Dave Chong

The Hidden Trap of Accumulation: Why Hard Systems Win

| Systems Thinking | by Dave Chong

When designing a sales team or a business culture, every founder faces a choice: Do you make the game easy to play, or do you make it hard?

Human instinct tells us to make it easy. We want our people to feel safe. We want to lower the barrier to entry. We think, “If I make the targets easier to hit, more people will stay.”

But history—specifically the history of Multi-Level Marketing (MLM)—teaches us the exact opposite lesson.

The Tale of Two Giants

Two dominant models exist in the MLM world: the Reset Model (championed by giants like Amway) and the Accumulation Model (used by companies like Elken).

The “Merciful” Accumulation Model (Elken)

In the accumulation model, your points never expire. If you sell RM10,000 this month and RM5,000 next month, you have a total of RM15,000. You slowly climb the ladder. Once you reach a rank—say, “Manager”—you keep that title forever.

It feels friendly. It feels safe. It rewards loyalty and longevity.

The “Ruthless” Reset Model (Amway)

In the reset model, the 1st of the month is Judgment Day.

It doesn’t matter if you were the top salesperson in the country last month. It doesn’t matter if you are a “Diamond” director. On the morning of the 1st, your sales volume resets to zero.

You have to rebuild your business from scratch. Every. Single. Month.

Why the “Hard” Way Wins

Logic suggests that people would flock to the accumulation model (Elken) and quit the reset model (Amway). Why struggle when you can coast?

Yet, the reality is the opposite. Amway remains the undisputed heavyweight champion of the industry, surviving for decades with a massive global footprint. Elken, despite its “friendlier” system, struggled to maintain the same level of ferocious momentum.

Why?

1. The Terror of Zero creates Urgency In an accumulation system, there is no “deadline.” If I don’t sell today, I can sell tomorrow. My points are safe. This breeds complacency. A sales team without urgency is just a social club.

In a reset system, the clock is always ticking. The fear of starting over forces action. It filters out the tourists from the professionals.

2. Past Glory vs. Present Reality The accumulation model allows weak performers to hide behind past successes. You might have a “Manager” who hasn’t made a sale in six months, but they still carry the badge. This rots the culture.

The reset model is a meritocracy. You are only as good as your current performance. This ensures that the leaders at the top are essentially “active combatants,” not retired generals.

3. Resilience through Repetition Because Amway distributors have to rebuild their volume monthly, they become masters of the basics. They can’t rely on luck. They have to build sustainable systems, resilient customer bases, and active teams. The difficulty of the system forces them to become better business people.

Don’t rob your team of the struggle

As leaders, we often try to “protect” our teams from pressure. We set low quotas. We give “participation trophies.”

But by removing the pressure, we also remove the growth.

If you are building a sales system for your company:

  • Avoid “Lifetime Ranks”: Make titles something that must be defended, not just achieved once.
  • Reset the Scoreboard: Whether it’s quarterly or monthly, clear the board. Let the hungry new hire have a fair shot at beating the veteran.
  • Reward Flow, Not Stock: Reward the current velocity of sales, not the accumulated history of tenure.

A tough system creates a strong tribe. An easy system creates a weak crowd.

Would you rather lead a team that feels safe, or a team that is strong? Choose the reset.