Amway Is Imploding!
A while ago, on my main blog, I asked the question: is Amway imploding? Since then, I have done much research and I have compelling reasons to believe that it is. There are many causes of this forthcoming meltdown. Here are just a few of the reasons:
Over the past quarter century, Amway's products has become less competitive
Amway's products are overpriced (click here, here, here, and here). This situation has increased over the past 25 year since the advent of warehouse stores and competitive pricing over the internet. Amway distributors pay high prices for Amway products because they view it as the price they have to pay for the elusive goal of becoming rich. Because the prices are so high, most distributors do not retail the products to others nor do they continue to consume the products once they almost inevitably fail to become rich through Amway and quit the business. This is not just a problem for the obvious reasons but it also opens speculation that Amway is an internal consumption pyramid.
For the past ten years, Amway and its Kingpin distributors have had decreasing information control over lower level and potential distributors
As cult expert Steven Hassan has pointed out, predatory groups depend upon the monopolization of information as well as a situation in which there is an imbalance between the amount of information the cult has on its victims and the amount of information that cult victims and potential victims have about the cult and its leaders.
That's what makes the Internet so dangerous for Amway and the kingpin distributors. People who know the score have created web pages that inform prospective and new Amway victims about the nature of the organization and the kingpin organization (the blogger Google bomb helped to bring these sites to the top of many search engines). Alticor's attempt to intimidate anti-Amway blogs will certainly backfire.
Amway is a faith-based corporation in that people who enter have to convince themselves that they will succeed despite the overwhelmingly evidence that there is little or no chance of making a living from Amway, much less becoming wealthy (only one person per 100,000 who joined in 1999-2000 attained an income over $90,000 a year). I have learned from several sources that recent stories in the national media such as the Dateline NBC story have made it difficult to recruit new pigeons (Listen to Quixtar kingpin Larry Winters vent against NBC at a recent rally).
Amway has reached a near-saturation level in North America. Amway apologists point out that the company is nowhere near saturation because fewer than one percent of the United States population is involved as distributors. This is sophistry. Amway has reached near-saturation because there are a dwindling number of people who are receptive to the Amway "opportunity." Reasons for this: 1)There are many former Amway IBO's out there who know that there is an infinitesimally small chance of making it in the business. They know and their family and friends know it; 2) Those distributors out there often engage in activities that raise questions to prospective distributor. Everyone I know has a story about an Amway person they knew--few are positive; 3) Because the culture of Amway is overwhelmingly dominionist and right-wing, it turns off at least half of the population; 4) Amway has a bad reputation. Whenever I bring up the subject of Amway and ask people what they think about it, they respond without exception with negative comments like, "They're pushy people who never make money" and "It's just a pyramid scheme." Quick note: The Amway Statistics Page has more about saturation.
The Unraveling of the Tools Scam
Amway has one of the stingiest compensation plans. Eventually many of the more established Amway distributors created motivational systems (rallies, books, tapes) that they sold to their downline as a second source of income. What happened was that many of these kingpins began making more from selling these "tools" than from the Amway business itself.
This has led to some problems: 1) the tools business is an illegal pyramid (somethings that Amway was forced to acknowledge in internal memos); 2) It has led to a paradoxical and ethically-questionable situation in which make the majority of their money from a system that tells people that the best opportunity out there is Amway; 3)This has led to many disgruntled former distributors who were saddled with attics full of books and tapes--Amway co-founder Richard DeVos tried to address this problem but failed); 4) The tools scandal has led to negative media attention, namely the Dateline NBC story; 5) Reforms in which the kingpin distributors will no longer be allowed to profit from the tools business will only hasten the mass exodus from Amway.
The Tipping Point is Imminent
For these and other reasons, Amway is in trouble. The Orrin Woodward fiasco is just the beginning. Expect other mass desertions to happen soon. Let's hope that a free fall occurs soon.