MLM Blog’s sister site Amway Blog has been keeping up to date with the goings on at WWDB (World Wide Dream Builders), an Amway training system. I have been keeping that stuff out of the MLM Blog because most people really won’t understand much of it unless you participated in Amway at some time.
I got my Network Marketing start in WWDB. I learned a lot and paid a lot for what I learned. I grew fast in the beginning and then worked hard spinning my wheels for years.
18 months after leaving WWDB with the help and mentorship of Bo Short, I was earning a six-figure income from home. While WWDB has stagnated with roughly the same number of Diamonds today that they had in the 90’s, Bo and I have helped over 40 people earn BMW’s and just in the last 2 months we have the equivalent of one new Diamond and a half dozen new Emeralds in our business, that is just under 2 years old but debt free and backed by investors worth hundreds of millions.
Anyways, here are some links to recent updates about WWDB if you are interested:
Brad Duncan talks about his brother (Greg Duncan’s) recent bankruptcy, mentioning that this is the 3rd time he has lost everything.
EDC Dean Kosage Leaves WWDB to start his own line of affiliation, called “Freestyle”.
Double Diamond Brad Wolgamott Leaves WWDB and starts his own line of affiliation called VSix.
Greg Duncan Bankruptcy, Diamond Jim Harstad leaves, David Shores Foreclosure, River House for sale, etc.
If Amway doesn’t mention U.S. numbers, you can be pretty sure that they are down. Amway training systems like WWDB have shown declining numbers in meeting attendance and new diamonds….here is the press release from Amway:
ADA, Mich., March 9 /PRNewswire/ — Amway’s parent company, Alticor Inc., announced record sales of more than US$8.4 billion for the year ended Dec. 31, 2009, which was a 2.3 percent increase over 2008. Sales were negatively impacted by foreign currency fluctuations, which in local currency grew 5.9 percent.
"Our focus on using innovation to transform the Amway business is showing results," said chairman Steve Van Andel. "The global economy challenged every business in 2009. Our continuing investment in products, technology, and connecting with consumers helped us weather the storm."
Said president Doug DeVos: "Our distributors around the world deserve a lot of credit for persistence in a difficult economic climate. We put a lot of effort into improving our product offerings and building consumer awareness; the distributors put in the work to drive sales to our customers."
The company also made gains in another key measure. Said Van Andel: "In 2009, we increased our market share in the direct selling industry, and continued to drive improvements and adjustments to our business that will help us, and our distributors, succeed over the long term."
Brad Wolgamaott is suspiciously missing from the World Wide Dream Builders (WWDB) website. Brad's wife Leslie has her picture on the site. Leslie was reportedly alone during this weekend's River Rendezvous at Ron Puryear's River House.
WWDB is training and motivation system founded by Ron Puryear that "helps" Amway Global IBO's build their business.
Brad and Leslie Wolgamott were Double Diamonds sponsored by Brad and Julie Duncan in the World Wide Group.
I recently saw some interesting numbers about a handful of Network Marketing compensation plans. The comparison took a business built in the suggested method with 5,000 points of volume. You will see that most companies do not pay very well on the front end (if at all). Feel free to do your own research evaluating the compensation plans listed here.
Approximate Wholesale Cost of Product: $6,000-$12,000
Personal Order: $220
Percentage Paid: 5.2%
Compensation Plan: Binary
(Bonus money is assuming that volume is perfectly balanced, in most cases it is not)
Approximate Wholesale Cost of Product: $5,000
Personal Order: $120
Percentage Paid: 1.2%
Compensation Plan: Matrix
(Some associates carry multiple positions (up to 15) so the personal order might be significantly higher)
Approximate Wholesale Cost of Product: $7,462
Personal Order: $149
Percentage Paid: 2.6%
Compensation Plan: Stair-step Breakaway
Approximate Wholesale Cost of Product: $6,000
Personal Order: $120/$240
Percentage Paid: 5%
Compensation Plan: Straight Unilevel
Approximate Wholesale Cost of Product: $5,617
Personal Order: $140
Percentage Paid: 21.6%
Compensation Plan: Unilevel Hybrid
* Payout based on compensation plan perspective.
** Actual average payout to those with 5,000 points.
I was listening to a recent podcast from MLM Expert, Len Clements and he said something about the Amway compensation plan that I found very interesting. Mr. Clements is a court certified expert in MLM/Network Marketing and founder of Market Wave Inc, in case you were wondering about his credentials.
So here is a quote from Mr. Clements about the Amway Compensation Plan:
"The Amway Compensation Plan is one of the worst plans in the industry."
Hmmm. That sounds really familiar. Oh yeah, that's what I have been saying about the Amway/Quixtar plan for years. Here is a link to the podcast where Len makes the statement. The podcast is one hour and forty minutes long and the quote is near the end .
Back to Amway Global…
Amway is an $8 Billion company, but my guess is that only 10% (roughly $800 Million) of that volume comes from the U.S., down from an estimated $2 to $3 Billion in the 90's.
Is Amway Global a good business opportunity in the U.S.?
Let's answer that with a couple of questions…
1. Can you name a Network Marketing company that has a worse reputation than Amway/Quixtar?
2. Can you name a company that has a worse dollar to volume ratio than Amway/Quixtar? In other words, how much does it cost you to do your 100 points?
Amway Global has a Stairstep Breakaway Plan (not a Unilevel Plan like some folks at MonaVie claim). The Stairstep Breakaway plan is typically considered as a plan that is disproportionately weighted towards the back end. In general, top earners typically (not always) do fairly well and the mid to low ranks suffer.
I was having a conversation with two friends (very successful people) who were both personally sponsored by me in Amway 15 years ago. They know that I have left Amway and gone on to create a multiple six figure income in Network Marketing and they asked what I think happened to Amway.
The problem with Amway is two-fold. First the compensation plan is horrible. If it’s not the worst compensation plan in the industry, I don’t know what is. Many will ask if the compensation plan is so bad, why would people (especially leaders) stay with the company long term and the answer is simple. These leaders make a significant amount of their income from training and tools that are sold independently of Amway.
Amway could never have grown to the levels they have while paying out such small bonuses without the help of the leaders who many times make more money from the training then they do from Amway and the leaders could never offer this type of training in the open marketplace without the Amway business.
I don’t complain about my time in Amway, I did learn a lot and was taught to really focus on personal development and reading which has changed my life and allowed me to create great success in another company outside of Amway. I look at my time in Amway as education.
Anyways, I ran across the following video on YouTube. Please keep in mind, (THIS IS NOT ME!)
This is a video by someone who used to be associated with World Wide Dreambuilders, an Amway support organization.: