Why was Lester Canon so anxious for me to break Direct and speak before his Atlanta convention? That question always seemed to perplex me so one day I called my previous upline, Mark Hall, to find out the answer.
"Hello, Mark, how have you been?"
"Couldn't be better, Phil I In fact, the wife and I are making plans to move into our new home. It has over 10,000 square feet, five fireplaces and seven bathrooms!"
Mark sounded just as positive and enthusiastic as always, but I didn't want to waste time on small talk so I came right to the point.
Tell me, Mark, why was it so important for me of all people to beat the Canon convention? He usually only invites key people, such as politicians, movie stars and the like."
I could hear Mark chuckling in the background. He always had a great sense of humor, but I noticed that his laugh was not hearty. It rapidly diminished. He knew I needed an answer.
"Are you sure you want to know?"
"Of course, I do."
I waited for a few moments. It sounded as if he were collecting his thoughts.
"Well, it's like this, Phil. Lester can buy literally anything he wants in life-no matter what the price is. He can buy a bank or a hotel or just travel if he pleases. You see, money does not totally gratify him anymore. He's got this giant ego that has to be fed. That's why he likes to stand up in front of ail these crowds. It makes him feel really good.
"You were supposed to be part of his ego trip. He wanted to stand up in front of that crowd in Atlanta, Georgia, to show each and everyone that in his downline was an ex-cultist from the People's Temple who had succeeded in becoming a Direct Distributor. He knew, with out a doubt that the people would just eat it up! It would send a reassuring signal to the entire crowd. 'See, if he can do it, you can do it!' It would build and reinforce each person's belief in the business!"
Mark's statement did not come as a total surprise. Somehow I knew all along that this might be a possibility. However, it was likely that Lester was more interested in increasing their belief than in gratifying his own ego. Even though I had divorced myself from this organization, I have not been able to totally relinquish all thoughts concerning the people I have met within its ranks. Most of them are sincere and genuine individuals. Each one is uniquely independent and most likely perceives this business just as it is often portrayed--all American, God fearing and, of course, the best opportunity in the world!
These thoughts lead me to ask the following questions: If some of the leaders of this organization are really all American and God fearing, why do they take advantage of so many of their friends? If they care about others, why would they charge them $280 per ticket to get into a rally and $75 for a set of tapes, and then stand there and tell these same individuals that someday they will achieve the kind of financial success that the leaders have obtained?
If a person loves others, does he go and tell them they're a "loser" because they decide not to continue in his footsteps? If one loves others, does he lie to them about the business and his income by buying possessions he cannot afford, only to entice them?
It seems to me, by the statements they have made, that many of the leaders who have been portrayed in this book really don't love people as they say; instead, they love themselves, and they love money. They are obsessed with money and what it can buy.
But what about all the little guys who are not making any money to speak of? I am reminded of a distributor whom I recently called. I found her name listed in the yellow pages of a telephone book. During our conversation l brought up the subject of money. After all, isn't that the reason why we operate a business--to make money? When I asked her what her business volume was, she became defensive. Many do. When I asked if she had made Direct, she angrily replied, "No, but I've been in this business eighteen years. Even if I never make a dime, I'd stay in because of all the loving people."
Another person I encountered lives in Pendleton, Oregon. Prior to quitting, Charles Bartholomew also filed a complaint to Amway Corporation. Interestingly enough, he, too, was sponsored by Warren Perkins, Emerald Direct.
Charles went through the same rude awakening that Carl Issenberg had experienced. Warren went around Bartholomew and bad mouthed him to his downlines because he would not purchase non-Amway produced materials nor attend rallies.
"But how do some of these people afford to go to all of those rallies!" Charles exclaimed. "I went to one rally in Georgia which cost me over $200 for the weekend plus air fare just to hear John Wells' layman Christianity. To top that, when I got there, my room had been changed to a different motel seven miles away from the convention, and I had no car to use."
Warren insisted that Charles attend all functions even if he had to lie to his employer in order to go. "I just couldn't do it. I wouldn't feel right about calling in sick," Charles explained.
