Thursday, July 16, 2009

Amway - Here You Go IBOs, A Real Profit Loss Statement

A online friend of mine, Gina, sent me her detailed profit/loss statement from her real business. Names were sanitized of course, but here it is IBOs, a real P/L statement. For some of the naysayers who mistakenly accused Gina and I of being the same person, any moderator at the Qblog forum can verify that we are two very different people from very different places. Gina originally visited by blog seeking information about Quixtar as she has/had an IBO for an employee and wanted to learn about this "business". What she eventually found out was how little so many IBOs know about business. Anyway, at "Levi's" request, here is the P/L:


Here it is...Gina's long awaited P/L

YEAR TO DATE
Ordinary Income/Expense
Income
4001 F.R Sales 4,585.18
4002 D. S Sales 2,181,262.78
4003 D.L Sales 384,482.60
4020 Rental Income 405.00
4045 Freight Income 72,751.15
4046 Handling Charge 2,337.15
4099 Sales Returns (376,948.18)
4153 Rebate 473.93
Total Income 2,269,349.61
Cost of Goods Sold
5000 Cost of Goods Sold
5001 F.R Costs 18,894.38
5002 D.S Costs 1,526,418.90
5003 D.L Cost 270,960.60
5043 Freight Costs - Purchases 1,200.00
5045 Freight Costs - Sales 69,848.25
5047 Purchase Discount (36,223.02)
5099 Cost Variance 0.00
5000 Total Cost of Goods Sold 1,851,099.11
Total COGS 1,851,099.11
Gross Profit 418,250.50

Expense
6080 Warranty Exp 2,339.07
6100 Misc. Expenses (13.67)
6105 Amortization 501.00
6110 Advertising Expense 19,496.93
6112 Bad Debt 8,837.24
6115 Bank Service Charges 1,204.74
6116 Foreign Exchange Rate Exp 25.16
6120 Business License & Fee 0.00
6125 Credit Report 289.00
6130 Car/Truck Expense
6132 Gas 5,338.71
6134 Registration & License 272.50
6136 Repairs & Maintenance 783.81
6130 Car/Truck Expense - Other 0.00
6130 Total Car/Truck Expense 6,395.02
1640 Conferences and Seminars 952.98
6150 Contribution 100.00
6160 Depreciation Expense 31,289.00
6170 Dues and Subscriptions 1,229.95
6175 Income Taxes
6180 Insurance
6182 Auto Insurance 664.30
6184 General Liability Ins 4,692.65
6185 Health Insurance 31,909.83
6188 Worker's Compensation 2,857.31
Total Insurance 40,124.09
6210 Maintenance/Janitorial 0.00
6220 Marketing Expense 0.00
6230 Office Suplies 3,081.11
6240 Outside Sales Commissions 0.00
6250 Postage and Shipping 1,843.78
6260 Printing and Reproduction 505.09
6270 Professional Fees 0.00
6272 Accounting Fees 14,100.00
6274 Legal Fees 2,450.52
6270 Total Professional Fees 16,550.52
6275 Contract Labor 792.00
6278 Employee Appreciation 97.30
6285 Property Taxes 10,873.55
6290 Rent 0.00
6293 Equipment Rental 1,101.36
6294 Forklift Service
6300 Repairs and Maintenance 6,705.34
6302 Computer Repairs 620.75
6304 Equipment Repairs 185.43
6300 Total Repairs and Maintenance 7,511.52
6306 Alarm System 650.26
6310 Supplies 2,984.11
6315 Small Furniture, Fixture & Equip 1,469.86
6319 Telephone - Cell phones 548.56
6320 Telephone, Fax, & Internet - Landlines 7,980.03
6321 Tools 0.00
6325 Training
6330 Travel & Entertainment
6334 Meals 1,173.58
6336 Travel 14,030.68
6338 Hotel 482.76
6330 Total Travel & Entertainment 15,687.02
6410 Utilities 13,687.01
6560 Payroll Expenses
6561 Salary 125,108.30
6562 Taxes 10,879.95
6563 Payroll Fees 166.11
6560 Total Payroll Expenses 136,154.36
Total Expense 334,287.95
Net Ordinary Income 83,962.55
Other Income/Expense
Other Income
7000 Other Income (201.69)
7200 Interest Income 111.23
7050 Gain on Sale 0.00
7300 Management Fees
7400 Commissions 184,197.60
Total Other Income 184,107.14
Other Expense
8000 Other Expenses 0.00
8010 Accounts Receivable Adjustments 8,791.14
8020 Inventory Adjustment
8030 Accounts Payable Adjustments
8100 Interest Expense 36,557.07
8110 Return Items 44,998.20
Total Other Expense 90,346.41

Net Other Income 93,760.73

Net Income 177,723.28

66 comments:

mrmaximum said...

