etc to listen to experienced and capable IBOs who are skilled public speakers. These materials are often highly informative and educational, especially well-written books. The cost of attending meetings is modest when you also consider the cost of hiring venues etc and attending can be beneficial for those who wish to develop their skills in this area.
As a formerly active Amway IBO, I personally gained benefits from the experience, even though I did not at the time earn much income from Amway, although there may be hope for the future, as I never formally quit and have retained my membership number, which I understand can possibly be reactivated if I wish to do so.
Through the experience, I learned valuable skills that helped me become a successful teacher. I gained more knowledge about effectively dealing with people than I ever learned in college.
One issue with the Amway business plan is that many new, and existing IBOs do not take advantage of the educational materials and resources made available to them. Instead, they try to do their own thing. I know this because I was guilty of it myself. However, as I have aged, I believe that I may have become a little wiser, and now recognize the importance of taking advantage of the resources and learning opportunities provided in order to acquire an appropriate education.
While the presentation of Amway's multi-level marketing model is not overly complicated, I believe it could be simplified even further so that more people will then understand it, as it describes valuable opportunities for personal and professional development. Also, the training materials and resources that are available can help individuals develop valuable skills that can be applied in life. It is essential to take advantage of such opportunities if you wish to achieve success in any aspect of life.
The way I view the Amway business model is that it provides an opportunity for inexperienced individuals to become educated about how to conduct business. The products exist to provide commodities that individuals can use to help them develop skills in household economics and also develop personal skills in sales and marketing, and acquire a basic introduction to operating a business, with all of the associated planning, learning and economics associated with that. Then, those individuals who wish to further develop their Amway business can do so, while those who wish to develop a different business can also do so while using the skills, experience, and knowledge they have acquired. Also, if individuals only wish to be customers, that option is open to them, as all businesses need to have customers to whom they can supply products and services.
What most prospective associates appear to not understand about the plan, is that the IBO whose customer purchases a product or service receives the largest profit from that sale (about 30% of the retail price depending on the type of product sold, as also often happens in conventional business), while the poor old upline IBOs only receive an ever-decreasing percentage of the profits from each individual item sold. The bulk of the amount paid for an item by the customer goes to the company, which has materials, manufacturing and administration costs to cover (and it costs a lot to invest in plant, buildings, and infrastructure to manufacture products and organise services, including the financial risks involved such as insurance and dividends to shareholders etc), meaning that the company possibly makes the least profit from the sale of each individual commodity or service, and the retailer (IBO) actually makes the largest profit, while the customer gains the greatest benefit by owning the product.
Copyright (C) David Lockett 2023 Warning. Do not copy or distribute this text without written authority from the copyright holder to do so.
@@sandponics Hun it's an MLM. Most people lose money in these.
wow great explanation and thanks.
Thank you for your time and effort to share this knowledge.
You’re Amazing Hewlet
I attended a session today and was really still confused on what’s the ask. But your explanation really helped understand that.
i did couple of days ago, just did like 5hrs of my own its not worth ur time or energy, only 9% channce of u making any real money and u wont be able to step away because u cant afford to loose ppl. so constantly have to be doing this just like another job... look up the stats on this, its not wat they tell u, just feels like they sell you a dream that u want and % is just so low u have to almost get lucky but over years and years of constant work, when u could just own your own thing and u dont have to have a dice roll.. way see it, seems way to good to be tru then look at it and go...oh that makes sense now. the turn over rate is crazy aswell, speaks to it. just way more legit things out there then this. i am gonn keep looking instead sady shit
@@jesuscanjesuscan423 I 2nd what ur saying. its true
@@jesuscanjesuscan4239% is a stretch. 99% of people lose money.
Tell the truth you joined Scamway 8 months ago. How is it going?
Thank you for explaining the compensation plan it helped a lot for me to understand.
It is a scam
Define Scam @@xSuperFryx
Its never a scam when you recieve 76% value in products eventhough, i still will NEVER exchange the compensation plan of Atomy.
This is awesome
Very thorough demonstration and analysis, thanks so much for that!
Thank you so much! Glad it was of value to you :)
@@EliseHewlett so you aren't able to do and effort for a network marketing business.
With that character is not possible
Thank you so much for the clear explanation!! Do you have the calculation of core plus though?
Thank you for this. I didn't want to waste my time any further on Amway.
You explained it so very well. one thing I've learn is that numbers can not lie, and you are right it is a type of mind set you need to have and also information if one is gonna step in this type of marketing. The way I understood it with the mindset I have is that I can make those $400 that I would have spend anyways, make me $5400 every month if I can help other people do the same and understand what I understood or I guess in the way that I understood it. Cause if only people would have understood it a couple years ago, maybe people would have been better off financially when this pandemic hit. I most definitely agree with you, I my self definitely don't spend $800 in products that's a lot and with everyone losing their jobs and being on unemployment, I don't think people would be able to even afford that right now. Thank you so much for this video.
