When I first saw the Amway plan many years ago, it was presented in a way that seemed like a path to financial success. Even if the presenter was careful not to say it was a "get rich quick" scheme, two to five years is a relatively short period of time when compared to working 40 hours a week for 40 years, as was demonstrated in the business plan. While some exceptional people do achieve diamond status, there is a long trail of Amway Independent Business Owners (IBOs) who suffer losses, some of which are staggering. One couple in our own group, I am aware of, lost their home to foreclosure after following upline advice, and another couple who ended up filing for chapter 7 bankruptcy as a result of following upline advice. I must point out that the bad advice that resulted in bankruptcy and foreclosure was almost certainly given by upline leaders. A woman I know who quit her job to attend a function, following upline advice from WWDB, is also someone I'm familiar with. The reasoning behind this was that the function would be extremely valuable and that you could always find another position.
So, what has been the experience of a large number of CORE IBOs? I'm not referring to those who "do nothing," but rather to IBOs who put forth a genuine effort to succeed. In other words, if they complete their 100 PV, they will be spending approximately $300 per month, whereas dedicated IBOs will typically spend between $200 and $300 per month on average for tools. Of course, depending on your level of commitment, this number may be higher or lower. This listing is for a single person only. A couple or family would be expected to do more and spend more as a result of this. As a result, for these 100 PV IBOs, they will spend approximately $500 to $600 per month and receive perhaps $10 in return. Even if they did not participate in Amway, they would still incur some expenses for household goods, but nowhere near the $500 to $600 a month range that they are accustomed to.
Over the course of a few months or a few years, these expenses can add up and result in staggering losses for the business. IBOs with a strong core may expend even more energy. Rank and file IBOs can only gain relief by selling products (which, given the current prices and Amway's reputation, is difficult) or by sponsoring downline who will then bear some of the losses on your behalf. My best guess is that an IBO would be able to break even at a PV level of approximately 4000. However, at 4000 PV, you may only have 30 to 40 downline members at best. The catch is that only about one in every five IBOs is successful in sponsoring another IBO.
I believe that millions of independent business owners (IBOs) have come and gone through the Amway opportunity over the years, resulting in billions of dollars in losses. Many of those who lose money, on the other hand, believe they are successful because many uplines will edify those who purchase tools, regardless of their IBO performance. If your group and PV do not continue to grow in a consistent manner after a few months, it is highly unlikely that you are on the path to success.
IBOs and newcomers are welcome. Are you on the path to financial success or financial failure? Keep in mind that, regardless of what your upline mentor may tell you, a net loss does not equal success.
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