Wednesday, October 13, 2010

Amway - Return On Your Investment?

So many IBOs are taught that they need to invest in their businesses. The investments however, aren't on equipment, employees, rent, or on advertising. In a typical Amway business, the investments that uplines often refer to are voicemail subcription, standing order, website fees, seminars and books. In many cases, an IBO keeps on investing in these materials without making an assessment on whether or not the investment was worth the money or if they are actually generating more business as a result of the investment.

I find it ironic that many Amway recruiters will hype the Amway business as one of low risk and little or no overhead. But when an IBO starts to get truly interested, suddenly an investment of money is vital to the success of their business. IBOs get caught up in the excitement of starting a business and they pour money into their shiny new Amway businesses, often without understanding the purpose of the investment, because they are following the advice of their experienced uplines. Eventually, most IBOs will realize that they aren't making money so they stop building the business and eventually quit. This is confirmed by the fact that over 90% of IBOs do not last 5 years and less than half of registered IBOs last even a full year.

For most, they will never recoup even their first month's worth of investments, even with a honest and earnest effort of building the business. Most IBOs never even make enough income to cover their voicemail bills. It is sad that uplines dupe their faithful followers into believing that their tools will help them succeed as IBOs. There is ZERO unbiased evidence that voicemail, functions and other materials do anything to help an IBO to make a substantial profit from the Amway business. It is my educated opinion that training materials sold by uplines have the exact opposite effect. The training materials and functions suck money out of an IBO's business and goes to the upline in the form of support materials profits.

For most IBOs, there is little to no return on their investment. What has voicemail or a standing order done for your business? Ask yourself an honest question. What tangible result have you seen in your business as a result of attending a function or listening to a standing order? If there was any result, is it a one time phenomena or are the functions resulting in continued growth of downline and business volume? Even if you did see a small increase in volume for example, was it enough to justify taking a perhaps out of town trip by air and hotel expenses just for a small volume increase? Do the never ending standing orders result in your downline and volume growing or simply your bank account shrinking?

Any real business owner will look at expenses and make sure that any investments into their business results in more customers or more revenue. If not, then that expense is shut down and other options looked at. Since many IBOs don't have any customers or very few customers, is it worth your time and money to attend functions? Is standing order increasing your monthly volume or bonuses? This is not to persuade IBOs to quit, but simply food for thought so that IBOs will truly use their "business mentality" and decide for themselves if support materials vis a vis an "investment" in their Amway business is paying off or not. If not, you are enjoying a hobby called Amway. Hobbies cost you money, but they rarely make you money. Good luck in whatever you decide.

8 comments:

Anonymous said...

joe, admit it: you're a failure. you keep bashing---

hey joe, look! my "off" button on him actually worked! HAHAHAHAHAHAHA =P

Joecool said...

LOL, at least I'm not a failure at blogging.

colin said...

Anon, only winners quit this stupid business. All the critics are winners.

NICE_MOHIT said...

What is the process to claim money back within 90 days time

Joecool said...

Return your goods to your sponsor and you can call Amway to get a return on your registration fees. If they don't refund you, file a formal complaint with the better business bureau.

beware said...

Joecool thank you for the information i agree with you i never looked at it that way until i realized it seems like a big rip off it seems like we're spending more money than we're making i have a normal job and im making more money on my job thank God for that than selling these products which the same money i have to invest in this i probably will stay in a little while longer to see how it all works out if i seeing more foolishness i am out here and investing more a home base business where i could make real money than spending

Alabbey Akhanmhu said...

I signed up abt 3 weeks ago now am abt to quit.... What my sponsorer said scared me like, To quit, av i think abt the fines? I was like what fines? I think you told me i can quit for the first 90 days of partneship.... What can i do abt this please

Joecool said...

You can quit an get a refund on your sign up fees and products. I believe you have 90 days. Look at your IBO registration forms.