Thursday, March 2, 2017

The Value Of Your Amway Business?

Many many people see the Amway plan, 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 while living in the lap of luxury. Sadly, most IBOs will never make a profit or even sponsor a single downline. These IBOs may continue in the business for a while but will eventually quit when they see the writing on the wall. Unfortunately, many IBOs suffer a financial loss before they realize what's happening and walk away. Some IBOs, if they stay active for some years, could lose tens of thousands of dollars in the end.

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. A diamond, in theory, could either walk away and collect income, or sell their business and live happily ever after right? Here's some food for thought. Why are there any instances 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? Maybe there is no residual income. If many IBOs do nothing and many do not renew after a year, how can you keep volume moving month after month? You can't.

I believe diamonds quit and resign because their business is worth very little or 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 could just let you quit and inherit your business, afterall.

Also, as an Amway business owner, what do you own? You don't own your downline, although their volume runs through your business. You don't have staffing and you probably don't have equipment or a rental property or any bonafide assests. You may or may not have some inventory but you are not required to hold any. So what really is the value of your business? What is it worth?

So IBOs, I ask you. What is your business worth? What is the value of your business? I'll guess it's worth little to nothing......


Anonymous said...

Joe, I believe you're right.

It is ironic that they call themselves "Business Owners" but can't even present a Balance Sheet. This proves that "the business" is really worth 0 after all. Try asking IBO's of their balance sheet and see what happens.

Joecool said...

Most IBOs don't know what a profit-loss statement is and that is something upline never teaches because it would reveal that an IBO is losing money month after month and it would be clear that it's because of the expense associated with buying tools and functions.

kwaaikat said...

I'm thinking of posting this add:

Attention all Amway IBO's

Time to cash in on your hard work.

I am looking to buy a business, and I will pay a fair price!

As with any business I would be looking at:
- net profit growth
- payback period in years (Price/ annual net profit)
- cash flow
- dependecy on cintinious owner involvement

Apologies if what I was asking was really mentioning the obvious. Please contact me at xxx, and be sure to have 3 year P&L and current balance sheet ready.


Keen Investor

Anonymous said...

Join because you want to use the products at a discount. Then if someone asks about the company share it with them. Any company if your on the top or one of the first you make money.

Anonymous said...

Your Amway business has no value because you have no equity in it. There's no brick-and-mortar office, no warehouse (except your garage or basement), and your products are just stuff that you can't sell. Sure, you have a "down-line," but they're in the same boat that you're in.

Besides, even that "down-line" is in constant flux and churn. Persons are constantly dropping out. Ignore the business for two months, and your down-line will shrivel to nothing. So what can you "sell"? It's all just smoke and mirrors.

This is why Amway makes it so difficult to get out of the business. All of those impediments and chickenshit requirements for the sale of an Amway business are designed solely to discourage you from doing anything except walking away in disgust. They don't mind you dropping out, because IBOs do that every day. But if you could transfer your Amway business easily to someone else, there would be a helluva lot more churn and flux. And Amway doesn't want that, because it would threaten the money flow upwards.

John Doe said...

Anonymous said, "Join because you want to use the products at a discount."

That is quite possibly the worst reason to join a "Business Opportunity". You join real business opportunities because you want to make money. You wait for a sale if you want to buy products at a discount. Also, those "discounts" are still far higher than competitors products at local stores and come with a demanding contract and an inconvenient monthly minimum for purchasing.

Anonymous said, "Then if someone asks about the company share it with them."

I'm not sure who you hang out with, but none of my friends randomly ask, "Hey where did you get your bathroom shampoo?". For the sake of argument, I understand that is only one product, and they could actually ask where you got your XS energy drink...and to that I say, if you are going to be honest about where it comes from, then you should also be honest about how much it costs. The price is kind of important, especially when it is over 4x more expensive than other energy drinks per ounce (I can link you to my math here: I'm keen to think most people with a brain don't care to spend that much extra for an energy drink, especially with the other attachments.

Anonymous said, "Any company if your on the top or one of the first you make money." The reason people at the "Top" make more money is, their value in the company is greater than an employee.

1. They own all of the responsibility: Whether the company does well or not falls on their shoes, and if their workers don't product, then they go out of business. It wouldn't make sense for employees to make more than owners, especially when employees don't have to shoulder the responsibility of maintaining and growing the business.

2. Employees are replaceable, but a boss is not. That in itself is a reason for a boss getting a larger piece of the pie.

kwaaikat said...

Anonymous said, "Join because you want to use the products at a discount.".

The mission for an IBO to drive PV is so pervasive that it is not hard to find IBO's who will resell at his cost, if not below. So if I liked the products and wanted to buy them at a discount, that's what I would do. Buy at cost from a desperate IBO.