Thursday, May 3, 2012

Why IBOs Don't Make Money?

One of the things touted by many upline leaders as the "key to success" is CORE. I have outlined the elements of CORE here. I believe most AMO groups teach CORE as the key to success.

1 - Show the Plan

2 - Retail the Products

3 - Tapes/cds

4 - Books

5 - Functions

6 - Accountability

7 - Counsel with Upline (Be teachable!)

8 - Buy 100% of your own products

9 – Communikate

In these nine steps, only #2 may actually net the IBO a profit, but this step is not emphasized in many groups. Some leaders gloss over this step and instead, promote "buy from yourself". In all the other core steps, you either spend time and/or money doing things that do not produce income for your business. If you, as an IBO spend most of your time in non income producing activities, guess what? You will suffer losses. It is no wonder nearly all IBOs lose money, they are taught to spend most of their time in activities that do not produce income!

Imagine owning a brick and mortar store where you open the store for one hour a day. The rest of the day you are reading books, listening to tapes/cds, and paying to attend seminars and listening to voicemail messages. Oh, and in addition to opening your store for an hour a day, you don't advertise except for word of mouth. Could you survive in business? I think not. Amway now advertises, but you are not Amway, you are an independent business.

So can an IBO make money by spending most of his/her time in non income producing activity? I think not.


DanMan said...

As a first time reader (read a few random googled 2009 blogs of yours).
I like your site man. Learning lots.

I'm curious though, would you say 100% of Amway IBOs run their business like your example?

I would say your correct in stating it really has be a focus on the products and your intense enthusiasm for said products.

In this sort of economy I would say these skills might be harder to come by but not impossible.

A very social, friendly, caring and of course enthusiastic individual may be able to sell products decently well.

And if he/she has half a brain, will find interested and likely similar in mindset or ability people to try it out for themselves.

These similar or attracted people will *hopefully* get the leadership needed to yield results to those willing to be coachable.

Srry this is so long but i encourage you to consider what a seriously determined individual can do when they do they're best to help people in one way or another.

Vik said...

Let me add one more reason they don't make money :). Taproot. In the platinum plan in the open meetings you are shown the 6-4-2 model where you make $2600. With taproot when you build one leg at a time, max you will go Platinum with 3 legs. So then a Platinum only makes $1500 max :).

RawLaw said...

So, you say that ONLY step #2 MAY bring in a profit. I guess that step #1 doesn't count at all... showing the plan... then how on earth do you expect to grow your business team and multiply your income? I honestly think that you're an idiot.

Jon said...

Interesting blog.

I feel like the most difficult hurdle IBOs face is finding competent people to comprise the business team.

Benjamin Clark said...

The author is correct. A survey showed that half of IBOs actually lose money, and the majority of the other half average $100 per month. Amway is a legal Ponzi scheme.

Joecool said...