Thursday, May 31, 2018

Eliminating Debt?

One of the things that many uplines will talk about with their downline is debt. Many IBOs and prospects join Amway, hoping that Amway will help them eliminate debt, by providing some extra income. What many IBOs find out though, is that they end up more deeply in debt, not because of Amway necessarily, but often because of the pressure to purchase tools and function tickets. While getting out of debt is a good idea, the same upline may advise that person to go deeper in hock to participate in Amway and the functions and tools systems.

Eliminating debt on the surface, is a good thing. However, I believe that many uplines only want IBOs to eliminate debt so they can free up discretionary monies that can be channeled into tool purchases, which uplines profit from. So while the advice seems sound, it still ends up as a self serving piece of advice. If you are an IBO or a prospect, is your upline advising you to eliminate debt and then turning around and telling you to attend "all" functions?

As a WWDB IBO, I heard the mantra about getting rid of debt. It sounded good to me, but I was floored when the same upline told us it was okay to go deeper in hock if it was to further our business, or in other words, to buy more standing orders or to attend functions. I could not understand why it was okay to create more debt, but only to "invest" in your business. If debt is bad, then functions and other tools should be cut as well, until the IBO can reasonably afford to participate in the system. IBOs, in my opinion. should be using profits from the business in order to purchase tools. If there is no net profit, then that IBO needs to decide whether or not the tools are worthy of an investment. Even if an IBO has some profits, the IBOs should determine whether to bank the profit or to channel them towards tool purchases.

Too many IBOs trust their upline and make initial and ongoing purchases of tools, and then continue to do so without seeing tangible results. I believe this is why IBOs are taught to trust and have faith. Or that success is right around the corner. It keeps an IBO going, even in the absence of results. Hopefully a post like this can bring awareness to IBOs and potential IBOs. Good luck to those who disregard this information.


Anonymous said...

Amway up-line doesn't give a damn if its down-line is in debt. Not in the slightest!

In fact, a down-line that is deeply in debt is usually too desperate and frightened to drop out of the Amway racket, since "success may be just around the corner." If you drop out when you are losing money, you have cut your last life-line to the possibility of recouping your losses.

Amway up-lines are distrustful of and uneasy with IBOs who are financially comfortable and untroubled. People like that have the capacity to be independent, and to make decisions about their lives without consulting some fat-assed Platinum. But someone in debt is scared, and will be all the more subservient to the advice of a patronizing up-line boss.

This is why up-line deeply resents any IBO in the line below them who is financially secure.

Anonymous said...

Dear Joe Cool --

This is off-topic but I'm writing it here to let you know something.

Whoever runs the "Amthrax" blog is refusing to put up any of my posts there that support you in your argument with "Malachy S."

Whose side is this Amthrax guy on?

Joecool said...

I don't think he's refusing to post your comments, I think he's gone inactive and isn't maintaining his blog. My comments get posted because I am already established there. Sorry about that. I'll try to email Amthrax.