Sunday, November 21, 2021

Buy From Yourself?

 One of the apparently common practices among major IBO groups is still the concept of "buy from yourself". I believe IBO leaders teach this because most people are not familiar or not comfortable selling goods and services. Therefore, to teach buy from yourself makes the business an easier sell. In reality, an Amway IBO is simply a commissioned salesperson with no benefits. But presenting the opportunity that way is unlikely to yield results either, thus the buy from yourself has become a common practice. It sounds like something that most people can do, rather than emphasizing the need to sell to people you don't know. 

Buying from yourself makes you a customer and not a business owner. Buying from yourself doesn't generate your business a profit. Would you open a car dealership to buy a car? Now I am not suggesting that supporting your own business is a bad idea. What I am suggesting is if you are the primary or exclusive customer of your Amway business, then you aren't really running a business. You are simply a glorified customer. I believe some or many IBOs fall into this category because they are simply unable to move products to non IBOs.   And without outside sales, you're just moving money from one pocket to another with Amway and your upline making the profits.

What an IBO is really doing is paying his upline's bonuses. Amway overcharges more than 30% of the cost of their product. They have to do this in order to be able to pay IBO bonuses. Since most IBOs are at 100 PV or less, the lion's share of the bonuses earned are channeled upline when a purchase is made. It is not a level playing field as some IBO leaders might suggest. Also, some of your uplines who don't even know you might benefit from your efforts. Now that's residual income right? 

What compounds the situation and makes it worse is when an IBO pays for standing order or attends functions where some of these IBO leaders may teach this bad business practice. You as an IBO already pverpay for products for which upline gets most of the bonus, but then the problem is made worse by IBOs paying to receive this bad advice. When I was an IBO, I heard speakers talk about skipping rent or mortgage payments to attend more functions, or having your family skip a meal so you can buy standing orders. Buying from yourself is just another example of bad advice given from upline to downline. What makes it worse is that some uplines profit by giving bad advice. 

Are you buying from yourself almost exclusively? Can you think of any truly successful business where the owner is the main or possibly the only customer? I can't think 


Anonymous said...

Suppose I have a lovely vase on my table. I like the vase very much, and it belongs to me. I decide to "buy" it. I reach into my pocket, I take out a twenty-dollar bill, place it on the table, and I say to myself "I'm buying this lovely vase!" Then I put the twenty dollars into my other pocket.

What have I done, except act like a completely insane jackass? Would anyone except a raving lunatic base his "business" on this kind of irrational practice?

And yet when Amway freaks say that you can "buy from your own store," this is precisely what they are defending and promoting. It is absolutely senseless.

Anonymous said...

Ohhhhh ya, I love this analogy. This is exactly what my adult child tell me. "Where else can you buy from your own store and make money?" I can spend 1/4 of the price on a similar product on Amazon or elsewhere and get cashback without having to spend so much. It's dumb to believe this is a way to make money. You're only really making money when you get a ton of people signed up under you.