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This is the blog where leaders come to learn with NY Times, Wall St. Journal, USA Today, Money & Business Weekly best selling co-author of Launching a Leadership Revolution & Top 25 Leadership Gurus List Best of the Rest Selection - Orrin Woodward. This blog is an Alltop selection and ranked in HR's Top 100 Blogs for Management & Leadership.
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Re: Amway Australia Letter to IBOs
by
Orrin Woodward
Here is Anonymous Australian Transparency's Comments to this letter that he had placed on an earlier post. I will post the comments here to tie in with this Amway Australian Letter. thanks, Orrin
How Amway Australia can fix their Broken business model
Point 1: "In an environment where copycat business and hollow investment and income opportunities abound it's good sometimes to just remind yourselves why you joined
Amway"
Amway meets the criteria of a hollow income opportunity. I have had 1000's of IBOs pass through my group since 1989. No-one has made lasting inccome, even me. The average business builder in our group never made more than their expenses. That is why they quit. The blow out costs of acquiring 100pv, the lack of retailability of Amway products to the average person. The number of people who qualified once at a high level in Amway Australia & no longer Qualify - the number of Diamonds with photos on the wall at Amway head office in Castle Hill - that have had to go back to a job - I know for a fact that more than 10 Amway Australia Diamonds on the wall cannot live off their Amway income in 2008. That does not count supposed Emeralds who cannot do this. The Amway Australia business also qualifies as a "hollow" opportunity becasue it is not sustainable. There are many Australian leaders who simply replace a vast quantity of people every year. Many Diamonds are in N21 & IDA have to keep inventing new methods of business building to replenish their groups as the years pass. Anyone who has been around Amway Australia for a few can verify this.
Point 2: Our collective sales continue to soar reaching US$7.2 billion during 2007, our
biggest year ever.
This volume has been done on the back of new, non English speaking markets. Amway Australia sales volume is dropping at a great rate of knots. This letter proves Amway are very concerned that people might look elsewhere - why - because the brutal reality is Amway is not working, it is exceptional for anyone to make money without ripping people off, asking them to purchase product at high prices - for a low PV return.
Point 3: How many products do they have? The fewer the products, the less sustainable is
their business opportunity, especially if their product is easily duplicated by others.
Amway has not been sustainable for the average IBO community with all the products they produce. This lack of sustainablity evidence is wrapped up in the Transparent Facts.
Amway refuse to answer how many people went Diamond in Australia 1985-2007. They refuse to answer how many are currently qualified, how many are Q12, how many names appear more than once for qualification during this 22 year period? Until they are willing to be honest to the Australian public - they are lying. If they are proud of their results, then why not show them. You will never see their true results because it will reveal the truth. Most Amway Australia Diamonds are not even close to being qualified - most after 10 years of activity. Many Australian Diamonds are not even Emerald. Some are not even Saphire. To the CEO of Amway Australia - stop lying to the Australian public.
Point 4: Can the organisation be trusted? Who are the senior officers and what is their
background? People who have shown a lack honesty or integrity in their past
business dealings are likely to repeat those behaviours.
It has been proven by people like Orrin Woodward, Chuck Goestchel and others that the senior officers are willing to lie to their distributors. In Australia it is the same. I have caught Amway Australia officals lying to me about issues like, price changes, PV adjustments, and making claims against other IBOs that are not true. They also lie when they ask IBOs in Australia to cop a $20 freight charge per box of SA8 compared to when it leaves the USA. It does not cost $20 per box to ship. This is a lie - but Amway Australia charge this much. Every time senior Amway officials are faced with a difficult issue, they lie to cover their job position. Check out the legal cases that surround Amway.
Point 5: I urge you to
think long and hard before being tempted to any opportunity other than the Amway
opportunity, indisputably the biggest, best and brightest in the world.
Your future is in your hands. Amway, like no other organisation, stands ready to help you
achieve your goals and aspirations.
Best wishes,
Michial Coldwell
General Manager
Amway of AustraliaA.{ew Zealand
Amway has never helped me or others build a business. They have just supplied product. All IBO leaders know that Amway managers cannot help the IBO body - there are too many of us - way to few of them. It is only the skill of the systems that have led Amway anywhere. But now, in 2008 - there are grave questions about Amway Australia's future - too many IBO leaders are looking elsewhere for their future - too many are replacing their groups. Very few leaders are qualify at their pin level.
Amway Australia has no chance of turning around the negative that the Australian public has. That will be proven as more and more people decide to leave the Amway Australia business and their sales continue to decline. Check back in 12 months - Amway Australia sales will have fallen through the floor. Keep watching.
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