I wonder how many Diamonds actually net this sort of money? Amway IBO's will always rail about how it's the only way to make money, and you have heard it from stage that 'If you can't make it in this thing, you can't make it anything."

Well, there it is, looks to me like Gina is making it, and not doing a bad job with it either. She seems like the business owners we have long talked about on this blog. An IBO telling Gina that a P/L is worthless, is like Bernie Madoff telling off Warren Buffet! Most IBO's enroll into Amway to get to where Gina is now.

rlaurens said...

Gina, congrats on your business. 20% gross profit margin and 7.8% net profit is very good. Hats off to you.

I can already hear Levi's comeback: but how many Americans can do that? You're an upper class, why do you insult lower class? Blah..blah..blah.

For consideration, consider these usual spiel from Diamonds:
- "Look at the fruit on the tree." Well, there you go: Gina's P/L is there.
- "Why do you take advice from another broke loser". Hmm... if > $2M in sales is considered broke, I'll take that.
- "JOB gives you no time with friends/family". Gina certainly have time, at least for posting on blogs :)

Gina said...

And now we wait and see what crazy things IBO's will say to try and make this seem made up!!! I await...but they will need all the luck they can get!!!!

I realize that many IBO's will not have the same expenses, but the point here should be clear....There is a method to tracking a business' profitability and it is a simple as black and white, and there should be no excuses to stray from this simple method.

Thanks for posting this JC....where is Levi? He should be jumping all over this!!! LOL

Gina said...

Oh and BTW....I posted my P/L....it's your turn now IBO's...or are do you all easily go back on your word? Time will tell.

Mike said...

I noticed there was no expenses for "training"

Guess this is not an Amway P/L

Joecool said...

And if I may add to this, Gina helps the economy by giving people jobs!

mrmaximum said...

Listen, my wife started a business for the same reasons why most IBO's do. For a better life. Neither of us have College diplomas, but we do okay. I have nothing to hide, Gina makes my wife look positively enemic, but that isn't the point. It is the same thing on a different level, Gina wanted a certain lifestyle and she went after it and got it, my wife wanted a certian lifestyle and went after it and got that too. Maybe my wife isn't as good as a Diamond, but she still isn't cleaning houses all by herself hoping for a business to grow which has a 1% chance of doing so.

IBO's are more than likely going to say that Bill Britt, Dexter Yager or some other diamond makes more than that. Yeah, and what are the chances that anyone will make that kind of money now? There is a huge difference between what is possible and what is likely.

I've said it before and I will say it again, Joe Average beats Joe IBO hands down.

Anonymous said...

Sorry, I am confused, and also very interested. Is Gina an Amway IBO? Or is this some other business that she is running? It appears she is doing very well, either way.

The IBO that I know who just recently started Amway was bragging about how he will be a millionaire in six years...kinda made me scratch my head. Is it possible?

I want to be open minded about this, but if it's so easy to be a millionaire selling Amway products, wouldn't more people do it?

-Living in the Real World

Joecool said...

Gina ia a traditional business owner. She has challenged IBOs to post a profit loss statement many times. In response, IBOs challenged her to do the same. Now that she has posted it, I noticed that IBOs have not responded.

Anonymous said...

(sarcasm on)

Jeez, Gina....all that jibber-jabber doesn't mean anything without a big dream!!!

Where's the BIG DREAM????

(sarcasm off)

Gina said...

mrmaximum...I am sure if your wife keeps a P/L like I do and she evaluates the expenses on a monthly basis then I am sure she can get to the same point...along with hard work. Honestly, no matter what IBO's say, anyone with the right tools, logical thinking and hard work can do it. But that is what IBO's are missing...logical thinking and the right tools. Maybe if they did treat their business as a real business, then they too could realize profit...but clearly uplines have motive to keep IBO's from doing this...