Charles told me that God was first in his life and as far as he was concerned, many of the individuals in Amway were turning it in to a religion. Many of the followers were now looking up to the leaders as if they were gods. "I had to get out," he said, "even though I had built a successful business and established my own warehouse to service my downtimes. Warren had ruined my business. He had now taken over and was selling all of the products to my people. I had thousands of dollars worth of inventory which I could not move.
"You know, Phil, something else really bothers me, too. Have you ever heard the expression, 'Fake it til you make
"Sure!" I replied and then went on to tell him that this phrase also happened to be the title of the book I was writing.
"Well, as long as I have been in Amway, it's been a very common cliche. Some good friends of mine believed it was such an important aspect of the business that they went out and bought a brand new Cadillac. Financially they were not prepared for it, and it almost forced them into bankruptcy. I have met a lot of people in this business who find 'faking it' to be a justifiable means of building their organization even if they are broke! It is sad to think that they must lie to others, and perhaps even to themselves, about their income in order to look like they are really 'making it.'"
With over 2,000 direct sales businesses in the United States, why do so many flock to this particular organization? It couldn't be the money because a very small percentage of people make large amounts of money in this business. This is substantiated in the FTC report, which stated that only one-half of one percent of the 340,000 distributors in 1974 earned $10,000 or above.
We II then, if it isn't the money, what is it? I n a nutshell I believe it is this: IT'S THE DREAM--THE PROMISE OF BIG MONEY!
That's all. All those glamorous mental and paper pictures of wealth are still just pictures of wealth. The leaders know people are scratching. People are trying to find their niche in life. They know that they all have hopes! They know that they all have dreams! Can money really fulfill their hopes and dreams? Can it bring contentment and happiness? As I have indicated before, there is a vast difference between the possession of money and the obsession of money.
Solomon is thought to have been one of the wealthiest men in the world or possibly "the wealthiest." In the Bible he admitted, "Pleasure, what does it accomplish?" [Ecclesiastes 2:2, NASB]
He went on to say, "Whoever loves money never has money enough; whoever loves wealth is never satisfied with his income. This, too, is vanity." [Ecclesiastes 5:10, NIV with a dash of KJV at the end]
Solomon confessed in the "Book of Ecclesiastes" that even with all his wealth and greatness, a day would come when he would pass from this world just like the poor man and stand before God in judgment.
Conclusively, he summed up the pursuit of riches as "futility." I agree that this life is a dead-end street unless one has a dream, but that dream will be totally futile if it is an obsession to obtain great wealth.
When I was married but a few months, I witnessed tragedy. A five-year-old boy was crushed under the wheels of an automobile. As I held him in my arms, I became helplessly horrified as the warm blood drained from his body. I remember just sitting there and trembling as I felt him breathe his last breath.
Looking up, I could see a crowd gathering about me. Several people had to restrain the dead boy's mother as she wailed in agony. At the age of 18 it was my first lesson on eternity. The Bible says, "It is appointed that every man will die once." [Hebrew 9:27, RSV] No one shall escape it. Why then is it that so many people feel they must heap up treasures here on earth in order to provide themselves with security when we know it is impossible to take these things with us after death?
Andrew Bates, an Assembly of God pastor, told me, "I wish people in our church had the same zeal for Christ and lost souls as they do for this business. Many times I have gone to the homes of my parishioners who are in Amway, and I have found pictures of Rolls Royces and Cadillacs taped on their refrigerators."
I have found many pastors around the country that feel this very same way. Some individuals would never walk across the street to minister the gospel or assist their neighbor; yet they would drive many hours to share the Amway "opportunity."
Somehow thousands have been led to believe that this is a wonderful Christian organization and that God has put his blessing upon it. So much so that recently Christian magazines have featured articles praising the World of Amway. One Christian editor openly admitted that he knew very little about Amway but printed the article any way. Charles Paul Conn, the author of The Winner's Circle, stated in his book that Amway was not a Christian organization. Yet I have seen function after function being held on Sunday mornings in conjunction with a church service.
