Tuesday, February 24, 2015

Amway IBO Expenses?

Many uplines will use slightly deceptive recruitment tactics when getting new people to see or register into the Amway business. One of the common things was how joining Amway has very little risk, no or very little overhead. This is true, if an IBO is not involved in any of th system related training. However, it is the goal of many if not most uplines to get as many IBOs involved in the system as possible. This is probably because selling standing orders, voicemails and seminars has a higher profit margin for some uplines than the actual movement of Amway volume. So some newbies might join thinking Amway won't cost them much, only to find out that 100 PV might run them more than $300. They may not be aware that standing orders and functions never end and can add an additional cost of up to several hundreds of dollars more. Uplines will then justify the expense by saying the IBO is investing in his/her business.

New IBOs, and especially IBOs who are single should seriously think about the cost of being a business building IBO before joining. Many or most prospects don't know that building an Amway business using system tools and "coaching" can cost them up to$500 or more each month. A single person more than likely cannot possibly consume 100 PV worth or products on a monthly basis unless they almost exclusively consume XS drinks and Nutrilite vitamins. And secondly, how many singles or prospects were consuming cases of energy drinks and vitamins ($300 monthly) before being presented with the Amway business? How many people were willing to fork out hundreds of dollars for a weekend function that may require airfare and hotel stay? I don't think too many people like this exist. But I believe they do so because they have been sold a dream of financial freedom, of early retirement and not having to work a job anymore. But the evidence would suggest that once the dream disappears or reality sets in, how many (former) IBOs continue to purchase Amway products and attend seminars?

I know of many former IBOs and I don't know of any who purchase Amway products on a regular basis and I don't know of ANYONE who has ever forked out money to attend an Amway/AMO function after they stopped being an IBO. Amway's numbers bear out this claim as there is very little sales to people who are not IBOs. The IBO salesforce is responsible for consuming the lion's share of Amway's products and services. I myself have purchased an Amway product or two since I left the business. But I did so only to humor friends who were still in the business. They have all since quit. It is very reasonable to conclude that once the desire to build the business stops, the desire to purchase Amway products also stops.

Most eager young and motivated people who sign up often do not realize that these IBO expenses exist. While Amway acknowledges that these tools and systems expenses are optional, the uplines who promote the tools may suggest that it is insanity to attempt to build an Amway business without the tools or strongly encourage new IBOs to partake. A common statement was that we "needed" to be at the next function no matter what. Missing it would set your business back six months. New IBOs and prospects don't know better so they will often conform. Sadly, there is ZERO unbiased evidence that the tools and seminars do anything to increase IBO volume and/or the sponsorship rate. In my informed and experienced opinion, the tools are ineffective and the vast majority if IBOs would be better off handing their upline a monthly check for $100 and not building the business or buying any products.

IBOs and information seekers should be awar of these potential IBO expenses and determine if the expenses would be worth your while. Keep in mind that someone upline profits handsomely from the tools, even if you do not make a cent from your Amway business. You should have your best interest at heart, no matter what your upline tells you.

9 comments:

Anonymous said...

Amway isn't the only one but they are the mother of all MLM scams. Outright scam. They bring you in for a "low, low" price at first, then tell you that you need to buy some "tools" to learn how to grow your business, need to buy more product to get your "discount" price, etc. By the time you find out that nobody wants to buy that overpriced product with that creepy "Amway" name on it you're in too deep to just admit to yourself that you got scammed. That's why once they lure you to a meeting they want you to buy in right away because they know you won't touch it with a ten foot pole if you do any research on what a scam Amway is. And the funniest thing of all is that Amway "discount" itself. Buy a garage full of soap to get it at the same price as a single bottle of it at your local retailer.

Joecool said...

OMG your comment is so spot on that it's scary! I remember being told not to talk to people who quit because they "failed" so why not ask a successful Amway IBO? It's a smart way to distract you from the issues which is the high prices and the tool scam.

Anonymous said...

That comment is spot on. Nothing has changed and Amway and the high level Tool Goon Squads have just adjusted documents and internal business practices to protect themselves and BS the low level IBO's into thinking "their business" is protected. This is the furthest thing from the truth as signing up will require giving up certain rights. An IBO doesn't own a business just the right to be screwed without lubricant.

Anonymous said...

I'd like to mimic one of those slick puffed up Amway pitchmen and put on a nice suit, get my hair custom styled, my teeth freshly whitened, etc. and get up in front of an Amway meeting with that easel marker board and mimic an Amway "business opportunity explanation" and draw out all the circles, arrows, diagrams and such detailing their Amway IBO expenses versus their forty six cents commission they made for those seventeen bottles of dishsoap and couple of jars of vitamins they've sold to friends in the last six months. I could ignite the crowd with enthusiasm, showing them exactly why they are wasting their time and money and what a great thing that is, the Amway way.

Joecool said...

That's an awesome idea. I wonder how IBOs and prospects would receive the information? LOL

Joecool said...

IBOs don't realize it but they don't own a business. They are commission only sales people for Amway - bottom line.

Anonymous said...

Some of these folks are so brainwashed you could draw circles into a stick figure bending over taking it in the dumper and they would still cheer if it was preceeded with flashy pictures of Ferrari's and golden toilet seats. I've been to enough meetings with a friend of mine and I thought they were gonna pass out jogging suits and Pumas before the UFO lands. Scary.

Joecool said...

It's so sad that some folks get sucked in so deep that they can't see the forest from the trees.

Anonymous said...

The author of Merchants of Deception mentioned that IBO stands for I'm Bending Over. Pretty much sums it up.