Tuesday, April 5, 2016

Your (Amway) Bottom Line?

One of the most vital things about running a business is your bottom line. The bottom line is a net profit (or loss) for a business. But apparently, many IBOs do not look at their bottom line, probably at the suggesttion of their uplines. I believe uplines ask downline to ignore the bottom line because for most IBOs, even dedicated ones, it is a loss. Thus IBOs are taught that Amway saves marriages, or that the Amway oppportunity has made you a better person, or that the Amway opportunity has made you a better husband. All of these things are great side benefits for having joined Amway, but in strict business terms, most IBOs are failures in the profit and loss category. (And if you are out almost every nite building an Amway business, are you really a better husband and father?)

The facts, some of which are published by Amway reveals this message quite clearly. Most IBOs cannot or do not sell a lot of Amway products. Most IBOs, even with much work, will never sponsor a downline. Even those who manage to sponsor others are likely to see these downline quit within the first year. In fact, many IBOs cannot even find someone open enough to see the Amway business plan. I believe it is why you hear stories of trickery, lies and deceit involved in many stories about Amway. Even the IBOs who do the work are likely to earn less than $1 of NET profit after taking business expenses into consideration. In fact, when factoring system expenses, most system IBOs operate at a loss!

So for most IBOs, the bottom line is a loss. Yes, some IBOs make money. Some make a lot, but those making money seem to have been around for a long time. I believe that too many observers mistakenly believe that the platinum level is profitable. I believe that a dedicated system platinum earns very little after all of the expenses associated with the system are factored in. This was confirmed by an attorney general study conducted in Wisconsin showing the average platinum lost nearly $1000 a year. While Amway defenders will claim that the study is dated (from the 1980's), I would like to note that the basics of the business hasn't changed. In fact, the advent of KATE and some other system materials make the expenses even higher than back when the Wisconsin study was done!

So IBOs, what does your bottom line look like? Is there anything left of your PV bonus check at the end of the month? Or is it a loss that you justify by claiming you are a nicer person? Would you have joined if the plan had said you would be nicer but losing money? Would you have joined if you knew you would be losing money but have new Amway friends? Would you have joined if you knew that a platinum might be losing or not making much money? The bottom line in any business should be a profit. What does yours look like?


Paul said...

Great job, Joecool! Please don't ever stop. I wanted to ask if you know the official source of that Amway statistic you mentioned before about only 1 in 5 IBO's being able to sponsor a prospect. Thanks!

Joecool said...

A lot of the stats I quote are usually from Amway.com.

Anonymous said...

You could become a nicer person by joining a social club and making friends, or by doing volunteer work in a charity.

Why the hell would you sign up in Amway instead?

Joecool said...

The Amway leaders need some distraction away from the fact that most if not all of their downline are bleeding money because of the business expenses (cds, functions, gas etc).

Ben Dover said...

Because god speaks to the leaders of Amway, and he says MAKE IT RAIN!!! (Money reference) The people Amway targets are not white collar, and if there are white collar people they have an extremely jaded moral compass. The money comes from the uneducated, the ill-informed, the low income neighborhoods etc.

Amway is there for people that don't see hope, have no vision for success, and are down right lazy. The people who don't understand how to apply their education, invest and save what they make, the people that are too weak to make their own destiny and would rather look to a higher power. Amway preys on the vulnerabilities and thrives off of weakness rather than empowering the strengths. It is a truly evil, calculating, manipulative, deceitful (add more adjectives for flavor) idea (I refuse to call this a business when I can remember).

Joecool said...

I agree. The recruiters often go after the young or people who are perceived as "needy" because they are more likely to be open to this type of opportunity. It's sad because a selling point is having more time and money yet ironically, that is what people have less of once they get caught up in Amway.