Amway Corporation says that it is not a Christian organization. Why then do we constantly hear references to Christianity throughout this vast business? Are the leaders within the distributors' ranks concerned about how the public might possibly view this organization?
Parade printed, in January 17,1982, a Gallup poll listing 24 professions and occupations. They asked 1,564 persons how they would rate the honesty and ethical standards of people in these different fields. Clergymen ranked first in the poll, and car salesmen were on the bottom of the list.
Is it possible that some distributors in the Amway business are putting up a Christian front in order to give their business practices credibility? Why is it that Amway brings up in their compendium this bizarre question: " Is Amway a religious or political cult?" Of course, the corporation denied the question, but why even bring it up? I will let each make up his own mind as to the answers to these questions.
I have written this book from my heart. I cannot be ashamed of the gospel; nor can I, in good conscience, allow millions to be deceived by practices, which make constant misrepresentations of scripture.
Are there "winners" and "losers" in life? Oh sure, there are. But whether one is a winner or a loser is not dependent on whether one is or is not in Amway. There is only one time when a man succeeds or loses in life--when he either makes a decision to follow God or to reject Him. The choice is for each person to freely make. To succeed is to trust God with one's entire life, even when things look futile. To lose is to walk away from the only hope for this world.
Not everyone within Amway's ranks conducts business as depicted in this book. Certainly many individuals desire to operate their private enterprises in a conscientious and ethical fashion.
Does Amway realize there is a problem inside the distributors' ranks? Apparently so. The April 1982 issue of Amagram indicates the founders, Jay Van Andel and Rich DeVos, are aware of these internal problems and have addressed this fanaticism in this edition of the magazine.
I contacted Amway's Legal Department in March of 1982, just thirty days prior to this Amway publication and interviewed the Chief Legal Counsel. He sent to me an eleven-page document, which seemed to avoid most of my original questions.
I also asked one of Amway's Legal Counselors how many people had been dismissed for misconduct since the new manifesto had been drafted. His reply was, "Oh, I guess about 10, but not more than 50."
Some of my sources tell me that possibly as many as 200,000 to 500,000 distributors may be involved in deceptive behavior. One person said, "This particular group of distributors always works on the edge of the law."
This same source allowed me to listen to a taped message recently delivered by a Diamond Direct. He instructed the crowd, "We don't lie; we just tell the truth in advance." My point is this: If the Federal Trade Commission can't get a handle on this due to budgetary problems and if Amway's owners won't stop it, then who will?
I hope you will. It is for this reason that the book was written.
Since the book's completion, numerous things have been taking place in the World of Amway. I'll sum them up quickly.
On April 16,1982, the Wall Street Journal reported, "AMWAY DISTRIBUTORS' BIG TAX BREAKS STIR INVESTIGATIONS BY CONGRESS, IRS. "This investigation was headed by Representative Pete Stark of California. Allegations were that distributors were using all sorts of innovative tax deductions as instructed by an ex-IRS agent. The IRS said the ex-agent was "out of line" and that the deductions claimed by distributors were "game playing."
Two weeks later this investigation died. I have sent telegrams to Representative Stark asking him why he backed off from this investigation. I have called his office, but he never returned my calls.
On July 28,1982, the Attorney General of the State of Wisconsin announced that the Justice Department has filed a lawsuit against the Amway Corporation and some of its distributors for misrepresentation of income. He points out in his suit that distributors misrepresent individual or personal incomes utilizing unrealistic, hypothetical or projected income.
Prior to this lawsuit Amway and its distributors were given a Cease and Desist, Order from the Federal Trade Commission. The order insisted that persons in Amway stop misrepresenting income.
The Wisconsin lawsuit bases its allegations upon an income tax audit, which averages distributors' income. Should the State of Wisconsin be successful in obtaining a judgment, it will be interesting to see what action, if any, the Federal Trade Commission will take.
the web address for this page is http://hunza1.tripod.com/amway/fakeit12.html