Anonymous said...

Gina said:

"I realize that many IBO's will not have the same expenses, but the point here should be clear...."

***********

Gina, your point seems clear to me. Profit is important.

Amway people need to realize:

"If the dream is big enough, the facts STILL matter. Expenses STILL matter."

-MichMan

Anonymous said...

Nice list but that list fits Gina's style of keeping track of her money. I'm not Gina. That list I find convoluted and confusing. I come up with my own list that I can understand. But then Gina might not like it even if it's simple because it doesn't match her style. Again nice list but it doesn't tell me much.

Amthrax said...

Excellent post, Joecool and Gina. Thanks for sharing your P/L statement. I'll post a note on my site linking back to this article; it's important for IBOs to see that the facts do matter when it comes to judging the health of one's business!

Anonymous said...

LOL, Totally not the person posing as Gina. No more validity than a cut and paste document. Anyone can do the same thing. A person running that kind of business, has no time to be wasting, trying to prove that a company that just celebrated it's 50th year doesn't work or worrying about an IBO's P/L.

That's nothing more than a cut and paste examlpe. You've got to do better than that if that is the foundation you build your arguments on.

Mudslinger said...

wow, you all are so cool, you are my hero's, can we be friends? I like friends, especially the kind I find here. awe it would be so cool we could hang out on blogs and talk about nothing at all or we could shoot down a few people hey all in the name of our bond. oh please please can we be friends.

Mudslinger said...

but hey seriously if that is your business, my hats off to ya.

Rykel from Singapore said...

Gina,

I am an IBO and I want to thank you for posting a healthy P/L and I am just as glad to learn that your business is doing a healthy million. (while we have engaged a few times on Amthrax, challenging each other to post a P/L is NOT one of our heated topics) :)

While not a P/L statement, I also wish that ALL networking companies would release an Income Disclosure Statement like that the one from MonaVie, because it does give evidence to the fact that if you are in the top 5% of the industry, you DO make more than $20,000 a week.

I wish that some IBOs would indeed keep track of their income and expenses, hence elevating the credibility of this business and being relatable to traditional business owners.

So once more, thanks for taking the effort to post a P/L statement for us to use as a reference. I cannot wait to show mine AFTER I have a net income of millions in my community-building business and as it is, I believe I already have a relatively positive cashflow with my business currently.

God Bless, Rykel

Levi said...

Well, Like I said post it. It is a nice looking one at that. Althogh i have to ask you why would I think for one sec that this was yours? I am not trying to be difficult but come on It has skeptical writtin all over it. sure gina you may be who you say you are but how in the world could anyone especially us belive you? You seem to have followers who believe you quickly, ass odd as that is. unless mrmaximum, rlaurens, and joe cool all have your phone number and you all hang out on a regualr how can you assume this is true? If we post ours and even if it pales in comparison we still would be told it was a fraud especially if we claimed a profit. We would get labeled the exception and we would just get bashed with antother Anti-Amway angle

Levi said...

First analogy: Gina you do a business but it is not this one. and these clowns commenting so quickly on congratulating you only raise my suspicion as to how they can be so quick to belive you? If you notice thier times are very close together and make me wonder if you all work together to draw attention? promoting eachother in order to create media attention thus verifying eachother in the process. I could be said even that alot of the anonymous bloggers are in fact you all instead of anonymous IBO's. you see the problem I am having here? I present a valid rebuttle while none of these commenters here even questioned it. Like I said in the beginning you do know the process for an income statment but are you really using yours? there is just no proof to validate it. Oh and as for mine? you blow my 200-300 per month out of the water. I would not even have that many expenses or Income variances. laugh, enjoy it, so what, I still have to say what is the proof on either side?

Anonymous said...

The silence is deafening!
-Living in the Real World

Gina said...

What??? No IBO retorts??? Hmmmmmmmm

mrmaximum said...

