Tuesday, August 7, 2018

Negative Cash Flow?

One of the things I am hearing about right now by Amway supporters is the concept that Amway pays you to shop there. The problem with this statement is that many IBOs see this rebate but do not calculate the fact that you can still have a better bottom line simply by purchasing a product elsewhere. For example, if WalMart started some kind of cash rebate program, would you quit Amway and shop at WalMart?
Then when an Amway supporter is cornered with this information, they will switch gears and start to defend quality versus price. It's all very predictable.
Honest question for IBOs. Why do you use KATE instead of the Amway voicemail system? Amway pays you to shop there, your upline profits from and does not pay you to use KATE.

One of the biggest problems with especially new IBOs is they ignore negative cashflow. And I cannot really blame them. They are ususally sponsored by someone they trust and they are often taught to ignore facts or taught that they are investing in their business, just like a real business, even though when recruited, they are told little or ZERO risk. Thus an IBO who intends to make a profit will generally get set up with a website and some other materials. While the cost may not be exorbitant, these few materials already exceed a new IBO's income unless they actully go out and sell some goods or are able to sponsor downline who sell and buy products. And the more dedicated an IBO is, the greater the chance is that the IBO's negative cashflow will be larger. When you start to add in standing order and functions, the cashflow gets more and more negative and there are many testimonies of massive debts built up by IBOs in a few years or less.

What's ironic is that many IBOs incur these debts at the advice of their upline, or if you will, "mentors". Many uplines will teach IBOs to "never quit". It is my guess that uplines will make blanket statements like never quit without knowing an IBOs circumstance. Just as a statement like you "need" to attend a certain certain function, or you need standing order. No assessment of an IBO's business or personal circumstances. It appears that uplines are simply interested in making a sale for their BSM business. You may ask why should a diamond assess a downline's business before issuing these statements. I ask why should downline call them "mentors". In the meantime these downline suffer negative cashflow from their Amway business. Ironically, some upline teaches that "insanity is doing the same thing over and over and expecting different results". Attending functions and listening to standing orders while losing money each month is that same insanity.

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