One of the most stupid teachings I heard as an IBO was that IBOs should buy their own products from their Amway business and charge them selves full retail. Thus the difference between IBO price and full retail would be your profit which you can then bank and use that money to buy tools and function tickets. For me, that was a WTF moment.
Some IBOs fall for this garbage and actually have repeated that teaching. If you buy your own stuff, you’re using your own money, thus your money went from one account to another. That’s not profit. Well, I guess an IBO can be fooled into thinking that moving money from your savings to checking is profit.
Say you purchase double x for the IBO price of $50 but the full retail is $85. In theory you have now made $35 profit. You’re supposed to use that profit for tools and functions but if the profit just can out of your pocket, what difference does it make? You could just as easily pay for double x then pay for your functions and tools. By claiming retail profit, now moving money from one account to another becomes taxable income (profits are taxable).
Thus teaching is actually dangerous because it just adds to an IBOs already negative cash flow. And to think I actually paid to attend a function where they taught this crap. The good side is that this was where I started to smell a rat with regards to upline teaching. This and the submit to upline garbage.
Since I’m certain that diamonds are still pushing tools and functions, I’m sure they must be teaching down line to raise capital in some way. It’s possible that this paying yourself lies are still ongoing. It’s my hope that this blog post can help unsuspecting IBOs and prospects to see through the silly upline teaching.
2 comments:
The idea that you can make a profit by paying yourself money out of your own pocket is INSANE. It's the kind of crackpot notion that only a disguised religious cult like Amway could possibly preach.
Profit comes from sources OUTSIDE YOUSELF. I produce something or provide a service, I sell it to an outside party, and I receive money that I did not have before. That's the definition of "profit."
It's hard to imagine that anyone could be so stupid as to believe this Amway bullshit.
Imagine that you are running a small lemonade stand. You are selling a glass of lemonade for a dime.
You get thirsty, and decide to have a glass yourself. So you pour out a glass of your own lemonade, and then reach into your pocket, take out ten cents, and ring it up on your little cash register.
Have you just made any profit on "buying from your own store"?
If you think that you have, you're stupid enough to join Amway.
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