Monday, April 4, 2016

Amway IBOs, Don't Quit Your Jobs?

So many IBOs have grandiose dreams of untold wealth, financial freedom. They think they will "build it once' and sit back on the beaches of the world sipping exotic drinks while the 6 figure checks keep coming in the mail. Sure it's a nice thought, but not a single IBO I have encountered can name a single IBO who achieved diamond, and walked away from the business to enjoy freedom while the money pours into their bank accounts. It is very likely that nobody like this exists. I suppose someone could go diamond and walk away from the business and still earn some bonuses, but very quickly, that business would likely fall out of qualification and the bonuses would shrink to nothing very quickly. Also, to earn bonuses, I believe an IBO needs to have side volume exceeding 2500 PV, which is roughly $7500 monthly in personal group volume. With normal attrition, it's easy to see how a diamond business can fall apart faster than a cheap suit without maintenance.

I also see and hear many IBOs popping off about how someone in their upline earning $60,000 a year. While it may seem like a nice income to someone who has a low paying or entry level job, that income is gross and may not leave much left after taxes and associated business expenses. Even a diamond with an average income of $150,000 in a year likely has a very low monthly income from Amway as much of that income comes in the form of an annual bonus. As a former emerald once told me, you needed to budget out that annual bonus or you could be in financial trouble later in the year, if Amway is your sole source of income.

Also, you may have seen diamond showing off sports cars and other displays of wealth. My former LOS, WWDB has a function called "Dream nite" where they show off lavish displays of wealth. Well, it is my informed guess that most diamonds cannot afford the lifestyles and toys that they show off in these functions. If you do the math, you can see that after taxes and other expenses, a diamond lifestyle is likely to be quite ordinary. Normally, nobody would care about this but since diamonds use this display of wealth to recruit IBOs and to sell tools, it is significant for IBOs to know.

While it is great for someone to have dreams and goals, it is also important to have achievable goals. It is simply impossible for a room of IBOs to go diamond and to earn the kind of income that is shown in "the plan". Amway recruiters will show you "what's possible", but not "what's likely". To put perspective on that, it's "possible" that you can start a software company that puts microsoft out of business, but it's not likely. It's possible for you to win the lottery, but not likely. My advice to IBOs is not to quit your day jobs - ever. Your dreams and goals can be accomplished in many ways, but it is unlikely to be achieved with an Amway business.

8 comments:

Anonymous said...

I tell people how I love the products and how well they work. But I also tell them, I joined to purchase items for myself. I can sell to anyone around me or they can join and buy their own products at cost.

Joecool said...

But who wants to buy products that a 2-3 time more expensive than what I can buy elsewhere? And that doesn't include the additional cost of shipping that Amway charges.

Ben Dover said...

Do you also tell the people that join under you and are expecting to make money, that there isn't any money? Have you made it perfectly clear that you, and everyone around you is spending a lot of money for chincy rebates? Have you also told the people that join under you about all of the law suits? Do you tell all the people who sign up underneath you that communiKate and or ditto is a worthless added expense? Do you tell the people who sign up underneath you that the books are propaganda brainwashing materials, and the discs have nothing to offer in furthering their business or any business?

Joecool said...

Amway recruiters only show the best case scenario but they don't show what is likely. And they use weasel terms like "anyone" can succeed.

Anonymous said...

To the Amway guy: Those products that you buy are not at cost. That's extremely laughable.

Joecool said...

What people don't realize is how seriously ripped off the IBOs are. I'll give one example of a product that many IBOs use. Double X, Amway's flagship multi vitamin, sells at retail for around $80. IBO's price is around $50. An Amway employee can buy Double X for about $12. I learned that from someone who was a former high ranking IBO.

Anonymous said...

So Amway is overcharging on this Double X product by anywhere from 400 to 700 percent! What a rip-off.

Joecool said...

Why not overcharge? The IBOs are taught to buy it by their upline. Funny, IBOs always mention the cheaper multi vitamin they have but they are silent when you ask which one their upline tells them to buy.