Elise Hawlett not giving the right facts...Surely 3 million Amway Business Owners around the world are not stupid...I suggest learn from the right people...I have been 37nyears in Amway, It is the best compensation plan ever.....your downline can supersede you if he works harder.....you are rewarded according to your effort...find out from the right people, Amway already 62 years , a company with no debts...
Would you like to join ?
@@annaleong4705 yeah, at the expense of preying on your friends and family. the condescending "know it all" attitude of every single person that vouches for or represents amway makes me believe the culture of the company is actually disgusting and toxic
You “can” make 5400 dollars, but that is extremely rare. Even if you work you’re ass off, it is extremely difficult to recruit people to a pyramid scheme. There also isn’t much of a market for their product. Most people are more comfortable with buying from Amazon or the store down the road.
@@annaleong4705 you are really deep into this I truly hope you soon realize the way you’ve been scammed and the way you’ve scammed others. A lot of people who defend anyway And other MLM’s are those who’ve invested everything thus are afraid of realizing that they’re not actually getting what promised.
thank you so much ,its a very useful information .
This is all wrong. She left out customer sales, the discount that IBOs receive and all of the additional bonuses that you get on top of the standard compensation.
Love this 😀
It's a completely different concept if you consider it a retail business. In that you sell $800 of product to customers per month. Figures are all different. Running a business is not about buying stock and keeping it yourself. It's about buying stock and selling to customers. Small business is about selling, not buying. Buying and keeping is not a business. Retail is business. Learn to sell and then teach others how to sell.
Unfortunately not all that are recruited are learning to sell. Setting the expectations of what that looks like upfront is necessary to challenge that individuals decision to make an educated choice. “This is what it would look like if you don’t sell”
Even if you sell, your only getting about 3% to 20% which means you have to sell about 10,000 per month to make a living. Not a very good incentive for the new guy at the bottom of the pyramid. That is where the real problem is.
@@jvaldez1896 you are building a business, not working a job. So it will be difficult at the beginning when you only have yourself. But the best thing from Amway is you will get educated of how to retail, how to build your team, finding people and training them to build their own business as well. It’s a duplicable business and when you get it done once, you done it for your whole life, and even pass it down to your next generation. You don’t need to make $10,000 revenue by your own (you could, but not necessary). Once you have your team, your PV will add up and your incentive will increase. Amway has updated more incentive so you can earn more money lately. Work hard and smart
@@vuthien8889 like you said "once you build your team" the problem is that in network marketing most people don't build their team for years. So the business here is basically building the team not selling the product. And that's fine I'm not saying there's anything wrong with that. But there are other MlM companies that pay you enough commissions to make a living on the products until you can build that team.
@@jvaldez1896 you can sell the products to make extra money on the side, of course if you go this way you will have to retail in order to make money. But if you want to build a foundation to your future so you can get off the path of trading time for money, you can build your team. It’s just like how other business owner have hundreds of people as their employees, and the employees work for them. If you choose to not having a team, you are just like a self-employee, people who own small business with not many people in their team or employees will have to work hard everyday to maintain their small business. Duplication is the key in every successful business, you cannot work for your whole life, then why not teach other how to do it and you get some % back as a return when they can run on their own? This is basically how franchise business work as well.
You're so sweet in making light of this video. Kudos to you
Yah very Nice Plan In INDIA we have different Plan.
Simple Plan easy to Understand
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Do taxes get taken out of this?? Do you receive a 1099?
You're not including Customer volume that would be part of the $800. With 4 customer @$100 leaves you with $400 a month that includes cost of samples so that you can service your customers.
The minimum legal amount required of customer volume per month per IBO is only 50 pv, which a lot of IBOs do since they’re mostly prosumers
It's been 3 months since your comment, are you still in the business? Any change of thought?
Lol try opening up a McDonald’s and see how much you spend a month
Thank you lol
@CarFreak do u have $5 million to open a mcds???? Even then nothing can guarantee u’ll make it,
Thank you for saving me from a big waste of time and money!
Thank you for explaining
How many percent I get if I spent 200$ = 50 pv still 3%??
Nope nothing has to be 100pv to start earning.
Thank you for explaining ur very smart n sound fing beautiful take care
Great explanation. Loved it! 😊 . When the text, 'I'll wait' popped up, I laughed out really hard.😂
umm. NO. TERRIBLE EXPLANATION. She left out so much it isn't even funny.
I went and saw a presentation on a business. Now I am an EXPERT!!! Yay. Go me. NOT.
