Wednesday, January 9, 2019

Is Your Business A Joke?

I find it sad that many Amway uplines will ask/demand loyalty from their downline and then lead them to run a joke instead of a business. Many IBOs are young, motivated, hard working and simply wanting more out of life, but some unethical uplines exploit their downline and basically suck the life out of these IBOs while making the IBOs think they are running a business and succeeding. Because many new Amway IBOs have little or zero business experience, they tend to trust upline and will do as they are told because they don't know any better and upline will portray themselves as wealthy and knowledgeable even if it may or may not be true. (Some diamonds had their homes foreclosed and a prominent triple diamond was in bankruptcy proceedings)

One of the things many groups teach their IBOs is to "buy from themselves". Many people do not like or are not good at selling products, thus many groups tell their IBOs to be their b own best customer, and in some cases, the IBO is their only customer. Those who run business this way might be running an illegal business because the only way to generate profits is to continue to recruit downlines who will then allow you to generate more volume, provided that these new IBOs purchase their own goods as you do. Given Amway's generally un-competitive prices, it's no wonder that most IBOs have trouble maintaining sales to non IBOs, save for some family and friends. Even IBOs who claim they focus on selling do not appear to have more than a handful of non IBO customers. (How many non IBOs would pay nearly $80 for a month's supply of Amway's famous double x vitamins?)

Another thing IBOs are taught is that the business is not about money. It is making friends and becoming a nicer person that is important. Some groups such as WWDB apparently teach that their involvement with WWDB or Amway can save marriages. Oddly, these claims are made even when some of their leaders are divorced themselves. I read on the blog of a WWDB IBO who says that the US has a 60% divorce rate while those in WWDB have a 2% divorce rate. This is completely fabricated information and I heard it as an IBO 12 years ago but it is apparently still taught today. Amway defenders like to claim that critics are outdated but the evidence supports the claim that things are more the same today than not.

Another thing many IBOs may be taught is that all of the support materials they purchase are tax deductible. That is not necessarily true. The materials have to be used to help you to increase your business. If you are attending functions and buying standing orders, the IRS may not see it as a legitimate tax deduction unless it is resulting in increased sales and profits. If not, the IRS may deem that you have an Amway hobby and not a business. I laugh when IBOs talk about how great their business is doing and then talk about the great "tax return" they received because of their Amway business. The joke is on them but they sadly do not know it.

So IBOs, are you tracking your income and expenses? Are you realizing profits as a result of the tools you are purchasing or are the tools the very reason you see losses month after month? Sit down and think objectively about what is written here. Are you running a legitimate business or a joke?

1 comment:

Anonymous said...

Amway is a total joke. Unfortunately the joke is on the 99% of IBOs who never make a dime of profit in the scheme.