So many Amway IBOs have grandiose dreams of untold wealth, financial freedom. They think they will "build it once' and sit back on the beaches of the world sipping exotic drinks while the 6 figure checks keep coming in the mail. Sure, it's a nice thought, but not a single IBO I have encountered can name a single IBO who achieved diamond, and walked away from the business to enjoy freedom while the money pours into their bank accounts. It is very likely that nobody like this exists. I suppose someone could go diamond and walk away from the business and still earn some bonuses, but very quickly, that business would likely fall out of qualification and the bonuses would shrink to nothing very quickly. Also, to earn bonuses, I believe an IBO needs to have side volume exceeding 2500 PV, which is roughly $7500 monthly in personal group volume. With normal attrition, it's easy to see how a diamond business can fall apart faster than a cheap suit without maintenance.
I also see and hear many IBOs popping off about how someone in their upline earning $60,000 a year. While it may seem like a nice income to someone who has a low paying or entry level job, that income is gross and may not leave much left after taxes and associated business expenses. Even a diamond with an average income of $150,000 in a year likely has a very low monthly income from Amway as much of that income comes in the form of an annual bonus. As a former emerald once told me, you needed to budget out that annual bonus or you could be in financial trouble later in the year, if Amway is your sole source of income.Also, you may have seen diamond showing off sports cars and other displays of wealth. My former LOS, WWDB has a function called "Dream Night" where they show off lavish displays of wealth. Well, it is my informed guess that most diamonds cannot afford the lifestyles and toys that they show off in these functions. If you do the math, you can see that after taxes and other expenses, a diamond lifestyle is likely to be quite ordinary. Normally, nobody would care about this but since diamonds use this display of wealth to recruit IBOs and to sell tools, it is significant for IBOs to know.
While it is great for someone to have dreams and goals, it is also important to have achievable goals. It is simply impossible for a room of IBOs to go diamond and to earn the kind of income that is shown in "the plan". Amway recruiters will show you "what's possible", but not "what's likely". To put perspective on that, it's "possible" that you can start a software company that puts Microsoft out of business, but it's not likely. It's possible for you to win the lottery, but not likely. My advice to IBOs is not to quit your day jobs - ever. Your dreams and goals can be accomplished in many ways, but it is unlikely to be achieved with an Amway business.
Food for thought. If diamonds have so much free time and money to burn, why don't we see slide shows of them donating $10.000 checks and volunteering to help the less fortunate more often?
2 comments:
Most upline probably wouldn't advise their downline to quit their day jobs either. It is an important part, because it is the source of funding of the hobby...er..I mean business. They won't advise them to quit it yet, they'd prefer to just bash, mock and insult it. Of course they say they are going to quit it all the time. The break is always around the corner. An Amway distributorship (and other MLM distributorships) are sort of a unique businesses that way, to the extent that business builders are dependent on a day job. That is one of the many ironies. In packed stadium who chanted "flush that stinking job" in the Dateline investigation one can view on Youtube, very few would not have been dependent on their day jobs then, or for that matter, a year later. Real business owners (I've been doing my own thing for a decade now) don't see any point in bashing employees.
No wonder the tax courts in many instances referred to it as a hobby. The courts couldn't find any evidence of any real intent to make money. They ruled if you stack up losses year after year without changing anything or seeking objective advise, you rationally, deep down, can't be in it to make money.
Since most members will loose money, but will be encouraged to keep working it, keep investing in it, and not quit, the "business owner's" day job is an extremely important part of the plan. When confronted, they say the business must be built first, comparing their business with Amazon to argue a business can take years to profit. That is ridiculous, a one person work from home business without machines, employees or rent, least of all one advertised as low investment, proven and easy to start, should show signs of profit from the start if it is ever going to work.
If money flows from your job to the endeavor, it is a hobby. There are more rewarding hobbies which will make you a more interesting person, which won't strain your friendships and your career, and which you won't have to hide when people want to know what it is, as is the case with mentioning the "A.." word.
Spot on analysis, kawaaikat!
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