Monday, November 2, 2009

Amway - IBOs Lose Money Because Of The Tools

What are tools? Tools in reference to the Amway business usually consists of Books, CDs, Voicemail, Wesbite Hosting, and Functions. While the prices of these individual items may not seem exorbitant, the collective cost for these tools can run up to several hundred dollars a month. For extremely hard core IBOs, these tools can cost more than $400 a month on average, and perhaps for a casual partaker of functions, etc., perhaps they can get by for less than $100 a montt on average.

But in any case, when most (business building) IBOs are at 100 PV or so, which results in a $10 bonus, it is easy to see how most IBOs will lose money because of the tools. Even at 1000 PV, it is likely that a dedicated IBO will have a net loss in their Amway business. It is simple math, add up the tool expenses for any group and then add up the bonuses. In nearly every group, there will be a net loss.

Of course, someone upline is profitng from tools, thus the success you see on a stage is likely coming directly from the pockets of their downline. Sadly, most of these downline will never earn a net profit but will be told to never quit and encouraged to continue to invest into a black hole that will never pay them back and will nearly assure business failure in the long run. It is also sad that so many downline will be told these lies about future success by people who they consider trusted friends and mentors.

I would strongly encourage IBOs to look critically at their business and add up the cost of your expenses and compare that with your income. If the income is not growing steadily, then you may want to reconsider additional expenditures for tools. That is real business. If upline encourages you to buy more tools when you are losing money, maybe you should wonder whose best interest is at heart in teh advice you are receiving.

Joecool will be on vacation in Europe and Japan over the next two weeks. I would like my audience to note that my J-O-B is paying for this wonderful vacation. If I end up in Sweden, maybe I will pay IBOfightback a visit. LOL I'll return to my blogging duties later im November. I wish everyone well.

23 comments:

Amthrax said...

Have a safe and fun vacation overseas!

Joecool said...

I will and thanks!

Anonymous said...

What are you bitching about? Have you heard of someone who's not commited to expanding their business by doing whatever it takes? Yes, I've heard of someone like that. His name is Joecool.

Joecool said...

LOL, most IBOs have $10 of income from their 100 PV and then lose money buying tools. But hey, they are doing whatever it takes. I'll keep my J-O-B. Thanks!

Anonymous said...

Yeah, most but can you guess why? I remember that in my JAVA programming class about 3/4 of the students dropped out by mid semester so only a few made it. I was one of those who made it. Same in any business venture and Amway isn't an exception.

awesome said...

Joe,

you have a great website here. Based on our experience in amways, this was our monthly tool expenditure- around $120-130/month

(Standing order cd, leadership standing order, lasies leadership standing order, west coast leadership standing order(WWDB cds) and book of the month)-Of course standing order is minimum wage and u if u are going to succeed in the business, u need to listen to atleast one cd a day and how can u listen to same cd every day- so you should add more cds/books to your tool order- so add additional $$$$ if u order more cds

KAte- $35/month

BWW TV and one domain- i think it is $25-30.

Open meeting - $5/person- this happens every week.

Functions- $105 X 4 functions a year. If you had the misfortune of ever going silver or platinum in ur career in this business. U guessed it right..MORE FUNCTIONS...to learn to GO DIAMOND (yeah right)- This will be in Florida or in resorts ...so MORE $$$$

Hotel expense for funtions- $120 X 2 nights X 4 functions + hotel for Go < > functions.

I have not even starterd listing actual business building expense or the gas/flight expense for going to functions or food expenses at function.

of course all this is not expense, it is all investment and average people with employee mentality dont get it, that is why we are not active anymore and are easily saving $2000-$2500/month more than we used to when we were building the business.

Sorry for posting such a long comment. Needed to get it out of my system.

Anonymous said...

JoeCool I am a distributor/signed up with AMWAY. I do not like the tools promotion i.e. Network21 and stuff like that. I think it is teaching people to focus on "sponsorship" and not on the "products", which to me is wrong because the products should be the long lasting underlining aspects of any business. We ourselves picked out the items of values from AMWAY catalogue (there are a few of them, especially the Artistry line), and purchase only what we need. We told our friends honestly our opinions of the products and the promotional tools. We're not making money yet, but we're not losing money either because we only buy what we need and would have purchased elsewhere after comparing prices and quality. I do think AMWAY has some values in it, but the ways people have been pushing it with sideline businesses such as Network21 is just spoiling its name. For all the people joining AMWAY, i strongly suggest you know your products and do not focus on "signing up" people, instead focus on the products. If AMWAY products are craps, we'll just don't buy them. That'll work.

Anonymous said...

awesome,

u r right, average people with employee mentality don't get it and 4 u to come here and say it in ur own words proves it. Also Amway is spelled Amway not amways. U spent $2500 a month 2 build ur business? Get real bud, i'm nowhere near that and 4 tools i spend around $100-120 but wait that's a problem 4 u cuz it seems that u could not afford. Hey, i don't have lots of money but somehow i can come up with money to build my business. Care 2 know how? I guess not cuz u made up ur mind that this ain't for u.

Joecool said...

The problem is that the tools do not work. It may cost a lot or a little but if they don't work, what good is it?

Anonymous said...

The tools don't work statement that comes from a guy who quit is not helpful, thanks.

Joecool said...

Even people who are active are not succeeding. Where are all the diamonds if the system worked?

Anonymous said...

You can be active an unproductive. Watching The Simpsons is being active (ie: turn tv on, watch, eat popcorn, drink cocke) but not productive. Where are all the diamonds? They're not watching The Simpsons so why don't you write them and meet up with them to find out? :)

Joecool said...

Haha, Amway NA had what? a handful of new diamonds in the last 10 years?

Watching the Simpsons is more lucrative than building an Amway business for most people.

Anonymous said...

Yes you're right Joe, that's why you're a R*E*A*L I*D*I*O*T.

Joecool said...

And you are losing money. So what?

Anonymous said...

Yeah so what? What's your concern? It's my money!

Anonymous said...

In reality..Amway uses the motivational organizations to make money and the motivational organizations make money with tools using Amway.

U get started by seeing the plan that u are going to redirect $250 of ur anyway purchase money. Slowly with the promotion in the system, you will start doing 300 PV every month- roughly would cost between $800- 1000. Now that I am inactive in the business, I spend $200-300 once in every few months on Amway products.

Because I was associating, listening to CDs, going to functions, i was doing 300 PV. So the system is very vital for Amway's revenues.

Because I was thinking I will make it big in Amway, I kept investing in the tools.

So both Amway and the systems use each other to increase their revenues. Most of the IBO's end up loosing money.

Anonymous said...

Wow, a guy who quits a business that he doesn't believe in spends money once every few months to get products from that very same business he doesn't believe in!
What kind of idiot do you think you take me for?
You're just a bitter, angry, pissed off man with serious life issues. You need professional help. Besides that, stop concerning yourself about others and me. It's my money, it's my problem!

Joecool said...

I'm not bitter or anrgy. It's yur money?

Yes, and nobody forces you to come here and read what I write. Why are you so bitter and angry?

William Tilton said...

you guys do know that you DONT have to have/ pay for thoes tools right? If you want those tools its up to you. And a Scheme? really? I actually like not having to get up to go to work in the morning!

Anonymous said...

...or submitting to authority! oh, and sorry, but upline doesn't count. :)

Benjamin Clark said...

The only real money to be made in this business is in the promotional tools. If any IBO tells you that they turned a profit I'd ask to see their tax return...

Joecool said...

Yep, and IBOs will say none of your business if you ask for income verification. Yet they like to show someone's photocopy of a check to entice people.