One of the misconceptions that many Amway Independent Business Owners (IBOs) have is that they will build their Amway business and then be able to "walk away" from the business while the income continues to flow. In my opinion, if Amway offered such an incredible benefit as the ability to generate lifelong residual income, I'm confident that the company would publicise it as a benefit of being an Independent Business Owner (IBO) in some way. Amway, on the other hand, does not. You can bet your bottom dollar that your LOS, such as WWDB or one of the others, will tout this benefit while telling you that the only way to get it is to subscribe to their "system."
There is one thing that goes unnoticed far too often: there appears to be no one who has actually retired and is living off the efforts of having once built a significant Amway business. Even the crown ambassadors appear to maintain a hectic schedule, travelling from function to function and participating in various other business-related activities, according to reports. Despite the fact that many of these leaders may claim to adore their downlines or tell other lies, I believe that they continue to work their Amway businesses for only one reason. That is, they must continue to work in order to maintain a steady stream of revenue.
The diamond lifestyle that is frequently depicted may appear to be a wonderful goal or dream to achieve, but the reality is that a "diamond lifestyle" cannot be supported solely by diamond income. In accordance with Amway (non Q12), the average diamond earns approximately $150,000 per year. However, while that may appear to be a substantial amount of money, it is far from sufficient to support the kind of lifestyle portrayed by diamonds. Even if that income is supplemented by income from the sale of tools, you will not be able to fly your family across the country in first class to attend a variety of functions and still have enough money left over to purchase a luxurious home and automobile.
If I put $1000 in a bank and didn't touch it for a year, the bank would guarantee that I would receive a certain amount of interest each year, no questions asked. That is referred to as residual income. Bank interest is a small source of residual income, but it meets the requirements. Leaving that $1000 in the bank for a long period of time will result in some form of income, albeit a small amount.
In Amway, you can earn money in two ways: by selling products and by recruiting others to sell your products. Product sales for profit are possible, but there are drawbacks to this strategy. For starters, Amway products are more expensive in general than those sold by local retailers, and the products themselves are generic in nature, making them ineligible to be sold at a premium price. It is for this reason that you hear so many justifications about quality and concentration, because it is difficult to argue about cost. Second, you are severely restricted in your ability to advertise, making it difficult to sell your products. Building a downline is another method of generating more income in the hopes that the downline will assist you in increasing your volume by leveraging your efforts. However, your downline will face the same difficulties that you did when it came to moving products. After all that is said, even if you reach a certain level of success, like the Emerald or Diamond, your company will immediately begin to fall apart once you stop working because attrition will have taken its toll on the organisation. It is for this reason that there are large quantities of "former" platinum. If platinum is not a sustainable resource, then neither is any other level of resource.
In Amway, diamonds do not last indefinitely. There have been numerous instances of diamonds quitting, resigning, or otherwise losing their qualification status. Every day, new and old customers come and go from this establishment. Do you really believe that you will be able to rely on your retirement and residual income in these circumstances? If you believe that, I have some swamp land in Florida that I would be willing to sell you for a reasonable price.
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