Wednesday, February 21, 2024

Business Equity?

 Many people see the Amway plan.  Some prospects sign up in the hopes that additional Amway income will help them fulfill their dreams and that they will walk away from their jobs and collect lifelong residual income while walking the beaches of the world. Sadly, most IBOs will never even sponsor a single downline and many will not sell a single product to a non IBO customer. These IBOs may continue in the business for a while but will eventually quit when they see the writing on the wall. The fact that many people sign up and do little or nothing is a problem that seems to go ignored by many.  Why would you be hyped up about working 2-5 years then being set for life, only to end up doing little to nothing then quitting? 

But wait, you're an "independent business owner". So instead of quitting, why not sell your Amway business? I wonder if any IBOs actually think about what their business is worth. I mean a diamond could sell their business and live large happily ever after right? Here's some food for thought. Why are there instance of diamonds quitting or resigning from Amway? Why would they just quit when they could either walk away and collect an income "forever" or sell the business? What would an Amway business be worth? You don't really own equipment or a building. You probably don't have employees. Your Amway business likely has little or no equity. You don't own your downline, although their volume passes through your business. But if they do nothing, you get nothing, which is why people cannot just "walk away" and collect income forever. 

I believe diamonds quit and resign because their business is worth very little or nothing. And most Amway businesses do not even generate a net profit. For IBOs who are seriously pondering on this very important message, try looking up this topic in Amway's rules. There are very complicated steps to be taken when selling your Amway business as each person upline must be offered ownership (To the best of my understanding). This process can go on for a long time and the attrition of your business could render it worthless before you can find a buyer, if you have a buyer at all. Also, if you quit, the downline in your group would be surrendered to the immediate upline anyway. So why would your upline want to buy your business? Why not just do nothing and let the downline be defaulted to you?  

Given these rules, it seems silly and a bad business decision for any of your upline to buy your Amway business if they inherit all of your downline if you quit.  Besides, your business is what exactly?   Your Amway business is just a spot on the proverbial pyramid, in my opinion.  

So IBOs, I ask you. What is your business worth? Food for thought....

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