@@icenova3656 Feel free to elaborate....
The biggest issue it seems with this model is not the products it’s retaining the actual people to stay in you line and to also keep the people in their line. Generally if you has 3-4 people in your down line with their own 3-4 people in their own business then it starts to earn but considering most people get fed up with the model and retaining their lines. If you had one of your line leave with 5 people in their own down line that’s people you need to recruit back not easy considering how much effort and time you may have put in to get to that position
Yes you have a good point here. People are well, people, and probably will change products they buy to try other ones or cheaper/better value alternatives to suit their needs etc. Once you recruit someone, their position certainly isn’t guaranteed. Thanks for your comment :)
@@EliseHewlett Considering nobody is actually paid, aka a wage as such, and the addition costs of apps registration, running around its difficult. However I have seen a lot of new people actually do it from a web page and not run around, use Zoom, and treat it like a shop, not a recruitment drive.
Bingo! It's a scam.
That's business. Customer retention is an ever going process. Well established Companies like Coca Cola still pay billions in marketing and advertising to stay relevant. Companies come and go because of a loss of relevancy. Even social media influencers and celebrities lose relevancy.
Amway tries to make things as cookie cutter as it gets to streamline a process that most people with the right mindset can follow.
Mcdonalds has franchises and franchises can still go out of business.
Building a business at the start takes a lot of effort. Maintaining the business doesn't take as much effort to get it rolling, but there is still abit of effort involved to keep it rolling.
@@whosaidthat84The various network marketing plans offered by different companies are a form of IQ test, and most people fail the test, either that or they (like me) are just too lazy to do the work, and are instead looking for a free ride. Then, when they fail to build a successful business, they want to blame the company or their upline for their inability or unwillingness to study, plan, and effectively work on their new business.
There is no point in coming back with arguments because I am not even an active Network Marketer, I simply studied and understood the plan many years ago, and will probably never return to view this video again. Because the truth is, that I just don't care.
It's very rare to have more than a few front-line people in your downline, it's much more common to grow the business with your handful of downline have their own downlines. It's not as profitable but it is much more achievable. Also, if you calculate the payout from the bottom up, the calculations are a bit easier. However, what you described is the gross profit, the thousands of dollars/year of overhead costs mean most people will be losing money at any given time, most people quit within a year or so and need to be replaced just to stay at the same level. It's a lot of work to keep a scam operating.
I see a few people commenting: "why would you discourage other potentional business ownerss!!!!" and I'm like "... you want MORE competition for the same overpriced products???"
@@meishamariepaul3518 czcams.com/video/8-ZPBjc4tM4/video.html
This is absolutely NOT a business, all id does is ruin credit and marriages.
@@teddypendagrass491 It's a business, a business scam.
@@meishamariepaul3518 Different people know people that you don't know. Plus, the internet has allowed recruiting around the world.
Can you please do a acn business opportunity video just like you did for amway
Super cool 😎👍🏼
Correct me if I'm wrong, but this is ONLY based on a TEAM purchasing there OWN PRODUCTS. Not including customers who purchase products that are not IBO? Also, the top person technically makes more but if you are a better salesman and beat/sold more than your sponsor the difference would be small to none right? That's how you make more than them? It's just marketing! If you are able to gain traffic to your business than you should be good! Let me know what you think? Love to hear other people's perspectives!
It also doesn't take into consideration people leaving the team. Or taxes. I assume this income is taxed somehow.
@@ajmveliclerepairdiy3107 yup and like 98% of people drip off or something like that IBO's
thank you
As someone who's been an IBO carrying member since 2003 (and actively built and attended meetings for several years) I have to say you just showed the Plan alot better than even some of the pins (Platinums or better). I like how you were unbiased in how you showed this; gave a summary of how you viewed it; then gave a short, concise, but non-condescending reason why you chose not to participate. I still use some of the products when I can (XS, Nutrilite, the skin care) but in terms of building have been focusing on other ventures (I won't rule out a return down the road though).
Wish more channels could be as unbiased as this! #SocialMediaNetworkMarketing #iCommerce #NeedToDecideYourGoals
The whole thing is a scam and 99.99% of people either make no money or lose money. If you are one of the people who happen to make money, it’s only because people in your downline are effectively “losing” money by spending so much on junk products to begin with. I’m glad I’m out of Amway.
wait I’m confused? So if Bill don’t have any partnership but he buys amway products! How much will he get back since he only wasted 800?
200pv is 3% of 800$ so thats 24$
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If Bill don't have any partners, he should chuck it in and go get a job.
