Amway Tools Scam?

So Amway distributors are suggested to buy training CD's, "tools", to help them with their business. The theory, they say, is that you can spend $7 on a training/motivation CD, from someone who is very successful in the business, talking about how to do what they did and be successful. Then, you can hand that out to a bunch of people on your "team" so they can "learn from the best", instead of you, who may not be that successful yet.

So, you're a new guy, and don't know what to do, and you have a new guy on your team. And say you want to teach him/her how to make calls/build a prospect list/ increase sales, but you're not that good at it yet. So why wouldn't you want to spend a few bucks and both of you can listen to someone who's been doing it for years, has in fact made a lot of money, and is telling exactly what he did to get there? So they hear it from you, or a pro, seems logical to go with the pro. How is that a scam?

I can teach a guy how to drive a forklift, and spend a lot of time doing it, each and every time I have a new guy at the plant. Or for a few hundred bucks I can buy a pre-packaged training "kit" complete with dvd, books, exams, printable certificate cards, and online help, all from a forklift training professional. Then I can hand that out to every new guy that comes in and save lots of time and money. And they do a better job than me, even though I have been driving a forklift for years. That's a business training tool, that costs a lot, but pays off over, and over, and companies buy that kind of stuff all the time.

But for some reason with the Amway business, if someone buys a training "tool" cd, that's a scam? Not how I see it. That's smart. That's good business.

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Originally Posted by tex234

But for some reason with the Amway business, if someone buys a training "tool" cd, that's a scam? Not how I see it. That's smart. That's good business.

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Welcome Tex234. The scam seems to come in several fronts.

1. Top level distributors are making more more selling tools than they are from the Amway opportunity. Most distributors will never reach this level or participate in the "tools profit".

2. If I hire a forklift driver, I pay for his training. I don't hire him and then tell him he will never make it in the job if he does not buy tapes and attend forklift driver rallies every week.

3. New distributors are charged retail for their tool purchases. Seldom are they encouraged to buy used, make copies, or share once they are "plugged in".

That's just a few quickies off the top of my head. Of course, we will be told the tools are optional, but then so is success.

Quote:

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Originally Posted by tex234

I can teach a guy how to drive a forklift, and spend a lot of time doing it, each and every time I have a new guy at the plant. Or for a few hundred bucks I can buy a pre-packaged training "kit" complete with dvd, books, exams, printable certificate cards, and online help, all from a forklift training professional. Then I can hand that out to every new guy that comes in and save lots of time and money. And they do a better job than me, even though I have been driving a forklift for years. That's a business training tool, that costs a lot, but pays off over, and over, and companies buy that kind of stuff all the time.

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Im confused about who "I" is. Do you own the plant/company where the forklift is?

Tex234, don't know if you will be back but here is some further reading that can be accessed via the links below.

The problem of the tools scam was highlighted by Phil Kerns in 1982 in his book.

As I look today it is available used for $2.97, if you are in Amway or considering, would be worth a read and digest. Then as you progress you can go back to a few dogeared pages and see if the words click. You may find yourself borrowing more and more to "live the dream", might be the best $3 you ever spend. If you are making six figures in MLM then what do I know, use it to balance your Mahogany desk.


Fake it til you make it: What your soap distributor may not have told you: Phil Kerns: 9780960990801: Amazon.com: Books



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The "tools" part of the business was identified by Rich DeVos in 1983 as one of the problems facing affiliates. Not much has changed, if anything since then.

"In 1984 Cairns v. Amway was initiated by a group of Amway distributors; these documents were entered into the court records as evidence by the plaintiffs. These documents indicate that, at some point in the late '70's or early '80's, Amway Corp. became concerned at the increasing attention being focused on them by the FTC and various state attorneys general, and in response conducted one or more internal investigations. The first two documents are Amway Corp. memos concerning the causes and findings of these investigations. Clearly Amway Corp. was very concerned about what it found, and various courses of action were recommended. One of the responses to the findings of the investigations were the two "Directly Speaking" tapes made by Rich DeVos in 1983, in which he addresses a whole laundry list of problems and asks for the help of the Direct Distributors in eliminating them.
"


https://www.cs.cmu.edu/~dst/Amway/AUS/directly.htm


"Recruits are lured in by exaggerated income claims and ostentatious displays of wealth."

"Once they are in, it is repeatedly stressed that they will not have any chance of attaining said wealth unless they strictly adhere to the System, meaning they should buy at least one tape per week, attend all meetings and rallies, and spend most or all of their free time trying to recruit others. Amway's rules state that the purchase of motivational tools is optional, but it seems clear that those who sell the tools have figured out how to pay lip service to these rules while continuing to exert pressure on their downlines to buy the tools. "The tools are optional, and so is success," goes the oft heard refrain."

" Retailing is downplayed or ignored completely in favor of self-consumption of Amway products."

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"There are a number of pieces of evidence that have convinced me that Yager and Britt and others are making the bulk of their money selling tools rather than Amway products.
Dexter Yager telling Forbes magazine that 2/3 of his income comes from the sale of tools to his downline. While the typical response from Amway distributors is that this includes income from his other investments and enterprises, I've yet to see any evidence of this, and I've never seen any statement from Yager claiming that Forbes incorrectly reported what he said and meant."

https://www.cs.cmu.edu/~dst/Amway/AUS/tools.htm


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http://www.ex-cult.org/Groups/Amway/dexter-yager-2.txt

"The hub of Dexter Yager's worldwide empire is a bustling factory on
South Boulevard.

The factory doesn't produce Amway soaps or cleaners. It cranks out
millions of motivational tapes each year for the Charlotte-based Amway
magnate's network of distributors.

Within its red-brick walls, Yager's positive-thinking message is
captured in cassettes. Dream big. Be "persistent and consistent.''
Avoid "stinking thinking.''

The tapes are the linchpin in the Yager family's motivation-building
enterprise called Internet Services Corp. The $35 million-a-year spin-
off of Yager's Amway business generates consistent profits and
persistent problems."

I would also mention that there is no correlation with tool use and success in the Amway business. In fact, there is probably a stronger correlation with tool use and business losses for Amway distributors.