FOR THOSE INVOLVED WITH AMWAY - MUST READ!

**Aussie** · 29-Aug-07, 07:26 AM

To Whom It May Concern,

As I understand, Amway I thriving in South Africa at the moment. Therefore, I believe the following information will be of interest to many people...

Presumably you (or someone you know) joined Amway to make money. Yet by now you will probably realise that MLM can be exhausting and the rewards may not be permanent. You may even be wondering if MLM will really deliver for you (after reviewing your results and those of people around you - especially your downline).

Well let me assure you that MLM works and with smarter systems and a better marketing plan, you do not have to utilise exhausting ways of operating.

I am involved in a part time multilevel franchise that can generate AUD$100,000 per year for you within the next 12 to 24 months (its been done). However, to do that you only have to work about 10 to 15 hours per week and you do not have to go out at night.

Attractive elements include:
- The PV to dollar ratio is almost 1:1
- Promotions are determined by cumulative group volume (no dropping back to zero at the start of a month)
- Promotions are permanent (you never drop back once a level is achieved)
- A 20% level is achieved after only $8000 cumulative group volume with only $2000 side volume a month (and your first bonus level is 10%, achieved after a $150 purchase)
- The qualifying $2000 side volume reduces to $500 at higher levels
- 5% breakaway bonuses up to 5 levels deep (sometimes more), affinity bonuses up to 8% (to infinite depth), and up to 21% on your first level distributors
- 56 cents in the wholesale dollar is returned to distributors (including a car bonus).

I invite you to compare these particulars with your company. I encourage you to look critically at the figures.

Numerous people from other multilevel organisations, including some senior pin levels, have seen the advantages and now make very generous incomes in an easier and more enjoyable way.

Amway (or its associated regional companies) have been publicly listed. During that time, they were required to disclose, in their annual reports, the remuneration paid to its distributors. I understand that the last published figure for what Amway paid to its distributor force was about 26%. There is some ambiguity about this, but my research would indicate it to be about 26% (it may be a little more or a little less).

As you would know, Amway has a 'breakaway' marketing plan. Anyone with experience in MLM will tell you that there is relatively little money made in the pre-breakaway section of the plan (that is, up to 21%). The majority of income is made after you break-away 'directs'. Based on the figure of 26% mentioned above, after paying the 21% (pre-breakaway), only 5% is left.

Of that five percent, 4% goes to payment on your frontline qualifying direct (if you manage to reach the appropriate side-volume to qualify - and as you know - that is difficult in itself). Amway only pays the 4% bonus on one level of breakaways. Simple arithmetic shows therefore that this leaves only 1% to pay you for all the rest of your breakaway groups. These bonuses are various but it should be noted that very few distributors ever get paid these extra bonuses - usually only those at levels well above direct.

My company pays 56% to its distributors. After subtracting the 20% that is paid on the pre-breakaway section of the plan (the equivalent of your 21%), there is 36% left for paying you on your breakaway groups - which, as we know, is where the real money is made.

So, after paying 5% (my company pays 5%, not 4%, for breakaway groups) on the first level group, my company has 31% (compared with your 1%) to pay for the rest of the breakaway groups.

My company pays 5% up to 5 levels deep (more with "compression") plus it pays an affinity bonus up to an infinite number of levels in depth. Naturally you have to qualify appropriately for these. Moreover, in addition to the breakaway part of the marketing plan, my company has a Unilevel section to reward new distributors in the early stage. Not surprisingly, we have increased satisfaction and an excellent retention rate.

About 30% of distributors in my company go to the executive level (that is, the breakaway level). This amazingly high percentage is accomplished because of the cumulative volumes and the fact that you do not drop back to zero every new month. Please don't forget that you can be paid up to unlimited depth on these high numbers of breakaway executives (including to 5 levels with leadership bonuses, compression overrides, and an infinity bonus at senior levels). It might be worth asking how many actually reach and hold the breakaway level in your company - you might discover that as few as 0.5% (or less) of distributors go "direct" and hold that level.

I think you can clearly see the enormous difference between the two companies. If you would like more information about the differences and possibilities, please contact me. I will guarantee confidentiality and I sincerely feel that it would be worth your while.

You know better than most that sometimes, if you want to make a change in your life, then you need to make a change in your life. This could be the time.

If you are genuinely interested in really making $100,000 a year within a few years in return for 5 to 15 hours a week, I invite you to contact me for more information (confidentiality assured). Incidentally, you would be welcome to verify these dollar figures from freely available written records of payments.

Kind Regards,

Aussie.

**Cords** · 15-Jan-08, 02:33 PM

Hi Aussie,

Please send me some more information

Regards

Chris

**Jvdwalt** · 13-Feb-08, 03:10 PM

Hi,
Its just funny to me that every MlM company tries to immetate Amway and the N21 system. I don't know how long or if at all you where part of our team but with the greatest respect I'd have to say you are missing the point.
if you wanna make money in the IT industry you join Microsoft and learn from Bill Gates, the best in the IT field. So...if you wanna make money in MLM you join Amway and learn from N21, the best in the MLM field.

No disrespect intended and I know MLM is not for everybody, just as the IT game isn't, but to discredit the biggest and the best in MLM you are actually discrediting MLM as a hole!

You either believe in MLM or you don't. You trying to market a different MLM system by dishing another system is confusing to me? Why?