Listen if you simply bought $800.00 worth of profit and flipped it you would get $1,600 dollars. Repeat Repeat Repeat. Don’t use the damn product the first 6 months . Just sell and double and grow your clients. You could easily get 50K in Revenue . This would mean your BV and PV is sky high.
great video
Thanks! If only the amway people could go over this as soon as they talk to you, that would be great
They don't because it's a pyramid scam
If the people who talk with you about the Amway business plan, fail to immediately show you the plan in a clear and simple way, then you should avoid those people because they evidently do not understand it themselves.
Or to paraphrase Albert Einstein "If you can't explain something to a six-year-old child, it is because you do not understand it yourself".
Let's do some math and real analysis. Back when I saw this business for the first time in 1996, Amway generated close to 7 billion in sales. 25 years later, they're not generating a lot more volume. How does a business model that is predicated on signficant exponential growth before good money is made for new distributors work well if the main corporation has not even grown at the rate of inflation over 25 years? Is the corporation not positive enough? Not working hard enough? Why do they tell new people with little in the way of resources to remain positive and achieve results that people with power and money cannot?
google top 100 direct selling companies in the world...Amway still remain Top of the list
@@annaleong4705 based on volume established nearly 25 years ago with a business model that only works for distributors when there's consistent growth.
Amway's volume has decreased every single year since 2013 when inflation is factored in. Amway is a total scam.
Exactly!
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I made it to 15% in 1994 and the money was pretty good. I developed a ton of self--confidence from the self-development system and I have no regrets whatsoever, because I replaced a crappy government job on 18k a year, with a 40k teaching career.
However, this 'new' plan is terrible because during my time, I would receive a percentage of the entire group - and not just a percentage of my own spending. So whereas Bill gets 9% back from his own spending, I would get 9% of the entire group PV. Not only that, it appears that distributors pay a single cost for products and are expected to sell them at that same 'retail' price! I was able to purchase my products at wholesale and sell them at a 30% mark-up for retail.
It seems to me that the business model has changed dramatically - so as to benefit the corporation and not the distributors.
The products are superb and I would still order them today, except that I don't want some crazy-positive distributor dropping in for a three hour coffee.
I really value the honest opinion, it’s refreshing. Thank you for sharing!
How much money did you make after subtracting out your overhead costs? Which tool group was your upline promoting, N21, WWDB, etc.?
@@Whydoyoubanothers Hi Scott, all I know was that our UK group existed under the umbrella of International Business Systems (IBS) and our line of sponsorship was - Scriven, B O'Brien, JP Harteis, F Harteis, Dexter Yager - or something like that. Personally, the tools cost me roughly £40 per month (for one tape of the week, one 'red' leadership tape and one book of the month), while income fluctuated from £300 to £500 per month. But for me, the most important item was the self development of myself. However, the first year was mostly money going out and I reckon to have paid £500 for functions and tools during that first year.
Hope that helps.
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did you keep going or did you stop? if you stopped, why did you, if your money was "pretty good" and you improved your self image? I'm just interested because im new to amway. Thank you.
Awesome plan
For me Amway Is a Gold mine. I LOVE ❤️❤️❤️❤️AMWAY 100% 💎💎💎.
Thank God for this Company 🙏🙏🙏 God bless AMWAY forever and ever 🙏🙏🙏
I hope you're not genuinely thanking God, He has a few things to say about lying and fraud and the philosophy of pyramid schemes.
Yes!
You are in deep arent you? Do you pray to the Amway God each night?
Are you still in this business if so how are the outcomes
Hey, I like your shoes
Reading a book at Starbucks or a Laptop open.
Normal conversation into
"financial freedom talk"
Great plan congra
Thank you. This was helpful.
Thank you very much. Now more than ever, would I not join any sort of business.
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Using the Coinbase debit card to purchase Amway products (or any brand) gives wild results. Coinbase pays rewards. I got $30 got spending $600 on the debit card, which was just my rent. Considering the price of products sold by Whole Foods, Amway products are looking competitive. I would say the secret to selling their products is to find products that your customers will enjoy forever. For example, I have been using the Card Blocker for 25 years. I am not even a distributor. Their carb blocker is just that good that I am compelled to keep buying it. Their products are of addictively high quality.
Some people ask, can I trust coinbase? I ask can you trust cash?
My favorite part about this video was the sound of the sharpie.
Before joining Amway please research videos that are against joining Amway. You deserve to make an informed decision, just take the time to do so. People making anti MLM videos have NOTHING to gain from trying to stop people from losing money. The only way you win in an MLM is scamming others, the people at the bottom of the pyramid lose money and you will run out of clients to sell too.
what you said is pure bullshit. The Networking marketing industry is over $350 billion worldwide. If it was a pyramid and scam Warren Buffet would NOT be owning 4 of them. They also have to adhere to strict guidelines in each of the 50 states if an AG finds it is a pyramid they are shut down....There are many legitimate solid companies in the Network marketing space that are NOT pyramids. Educate yourself before making statements that make you look like a fool. I am not in Amway but in no way is it a scam. By the way we are world of 7 billion people one never runs out of clients to sell too.