Thanks Gina, I appreciate the vote of confidence and my wife does too. She does keep track of her expenses and whatnot, that way during tax time, our report is accurate and we have much more to write-off. Yes, all things do come in time, dilligent work does indeed pay dividends and when keeping records such as these, it has saved my wife valueable time and money. She has been able to stop using certain products or equipment or reconsider expanding into certian 'markets' so to speak as she had the proof right in front of her that it wasn't worth the investment. In those cases the numbers didn't lie and the name of the game is making money to better your life.

Like an athlete has a workout log, a busines person has accounting.

Mike said...

The point of this exercise, is that Gina posted her P/L statement..and no IBO has done so.

Gina said...

*sigh*...that's the point Levi...It is a P/L. You can see it is accurate if you do the calculations. If you choose to believe it is not mine, it is most likely because you and your ilk would without question post a random p/l just because. P/L's are detailed for a reason...so one could easily see what is fabricated...so if you really feel that it is made up please feel free to point out where (you work as an accountant right? It should be clear to you)...you would actually be doing me a favor, as you can see I pay a lot of money to an accountant to keep this P/L for me. If anyone really thinks I copy and pasted this from the internet then it should be easy to find...if I pulled off the internet anyone could right? Really....everyone can see through your crap.

Gina said...

Levi is a liar and it has been proven...he has zero credibility. I wonder if he is even really an IBO???? :0) (note the smiley)

http://amwayfunctions.blogspot.com/2009/06/get-on-your-knees-submit-to-upline.html#comments

Joecool said...

I had to laugh when some IBOs try to imply that this P/L is fake. Hey IBOs, why are you reluctant to post any P/L? Why not at least make up a fake one? LOL

:-) (Note the smiley?)

Anonymous said...

Fear the Smiley!!! :-)

Mudslinger said...

Gina as I previously said congrats on your business, But I can see the point that Levi has since I too know none of you and can only assume none of you know eachother personally how can one be so quick to belive or not belive what is merely posted text? I am on the fence on this one

Joecool said...

It's quite simple. If you followed Levi's old blog and some comments he made here, he clearly misrepresented who he is and what he does. He said originally that he did not have a job, that he ran several businesses. Later his story changed to him working at construction. He also said he made a good profit in Amway and did not participate in the functions. Now he admitted that he "reinvests" all of his profits into functions and catalogs and such, thus Levi has a zero net profit.

Mudslinger said...

Regarless of that, I am only saying I can see the point he is making here. Whatever levi feels he needed to say or do to fit in around here is his problem.

Joecool said...

And what is Levi's point? That he is good at not telling the truth and he is good at cursing and using profanity?

Mudslinger said...

hey guy get off the defensive here, I just said I could see where he was coming from just as I can see you are pretty sensitive. chill out its a blog cant I have an opinion?

Joecool said...

How can you see where he is coming from when he lies about it? :P

Anonymous said...

Joecool, back off, ok? Compared to you, Levi has something going on in his business whereas you just run stories on how you quit and why everyone else should quit because it sucks. What do you do with your life besides this pathetic blog?

Mudslinger said...

I have been reading off an on for about a year and its been fun, but the only reason I started blogging is because of what levi called mud slinging. All I have ever read has been questionalbe as far as truth but one thing is fact. all of you bicker back and forth relentlessly. And joe are you sure you are honest with your readers? There are things going around about you too, steve, some very interesting things, what makes them wrong? Just as much of that could be true.

Mudslinger said...

everyone is suspect here, we do nothing but hide behind text. peekaboo, here is some mud in your eye

Joecool said...

Back off? but Levi's net profit as he admits is ZERO. I make that much watching the Simpsons or taking a nap. LOL

Gina said...

How can you question a detailed P/L? They exist to not hide anything. You can not find a random detailed P/L online and you can't just put together numbers to create one....again that is what they are for...you would see it was made up.

And just to be clear...Levi attempts to diminish the validity of my point that most IBO's do not treat their business as a business by telling "you first", clearly thinking I wouldn't post my P/L and when I do he tries to call it a fake while never addressing his lack of financials? And this doesn't seem odd? JC had a point....if a P/L could just be made up then why do IBO's argue about posting one while claiming they have one and allowing the discussion to get very detailed and sometimes heated when they could just make one up and end the whole issue?

mrmaximum said...

