When I was an IBO, many people would talk about "building a business". But many folks who spoke about building a business didn't know what that meant. I believe it is because they were taught that building a business meant listening to cds or tapes and attending functions. Or building a business might mean sponsoring others. In my segment of the Amway world, building a business pretty much meant recruiting and showing the plan. Apparently I was mislead and many others were as well.
Building a business, generally speaking means building a customer base. A business moves products and services for a profit. In groups that focus on buying from yourself or prosumer nonsense, generally will struggle because the revenue they generate in their business is coming from their own pockets. Or their jobs are actually supplying the money for their own bonuses. In this model, the only way to profit is to sponsor many downline so the pyramidal compensation plan can work in your favor.
Many IBOs compare themselves to a franchise. Can you imagine a true franchise where your long term success depended on your ability to open other franchises? What if you as the owner and your family accounted for the majority of the sales? Could this franchise survive? More than likely not. Yet this is exactly what many Amway IBOs do and they mistakenly think they will be successful. The only reason why Amway IBOs are able to play out this model longer than a traditional franchise owner is because they do not have to rent office space or hire employees.
If an Amway IBO ran their business like a traditional business, the lack of retail sales to non IBO customers would be immediately apparent when the first month's electric bill or lease payment arrived.
Building a business entails many things. These things may include advertising, marketing of products, and do not necessarily include any training. In its simplest form, the Amway business is about selling and using products, and getting others to do the same as you do. Why do IBOs think such extensive training (standing order and functions) is needed? I challenge IBOs to write up an actual business plan for their Amway business, including projected sales and expenses and see what you come up with. If you think I am just being negative, write up your Amway presentation and show it to a loan officer at a bank. See what they have to say. Seriously.
Joe, you can't expect people in Amway to think rationally. It's just not part of their mentality.
ReplyDeleteIf the years of sustained criticism and commentary on Amway and other MLM rip-offs have shown anything, it is that people caught in this system are impervious to logic. They will spend years bleeding money to their up-line, and get very little in return, but they nevertheless "keep the faith." Think about that doctor friend of yours. Has he not wasted decades of his life in a fruitless dream?
How do you fight that? How do you get a devoted CORE Amway freak to see that he's being robbed blind of both time and money by his cynical up-line? Nothing seems to penetrate the thick skulls of these IBOs.
I agree. I think many IBOs develop cognitive dissonance and cannot see the forest from the trees.
ReplyDeleteMost people seem to "snap out of it" on their own pretty quickly but some, like my doctor friend, bit hook line and sinker.
It would be an interesting video to film somebody actually asking a bank loan officer to grant a business loan by showing the Amway "plan". It would be funny to, as well as exposing the holes in the Amway scheme. Of course the Amway hopeful would have to avoid mentioning the name "Amway" to even get an interview.
ReplyDeleteRay, I would pay to see that happen!
ReplyDeleteThe only time anyone in Amway gets a loan is when a friend or a relative takes pity on them.
ReplyDeleteIt would be interesting to show his BWW and WWDB education in the job interview process and see the potential employer's reaction.
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