@@jonnelson1481 Clearly you've made all these statements on so many assumptions.
1. The valuation of these companies don't mean SHIT they can be worth BILLIONS but who actually owns the money? The people at the top.
2. You mentioned there are strict guidelines which makes it legit, and the fact that they sell legit products makes them able to conduct business. Again you assumed that there are regulations but they dont mean shit when the business is conducted exactly like a pyramid scheme. Money going to the top.
3. You made the assumption that you can sell to 7 billion people, nope, you cant sell to every single person( including yourself) a crappy product. So you CAN (and will) run out of clients.
But lets make an assumption you can sell to/recruit 7 billion people, by recruiting 5 people each time it only takes 15 cycles of recruiting to exceed the world population (do the math). So yes, even if you sold or tried to recruit 7 billion people thats merely not enough.
So what you've said is nothing short of bullshit.
@@jonnelson1481 you do know that such companies exist because of a loophole. They “sell” something thus they’re legal. If you’re in one of those “businesses” I hope you leave. Because some people are truly brainwashed and lose all there life investments and many people do as you did and defend these MLM’s because they can’t face reality.
@@skybu11et spot on
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Are you try to get more traffic and leads? Network marketing is a great way to make money, but you need to learn marketing. In order to make sales. I love teaching people how to succeed in their network marketing business.
Also, how much is Bill and company paying per month to remain active in Amway ? 🤔
Hey Antonio, great question. You have to spend $200 per month generating you 50 PPV to earn a rebate.
You don’t have to pay anything monthly to stay in business. You can do nothing for a year and let your registration expire if you want. You have a yearly fee of $60 for business registration.
If you want to make money with your business, though, you sell products to customers. If you want to buy products for yourself, you get a tiny portion of it back if that’s all you do because it’s not meant to be a wholesalers club. It’s meant to be a business.
The only reason a team would suggest buying your products is if you actually want to do anything with it. Because buying and using your products allows you to talk about them with potential customers & allows you to give samples to them.
It’s a business and there’s nothing more to it.
When I was a member many years ago, the horrendous cost of membership was about $25 per year. Operating costs however are a different matter, and they ranged from very little to lots, depending on how smart or dumb each individual business owner was.
Wow ...Amway
Hey Elise I have a question, someone is introducing me to this business and of course I haven’t spend money, so I just want to know if you think this is a pyramid scheme?
If you want a black hole that sucks money from your account while you work really had for that black hole to even exist, you should go for it. Or if you enjoy money, I'd say steer clear of it and just go get an actual job.
It’s not a pyramid scheme. Still, keep researching it to make sure it’s something you want to do.
Go open a shop, and then you can go broke much faster.
Prsonnaly i don't think that i can make finanbcial freedom with this plan , it is like a monthly subscription , i don't know if i may be wrong and misunderstood the plan or i have to purchase products just so i can keep working thank god i am working where the plan is more simple and rentable and i don't have to purchase a product only once.
The marker screeching just killed my brain cells 😭
Lol whoops sorry 😂😂
greetings from Ukraine)) and this business plan is for the USA??
No. And she left out customer sales, the discount that IBOs receive and all of the additional bonuses that you get on top of the standard compensation.
I'm about to start this, I'll give it a year and Not going to Every week meeting 8pm to 11pm. Meeting every bloody week is crazy, almost cultist in my opinion.
Meet every lunch break is best
I was an Amway IBO some years ago, and nobody ever forced me to do anything that I did not want to do, which was sad because I then did nothing.
How has it been so far in the business?
If you don't associate regularly with like minded people, stay around your broke friends and treat it like a hobby, you will never succeed. Shouldn't have started in the first place.
I literally got an ad for an mlm on this video..
What about sells?
Question: I am new to Amway and confused if it is what I should invest my time in. Who catalogues those that were brought on to your team if they are all busy building their own businesses?
how do you still earn money from them?
Ask your upline for help
so i almost started amway, and i soon realized that you have to do the same amount of work as in a normal job, its not something thats gonna magically generate money while u sit back and do whatever you want.
It's a scam, get out now
Complete scam. The profits don't come from selling, they come from signing people up and convincing them to buy into the business.
Yeah it’s a scam my mans
if you can help one or two become successful
the third and the hundredth is second nature
The VAST majority of distributors have no real idea of what 7500 PV (direct) is. It’s about $50,000 (BV) per month?