Gotta love it. Why the lies? If you are lying then it's pretty basic to see that there is something to hide? Why? If this business was so great, if one is an honest IBO, so much better than the other Kingpins then it isn't necessary now is it? If one is lying to hang in a certian place, maybe it's understandable, but that still doesn't make it acceptable.

As for doing something with his life. When are you IBO's going to realize that Amway isn't the end all and be all? If you make diamond, the world doesn't come to your door and worship you. None of us critics wake up at night in cold sweats due to our failures in this business so get off it. The only people who give a crap about the benefits of this business are the kingpins and the IBO's so deep in the system they don't see the forest for the trees.

When you see how damaging this business can be to unsuspecting people, then you now know about why Joecool blogs about his 'failure'.

When Amway starts pumping out the success they claim in the plan, which would literally be so large and widespread no one could ignore it (just like we can't ignore the success of McDonalds)then us critics can and will shut up. Until then, you IBO's have a hard sell on your hands.

Mudslinger said...

Wow, that was the best media pitch I have ever heard. if I did not know better I would say hey you guys have a point there But alas its just text. I belive I have a hunch what is going on here? some if not all are involved in more than just freindly blogging here. In my belief there are some who blog here in attempts to actually stir trouble for Amway for what reasons oh I could think of a few, I also think more than one blogger here uses multiple accounts in order to cause media attention and sway the readers to believe there is a discussion when there is not. You can try to discredit this but there are many ways it can be done. even your hero steve has some skeletons in his closet that are floating around the internet maybe joe cool should be honest with his readers about his own integrity if he even dares to post this comment.

Joecool said...

What media attention? There is no media attention here. And I posted your comment. What about it? I don't hide and try to swy discussion like the pro Amway bloggers who do not publish negative comments.

Mudslinger said...

Send yourself any threats lately? maybe you and levi are actually the same person. wow great media attention here, right

Joecool said...

What threats? Back in 2008, I received 2 "anonymous" emails. One told me to watch what I say as the sender knew my real identity and one email said I had posted on the world sex guide. I admitted it and there was much discussion about it here and on the Quixtar blog Forum. The On The Road With Dave Blog also had an article about it.

http://www.ontheroadwithdave.com/2008_01_01_daveontheroad_archive.html

Read the January 15 and January 18th entries.

Joecool said...

BTW Mudslinger, people who live in glass houses and all. Don't throw stones. Well, you know.

Mudslinger said...

All I am saying is when these things come to light It creates discreptencies in what one might say via only a text message. how can anyone really belive you, me , gina, levi, mrmaximus, or anyone for that matter when things like what happened to you and what happend with gina and levi?

It all cannot be trusted, so while you have arguments with supposed Ibo's and each time you seem to make such great embarassments of them it becomes strange that yeah why have no uplines commented here?

Mudslinger said...

Joe even your accusations are just posted text, I am not saying I belive it. I am neither saying I belive any of you or your accusations to eachother. this whole blog commentary could be the mastermind of a simple few people with the intention to make Amway look worse.

Joecool said...

Mudslinger, as you can see I have nothing to hide. I also did not start a thread to attack Levi. The comments started going becasue Levi has so many discrepancies in his story that it cannot hold any water. The Levi goes and starts a thread attacking am and some others yet you stand here and defend him. Maybe you are also Levi?? In fact I am thinking that is quite possible since your IP addresses are about the same.

Mudslinger said...

How about this, derek has comment moderation on his site now and so do you. when I posted on get on your knee's you replied within 5 min of posting on your site here, but when I commented on that over there I get no response, did derek get on and then get off? or are you and derek in the same room? Joe you and me both could possibly be more than one person , But no Not levi, some anony's yeah, since I have been reading for over a year.

Joecool said...

Sorry to bust your conspiracy theor Mudslinger, but if I wanted to run another blog, I would just add it to this one. I already run two blogs and it is enough. I am not Derek, sorry.

But maybe you can explain why you and Levi have the same IP address and come from the same town in Michigan?

Joecool said...

BTW Mudslinger, please come back when you want to debate Amway. Thanks and have a nice week.

Mudslinger said...

Well, I have been reading blogs such as yours as they have been interesting to me for over a year now. I have posted a few times in the anony's but never really cared to join in the masquerade until I looked into where this levi was from. It is interesting he is from the same city but this is a big city, and actually the IP is not only for that one city there are many included, But I saw how he was being singled out so I decided I would use his term mudslinging to my advantage and honestly here I am. whats your excuse.

