Tuesday, January 11, 2022

Do The Math?

 It is my observation that people who join Amway usually end up losing money in the end. They may get involved to make a few bucks or because they are mistakenly led to believe that they will become millionaires in Amway in 2-5 years. I know my sponsor convinced me that we would be millionaires in a few years. These folks who recruit new IBOs into Amway are often associated with a "system" such as Worldwide Dreambuilders (WWDB)or Network 21 (N21). These system promoters, often diamonds, may mislead the recruits by showing them pictures of mansions or other luxuries, implying that they attained these goods with their Amway business. In many cases, it is a deception, especially when we know for a fact that some diamond leaders who proclaimed that they only make cash purchases, had their homes foreclosed. Without the hype, I am sure there would be fewer sign ups. But what is the evidence?

It is simple. Amway reports that the average active IBO earns about $200 a month in gross income. This average includes diamonds and other higher end IBOs. I believe if you calculated the median, the average would be much lower.

But what makes IBOs operate at a loss is the system expenses. The system generally consists of voicemail, standing orders, cds, functions, books and other materials. An average business building IBO might spend an average of $250+ a month or so on these expenses. Amway defenders like to decry the amount, but there are couples who would likely spend more and IBOs who must travel by air to functions would spend more. Single IBOs who buy only the minimum might spend a bit less. Some IBOs with abusive uplines might spend much much more than $250 a month on tools. I believe my former sponsor spent easily an average of $1000 a month on average. (I am from Hawaii so the average cost of functions is greater due to long distance travel)

Thus, if the average IBO earns $200 a month but the same average IBO spends $250 a month on tools, the average active IBO is losing $50+ a month, with lower level IBOs (i.e. 100 PV) would lose more.

Look at a group of 100 IBOs at 100 PV. (This is just a model). If a 100 business building IBOs average $250 a month on tools, they as a group would expend $25,000 a month on tools and functions. Their volume would be 10,000 PV, or about 30,000 BV. This would generate about $7500 in bonuses per month. Thus this group spent $25,000 to learn and be motivated while the group splits up $7500 a month in bonuses. The platinum would get the lion's share of the bonus but most of the rest of the group will suffer net losses. As the group grows, the bonus may grow, but so will their expenditures on tools. Keep in mind that a group of 100 IBOs spitting up $7500 would be an average of $75 each. It is the diamonds that drive up that average. The math bears it out.

The only way the group can make money as a whole is to avoid participation in the tools altogether and to actually sell products to non IBO customers. The evidence is right here with simple math. The systems do not work because the cost of the system is likely to consume all of the Amway generated bonuses and more. I gladly challenge anyone to explain in detail how this post is not reflective of the reality of being in Amway and a system such as WWDB or Network21.

The facts speak for themselves.


Anonymous said...

If the "tools" actually helped you to sell Amway products to retail customers, they might be defensible. But they do nothing of the kind! All of those stupid tapes and CDs and books and pamphlets are nothing but hyped-up propaganda, telling you how "great" Amway is, and how "you too will be a millionaire" in a few years.

There's nothing wrong with pep talks. Coaches give pep talks to their team before the team goes into the field, and it's a good way to boost morale. Officers do the same with their troops before they go into battle. But the big difference is this: COACHES AND OFFICERS HAVE ALSO TRAINED THEIR MEN IN WHAT TO EXPECT, WHAT TO DO, AND HOW TO CARRY OUT THEIR TASKS! They have given their men real strategies for success and survival. Amway doesn't give you shit.

I defy any Amway freak to come here to this blog and explain exactly what a stupid tape or CD does to help an IBO sell Amway products to ordinary retail customers. And I don't mean how to recruit new IBOs, or how to show the plan, or how to explain about up-line and down-line and PV. I mean this alone: HOW TO GET ORDINARY PEOPLE TO BUY AMWAY PRODUCTS AND KEEP COMING BACK TO YOU FOR MORE.

A business that can't do that is not a business in any real-world sense. It doesn't matter how many CDs you are forced to buy, or how loudly you all shout at a function when those asshole Diamonds come on stage.

Anonymous said...

Sound of crickets chirping...

I guess no Amway IBO will show up to debate us.

Question: Why not?

Answer: Why does baloney reject the grinder?