Building this is beating a dead horse. Market/local saturation occurred decades ago, and absolutely will block you from sponsoring in any meaningful way.
They probably don't know because their upline never told them, and they don't know how to use a calculator.
It just gets down to new recruits buying a lot of high priced products with a dream that will never come true.
Damn, I think you are just about spot on with that one
Such is life. Welcome to consumerism. Atleast you get a lil something something for shilling. All products factor in cost to produce and market. Choose your poison. You're either a consumer or a producer. For most people it's hard to produce. Atleast Amway lowers the barrier to entry.... If you're a hater, you better be a producer. If you're not producing and only consuming, step away from the keyboard and start producing. Doesn't even have to be Amway, but its pretty low barrier to entry IMO.
😅😂🤣🤗👏👏 Melancholic.
In 2021, 33% of all U.S. registered IBOs had no reported sales, did not sponsor another IBO, and did not earn any compensation from Amway; 62% of all U.S. registered IBOs in 2021 received a payment from Amway in at least one month for sales that occurred during 2021. Of the IBOs who received a payment from Amway in one or more months here is what they annually earned before expenses:
The Top 1% earned $87,901 (average) and $55,264 (median)
The Top 10% earned $14,537 (average) and $4,645 (median)
The Top 50% earned $3,414 (average) and $631 (median)
That’s straight from the Amway website.
This is really interesting, thank you
Depending on where you're at in the process of building your business, whether its Amway or not, those numbers can actually be quite significant when you factor how passive the income is being generated.
Before starting any business, one must be deprogrammed from the worker mindset.
The financial problems that alot of people face tend to be a lack of financial literacy and proper skills to flourish in a capitalist society.
Don't forget that Amazon operated at a loss for years and many other companies have. Perseverance always prevails.
@@Happy-go-luckyTV these are straight from the Amway website are you that blinded by this business???? Amazon isn’t a MLM
@Eliza D lemme guess... you also believe web3 business model is a scam?
MLM is a business model that people tend to relate to scam.
I'm not blinded by anything.
Life is a game. Figure out the rules and win.
Call it what you want. I don't think its a scam. In fact, create your own white label product and compete with Amway. Maybe you'll get better results than what you've posted. Maybe you won't. 😉
The fact that you've posted those numbers as if it was a "gotcha" moment speaks a little bit about yourself.
@@Happy-go-luckyTV listen buddy just go on build your little business and stop @ me Idc I know this is scam!!!!!
And it’s not about the “products” like they can have the best f ing product in the world and still operate as a unethical business model. Don’t bring up products this is about the products. It’s about recruiting people.
It's not only house hole products, you have health and beauty as well. You can also sell products. I am single as between beauty products, vitamins and supplements, house hole and the things I sell, I easily make 3% to 6%. 75 people is the idea, and it is a recruiting and team business. The compensation is not based on what you "buy", as much as on you sharing the concept with others. There are other items like your electricity, mob, health insurance, car rental that will help[ you build the point value if using the partners store. So in summary there is much more than what you mention here. Look into it its a great opportunity if you do it the write way. All the best. Be Blessed
yhh but what about the products ent he gottta sell those too make extra cash too soo yh
How I start amway company
Bạn chia sẻ rất dễ hiểu, Thanks. Tôi đang Việt Nam làm thế nào mua đc Sp bên uas
You did a great job explaining how ludicrous and insane the Amway concept is. Not sure how anyone would spend even $50 a month on cleaning products! Or even spend that each month as a large container of laundry detergent lasts more than a month as does dish washing liquid and bathroom cleaner. Each of those last about 2 months - I have a large home. For all of the above I would spend about $25!!! And not per month! How could anyone even afford to spend $800 per month of cleaning products???? You have to be a moron to sign up for this or be blinded by greed and gullibility to be fooled by the mentor explaining all this for you!
I want to join amway From Bangladesh
There are so many things are you missing from this abscure view, like multipliers of which there are many. This is quite basic explanation, bottom level Elise. I don't spend that much a much a month on products, just $400 per month and do have this returned to me from the compensation plan, and so do people in my downline. It's an enterprenuerial model. It's also very fair and depends on the effort of those involved. Downline can certainly surpass upline with effort. That's the fairness of the model. Women are not marginalised or paid less either. So very fair. And the products are exceptional, especially the supplementation. So whilst I appreciate your efforts in explaining part of this, it's not the whole view. Infact, no where near the whole view. This business had been around for over 70 years, has a 90 day money back guarantee on all products purchased, is a willable item to children. So as usual, not the full story.
So if Mary and Val and George and etc! Have people behind each of them! And those people buy the products from amway too! Will the PV add all up from everyone! And then BILL will get the most benefited one?