Mudslinger said...

Joe I posted 2 already what is going on here?

Mudslinger said...

but I can say there is a risk involved when you can read IP addresses, and that to me is a bit stalkish. there is alot that can happen when you know too much. there is a lot of hate on this blog and really for the safty of people there should be a block on that. Gina has a family, and many others do too and because of a blog things can get taken out of context. so This will be goodbye jOe I had my fun hope you and levi have fun bashing eachother. I will continue to read from time to time hope your blog goes well. Ps. I really am not levi though. lol

Joecool said...

Mudslinger, Levi was singled out because of all the conflicting information he posted. If I went to a pro Amway blog and did the same thing, the IBOs would be all over me as well. That's how it works.

Mudslinger said...

For the safty of bloggers families I can see why they prefer anonys over names, it's not about hiding it's about safty from the wackjobs out there. you raise concern in my book when you pry in to and post information like that. good luck on your posting scam.

Mudslinger said...

But joe you did not post my time comparison between you and derek.

Joecool said...

Mudslinger, as you will note, I did not publish or allow someone to post your IP address. That is what a responsible blog owner does. But if you are done, good bye and good luck.

Mudslinger said...

By the way Joe I am not an Amway IBo, I just enjoyed the attention they suddenly got whenever they appear here.

but still you failed to post one of my comments

Joecool said...

You're nto an Amway IBO? That is interesting. If I do not post comments, it is because it is a personal attack, way off topic, or some comments occionally get lost in cyberspace. I do not disallow reasonable comments.

Mudslinger said...

So joe you did not post this? This is what responsible bloggers do? You are indeed a fraud and a deceptive liar joe. I may leave here but you are a con.

There is a new comment on the post "Dream Stealers?". http://amthrax.wordpress.com/2009/07/09/dream-stealers/ Author: JoecoolComment:It might be interesting to note that Levi and the other blogger Mudslinger both have the same IP address and come from the exact same town in Michigan. See all comments on this post here:http://amthrax.wordpress.com/2009/07/09/dream-stealers/#comments To manage your comment subscriptions, click below:http://subscribe.wordpress.com/?email=mir_levi_age%40hotmail.com&key=6bd28df7a7a15dded2301f18ae2d2b6b

Joecool said...

Sticks and stones mudslinger/Levi.

Levi said...

Joe, post this please. I am sorry for the trouble.

The truth behind this blogger
For awhile I have engaged Anti-Amway speakers here on blogs and have had arguements that should have never taken place. I have spoken to people and said things that are highly disturbing to my readers. I have been reading lately and not posting any comments or blogs due to the fact that I have found that some are doing more than blogging. they are trying to pinpoint my location. This is a sad fact in this world and I belive if this is the case I may cause trouble upon innocent people with my lies. My name is not Levi, Nor do I do accounting, I have not been in Prison, nor do I do amway Global. I have been taking information from diffferent sources and putting together a profiles based on what I have been assembling together. But some of my information involves people in my town that I chose out of random and pay pose a danger if these fanatics were to become irrate.

See I am 16 years old and my name is John, my mother is making me write this since she caught an email I had left on my computer. I did these things primarily for the sport and had friends in school who found these blog sites amusing and interactive. I even helped a few friends start blogs and anonys comments and have been causing these arguments for our own amusement. I am sorry if I offended anyone and caused any problems. I will be signing out for good, I wish you all the best in your businesses and hope that no harm was caused.

Thank you
John
Posted by Levi at 6:56 PM 0 comments Links to this post
Labels: amtrhax, and those whom I may have missed, gina, joe cool, maximum, rlaurens

Gina said...

LOL!!!! I go on a long weekend away and come back to this!!!! LOL...And IBO's question our scruples....yeah right!!!!

rlaurens said...

Now we're really confused and don't know what's the real deal with this Levi guy.

Gina, see what your P/L has brought !?!?? :)

Anonymous said...

Hi. You can find a blank Fillable Sample Profit and Loss Statement for Self Employed Borrowers here.
http://goo.gl/IwPR0H

You can fill out the form, save it, fax it, and email it. Please feel free to use it.