Good luck with your choice of MLM system and I wish you every success but PLEASE get your facts straight before using Amway or N21 as an example to promote your system.

**Aussie** · 17-Feb-08, 07:05 AM

hi

i am not sure how you can say that all MLM companies are immitations of Amway. perhaps you could point out how that is true, as i see no truth in that statement.

i appreciate that you think your company is the best in the industry. most people involved with MLM think that way. in my experience, the majority have never fully analysed an any other company but the one they are with.

my post was not written with the intention of discrediting anyone. it is a simple comparison of facts and i am just encouraging people to draw their own logical conclusions from those facts.

however you have indicated that some of those facts are incorrect. so perhaps you can be more specific. i do not want to mislead anyone. quite the opposite.

thanks

**Chatmaster** · 17-Feb-08, 09:40 AM

Multi level marketing is one of those marketing strategies that relies strongly on the maintenance of their down lines. Although many say that the concept is flawed because at some stage the down lines will reach a point that there has to be a looser, mathematically it seems that with the increase of the world's population this seems to be impossible.

But as I said it is the maintenance of the down lines that causes problems with MLM's. Most people have a fear of selling and MLM requires the guidance and continues assistance of the upper levels in order to help the people in the down lines to make it work for them. As far as I know Amway initiated MLM and by no means do I say that it is worthwhile to join. MLM requires a driven individual that understands sales and marketing plus a lot of hard work. This is exactly the problem with the entire concept. It gets sold to people by excellent sales man, but they have the expectancy to get rich easily and with little hard work, by simply growing their down lines. This is off course not true and at some stage the majority of the people that join these networks will be disappointed.

If you want MLM to work for you, you have to except the fact that you will have to work hard for your success and maintain your down lines with guidance and frequent assistance.

**Dave A** · 17-Feb-08, 11:05 AM

I think the core of this thread lies in the issue of comparing MLM options. To this extent, it seems to me that Aussie is crediting Amway and N21 as industry benchmarks.

Having a benchmark certainly makes any serious exploration of the subject easier - but it's still extremely complex. The reward model is not the only thing one should be considering when comparing MLM options.

Chatmaster indirectly raises one of the more important considerations - a supportive upline.

**Aussie** · 18-Feb-08, 09:23 AM

Chatmaster: Thanks for your useful words. You are absolutely correct that MLM relies upon helping your downline - and so it should. The way for you to make money is to help your downline make money. This is why I consider MLM to be the fairest business system available, provided that the payment plan is fair (which in most cases it isn't). As you mentioned, many people have difficulty with selling and maintaining their downlines. There is a simple reason for this - they do not have a good system to run the business. When you have a good system, fear of selling is not an issue and maintenance of downline does not take much work. I also agree that to succeed in MLM you need to have a strong desire for success and be willing to do what it takes. However you absolutely do not need to have any special knowledge or previous experience in sales and marketing (if you have a good training system provided by your upline). As well, you do not need to put in "a lot of hard work". Again, with a good marketing system you can build a successful business in your spare time. This is a fact and it has been done by many people. Having said that, MLM is a serious business which requires time and effort but it is a lot easier than working a traditional job or running a traditional business. My point: compared to the other options available e.g. full time work, starting your own business, investing etc. I believe MLM is the best and most viable option for the average person who wants to become financially free.

Dave A: Thanks for your comments. Yes, my initial post was strictly a comparison between one of the most well known companies (which is big in South Africa) and the company I am involved with. Readers may draw their own conclusions. If they can see that they are not being fairly compensated by the company they are involved with, then I am offering an open door to those people so that they can be paid what they are worth. If they are happy in their current position then good luck to them. You are absolutely correct that the payment plan is not the only important consideration. Company, products, upline system etc are all important. The reason I chose to compare the payment plan is because there is no opinion that comes into it. It is pure facts and figures placed side by side. In the end you can have the best company, the best products, the best upline but if you are not getting paid then what is the point of putting in your time and effort.

**Chatmaster** · 18-Feb-08, 01:38 PM

Originally Posted by Aussie

When you have a good system, fear of selling is not an issue and maintenance of downline does not take much work.

About 9 or 10 years ago I was involved with a company that interviewed all the top 25 US MLM money earners. What became clear from the interviews was they worked very hard and smart to maintain their downlines.

There were two ways of making money from MLM. Hard work or what I like to call Shotgun work. The concept of Shotgun is based on the fact that a shotgun shoots out several lead pellets that spreads wide and will hopefully hit something. This concept however have several problems in that you often do not hit the quality people in your downlines that will earn you money.

Originally Posted by Aussie

However you absolutely do not need to have any special knowledge or previous experience in sales and marketing (if you have a good training system provided by your upline).

I know what you mean with a good system but I have a major issue about the way it is being done by many in the MLM industry. Downlines start to rely so much on their uplines to close the sales that they do not always tell people what to expect when they go to meetings. The end result is many people that join at that stage just fall out later because they feel they were mislead or do not want to mislead other people to come to meetings whilst not knowing it is a Amway, Sporttron, Balltron or similar. The people that do stick mostly become feeders to the upline and rarely make any money themselves, because they have to rely on their uplines.

With mulitiple levels this becomes a very serious issue, especially if you are a couple of levels down from the successful sales guru that the upline is so strongly relying on.

MLM is a wonderful concept and sure does work, there are several people that are proof of this, but it is definitely not for everybody.