One of the things I heard as an Amway IBO, and I believe is still said in some or possibly many 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 startup 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.
2 comments:
Amway up-line tells its IBOs that no business makes a profit for several years. It's a lie, but it serves a purpose. If the IBO swallows this lie, he will not be able to complain when month after month passes and he's spending 300 to 500 dollars a month in Amway and getting nowhere. He'll hang on -- which is EXACTLY what his corrupt up-line wants. As long as the IBO can be bled dry of funds for a long time before he gets wise and quits, the up-line is happy.
The Amway lie that "no conventional business makes a profit for five years" is a shrewd distortion of the actual financial facts.
It is true that starting a new business will involve a substantial layout of funds. And that initial expense will only be recouped after years of work. But here's the difference: once the business is set up and operative, MONEY WILL BE COMING IN. The business will have income, and it will be viable. It might take a long time for the business owner to get back what he first paid to get started, but if his business is sound he's making enough to support himself.
None of that is true in Amway. Because there is no real customer demand for Amway products, the Amway IBO will NEVER make enough cash each month to support himself and his family. All he can hope to do is develop a down-line of suckers like himself, and convince them to do the same thing. He has no equity in the business, the way a brick-and-mortar store owner does. The store owner not only makes a living, but he slowly pays off the expenses that he incurred by setting up his business. Sure, maybe it will take him five years. But the Amway IBO will be working for the same five years and all he can hope for is a down-line that won't dissolve and collapse as persons drop out of it. This is why the vast majority of Amway IBOs also work a regular job, which provides them with the bulk of their income.
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