When someone buys a conventional business, they usually have a building or place of operations, inventory and equipment that’s needed to run their business. Thus if your business doesn’t make it, you have tangible assets that can be liquidated if necessary. Amway promoters lie and say that these businesses often my no profit for 5 years or more. The fact is that their first sale likely makes a profit, although the initial investment might not be recovered right away.
Conversely, Amway promoters like to claim that you can make money right away in Amway with the low overhead expenses. So why don’t Amway business owners typically profit right away. It’s because the diamonds fail to mention that they create overhead expenses in the form of standing orders and functions as well as other training materials. These materials are the most common reason why businesses in Amway operate at a net loss.
But unlike a conventional business, what do Amway business owners actually own? They likely don’t carry any significant amounts of inventory, they likely don’t have a building or place if business nor do they typically have employees. So what does an Amway business owner own? All they have is a place on the pyramid with rights to a percentage of their downline volume which is useless when so many IBOs do nothing and quit.
If an Amway business actually had equity and value, a diamond could easily sell a diamond business, make a fortune then go build another diamond business since they claim that anyone can do it. The fact that this never happens should speak volumes about a diamond business but the diamonds are good at covering up the warts and shortcomings of Amway. This is great food for thought.
4 comments:
An IBO in Amway owns nothing at all. He's just a name on a piece of paper. Whatever income he gets from his down-line is purely dependent on their sales or purchases of Amway products, and the general tendency is for IBOs to stay for six months or a year, and then drop out.
In order to maintain any income at all, you have to labor endlessly to keep your down-line active, and to find new IBOs to replace those who leave. It's exactly like those old comedy skits where a man tries to keep a dozen dishes spinning on the tops of poles. He can't stop for a second, but must keep running around to make sure each dish doesn't wobble and fall, while replacing the ones that do fall and break.
And when you finally decide that you've had enough and you quit, what have you got to show for it? Nothing but a huge debt.
OMG! I came across your blog "googling" "Why is Nutrilite so expensive?" ... India (through the supreme arrogance of the ruling party & toxic political chauvinism of the Prime Minister) is in a very disastrous state environmentally, medically, & financially, & the "middle class" (which is actually the top 10% minus the top 1%...) are starting to feel the concern ... & one of my colleagues has gotten Amway membership for his wife, & is using all his push selling alongwith his natural good-naturedness - he really is a really nice person ... & I finally sat down to order a box of multivitamins, & I just compared the price to the regular Multivitamins (of credible brands) in India ... & the Nutrilite prices are 3 to 4 times! How can such a business model sustain? How can this big a co. carry on for this long, riding solely on pity purchases?
Nutrilite is expensive because IBOs are taught product loyalty rather than value shopping.
There is nothing special about Nutrilite vitamins. They are ordinary supplements, and less expensive ones will work just as well.
The problems in India that "Dedestined" has described are exactly the sort of situation in which Amway thrives. People are scared, worried, and emotionally upset. So they become prey for silly MLM schemes like Amway.
In the past, the Indian government was very good in cracking down on Amway, and prosecuting its leaders.
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