Thanks to one of our readers for giving a breakdown of costs during the time he was inside the Amway cult. Specifically the URA sect. This is from a few years ago so the prices have gone up. That’s the only thing that changes in ScAmway. Prices keep going up.
Speaking of screwing people
over, I wanted to post costs as to one may incur if they join my old
organization; URA (specifically in the Northern Virginia/Washington DC/Maryland
area). The costs for other organizations around the country and around the World
may vary.
I am submitting this in two parts are this post was too large to submit in one.
Feel free to post this information in its own post so that potential prospects
can see the financial commitment they are indirectly being asked to make. Of
course Upline will never tell people the actual costs and; in fact, they tell
IBOs concerned with their finances are often told to “not count costs.” What
business owners do not count costs? Bad ones, apparently.
These were the minimum annual costs as of about three years ago so mileage may
vary. I will also mention hourly commitment but not associate costs as some
people value their own time differently.
Here we go (prices as of December 31, 2018):
Annual Amway Membership - $62
Monthly URA Membership - $53.75 (There is a cheaper option at $39.95 plus
processing but Upline isn’t allowed to sell you that as they don’t get credit.
IBOs can select the cheapest option but might catch crap from their Upline for
doing so.)
Quarterly Conferences - $93 per conference (Winter Conference, Spring
Leadership, Summer Conference, Free Enterprise Day)
Hotel Room for Conference - Minimum $60 per conference (if you are jammed five
people to a room)
Parking per Conference - Minimum of $20 per conference
Weekly Meetings (Business Briefings) - $5 (however, depending on some meeting
locations, they can range as high as $10 per week)
Biannual Seminars - $15 per (Upline will encourage people to attend multiple
seminars)
Biannual Team Meetings - $5 per meeting (just a way for URA to squeeze in
another meeting to offset quarters where seminars are not held…usually done for
“conference prep” but “conference prep” is generally done during the business
briefing prior to conferences)
Total out of pocket costs before buying any Amway products: $1,699
Now here comes the fun part…buying products!
URA used to push the, “URA Standard” of 300 points by the 5th of the month.
Leadership openly told us at a conference that they could no longer use that
term anymore so they were going with, “URA Recommendation.” Plus, they tinkered
with different phrases such as, “500 by the 5th” and then “500 by the 1st”. Oh,
and you will get ripped if you don’t process a Ditto on the 1st of each month
or even a small Ditto on the 1st of each month.
So with no customers and even a small Ditto and/or do a total 100 points a
month, that’s at least $300 a month for $3,600 a year. If you go buy 300 points
worth of product, that’s at least $900 a month and $10,800 a year.
In addition, you will have to buy books and audios to hand out or send out to
your prospects. When I was in URA, we would have to send out a Greg Duncan
(yes, THAT Greg Duncan from WWDB) audio called, “Financial Stability in the
21st Century.” After being able to send out a free version audio to your first
potential IBO, you have to start buying them at $3 a pop in order to send them
out.
As far as time goes (and I gauge these timeframes really conservatively). This
does NOT include driving or travel time:
Weekly IBO Meetings - Minimum 3 Hours = 160 Hours
Weekly Phone Team - Minimum 3 Hours = 156 Hours
Biannual Seminars - Minimum 4 Hours = 8 Hours
Biannual Team Meetings - Minimum 4 Hours = 8 Hours
Quarterly Conferences - Minimum 25 Hours = 100 Hours
Various Meetings at Upline’s Place (Nuts & Bolts, Covered Dishes, Summer
Games, Christmas Project) = Minimum 25 Hours Annually
Total Minimum Time Commitment (does not account for showing the plan and
prospects meetings and followups): 1077 Hours (just over 27 40-hour work
weeks.) This doesn’t even account for the time to go out and prospect IBOs.
So overall, you’re looking at a
minimum financial commitment in the range of $5,133.40 to $12,333.40 to be in
Amway as a part of URA as of 2018 (and that’s if you only do 100 points a month
with the lowest cost membership) while (if you attend all events) having a
minimum event time commitment of 1,077 Hours (not all-inclusive as this doesn’t
include prospecting or gas in the car, or wear and tear for your car…but you
must “attend all events”).
This also means that at the absolute minimum once you break down the numbers,
you need to make $427.79 a month from Amway just to cover the costs that I
mentioned (a small Ditto of yourself buying product along with the event costs)
and that does not include the costs of extra audios and extra books they want
you to purchase.
So there you have it. A large time commitment. I encourage those who read this
to put a dollar figure on your time (maybe equate it to the hourly rate at your
normal job). And the financial commitment is considerable as well even though
you will be told that “no one else can own a business for ‘$62’ a year.
And finally, I remind you that these are numbers for one group from late 2018.
Who knows what falling membership numbers and inflation have done to that group
and others?
This is a shockingly huge expenditure of cash for no profit at all. And I'm quite sure that all the other Amway subsystems are just as predatory in ripping off their IBOs.
ReplyDeleteAlso, if you read the above report carefully, you'll notice that many of the things being described are just nonsense and chickenshit. Conferences, meetings, seminars, tapes and books -- all of it is just chattering and chin-music. The great bulk of URA's efforts are directed to keeping IBOs propagandized and brainwashed.
Anonymous - that's true and that's why Amway cult leaders don't want business-savvy IBOs who might know a thing or two about keeping a profit and loss statement! And then there's the bullshit Amspeak about even if you don't make money you'll become a nicer person. It's just my gut feeling but I doubt anyone becomes a nicer person when they get scammed out of thousands of dollars.
