Tuesday, November 2, 2021

Sunken Cost Fallacy?

 One thing that many Amway IBOs likely suffer from is having invested too much into the business to quit. They may have spent months or even years working the system hard and they start to realize that the system isn't working out or that the business is just not producing the results that were advertised. You see obvious problems in the business, but you reach a very tough fork in the road.   You surely want to succeed, but do you continue to believe your upline diamond or your own eyes?

To quit would mean failure, as presented by many uplines. To quit is to be broke for life. To give up hope. Quitters are failures and are labeled as losers by the Amway IBOs. What hopes do you have of retirement and walking the beaches once you quit? Are your dreams of success shattered? This is a very difficult decision that must be dealt with by Amway IBOs, or maybe even those considering the business. Often the "sunken cost fallacy" plays a role, where you feel that you've invested too much to just walk away. although in many cases, making a business decision to stop is the only way to stop the financial losses.

I encourage IBOs and/or prospects to completely take the emotion out of this decision. Do not think about dreams, walking the beaches and early retirement. Do not think about what you upline may or may not have promised you. Stop and think only about your Amway business and the results that it has produced or not produced. Has your business been increasing towards your goal of financial independence or are you seeing losses month after month? Do the math. Are you on target to reach your financial goals or are you headed towards bankruptcy? Don't think only about what happens if you quit. Think about what happens if you continue. Are there prospects of making a profit or is that next major function around the corner and likely to put you deeper in the hole?

This post is not about encouraging people to quit or to walk from the business. But certainly, business owners should think like business owners and they should make an honest and realistic assessment about their continued participation, especially if their bottom line is red ink. If you are not making a profit now, what will change next month to make things better? If you repeat what your upline advised. your results are not going to magically get better. Use facts to make an informed decision.

1 comment:

Anonymous said...

Many people are too terrified to quit Amway because they are deeply enslaved to the personal relationships that they have with their up-line and other Amway associates.

Amway cultivates a kind of non-business intimacy among its members that is deeply coercive. It makes any kind of questioning or criticism or independent thinking taboo. And someone who has been caught up in this mind-control for months or years will find it extremely difficult to break free.

A close personal relationship is, for most persons, much stronger than a financial connection. So they will tolerate the loss of money rather than an emotional rupture. This is what keeps so many people stuck in Amway even when they are losing money month after month.