You Can't Buy Yourself To Profitability!

I've been having an ongoing debate with a brainwashed WWDB IBO. He tells me and it's clear that he's convinced that buying from himself is a good business concept. WWDB leaders apparently like this buy from yourself concept because most people do not like to sell things. So it's sounds fairly benign to just buy from yourself and get others to do the same, or to duplicate you. That way, an IBO can still reach their 100 PV defacto quota but not have to become uncomfortable in selling Amway stuff.

But how do you profit by purchasing your own stuff? The Amway IBO says it's easy. He buys wholesale from Amway, and charges himself retail and keeps the difference. Thus he considers it a nice profit. After picking up my jaw from the floor, I asked him why he doesn't just buy 200,000 PV or whatever it is to go platinum or diamond? Of course I'm speaking rhetorically but the Amway IBO doesn't answer and starts calling be a broke loser. Seems when Amway folks run out of material to debate with, the personal insults come out.

So let's take a real life example but for the sake of easy math, I'm going to use round numbers to make it clear and easy. Let's say an IBO has $10. He buys an energy drink from Amway (called XS) for the wholesale price of $2 a cam. He now has a can of XS to drink and $8 change. Still following me? So let's say an Amway IBO buys from Amway wholesale and charges himself retail. He starts with $10 and buys a can of XS for $2. But he charges himself full retail price of $4. So now this IBO has a can of XS and $6, plus a $2 profit which is taxable income. In which case are you better off? Easy, in the first scenario because you have a can of XS and $8. In my second scenario, you also have a can of XS, plus $8. But out of that $8, $2 is taxable.

When you buy from yourself, any "profit" you made, is simply transferring money from one pocket to another. Without any real outside customers, you have in reality, no profits. Thus the buy from yourself theory is ridiculous. Can you imagine any situation where a store relies on its sales force primarily for it's sales? Only in Amway, which is why the vast majority of Amway IBOs make nothing or lose money. Actual stores rely on customers. For Amway, it appears that their customers are the Amway IBOs themselves.

The bottom line is that no store or business can buy themselves to profitability and you are seriously fooling yourself if you think you can.