One of the things I heard as an Amway IBO and I believe is still said in some Amway meetings is that conventional businesses do not profit for up to five years. That's bogus. Conventional businesses make a profit as soon as they sell their first product. They may not have a net profit right away because of the initial investment into equipment and rental property, but they do profit by selling goods. The same principle would apply to an Amway business except that Amway IBOs have difficulty selling products. If you opened an Amway catalog and compared their prices to local retailers, you would know what I'm talking about.
Despite the small start up costs and the little to no overhead costs, most IBOs never turn a profit. I will acknowledge that many IBOs probably never do a single thing once they sign up. I believe there is an underlying story behind this as well, but I will move on. Out of the more serious IBOs, even in this group, most of them will never make a net profit if they are using tools. Factoring the cost of the website, the voicemail, standing orders, books and functions and cds, IBOs simply get drained of their money a couple hundred of bucks a month at a time. Amway uplines meanwhile, are earning nice profits on product purchases and someone upline are also earning profits on the tools. The tools carry a higher profit margin so it would make sense that some uplines earn more from tools than from Amway.Toss in other challenges such as high prices for many products (higher than local retailers) and a crappy reputation from IBO behavior such as tricking people into meetings and you have an opportunity with nearly insurmountable handicaps. Yes, a rare few and usually charismatic people can overcome these odds, but only one or two out of tens of thousands are able to do so. And even those who reach the pinnacle of diamond, may not be able to maintain qualification. It's very common for someone to reach the level of emerald or diamond only to backslide and not qualify the following year. So much for residual income and walking the beaches of the world.
So I don't know all of the detailed statistics about how long it takes for a conventional business to turn a net profit. It may take up to five years. But based on my experiences and some number crunching, I'd have to say that the vast majority of Amway Business Owners NEVER TURN A PROFIT - EVER, and most of them ending up with net losses when business expenses are factored in. And toss in the fact that Amway allegedly has little or no overhead costs and I can only conclude that the Amway opportunity sucks.
It all really boils down to this - the general public simply DOES NOT WANT AMWAY PRODUCTS. They would not buy them if they were on the shelves of stores, and they certainly aren't going to buy them regularly from some Amway IBO.
ReplyDeleteAmway products are either self-consumed by IBOs, or purchased by some friends and relatives as a way to be nice, or they are stored in basements and garages, or they are thrown away in bulk.
In some Third-World countries, where there isn't much of a shopping choice, some Amway products might sell in the normal retail manner simply because they're available. In other words, there's a semi-captive market in places like that. But in developed nations where there is a wide range of products available, and fierce brand-name competition, Amway doesn't stand a chance. All the "sales" will have to be in-house transfers from up-line to down-line.
This is what those starry-eyed new recruits into the Plan don't realize: you will NEVER sell enough Amway products to ordinary retail customers to make a profit. All you can hope for is to bamboozle more persons to become IBOs in your down-line, and compel them to trick others underneath them to be in THEIR down-line. That's it. End of story. That's the secret of getting rich in Amway.
Go to the loan officer at a bank and ask him for $5000 to start your Amway "business." Describe it to him. And watch him laugh his ass off.