Wednesday, 21 October, 2020

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Is Amway worth your time in Malaysia?

I was involved in Amway distributorship training few years back for about 2 years. I have seen the truth when I was involved with the business. To me, it was a happy 2 years but it just doesn't work out for me in the end.


Below is the guideline you shall think of to know if it worth your time or not?


1. Do you like to do sales?

Amway is all about selling. It's a direct sales company anyway. You have to sell products, sell the marketing plan, sell yourself and make your downline trust you enough to join under you. Most importantly, you are selling dream. That's what I used to say anyway. In short, you have to be a good salesman in order to succeed. You have to be good in selling, not only the marketing plan, the dream, the possible lifestyle, you also have to be good in selling the products. 


Consider this when you are thinking whether to get serious in Amway or not. You gonna face a lot of rejection when you are selling. Yes, we face a lot of rejection in live, but if you are to be involved in this business, you gonna face rejection everyday. Probably 50 times more than the live you are having currently.


If you are working a normal office job that you like, not related to sales at all, and you hate doing selling job, then Amway is definitely not for you. However, if you are comfortable with your job, and you are thinking to learn new skill "Sales" then you can definitely try it for months to years. After all, the cost to start this business is low. 



2. Can your passion help you earn money?

Let say your passion is farm. You like to work in farm, wake up to hen or duck noise, collecting eggs and you already have a farm with thousands of hen and duck and you made around RM500-800 per day, then there is no reason for you to do Amway. If you think making money with Amway is easy, then you are definitely wrong. You might be spending more money before you earn. I will explain it below with the % and distributorship level and roughly how much are you gonna make per month.


Your passion is to help people, and Amway distributor will definitely tell you this business can help you help people. Nope! When you help yourself in this business, you are helping your upline. Yeah, you are helping someone who is more successful and making more money than you. It's a simple math. Your downline's income will contribute to your commission percentage but your income will not contribute to your downline's commission percentage. So the only person you will help is your upline.... and their upline.... Well, technically you are still helping people, but you are helping people who are more successful than you... is that what you really want? Or your initial passion is to help people in need?


My point is, if your passion can help you make money, then stick to it. Your passion is something you like to do, so you definitely will have more fun doing it.



3. Do you have a lot of supportive friends and family?

Friends and family plays an important role because they are the first group of people you will approach before starting your work with "strangers" (point 4). If your family has bad experience with MLM (Multi Level Marketing) or Amway distributors like to call it Network Marketing because it sounds better than MLM, then you will have a hard time for sure.


When I am about 1 year into the business, someone joined and have a group of supportive friends and family. She achieve 21% very quickly... like first month upon joining.... and yes, she is pretty and friendly too.


So yeap, if you have been treating your friends or family very badly for the past few years, I don't think this business suits you because your friend will just avoid you when you try to talk about Amway. You will lose a lot of friends if you force it. I really did lose a few friends when I do this few years back. The distributors will tell you "Those who leave you when you tell them about Amway is not your real friend"... But imagine when you are totally into this business and all you talk about is Amway, I am pretty sure your friends will get annoyed.... If you are thinking "I will just not talk about Amway too much when I hang out with them". Then you are wrong again. When you start your Amway business, your time will be spent by meeting a lot of different people, and you will not have much time to spend with the same group of old friends. So you will want to treasure the time you spent with your old friends by telling them as much about Amway as possible. But in their point of view, it will be like everytime you meet them, you will talk about Amway, so it's a gone case for sure.



4. Do you dare to approach strangers?

When you finish your namelist of your family, friends and relatives, you will have to start with strangers. It's impossible to reach financial freedom just by selling it to your family, friends and relatives. You will need to approach strangers someday for sure.


Of course, training will be given on how to approach strangers, but remember your intention is to get them to join, and become your downline, trying to help them to succeed in the business that you are not successful with yet. Your upline will tell you that strangers market is big, it's a never ending market. You don't have to feel bad failing because you are not gonna see them again anyway. Nope! They are wrong again. If you are 20 years old now, you might see the strangers again somewhere else....later in your life, maybe in the company you are working at... or your future house mate or someone from your other social club.


You appearance also played an important role when you are approaching strangers. Pretty girl or handsome guy will have an easier time. Average looking, but smooth talker, congrats too. Nerds? No, definitely no!



Ok, above 4 points is what you need to think of before you really join the business... If you just join the business and just stumbled upon this article, and you decided you wanna quit, then just go ahead and let your upline know that you want to quit. Or you can go to Amway center to quit by yourself. It's fully refundable.



Now let's go to some calculation....

1 PV = 3.92BV (2020 conversion rate)

PV is point value and BV is Business Volume.


The commission (or they call it Performance Level) is 

3% = 250PV = RM980
6% = 900PV = RM3528
9% = 1750PV = RM6860
12% = 3000PV = RM11760
15% = 4500PV = RM17640 
18% = 7500PV = RM29400
21% = 12500PV = RM49000

To reach 21%, your group business volume need to reach RM49k. It's reset every month, so you need a big group to maintain RM49k every month.


Now let's discuss about the costs in RM.

Weekly training (At least twice a week): RM5 x 2 = RM10 x 4 weeks = RM40
Product demo kit: RM200 annually (might need upgrade one a year for a simple and basic setup, there are more advanced demo kit that can help wit sales), so about RM20 per month
Training seminar: RM180-240 every 3 months (Divide equally, per month around RM60)
Extra driving cost to seminar, weekly training and meeting up friends: RM100-200 per month
Meeting up with friends, treat them to drinks sometimes: RM20 per session x 10 sessions per month = RM200

Total extra cost per month: around RM600


This doesn't include the cost of you buying Amway product to use. The training will tell you "To know how well the product is, you have to use it, and then share your experience to people because that's the best way to do sales"


So when you just start off this business, hoping you can make a lot of money, you will need to be prepared to spend extra few hundreds before you really can make money. And if you are only at 9% with business volume 6860, your commission 9% can only earn you RM617.40. To sell RM6860 on your own, it's a nightmare.... But of course you won't be selling alone, you will have downline... which will require you a lot of effort to recruit one.



Lastly, I want to share about what I saw in people and leaders in Amway. Some of them, to reach what they want, they will do whatever it takes. Lying, cheating, exploiting downline and telling their downline to do ridiculous thing. If you met a really nice leader, who keep helping you, then congratulation..... that's what i want to say anyway, but the truth is, they are helping you because they want to help themselves. 


Maybe my opinion is biased but this is the truth. Amway marketing plan requires 95% of people doing the selling and only the upper 5% will be successful. No matter how you deny it, that's the business model. So the question here is, do you think you are qualified to be the 5%?