One thing my upline told me when I was about to join Amway and also during my stay at IBO was about the concept of passive income and financial freedom through Amway opportunity. I was repeatedly told that, anyone who is capable enough to understand passive income will join and stay active in the business. As usual, I believed him, but it took a while for me to understand such concepts are more theoretical than practical. Let us analyse Amway from the chances of achieving passive income and financial freedom without bothering about the probability.

Passive income is one where you work once and the money keeps coming for ever. All diamonds are supposedly hyped to have achieved the status of McDonald’s or Lata Mangeshkar. Lata sung songs once and even now if you buy a CD she makes royalty income. Are you talented like her? Do you have the amount build the house and leave it for rent to achieve passive income? Can you pass your degree to your wife if something happens to you? Only was is to get safety to your beloved ones is through Amway because you can start with no risk and hardly any up-front expenses, more importantly you have a successful teaching system and association. Does not this look so simple and in their words ‘awesome’? Honestly speaking you will realize how ‘awful’ they are only after six months in the business, provided you have your brain open.

First reality show is, whatever the pin level, meant for commission slab level, you are in there is no guarantee that next month it will repeat. Obviously no business gives you guaranteed income is the answer. But other businesses can have assets that can be sold for money. In Amway, your books and CDs are already given to numerous prospects and downlines for free. Every year Amway increases the PV/BV ratio so it becomes hard to get the require PV level every year. It is practically impossible convince all your downlines to work harder based on new turnover goal.   I have personally seen my up line platinum who had a silver below him not qualified for founders platinum in more than two years time! Neither he could break more than one silver in those two years. Let us say you are a diamond and with this example it is clear that, all your downline platinums  will not re-qualify every month. Then how you will have a passive income every month? not possible! Does the income has chance to fall? Yes. I know so many diamonds in India who took ages to re-qualify as founders diamond.  I was browsing through my ex-affiliated system website, and saw people at emerald level even after 12 years in the business!

“Financially free, that’s why they could retire at the age of 28-30” and so on. They retired has nothing to do with their actual earnings in the Amway business. You reach certain pin level and up line tells you that you should retire because you should set an example to downlines to work harder. Here is the trick, once you retire you are dependent on the income that is not steady. Because the PV gets to zero right at mid night every month, you end up working really hard. Meanwhile, system also teaches, not to be dependent on a few handful downlines. So what next, keep sponsoring new guys! When will it end? Never ever, because you are never sure of commanding and asking downlines to work and get the PV done. Even if they work, Amway products are too luxurious in FMCG and they last more than six months in any brand/category, it is not possible to count the turnover in PV. There will always be downlines who work really hard but not getting the results for so many months, you need to motivate them but you cannot say, ‘my PV is dependent on you’. Where are we? passive income, financial freedom, having a network of people to buy household goods every month, system to teach how to do it with 100% success rate… These things are told from the stage but deep down their heart every diamond knows it is not the reality, as long as tools, BSM sales are there he can think of earning something to have less than middle class life style. Have you heard of diamonds saying, Amway is secondary, system is important? If you buy a BMW car, show room guys won’t teach you? All these came from system! Because of all the above reasons, there is practically no money from Amway, always it is system and because system pays the money, there exists the success at whatever percentage.

Advertisements