Tuesday, March 15, 2011

What Is Your Amway Business Worth?

Many many people see the Amway plan, sign up in the hopes that Amway income will help them fulfill their dreams and that they will walk away from their jobs and collect lifelong residual income while walking the beaches of the world while living in the lap of luxury. Sadly, most IBOs will never make a profit or even sponsor a single downline. These IBOs may continue in the business for a while but will eventually quit when they see the writing on the wall. Unfortunately, many IBOs suffer a financial loss before they realize what's happening and walk away. Some IBOs, if they stay active for some years, could lose tens of thousands of dollars in the end.

But wait, you're an "independent business owner". So instead of quitting, why not sell your Amway business? I wonder if any IBOs actually think about what their business is worth. A diamond, in theory, could either walk away and collect income, or sell their business and live happily ever after right? Here's some food for thought. Why are there any instances of diamonds quitting or resigning from Amway? Why would they just quit when they could either walk away and collect an income "forever" or sell the business? Maybe there is no residual income. If many IBOs do nothing and many do not renew after a year, how can you keep volume moving month after month? You can't.

I believe diamonds quit and resign because their business is worth very little or nothing. And most Amway businesses do not even generate a net profit. For IBOs who are seriously pondering on this very important message, try looking up this topic in Amway's rules. There are very complicated steps to be taken when selling your Amway business as each person upline must be offered ownership (To the best of my understanding). This process can go on for a long time and the attrition of your business could render it worthless before you can find a buyer, if you have a buyer at all. Also, if you quit, the downline in your group would be surrendered to the immediate upline anyway. So why would your upline want to buy your business? They could just let you quit and inherit your business, afterall.

Also, as an Amway business owner, what do you own? You don't own your downline, although their volume runs through your business. You don't have staffing and you probably don't have equipment or a rental property or any bonafide assests. You may or may not have some inventory but you are not required to hold any. So what really is the value of your business? What is it worth?

So IBOs, I ask you. What is your business worth? What is the value of your business? I'll guess it's worth little to nothing......


Anonymous said...

amway is TRASH!

Anonymous said...

I wonder if I could do better than the average WWDB IBO, over the course of a fiscal year, selling off all my old SOT and True North tapes on E-Bay? (Boxes full in storage - hey JoeCool, how much for a Jack Daughery CORE tape or a Bill Hawkins How to Contact and Invite?) Ah, the irony - I could "sell" "the System", and leverage time and money, to boot!


Anonymous said...

For what its worth - the business should be valued as a perpetuity. This allows you to derive a value for the worth of your business. I have been inactive in the business for 8 years but continue to derive significant monthly income. I recently had an offer for my business which required me to seriously contemplate the 'sell now'or remain inactive and simply draw the monthly income. I have chosen the latter.

Anonymous said...