I've been having an ongoing debate with a brainwashed WWDB IBO. He tells me and it's clear that he's convinced that buying from himself is a good business concept. WWDB leaders apparently like this "buy from yourself" concept because most people do not like to sell things. So, it sounds fairly benign to just buy from yourself and get others to do the same, or to duplicate you. That way, an IBO can still reach their 100 PV defacto quota but not have to become uncomfortable in selling Amway stuff. People generally do not like selling things so the buy your way to prosperity method seems to be a strategy to remove one of the major objections of the Amway opportunity.
But how do you profit by purchasing your own stuff? The Amway IBO says it's easy. He buys wholesale from Amway, and charges himself retail and keeps the difference. Thus, he considers it a nice profit. After picking up my jaw from the floor, I asked him why he doesn't just buy 200,000 PV or whatever it is to go platinum or diamond? Of course, I'm speaking rhetorically but the Amway IBO doesn't answer and starts calling be a broke loser. Seems when Amway folks run out of material to debate with, the personal insults come out.So, let's take a real-life example but for the sake of easy math, I'm going to use round numbers to make it clear and easy. Let's say an IBO has $10. He buys an energy drink from Amway (called XS) for the wholesale price of $2 a cam. He now has a can of XS to drink and $8 change. Still following me? So let's say an Amway IBO buys from Amway wholesale and charges himself retail. He starts with $10 and buys a can of XS for $2. But he charges himself full retail price of $4. So now this IBO has a can of XS and $6, plus a $2 profit which is taxable income. In which case are you better off? Easy, in the first scenario because you have a can of XS and $8. In my second scenario, you also have a can of XS, plus $8. But out of that $8, $2 is taxable.
When you buy from yourself, any "profit" you made, is simply transferring money from one pocket to another. Without any real outside customers, you have in reality, no profits. Thus, the buy from yourself theory is ridiculous. Can you imagine any situation where a store relies on its sales force primarily for its sales? Only in Amway, which is why the vast majority of Amway IBOs make nothing or lose money. Actual stores rely on customers. For Amway, it appears that their customers are the Amway IBOs themselves.
The bottom line is that no store or business can buy themselves to profitability and you are seriously fooling yourself if you think you can.
2 comments:
Joe, the "buy from yourself" idea was invented by Amway up-line as a rhetorical trick to cover up the simple fact that an IBO was "buying" for self-consumption only. You need to inflate your PV to 100 in order to get your bonus check, so if you are forced to purchase Amway goods that you can't retail to others, you can deceive yourself by saying that you are "buying from your own store."
It's so mindlessly insane that one has to laugh out loud. If I own a grocery store and I take a couple of cans of beans off the shelf to take home one night, do I leave money in the cash register and chalk it up as a "sale"? And yet that's exactly what you are doing if you think that Amway is "your own store."
A great deal of what is said in the Amway world is pure verbal razzle-dazzle and fraud. Remember "prosuming," and how it was going to change the world? Remember "the end of brick-and-mortar stores"? Remember "residual income"? All of this was mere verbal trickery to cover up the hard facts of reality.
Your comments are spot on. It's just word salad to confuse prospects and newbies that they really aren't making any money by purchasing from yourself. Most people see through this and never join or they quit soon after getting involved.
Post a Comment