Sound Business Advice?

 One of the most stupid teachings I heard as an Amway IBO was that IBOs should buy their own products from their own Amway business and charge themselves the full retail price.  Thus, the difference between the IBO price and the full retail price would be your profit which you can then bank and use that as seed  money to buy tools and function tickets.  For me, that was a WTF moment when I heard it.  I'm pretty certain this is being taught to IBOs even now and while it may sound sensible on paper, it doesn't pass the smell test.  

Some IBOs actually 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 of your bank accounts to another, minus the price of the goods or services you purchased.  That’s not profit.   Well, I guess an IBO can be fooled into thinking that moving money from your savings to checking is profit.  It's utter madness that upline tries to pass this off as sound business advice.  

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 came 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).   So you are now even more in the hole from a business perspective but upline will teach you that you are successful.  What a crock!

Thus, teaching is actually dangerous because it just adds to an IBO's 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.  I started to see through the thin veneer of BS that upline was peddling.  

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 and avoid financial losses.