Getting out of debt sounds like good advice. On the surface it is because people should not be racking up consumer debt or committing large sums of their income for cars they cannot afford. But what does it mean for an IBO? I know my former upline taught our group to get out of debt. However, I believe my former uplines had self serving intentions when they taught this. Let me translate what I believe they meant:
"You should not have any debt because it would affect your ability to buy more PV and tools. If you have debt, it affects my cash flow"
Ironically, for many, maybe most IBOs, although taught to get "get out of debt", the bottom line result is more debt. There is more debt because the cost of products and tools begin to mount. How many families actually spend $300 a month (approximate cost of 100 PV) on household products? And then to add onto that expense, IBOs who are trying to be "successful" need tools which cost anywhere from $150 a month up to more than $500 a month depending on whether the IBO is married, single and the level of commitment. Thus IBOs are now spending at least several hundreds of dollars that they never spent before.
Most IBOs, especially new IBOs, generally earn less than $50 a month. In fact, $50 a month income in this business would make you quite exceptional. Most IBOs earn less than $20 a month. With that kind of income and with the expenses I listed above (tools = voicemail, books, standing orders, and functions), nearly all "serious" IBOs operate in the red and never turn a profit. The only way an IBO can turn a profit is to sell Amway products like crazy (which I have never witnessed) or to sponsor enough downline to absorb the losses for them. The only true success stories are the ones who sell the tools.
The reason why I believe that my former uplines (who are still in WWDB and apparently teach the same things now as they did back when I was an IBO) are teaching self serving advice because although they said to "get out of debt", they made an exception to this and said it was perfectly okay to go in debt to attend functions or to buy more standing orders. IBOs were also told to do "whatever it takes" to get to the next function or to buy more tools. It is why I witnessed some cross lines go bankrupt, more than one couple lost their homes following upline advice. And these couples were told they shouldn't worry because they can pay cash for their homes when they go diamond. Another apparent lie told by WWDB leaders, especially those who had their own homes foreclosed.
Let's be perfectly real here. If you join Amway and participate in the system consisting of voicemail, books, standing orders and functions, you are far more likely to get into debt or increase your debt rather than making money and getting out of debt. The math bears it out if you are willing to look at it objectively.
2 comments:
My former upline founders emerald had a strict rule : by the 4th of every month, IBOs had to purchase 100pv for personal consumption. If not, the ibo would be treated like a loser.The goal for the rest of the month was to sell another 200pv,but the 100pv was 'mandatory'.
The products purchased the previous month would barely have been touched, and yet another 100pv was to be ordered.This is why my upline silver and upline 9% had cupboards full of product(thankfully both of them, and many more of my former uplines and crosslines have quit). It is unbelievable that IBOs actually bought 100pv month after month.
It is worth noting that this upline has now come down to platinum. Seriously, what a poor way to live life!
What the above comment proves is that Amway products, in and of themselves, are simply not competitive with other products, and have to be force-fed to IBOs. The products then sit there on the shelves, gathering dust.
Forcing people to buy products that they don't need, don't want, and can't sell -- is that Amway's famous "American Way"?
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