11 January 2009

Amway and IBOs

This is a mirror of my recent post on TTAA.

Rykel from Singapore


Really? Well, if Diamonds are responsible for the lack of incentives for newly sponsored IBOs in my market, then maybe it is time for a change of guards. Maybe the Diamonds still think that the cost of living is what it was 20 years ago, Oh Amway Diamonds, be not jaded!! hehe

And yes, you are right on the spot… I have been with Amway since 2002 and todate, there is seriously nothing in the Plan in my market for newly enrolled IBOs except Retail Profit, Performance Bonus and non-cash items such as free products. (maybe if Amway offered free Positrim Shakes and Protein Powder as free products for sponsoring new downlines, we might have at least substituted them for real meals - get the intended meaning?) :)

All the SIP all these years in Singapore were primarily for Platinums. No Platinum, no SIP. In the last two years, the so-called SQ Plus bonuses were introduced, only for new IBOs to find out that they do NOT have enough time to easily qualify.

I am not sure if what you mentioned about Orrin and pricing is totally accurate, since the price reductions did occur only AFTER Orrin’s departure (9 August 2007) - like the recent Tolsom reduction in Australia (2008), but I for one do NOT like the idea of Employee quadrant gals trying to “control” the System, much less to “merge” or “educate” the Systems. Amway should just retreat into the cool shade and continue the perfect role of product manufacturer rather than “MLM trainer”.

And it really makes me a bit uncomfortable when Amway staff calls their bosses “upline” (yes, they do! In my market at least, but tongue-in-cheek/humorously, of course) and then in the same breath, labeling IBOs as “our salesforce”.

I just hope that this once great company will not go the way of so many others and end up as a “direct sales” company on the pages of history, and possibly “lose all the distributor force” due to a severe lack of leadership (to quote Orrin), and return to the basic principles of serving “Amway distributors first”.

As it is, already MonaVie has reached the US$1,000,000,000 threshold in USA and, correct me if I am wrong, there are only two MLMs that have this turnover on American soil, and MonaVie is probably 2/3 former Amway SYSTEM leaders, such as Brig Hart and Orrin. (the other 1/3 being RS of Agel fame) Which means that if MonaVie plays its card well, the SYSTEMS will take MonaVie beyond her wildest dreams, just like how the System has and still continues to take Amway above its highest peak… and not to mention the slight thought that perhaps the simple juice (like the simple LOC) might buy out Amway Global in a near future.

And this is just MonaVie. I heard that more and more companies are having a heyday picking up the disillusioned IBOs thanks to Amway’s treatment of Team. Of course, whether these other non-MonaVie players can RETAIN Amway System leaders and be good enough to marry them is another matter.

What does the future hold? (To be continued…) :)


  1. And here was my reply. :)

    A couple of things - MonaVie’s $1billion in sales is (a) global and (b) cumulative - ie, every year since they began added up. In the same time frame Amway’s sales have been something like $25- $30 billion. Indeed, I believe Amway sales grew last year quite a bit more than MonaVie sales *total* for the year. Read the fine print in the MV marketing. They are no where near as large as they like to make folk think - at least when compared to Amway.

    Apart from the appalling “go team go” post, Amway’s treatment of Team was in my opinion exceptionally soft. For some time TEAM had been generating a great number of complaints. Indeed their way of operating (not just the stacking problem btw) verged on being an illegal pyramid. No harsh action was taken for several years and eventually only with 2 IBOs (Woodward & Brady) when it was clear they were planning on going in to competition with Amway. Further terminations only occured when other TEAM leaders attempted blackmail - with a lawsuit they had prepared before the W&B terminations.

    Regarding price reductions, I believe the Simply Nutrilite products were in train before the whole TEAM thing blew up. Amway India and Amway Latin have had entire new lower price product lines introduced - that doesn’t happen without quite a lot of preparation. I think the TEAM debacle certainly sped things up and brought a lot more focus on to the issue, but so did the BERR vs Amway UK situation.

    I agree with you with regard the lack of incentives for new IBOs. Hopefully the new program in the US will work well and inspire them to launch similar programs elsewhere - heck, we don’t even get free products! :’(

  2. Thanks IBOFB for stating the facts as you know them. I am away for the moment, so I cannot respond with in-depth comments of my own, but just a quick note about the Amway incentives for new IBOs... I wish that Amway would put some money there too for all my newly enrolled IBOs! :)