Thursday, March 28, 2019

The Sunken Cost Fallacy?

One thing that many Amway IBOs likely suffer from is having invested too much into the business to quit. They may have spent months or even years working the system hard and they start to realize that the system isn't working out or that the business is just not producing the results that were advertised. You see obvious problems in the business, but you reach a very tough fork in the road.

To quit would mean failure, as presented by many uplines. To quit is to be broke for life. To give up hope. Quitters are failures and are labeled as losers by the Amway IBOs. What hopes do you have of retirement and walking the beaches once you quit? Are your dreams of success shattered? This is a very difficult decision that must be dealt with by Amway IBOs, or maybe even those considering the business. Often the "sunken cost fallacy" plays a role, where you feel that you've invested too much to just walk away. although in many cases, making a business decision to stop is the only way to stop the financial losses.

I encourage IBOs and/or prospects to completely take the emotion out of this decision. Do not think about dreams, walking the beaches and early retirement. Do not think about what you upline may or may not have promised you. Stop and think only about your Amway business and the results that it has produced or not produced. Has your business been increasing towards your goal of financial independence or are you seeing losses month after month? Do the math. Are you on target to reach your financial goals or are you headed towards bankruptcy? Don't think only about what happens if you quit. Think about what happens if you continue. Are there prospects of making a profit or is that next major function around the corner and likely to put you deeper in the hole?

This post is not about encouraging people to quit or to walk from the business. But certainly, business owners should think like business owners and they should make an honest and realistic assessment about their continued participation, especially if their bottom line is red ink. If you are not making a profit now, what will change next month to make things better? If you repeat what your upline advised. your results are not going to magically get better. Use facts to make an informed decision.

4 comments:

Anonymous said...

Expert manipulators prey on others with the use of emotion. That is why logic is beneficial when making a final decision.

Anonymous said...

Amway & WWDB are incredible companies. No blogger is going to change that.

Joecool said...

Amway and WWDB are incredible at scamming people out of their money.

Anonymous said...

Lol...incredible companies at proving that there is a sucker born every minute and that there are a lot of folks out there that have lame business sense and are incredibly gullible, deluded or just plain stupid.
No accounting personal effort counted as an input cost, no break-even forecasting, no profit vs loss analysis, no ability to use market multipliers like advertising, the list goes on.
Just buy a lottery ticket each week, enjoy your life with all that free time rather than hanging around with a bunch of amway suckholes since the odds are roughly the same and the payoff for the lottery craps all over scamway.
You gotta stop drinking that cat piss amway energy drink and wake up to reality.