Thursday, January 17, 2013

What Is Your Amway Business Worth?

Many many people see the Amway plan, sign up as an IBO in the hopes that Amway income will help them fulfill their dreams and that they will walk away from their jobs at a young age and collect lifelong residual income while walking the beaches of the world. Sadly, most IBOs will never even sponsor a single downline or see a net profit. These IBOs may continue in the business for a while but will eventually quit when they see the writing on the wall. Someone mentioned on another forum that people who want to work 2-5 years and do nothing thereafter are probably lazy and therefore, are not capable of achieving in anything, much less in Amway. I agree with this but even hard working eager IBOs generally make nothing or lose money.

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. I mean a diamond in theory could sell their business and live large happily ever after right? Here's some food for thought. Why are there instance 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? I mean do IBOs ever stop and think about this? It is an honest and serious question that should get some consideration. Honestly, why would a diamond not walk away if they could collect income forever?

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?

So IBOs, I ask you. What is your business worth? You don't own your downline. They are independent owners like yourself. You should not have inventory, employees or some warehouse storage complex. Aside from the ability to add downline volume to your own, your Amway business likely has very little value in the real world. So IBOs and prospects, think about it for a minute. What is the value of your Amway business? Ever see anyone sell their Amway business or actually walk away from Amway to collect residual income? Do you ever wonder why crowns and double diamonds are still working, even beyond retirement age for people with jobs?

18 comments:

  1. The nature of this business is such you have to keep working it. Practically nobody makes money at it. Hence a biq quit rate so you need to keep recruiting within your group faster than people quit. Thats why few diamonds last. The ones that do are smart enough to find a number of leaders in their group who bring some sustainability and keep the group growing. Not easy to do. That explains why success rates are low and for the most part not sustainable.

    ReplyDelete
  2. I am glad you wrote about this. I have wondered the same exact thing. Why in the world are these double diamonds still going to every function/conference and speaking, and talking about still needing to work aspects of their business? If it is truly supposed to be residual income, they should have to do nothing at all and still earn what they say they do. This clearly is not the case. I came to my senses after only three months of being involved with Amway. I wish many of the IBOs who have been in for years and are not making any income would stop to think about this and come to understand this. If diamonds and double diamonds are still having to work to maintain what they have, how much more will those just trying to reach platinum level have to work to maintain their "business". Not to even mention that even once getting to platinum, most still come out at a loss after everything is factored in, from what I understand.

    ReplyDelete
    Replies
    1. Muzik_dude,

      Thanks for the comment. I believe there are cases where the diamond hardly makes any money at all from Amway, but because you are recognized by Amway at the highest level, a diamond pin might not have a diamond business. Thus these diamonds can only make money by speaking and doing functions. I believe that's why they never quit, even when they appear to be retirement age. It is also why these diamonds likely will never "walk away" from the business.

      Delete
    2. This is very true, looking back my own experience. The last function I went to a few months back, Larry Winters was the main speaker (who has to be in his 60s). They kept on talking about how he was doing this out his own kindness to us to come and speak. They said things like he could have easily been at home taking it easy and living it up, but instead he decided to take time out and come and serve us. After reading this post and thinking about it some more, I don't think that was the case. I bet he "needed" to be there speaking so he could to rake in some more cash from that weekend.

      Delete
    3. Do the bonus calculations and you will see a diamond does not earn that much. Amway says 147 k gross. Take away travelling and taxes. Not enough left to retire on. And im sure most diamonds have difficulty requalifying so income can reduce fast. Doesnt seem a great deal

      Delete
    4. Hello christ servant. Larry winters seems to have 4 diamond legs so i expect he might not need to work much. He took ten years to go diamond and 10 more to get double diamond. Im sure that was 7 days a week. So he gave his life to it. Not convinced its worth it.

      Delete
    5. Ps to my comment on winters. He seemingly got hit with back taxses of 3.2 million for 1996 to 2007 so i guess he earned 2 or 3 times that amount over those years.

      Delete
    6. That's if Larry Winter's diamonds are qualifed. If they're not he might not be making much.

      Delete
    7. How come Larry didn't keep up with his taxes?

      Delete
    8. Could be there is a lot of cash floating around from tools function and meeting. Hence a temptation to overlook some of this in declarations and to over declare deductibles like luxury travel and hotels.

      Delete
    9. Larry made millions from tools @BWW. Definitely more now that he has his own tools scam. But he is doing it all out of the goodness of his "achoo" heart.

      Delete
  3. From what i see in this business you need to get to diamond to make some money. That takes abot 7 to 10 years. Then you make on average according to amway abot 150 k gross. So after taxes,expenses and living costs you might retain say 50 k. So to buy your million dollar home will take 20 years. For all that you need to work full time 7 days a week. I just cant see the interest. Now you could i suppose double your income on tools. But its still not worth the effort

    ReplyDelete
  4. Hay i just started 2 weeks ago and had my first home meeting. I am so scared to let my family and friends do this and we lose something. What i need to know is why they would say you cant lose anything if so many people tell me you can

    ReplyDelete
    Replies
    1. The reason is that to keep the pyramid going they need new people coming in at the bottom. Hence the plan say great wealth and no losses to attract people. I estimate average losses would be between 5 and 10 k annually.

      Delete
    2. They say you can't lose because Amway has a money back guarantee on certain things. You need to make sure you read about all the parameters. Also, the "tools" are not sold by Amway and may not carry the same guarantee.

      Delete
    3. Anon,

      I am an ExAmbot after 7 years. I former emerald wrote a book you need to read. It's a free download. Go to Amthrax blog, scroll down on the RHS look for merchants of deception. It's a quick read and very insightful. I highly recommend it for you. Let us know what's your take on it.

      Delete
  5. @ Joecool I got sucked it at 18 and whne you calculate the $ spent on P.V, tools, functions and events I lost well over 50k in 7 years and never had one year I mad more then $1000. Its possible to make good money you just have to be REALLY good with peole and sometimes be manipulativ. Im am still an IBO but not active and my upline still times a year tries to push the functions on me. One more point, I thought these guys had my back and were my freinds lol thats a joke! I got layed of and was having some finacials problems and took some time away from the BIZ and not ONE called. When I got married 10 IBOs RSVP'd to my wedding and no showed and never called or sent a card. This was very hurtfull but at least I know where they stand. Just be careful and think through everything

    ReplyDelete
  6. to everybody on here speaking stupidity i will guarantee you are a slave to your job. You will grow old and tired and "enjoy" 2 weeks a year on sad, cheap, pathetic "vacations"..... enjoy wasting your life idiots.

    ReplyDelete