WWDB Direct Distributor comments

A WWDB line of sponsorship three year direct distributor happened across my site and dropped me a line. He was willing enough to share information about the business with me.

 

How much do WWDB uplines earn on tape sales?

I am in the process of extracting myself from this crazy business.

The tools break for tapes is as follows:

Direct $1.00 off
Emerald $.50 off
Diamond I don't know but it is something.

By the way, that is not a rebate, we would buy tapes from our Diamond for $5 and sell them downline for $6. I can send you the tools sheet that has all of the price breaks (including books).

How many hours did you put in the business as a direct?

It is difficult to calculate how many hours one spends as a Direct in the business. It all depends on your level of effort. Some Directs have a few good legs and coast on little or no effort. If you want to grow, it is usually recommended that you spend at least 4-5 nights per week building it. That would mean 4 nights at 4 hours per night, plus two hours for product pickup, plus 2 hours for product call in/paperwork, plus two hours a week for retail/misc. work, plus 4 hours a week for contacting and cold calling. That adds up to 26 hours per week. That doesn't include going to functions that are monthly. Assuming drive time of one hour each way and nothing else to do between sessions, Friday night would be 6-12pm, Saturday 1pm-12pm. That's 17 hours. Then there are the major functions that are every 90 days. Dream Night is $75 per ticket ($150/couple), Leadership is $300 per couple, Family Reunion is $450 per couple and FED is $75 per ticket. If you are a Q12 direct, you do not pay for FED or Dream Night tickets. If you are a Direct, you do not pay for the monthly meeting door fees which are $6 per person per session or $36 for a couple (Plan on Friday night, Seminar on Saturday and Rally Saturday night). My group only had Dream Night locally, so they had to buy plane tickets for the other three functions.

 How much did you spend and make as a Direct?

I'm not going to get into personal details, but I can give you a typical breakdown for the business. My experience will be different than a lot of other Directs, since WWDB is not on direct fulfillment. We use the traditional call-in and pickup. That means we can buy extra inventory to get the right bonus and then sell that inventory the following month. This is actually a perfectly normal activity for any inventory based business. When I ran the building supply business, we would routinely calculate the best buy price versus the time to unload the inventory. Theoretically, once one is a qualified Direct, you only need to qualify 6 months over 7500PV, so you could average less than 4000PV per month in purchases. This is the case with the majority of Directs. Again, this isn't unique to Amway. Many distributorship agreements are based on cumulative purchases over a period of time, not a required monthly target. If you purchase 7500PV one month and 500PV the next, the average is 4000PV, but the average bonus is approx. 24%. Your profitability is entirely based on your width. Most Directs are paying around 5-10 bonus checks (3% or more). We would pay around $800 to $1000 in bonuses per month, so we would make $900 to $1100 per month. Our expenses for the year would be around $5000 to $6000 for out of pocket (not deductions). This works out to a net profit of $6000 to $7000. Given the 20 hours per week involved, that works out to $6 to $7 per hour ($7000/(20 hrs x 50 weeks)). Not exactly big profits. I have gone over these numbers many times and I know they are correct. Remember, this is for a Direct! If you are working towards that goal, the profits drop off quickly, yet the expenses are the same.

Why is WWDB still doing product pickup?

I can tell you that I was in a meeting with Ron Puryear (100 of us) and he said that he was worried about the status of Amway since they went to direct fulfillment rather than distributing products via garages (weekly product pickup). He maintained that the IRS would then have a leg to stand on in claiming that most of those distributors have a 'hobby' business since they don't even do distribution any more. That is why WWDB still does a weekly product call-in and pickup

There was an Amvox sent out a couple of months ago that since new distributors did not have to order products during the sign up, volume was down 20%. To correct this, they (WWDB) invented a product kit and a tape/literature pack. The whole thing costs $99.99 plus shipping, plus 4% handling. BTW the most sneaky charge, is the 4% handling on everything. The Direct does not keep this and Amway does not charge this for warehouse deliveries. In addition, my upline Diamond charges me the actual shipping for tools AND the 4% handling. If you have a $1 million business, that's $40,000. Not bad.

 

Other stuff

If you really want to do a price comparison, you need to get a copy of our WWDB price list. What this does is list all of the main moving items (A items) in the business, with their retail price, cost, PV and BV in columns. It would give you a true picture of what the basket of goods really consists. My wife and I joined COSTCO last week and I thought she was going to start beating me in the aisle for getting us involved in Amway.

Now we are left with a garage full of inventory that Amway will only grudgingly accept for returns. We sent back $20,000 worth of merchandise and still waiting for a check of some $9500. They took off the bonus paid at the maximum possible (25%) and charged a 10% handling charge on the BV, not the cost. I used to run a wholesale company and have never heard of a restock fee on anything other than the cost.

Most people who claim to have shown the plan 10 times a month are lying. A lot of my downline claimed that level of activity. I will say that when they asked at meetings, who was showing the plan consistently 2-3 times per week, often I was the only one who stood up. I am as competitive as any astronaut or pilot you have ever met. I was going to win at this business. As I learned just how it operated, I didn't care. I was going to win. The reason I am quitting has nothing to do with sour grapes. My partner and I started an Internet hosting and consulting business. I saw my income grow five fold in less than four years. I now make more than most Diamonds, and I have my evenings free. It was only then that the mind control became obvious. It is not overt. I don't think that anyone sits around and thinks this stuff up. It just happens. What amazed me is the fact that my downline are all carrying on with the tools and functions. I am not negative about the business with them, but I am honest if someone asks.

Actually, the biggest ripoff with WWDB is the starclient software. They want everyone to use the software for upline ordering and if you are a Direct you are heavily pressured to use it. The cost is $150 for the Pro version. Here's the kicker. You have to pay $75 every six months for licensing! If you don't pay, the software shuts down. I don't know about you, but Quicken doesn't turn off your software and this program is a piece of crap! I should know as I used to evaluate software for Andersen Consulting.

 

 

more as it comes in.......... 

Back to the home page

g the W0