Thursday, October 2, 2014

What's Your Amway Business Worth?

Many many people see the Amway plan, and 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. Sadly, most IBOs will never even sponsor a single downline. They may earn some bonus and might even show the plan, but likely these IBOs may continue in the business for a while but will eventually quit when they see the writing on the wall (continued losses). Sopmeone 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. While that might be true, it is also true that people are not working 2-5 years and then retiring due to Amway income.

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 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. Obviously there must not be any value in doing this. Nobody would quit or walk away from a business that had value and/or equity right?

I believe diamonds quit and resign because their business is worth 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 (The upline) would be better served to cause delays or even de-edify you and simply take over your downline rather than pay for it. After all, the are already a part of the downline to your upline.

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? All you "own" is your place on the pyramid, which isn't worth that much.


Anonymous said...

If there weren't so many rules on selling a distributorship in Amway. I think you can get 50% the monthly income of a distributorship for max 4-6 months. You can't get a nickel for the system part of the business. So Greg Duncan with still a decent size group will get 50% of his monthly commission of 50k. So probably around a 100 grand? But that's my opinion and probably not way off. Anyone buying a Amway or Mlm distributorship is taking enormous risk.

Joecool said...

With the instability of the business, I can't imagine anyone getting big money for an Amway business that can easily fall apart in a heartbeat. And your upline likely won't buy it because your business defaults to upline if you stop anyway.