Friday, July 8, 2011

You Can Make More Than Your Sponsor?

One of the silly defenses that Amway supporters use to defend their business is that it must be a pyramid or it must be legitimate because you have the opportunity to earn more than your sponsor. While many downlines in fact do earn more than their sponsors, it's likely because about half of all IBOs don't stay for even a year and factoring the business expenses for those who are on tools, the reality of suffering business losses also causes people to exit the business. It's not that hard to eran more than people who quit. But even at that, someone who quits is often better off than IBOs who continue.

An IBO at the 100 PV level will earn about $10 in bonus income from Amway. If they are attending functions, buying standing orders and voicemail, they will operate at a loss. Thus, unless their business grows each month (highly unlikely, even if they do as upline advises) then they will suffer losses each month and those who quit will be better off. It is why I have stated that doing nothing or staying home and watching television can honestly be better options than joining Amway and the systems such as WWDB, N21 or BWW. It is why reasonable people can conclude that working for minimum wage, even a few hours a week makes you better off than joining Amway and the systems.

The defense that someone can outearn their upline is silly. The true benkmark of this statement would be for a new guy to start a business, and in 2-5 years, outearn someone like Bill Britt. It will never happen because upline has direct influence over the fortunes of their downline, even at the diamond level. It is why you have seen diamonds quit, or split from their upline to start their own training systems. They cannot affects change from downline, without upline consent, thus the breaking away from their "mentors" or leaders. At times there have even been lawsuits over the tools income. Do people really sue their mentors? Don't diamonds teach you that suing people is wrong? That you don't get something for nothing?

You can surely outearn your sponsor. All it takes is for your sponsor to quit. However, your sponsor quitting might mean you don't outearn your sponsor. See my example above. Taking losses is not outearning someone. Keep in mind that everyone in Amway is equal. You are all unpaid commissioned Amway salespeople, bound to Amway's terms and agreements. You don't own your downline. You don't really own much as an independent business owner. You can ourearn your sponsor, but that means squidly diddly when your sponsor makes nothing or takes a loss. Come back and chirp when you outearn your upline diamond. Do I hear crickets shirping now? :-)


Anonymous said...

There is no victory without any defeat. There is no gain without any pain. Good thing is both sides are not permanent. You make the most of what you get... and ask for. Universally, you get what you ask for... what goes around comes around. I am glad you know people have achieved the levels that you can never achieve and that is when you throw cheap stones online because it is free. Go and publish an article in a major newspaper or magazine if you are so against it that you want to save the world from this biz... will you?
Last thing... Yes, you can out earn your upline if you have better structure and consistant volumes than your sponsor..but you won't if your upline is working harder and smarter than you are... that is when teaching and mentor ship comes in. Sad part is whiners don't every stick around long enough to get educated and understand all that but they puke on themselves and others all the time. No biz is for whiners leave alone this one.. see how long you can whine at your job and stay there .. We don't need to drop whiners... they drop out themselves.

Anonymous said...

what a shock!

amway is a cult.

Anonymous said...

I am chirping, not shirping!!! Hola! And yes, you can earn more than your sponsor based on this reality check: consistent & persistent effort, ongoing training, consistent business volume and business structure. Your reason that 'about half of all IBOs don't stay for even a year and factoring the business expenses for those who are on tools' as to why downlines earn more than their sponsor not only is a LIE but PATHETIC, ILLOGICAL BULLSHIT that smells like your worn polyester socks. Do you smoke or do hardcore drugs by chance? Get a life buddy, you stink like worn polyester socks!

amanda said...

this is an on-point article. especially because between gas/ tolls/ fees for meetings/ buying sample & personal products, etc, in your first year you will without a doubt be spending more on business expenses than income generated and showing losses on your taxes in the first year is okay, but the second year if you do not generate enough profit you lose the validity of your "business" and it is then considered a hobby for tax purposes, which can ultimately end up hurting you more in the grand scheme of things.

Anonymous said...

and anon, you stink like days-old roadkill. NOW where are we at? :)

Anonymous said...

At least Joecool gave us good solid and clear reasons why MLM's like Amway are "losing" propositions, unlike you... Got interests in Amway haven't you ?

People should be made aware that most of Amway's sales come from their own distributors' purchases to satisfy thedistributor's monthly sales quotas for fear of missing out on their commissions. That's the sad truth of how most MLM companies work. So distributors make up the bread-and-butter part of the sales. Amway had 3 million salespeople in 2011 and their 2011 revenue was $10.9 billion. Do the math. 10,900,000 divided by 3,000,000 = $3,633 per year = $312 per month, not much to produce a decent income. These MLM's are good for those who started the company and their close friends. Any job pays better than working in Amway.