One word NO.
It’s a pyramid scheme
@@DreamBig-rg7zk it’s literally a pyramid scheme 😂
@@moto-_-moto tell me what/who/which company doesn't work as a pyramid? Scheme? Depends how you see it and who you dealing with!.
@@DreamBig-rg7zk homie it’s a scheme. There’s a lot of people who defend their companies such as acn, amway, IM Mastery Academy, Herbalife. The vulnerable people who put a lot of money into this and in return get nothing. Those people try so hard to defend it because they’re scared to see that they’ve actually been scammed and are literally losing money. Now yes all companies/business that started out small and are now bug always have that one person at the top. But there companies that are not MLM companies that don’t scam there employees. These scams such as amway try to promote a passive income scenario of owning a side business and there are other extreme MLM’s that promote being an IBO. Only those at the top will benefit.
So what happens when your direct partners get to 21% too? You end up getting nothing?
Correct
That makes it a equal playing field for everyone which means you can actually make more money than people above you if you work harder
@@edwinlopez3982 That makes sense. Thanks for the reply.
Do you get scam by bringing people and the people who invited you take or steal the people you bringing in to consume the products ? Should you involved a business attorney ?
Amway partners with dozens of high profile companies don’t you think companies like Apple and Office Depot have experienced lawyers that bet the practices of this company before partnering?
With a business mindset, outside of Amway. 75 people is nothing. You would need more volume, more time and capital to reach the same amount of passive income you've calculated. Not to mention invest alot of time and money building a product and building its brand.
I haven't really done Amway and have seen it before and actually think it's a solid business with very minimal barrier to entry.
The problem in the whole grand scheme of things that plagues alot of people and people that think its a scam is having the right mindset.
Before calling it a scam. Create your own business. There are business minded people that don't even do Amway that would agree it's a pretty solid model. They may find that they would make more money with less effort doing their own business based on their personal circumstances. Not to mention, business is hard. Amway is easy, relatively speaking, especially in consumer society. People consume and don't make anything from it.
Kinda reminds me of web3 business models. Collectively creating value and reaping the benefits as a collective.
But I digress. One can lead a horse to water but it won't drink if it isn't thirsty.
Thanks for your quick math skills. Numbers don't lie. Seems to me there's a need to prey on recruits/down lines. Essentially you or your recruits are the consumer of the business.
Manufacturers design and make products, wholesalers distribute products to retailers, and retailers sell products to customers. To some people, this is simple logic although, to the majority of people, it appears to resemble some form of black magic, with pearls, emeralds, diamonds, pyramids, and dollar signs all jumbled together and swirling around their heads.
Si se gana tantos dólares con solo este poquito de personas que hasta podría dejar el empleo desde ahí. Se imaginan cuando se vuelva viral ? Es el negocio Perfecto
If one's soul mate or one's close relatives are not hot for AMWAY, Amway wants one to dump them. AMWAY can kiss the red rose.
Aww that’s sad 😔
As old as away is, I'd expect this method was a debt they owed decades ago . Count Thereons out!
#Thanks
How is it ethical for the upline to get large bonuses based on the business volume that is created by the Downline? Shouldn’t the downline IBO’s reap more of a benefit from the customer volume they create rather than the wealth being sent upline? It seems like The fat cats at the top enrich themselves and did not earn a penny of that wealth while those at the bottom get paid almost nothing.
That’s why you work your way up the ladder, at a job you get paid next to nothing while the owner sits and collects money, they took the time and effort to build something that can make money without maximum effort
@@Stxtle The owner does not derive his/her wealth from employees having to spend their own money for the "opportunity" to be in partnership. Their money is derived exclusively from retail sales. Not the case for MLM. It is exploitation, pure and simple.
Its because you earn so little at the start, most of the money is being held from you. So as you get peanuts, of course they can give you bonuses IF IF IF IF you make high volume.
@@horsepowerdude yet they derive with his/her TIME which is more valuable than money! Money will come and go! But you time? That never comes, and only goes. So yea, in a way, it might be better to work hard for a few years, spend money and build a team to make enough to where you never have to work for someone else and the work you still do and just expanding on your business/team! Idk I may be wrong but this is just all my opinion! What do you think?
@@Xecutioner62 I think it is a legal pyramid scheme and a reprehensible business model that is similar to medieval style feudalism. The aristocrats (upline IBO's) enjoy a lavish style where their wealth is derived the peasants (downline). The downline create the wealth, but they don't get to keep it because it gets sent upline through this convoluted system to the people at the top. And worse yet, the upline do not compensate the downline for the weath they generate. So in other words, the downline is free labor for the upline.
