I remember seeing the plan as a prospect back over a dozen years ago. I remember the speaker talking about how you can capitalize on distribution efficiencies to make money. We as IBOs would simply cut out the middleman and that savings would be psssed onto us as IBOs. In its simplest form, it made sense and and misconception passed onto the audience that you will actually save money by ourchasing Amway products. I even remember the speakers saying that even if the whole world signed up for Amway, even the last guy getting would would have the benefir of saving money. Looking back now, much of it was deception and lies. And to think, people now and back then paid good money for training on how to become, in my opinion, the least efficient manner in which to move products.
We recently enjoyed the Superbowl. And as you know, superbowl commercials can cost millions of dollars. But do you know why? It's because hundreds of millions of people across the world are tuned into the superbowl. Companies probably have their best staff working on developing these commercials because they want to leave a lasting impression on their viewers. And it apparently works because people today are still willing to shell out serious coin for these commercials.
Amway IBOs advertise person to person, one person at a time.
What are the chances of an IBO ever moving a significant amount of products or being able to reach out to potential new downline when they prospect person to person, face to face, one at a time? To me, that is the most inefficient manner of expanding business. And let's face it, Amway's rules don't help when you are not supposed to advertise online without special permissions and you are not supposed to sell product on Ebay or Craigslist. In today's technological society, it seems almost crippling to be so inefficient.
And even your beloved uplines, at your expense, run the most inefficient manner of doing business. Who needs voicemail when we have facebook, email, twitter or text messaging? Not to mention the added expense IBOs face by these outdated technologies. Also, with video conferencing, skype, or webcams, why do people need to travel long distances for meetings and functions? The answer is simple, your upline might not want your success, they simply might just want your money. All of the training and motivation is a profit center for upline and modernizing would simply reduce their tool profits.
Try asking that of your upline. Why do we keep using the most expensive and inefficient means of doing business and communicating? I'd be curious to hear that answer.
7 comments:
Here is the answer. This is not a business. A business is when the seller gives you something of value and you are prepared to pay money for it. The amway model is downlines give money to uplines for no value in exchange. They do this through auto consumption and tools. They do so because they believe and hope they themselves will find downlines to do the same for them. It would be just as easy or even easier if everyone just sent a monthly 50 dollars check upline. It would have the same result. A few kingpins making a lot while the grass roots lose out
Excellent point of view! You're right, the downlines "perceive" value where there is actually none.
I remember people in my upline saying that people in Amway are the innovators of society today, and we're the ones trying to get everyone else into Amway. I'd say that's almost 100% untrue. Amway is so far behind the times it's not even funny. It did not feel like a 21st century business to me in the few months I was involved.
Person to person advertising might be the cheapest but it's also the most inefficient in my opinion. Also, Amway's products are priced pretty high so it's already a tough sell. Seems to me that people will pay the high prices when they think Amway will make them rich but they ditch Amway and the products when they realiize that Amway won't deliver those dreams
Is it really cheaper? The mark up on the products to pay IBO bonuses, making them more expensive than competitors, is quite costly. IBOs are advertising agents, they don't sell anything, the website does. They don't deliver the products, a delivery system does that. IBOs are consumers and advertising agents. (oh and recruiters)
IBOs are constantly telling us that these products are so good, they deserve to be consistently more expensive. They tell us, we wouldn't have to sell, the products sell themselves. If this is the case, couldn't they drop IBOs, altogether, keep prices the same, and make even more money simply selling their own products off of the website? It could be deduced that an advertising budget for such a large company would not even scratch the surface of that mark up, (let's say 40% hike to pay IBOs, out of $ 11 Billion income...). I would imagine a pivot out of MLM would make the company more profitable, that is, if everything an IBO tells us is true.
What I am getting at, is that with the inclusion of the internet in modern society, MLM has lost its purpose. Compare what an IBO does, in an actual sale, 20 years ago and today. Today, IBOs don't sell, handle money, deliver, maintain inventory, collect orders, etc. Yes, there are other MLMs that orders must travel through a rep, but a website can replace each and every member of any MLM, and the small percentage of people who will lose their primary income source would be minimal. This is where the 99% stat proves most IBOs are irrelevant, and would lose little, if anything, should MLM go down, or a company pivots away from MLM. The website handles everything else.
-Jerry
Good comment Jerry. It's true that the MLM business is great for Amway. The IBO's pay Amway to join, then they move Amway's products at their own expense. And then you have a quota to reach (100 PV) in order to qualify for a commission. Amway scores and the IBO's are the ones footing the bill.
Amway has opened a few, brick and mortar, stores, from my understanding, and plan to open a few more. Could they be testing the waters of business without the IBO?
All of that fear-mongering that IBOs do about losing your J.O.B. is a bit humorous if you point it back in their direction.
-Jerry
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