One of the selling points of the Amway business is for people to do the work once and then reap financial benefits for life. But that simply does not happen for the vast majority of IBOs. The reason why most IBOs do not have a sustainable business is because their business is not based on sales to genuine customers with a genuine need. Most IBOs themselves will not buy Amway products once their affiliation to Amway is over. Amway products are generally priced higher than competitors because the Amway "bonus" is built into the price. Ultimately, IBOs wind up self consuming the majority of their own products and hoping to recruit others to do the same.
If you are an IBO doing your 100 PV monthly, then your only way to increase volume is to sponsor downline in hopes that they will also do their 100 PV as shown in the plan. And even if you are somehow able to accomplish this and sponsor a bunch of people as shown in the plan, chances are that many IBOs will "do nothing" and of the remaining, some will move 100 PV, but they will likely quit in one year or less. Because the vast majority of Amway IBOs make nothing or lose money, often because of the tools system, there is no motivation for most to continue in the business because there is no stream of income, but a stream of expenses that never ends.
In many or possible most cases, IBOs are only selling the Amway opportunity and not Amway products. They sell the possibility or hope that they will build a business, walk away and collect untold wealth for the rest of their lives. It isn't going to happen. Say for example, you sold 100 PV monthly on a consistent basis to customers. These customers will automatically go online and make purchases when they run out of their products. If you are lucky, they will also refer friends to make purchases. But most IBOs do not sell products, they are selling the opportunity. And upline uses your hopes and dreams to sell you tools. That's the real business of the diamonds.
That brings up the next point about why an Amway business is not sustainable for most. The products cost more than most other retailers. That will limit the potential for customers and referrals. Amway defenders like to cite quality issues, but most customers who shop online aren't familiar with Amway products and have no way to know whether Amway has quality products or not. That leaves them to decide based on prices. And Amway in general, costs much more than Walmart for the same or similar products. A tough sell indeed. And for those reasons, the Amway business is not sustainable.
Simple math would show you that if you have 6 frontlines, who each sponsor 6 frontlines, who each sponsor 6 frontlines and so on, by the 13th level down, you would run out of the world population. This is of course theoretical. Practically, it is extremely difficult to sponsor even one guy who will actually build the business, let alone 6 people, given the poor reputation of amway and exorbitant prices of its products and their average quality. I wonder how frustrating it must be for a 'serious' business builder to have a constant stream of outgoing IBOs and then having to start the process all over again for a new IBO, only to have him quit after a few months.
ReplyDeleteI recall what some Amway freak said here or at one of the other websites:
ReplyDelete"This is a business opportunity ABOUT business opportunities!"
Translation: "This is all about getting people to sign up!"