Quitters never go diamond 💯
Keep in mind that the 800 or 400 dollars dont have to come out of your pocket but other people you sell to
That is how all retail businesses work. The customer pays, and the business owners make a profit. That is how economies work, that is how the world works. The only problem with the Amway plan is that unlike companies such as McDonalds etc, prospective business owners are recruited but are never vetted or evaluated. The non-starters join, do nothing and then quit and complain about their lack of success.
@@sandponicsI agree bro people are too lazy to put in the work that's why it's easy to win nowadays there's no competition 🥂😊
"...one must speak up in situations where silence can objectively be taken to mean agreement with, or sanction of, evil.
-Ayn Rand-
I haven't done Amway for many years so I'm not "brainwashed" as so many people like to put it but it's really not a bad business, it just takes a lot of effort like almost anything else worthwhile in life especially starting from nothing. Real residual income is difficult to create and with Amway it's no different but it's doable. If it takes 10 years to create $5-6k a month of residual income that just keeps coming with little effort, it's worth it. 5-6k is an average income and most people could quit there 9-5 at that point. I wish I would have stuck with it, I was very young when I started. I met a few people that were successful and it took them many years but apparently them being "brainwashed" was a good thing.
If you’d like to join again feel free to message me. Definitely not for everyone but we’ll worth it !
I get what you’re saying, but I feel like it’s generally a bad idea. The business model involves having to manipulate people into joining. The fact of the matter is that the vast majority of people won’t be able to recruit enough people and they will ultimately suffer financially.
@@rafterman5072 If anyone is being manipulated that's on them. And I mean both parties but especially the manipulator if they are actually deceiving people on purpose. But the business model itself is very simple and anyone should be able to see that and make a decision. Buy stuff and get others to do the same. I think one of the main problems is people are simply not ready for the commitment and investment. Doctors and lawyers do Amway and doing their monthly pv may be nothing to them but someone making $10-18hr the monthly pv is a big chunk of their income and to add people's bad spending habits like social drinking, restaurants, Starbucks etc. most people are not ready to build a business. Add to that poor people skills and yes people will waste time and money. Amway can help develop people as well but that's another story.
hey bro never give up on your dreams and purpose! your created for greatness, now go receive it!
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You might want to edit "a simplified manor" to read "a simplified manner."
If memory serves, a manor is a piece of real estate whereas "manner" is the intended descriptor.
I would prefer to own the manor, than the manner.
trying to register as seller. Do you provide IBO number ?
Good on you for doing the math and figuring it out.
Lol what. Basic math
I 25%
You can buy comparable products of same or even higher quality than Amway products for much cheaper at Walmart, discount stores, Amazon and save hundreds of dollars. So instead of spending $800 to make $72 and hoping the people you recruited are also spending a lot on Amway you can simply buy comparable products and save $300. If you buy Amway products to sell it's a tough sell because you can get similar products at Walmart for a lot cheaper. Your cost for the Amway product plus your up-sell cost to make a profit makes those products very expensive. No need to screw over your friends and family to make a buck.
I agree!!!! When looking at what other products are available on the market it’s hard to justify choosing the products offered by Amway, in my opinion.
Elise! Thanks for making the video. The only thing I would like to add, so maybe it clarifies the business model a bit more is the word replacing the word "spending".
You mention that Bill and his team are all "spending money on products". The essence of the business is selling. So even though they would all be using a portion of their income to buy amway products, just as they would to buy dish soap from any other business, most of their PV should come from selling.
Showing it this way makes a bit more sense when you look at the percentages you're being paid for your downlines. Instead of "getting back" money, they would be making additional profits on sales, and also earning a percentage of your downlines sales.
It's important to remember that profits come from sales. Savings comes from spending better. With Amway, you can do both.
U have buying (spending)mind set not business mind set.. U know Wats the answer for business.. Get tat definition of it
The second example was not the same as the first
Mam if I join can I get $ money from your country ..I m from india
you can own a business in India
You can join online. Sponsor ID-1903573 🙏🙏🙏🤝🤝🤝
400 dollars a month on products that I personally have never bought
Hi Elise. I know this is an old video and you don't put up many but your viewership is relatively low. Just by making this video 119k ppl watched it. That shows interest which could easily create 75 ppl under your management. Just a different perspective
Bet if she were talking about her Amway products in this video it wouldn't receive 119k views
@ReubenDouds_RealEstate maybe not but if it received 1000 views it shows interest at a minimum. It says re in your name: if 1000 people watched a video you made about a property you have that would show significant interest and the potential to sell is even higher than normal. Everything in sales is a numbers game and presentation. More people see what you are selling is interest and you don't need 119k you are asking for a small percentage of that
You can make that 800 hundred with customers and personal buying.