Saturday, November 6, 2021

Low Overhead Lies?

  One of the major selling points for the Amway business was low overhead (basically business expenses) and the ability to make quick profits.  But is this true or just another list of lies told by the diamonds?   Basically when you’re being pitched on Amway, you're told that you can sell stuff to make money, and that you can save money by purchasing from yourself.   On the surface, who doesn't want to make money or save money?

Then because you have low or no overhead expenses, Amway just makes sense.  But it’s all just a selling point because the upline diamond will then sell you overhead.  In other words, they will sell you on the vital necessity to purchase tools and functions.  I questioned this as a prospect and was told that so and so diamond was a multi millionaire and feels that tools are as vital as breathing air but I was welcome to go it alone and succeed where nobody else has (without tools).   So to the newbie or prospect, the tools are defacto required when framed in that manner.

This claim that Amway has little to no overhead is an outright lie because in the Amway business, the tools are your primary business expenses, or overhead.  Even if you manage to sell a few products to actual customers for a profit, more than likely you will still wind up with a net loss because the ongoing use of tools and functions can become expensive over time.  Many former IBOs have indicated that you can pile up thousands of dollars in losses over a few months and much more if you remain dedicated to the system and the teaching.  

Now the cost of tools and functions would be worth it if the system was churning out success stories on a regular basis. To try and up sell this, diamonds will show you examples of a new platinum or other pin, but won’t mention that a bunch of other big pins may have failed to requalify for their current t levels.  If you go and look up Amway revenues for the last handful of years, you will see that revenues were flat or in decline, which means business was not growing.  

So what does this all mean   Simple, it means joining Amway makes it highly likely, nearly assured that you will have a net loss of income if you join Amway and participate in the system of tools and functions.  Also now with covid 19, I can only imagine that the ability to recruit down line or approach others to sell products is greatly hampered by state or local restrictions.  Good luck to you if you read this and join anyway.   


Anonymous said...

In Amway, your monthly overhead is your up-line's monthly profit. He gets rich pretending to teach you, and you get poor by pretending to have an actual retail business that sells things to a customer base.

Anonymous said...

Rent is like overhead. You pat rent every month, and you get a place to live. But in Amway you pay money every month to your up-line and all you get is the title of "Independent Business Owner." It's nothing but a racket.