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Members can order products for themselves and sponsor people, but only earn rebates of up to 50% for use on future purchases. There is no product retailing or commissions on downline volume. In addition there will not yet be any deliveries within Bulgaria, instead Members can order products in any other CLOS market for pickup. The nearest Amway Business Center is in Bucharest, Romania, which lies only 75km from the Bulgarian border. The registration fee is 50 Romanian Leu, or about US$15.
In Phase 2, expected to begin in mid-2014, the full Amway Business Owner (ABO) model will be introduced and delivery will begin to Bulgarian addresses. Until Phase 2, only one to one meetings to explain the business are allowed without authorisation. Meetings for up to 100 people require approval from Amway.
While it seems a strange way to open a market, this has been Amway’s model for some years. By limiting meetings and making product deliveries a little more difficult they appear to want to deliberately dampen demand so that there’s no problems with coping with too fast growth or too many untrained ABOs damaging the company’s reputation.
It appears to work, with recent new markets like Vietnam, Estonia, Lithuania, and Latvia all reportedly doing well.
One interesting thing is that the percentage of all IBOs reaching these levels has also increased -
That’s a great improvement in rates of achievement. It means that for every 222 IBOs, at least one (“sapphires” are missing from the statistics) is Q12 platinum or higher. What does this mean?
Let’s put it in context -
from the TEAM vs Quixtar lawsuit that about half of IBOs aren’t doing anything (even ordering)
from the BOB Amway says 54% aren’t “active”, which you can be categorised as by buying enough stuff to get a bonus, going to one meeting, or asking one person if they want to buy something.
So just by being “active” and do something, anything, your odds of being part of a group earning over $55K/yr are about 1 in 102.
We also know from statistics such as Network 21′s “Vital Signs” and BWW and WWDB “parameters” that at any given time fewer than 1 in 10 IBOs or so are exposing the business and products to even 10 or 15 people in a month. It’s safe to say the people who reach Q12 Platinum and above are part of this group
So just by doing that for one month, your odds of being part of a group earning over $55K/yr are about better than 1 in 22.
What do you think your odds would be if you exposed the business and products to 15 people a month, every month, for say, 6 months in a row? Or 12 months?
I’m what’s known as a “skeptic”. Skepticism has been defined as “the process of applying reason and critical thinking to determine validity”1. As such, I don’t believe in things like ghosts, astrology, homeopathy, or supernatural beings. Show me some solid evidence then I’ll change my mind. Skepticism though, suffers from the same flaws as any other reasoning system – if you start with incorrect assumptions, or your “facts” are wrong, then you’ll almost certainly come to false conclusions.
Alas that’s something I often see happen with many “skeptics” and the world of multi-level marketing. They have little knowledge of the area, and they unfortunately tend to start their application of reason and critical thinking from a position of false assumption, often based on cursory internet research. It’s no surprise then that they finish with false conclusions. If you want to apply reason and critical thinking to an area, the first thing you need to do is collate facts.
Read the GIP 2013/14 section on your local Amway website available from September 2013
GIP stands for “Growth Incentive Programme”. It’s a program that is announced yearly with various rewards and incentives, including free business trips, for ABOs who grow their businesses. Great, right? So why does it drive me nuts? Because the first day of qualification is September 1 the beginning of the new Amway “year”. And the requirements for qualification are made available when? After then. Many of the incentives require you to have qualifying volume for 12 months, so to receive the reward that you learn about in September you already need to be in qualification.
Now, to be fair, many of the incentives are for people who have already reached Platinum and above, and they do get notified of the GIP details a little bit earlier (but often not by much). ABOs below platinum, however (ie those who most need incentive, as they’re not yet making much money) – it’s kept secret from them. This is even the case with an incentive that’s probably the most popular – the Amway Leadership Training Seminars (LTS). Qualifers have just recently been enjoying EuroDisney, courtesy of Amway. For various reasons I haven’t been actively building an Amway business for some years, and I don’t qualify for these Leadership seminars, but as a parent with two young children, an all expenses paid trip to EuroDisney is a huge attraction for me. When did Amway Europe first tell me and other not-yet-qualifying ABOs about the EuroDisney incentive?
After it was too late to be able to qualify!
What on earth is the logic behind this? What is Amway thinking?
Watch this video, this is for the Amway Europe LTS in 2014. Have you ever wanted to go on a cruise through the magnificant fjörds of Norway?
Put yourself in the picture! Would you like to go? All paid for by Amway? Does that motivate you to build an Amway business?
Sorry, you had to be in qualification for that a year ago. It’s too late. But don’t worry, there’s another trip coming up you can qualify for! It’s …. somewhere … put yourself in the picture! Imagine going there! Imagine walking the … beaches? streets? ????…
This is NOT motivating. Indeed, psychologists will tell you that this kind of “disappointment”, seeing what you can’t have, what you’ve missed out on, can be demotivating.
I simply don’t understand why Amway doesn’t have these incentive programmes decided upon and publicised 6 to 12 months in advance? You’d still motivate the leadership who are already or on their way to qualifying but you’d also motivate the new ABOs, and the many many ABOs like myself that have not yet prioritised building an Amway business.
In news out today, Amway India CEO William Pinckney and two company directors, Sanjay Malhotra and Anshu Budhraj, have been arrested, charged, and remanded in custody for 14 days. This continues a pattern of what can only be called police harassment in the Indian states of Kerala and Andhra Pradesh. Details have been hard to come by, but the charges apparently result from 4 complaints lodged against Amway in the Wayanad district of Kerala. Amway had reportedly been aware of, and co-operating with police regarding one charge, but the arrest resulted from three other complaints. According to the Times of India, the known charge was from a 2011 complaint and -
Vishalakshi alleged that Amway agents collected Rs.3.5 lakh from her for products sold by the companies and asked her to add more members to the chain. As she could not add more members, she sought a refund but the agents refused
3.5 lakh rupees is over US$6500!!! I’ve been unable to discover when this offence was alleged to have occurred, but clearly this is pretty bizarre, and if true it’s clear some Amway business owners (including, I would suggest, this woman!) have seriously abused the Amway business model.
Amway was apparently dealing with this issue and had already received “anticipatory bail” for the executives. The current arrests are apparently related to new complaints. And that’s where it get’s really bizarre -
The three complainants — Jafar, T Ashraf and P Hareendran — had alleged that in 2002 Amway India attempted to collect money from them with the intention to deceive them by involving them in a money-chain scheme.
This “offence” allegedly occurred more than a decade ago (!!!) and indicates that someone merely “tried” to collect money and deceive them. Yes, that’s right – three company executives of a multi-billion dollar multi-national award winning company have been arrested and thrown in jail because three people claim that, more than a decade ago, someone tried to recruit them in to Amway, and they believe Amway is illegal and in violation of the Prize Chits and Money Circulation Scheme.
Sorry, India, but this is shameful.
Indian contacts have suggested to me that the problem may be that Amway India is not corrupt and refuses to pay the bribes that local officials typically demand. Corruption is, unfortunately, rife in India, with most Indians reporting they have had to pay bribes to officials (including police) in order to get normal tasks completed.
Thanks for visiting! This site is my personal opinions about the Amway company. I've been researching, blogging and commenting on Amway and Multilevel Marketing for more than a decade.
Contrary what you may read by people who don't like what I have to say, this site and my commentary is not endorsed or financially supported in any way by Amway, Alticor, the IBOAI or any other affiliated companies or organizations.
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