DeleteIn the past we've broken down the bare minimum it costs an Ambot each month to belong to the Amway cult. And we're talking CORE. About $300 - 100PV - to buy shitty products to be eligible for a $10 rebate. Then add on $50 a month cult membership dues, $35 Communikate, $50 to buy CDs, tickets if an Amway Diamond is speaking once or twice a month. Tickets to any product seminars that are happening that month. Around $500/month is minimum but most Ambots will spend more on Amway products or the tool scam after being attacked by some asshole in the Amway upline to buy more shit. And if that's a month when there's a major function add a few more hundred in for tickets, hotel, getting there and food.
Yup the Amway cult leaders gotta keep the Ambots brainwashed so they'll keep buying the bullshit being peddled and the shit that they have to self consume.
It's true that Amway doesn't want business-savvy people -- that is, those who know the difference between profit and loss, who understand something about sales, who are familiar with inventory management, and who realize the importance of keeping account books and records.
DeletePersons like that probably won't join Amway, or if they join they will quit very quickly. They'll see that it is a racket and a scam.
So which people would Amway prefer to recruit? It's usually young and inexperienced types who are fresh out of school, or persons who are in between jobs, or those who are just barely getting by. They also want employees who are deeply dissatisfied with their regular jobs. In addition, they like persons who are not too bright, and who can be manipulated. But most of all, they are looking for individuals who are desperate for recognition and praise, and who want to be led, and who have a deep need for group solidarity.
These last three things are psychological, and therefore are very powerful motivators. They are the reason that so many IBOs stay in the business for years, utterly unconcerned with the fact that they aren't making a dime of profit. This is why the Amway business, at its deepest level, is a cult of believers.
Anonymous - not only does Amway not want people who know a thing or two about running a business but it's important to find gullible people who can be brainwashed into believing they are business owners. The rest of the world yells at these Ambots that they are low paid commissioned sales reps for ScAmway but they are brainwashed to believe they are "business owners". Dumb asses!
DeleteAs you pointed out - it's all psychological. The Amway recruits have to be brainwashed and not everyone can be. Like all religious cults Amway has to offer their recruits something they want. Money! All Ambots are brainwashed to believe that their devotion to the Great Amway God and tithing as much money as they can to Amway will bring them riches greater than they can imagine.
Amway - the Cult of Greed.
I encourage other past and present IBOs of other AMOs (WWW/BWW/Network21) to post their costs. I am curious to see how much it costs to be a part of their groups.
ReplyDeleteThe funny thing is that URA / URAssociation / UR Association has/had apparently the cheapest "membership (app) fees" of many of the AMOs. At least that was one of their "selling" points which was mentioned during conferences.
Overall, the profit margins which Upline have are astronomical when it comes to everything EXCEPT what they sell IBOs on...and that being that one can get "free" from buying from yourself and selling Amway (when they aren't ashamed to mention the company's name) products.
Anonymous - over the years former Ambots have left comments some more detailed than others of the monthly cost to be in Amway. URA membership fees are in line with other Amway cult sects. The annual cost for Amway's closed market buying club is the same for all Ambots. The difference I noticed was $93 ticket cost for every major function and that is different. In WWDB the cheapest major function was Dream Night at around $70 and all the other functions tickets cost over $100, sometimes over $200. Sometimes packaged with a hotel room.
DeleteLOL that all Ambots are too ashamed to say the A word. I've said it many times around here - it you're too embarrassed to say the name of the company you work for - find another job!
It's clear that some of the biggest expenses in the Amway racket are the four yearly functions. It's not just the ticket fees, but the travel, the hotel charges, and all of the the other incidental outlays of cash.
DeleteWe all know the reason why the AMO subsystems insist on the functions -- it's to rake in huge sums of money for the Diamonds and other big pins who have a vested interest in the proceeds.
But what about the IBOs? Why do so many of them faithfully attend these stupid get-togethers? Nothing is said there which might help them out, practically speaking, with their Amway business.
The only explanation is psychological hunger. The IBOs are desperate to be fired up, to be told what to do, to be led by leaders, to listen to the mythological stories of vast riches that are coming their way. This psychological hunger is very real, and the more of a pathetic loser that you are, the more likely is it that you'll long for these functions.
Anonymous - think of those 4 Amway functions as they only times that an Ambot is given permission from the upline to go on vacation. LOL!
DeleteThe thing about vacations for people who are not inside cults - first off they don't have to ask anyone for permission. Well maybe if they work a job they gotta ask for time off. And if the boss says no or not at that time then the employee reschedules or tells the boss they quit and take the planned vacation. For the most part your boss at work isn't going to tell you where to go on vacation.
An Ambot can not decide where to go on vacation. Their Amway boss tells them and that is only to a major brainwashing conference.
Normal people who take normal vacations have expense outlays like transportation, food, sightseeing, and hotel. A normal person budgets how much they can spend on a vacation and plans based on that.
So you're right the big expenses for Amway Ambots are to attend one of the 4 major functions. Their expense outlay is similar to normal people taking vacation - transportation, hotel, food, and tickets to tourist attraction which in Amway's case is tickets to hear the big cult leaders talk.
And that is how Amway's big cult leaders aka Diamonds make the bulk of their income - from those ticket sales.