Owners of Amway businesses frequently refer to themselves as "IBOs," which stands for "independent business owners." They frequently make the mistake of associating themselves with the corporation, as if they were part owners, while in reality, these independent business owners (IBOs) are simply commissioned sales personnel who do not receive any fringe benefits. Because an IBO must pay to register with AMway, it's a wonderful deal for the company. A distributor must move products at their own expense (including purchasing Amway brochures for themselves), and if they do not move a minimum amount of volume, they will receive no compensation from the company. Amway enjoys a number of distinct advantages. Individual business owners (IBOs) pay to become members of Amway, and then the IBOs move some products at their own expense. Amway only compensates if the product is sold or at the very least consumed by the IBO. It's possible for any organisation to prosper in those conditions.
Because IBOs are frequently taught product loyalty by their upline, an IBO will frequently purchase far more than they sell, and some IBOs will sell nothing at all if they are successful. The self consumption method is taught by some uplines, in which the IBO simply purchases enough to meet the minimum volume required in order to earn a commission incentive. Some independent business owners (IBOs) have detailed how they got around the system, which involves some outside sales to real clients. Amway probably doesn't care (and I don't blame them) if independent business owners (IBOs) don't follow the company's sales guidelines. Amway continues to make sales, while the IBOs are stuck with the expense of 100 PV every unit sold (or more).
When it comes down to it, an IBO is nothing more than a commission-only salesperson with no benefits (from Amway), and the vast majority of IBOs who attend functions and pay for other tools end up with net losses because their bonuses do not cover the expenses that they incur in running their respective businesses. When most people first get involved, they don't realise what they're getting themselves into since they believe they're just "investing" in a business and their own financial future. When I was an IBO, I fell for this, but even as a developing "movers and shaker" IBO, I was not earning the income that my upline had promised me would be possible. When I began to question them, their response was that the money would be there if I continued on my path of exploration. I inquired as to why the money had not been delivered as promised. They were unable to provide a satisfactory response, and I began to suspect a hoax. I was able to get out fairly quickly after that, but unfortunately, my sponsor is still operating more than two decades later, and I feel he is losing a significant amount of money.
As a result, while the Amway representatives will portray the business as glamorous and demonstrate a wonderful lifestyle and financial independence, these are the uncommon upper tiers of Independent Business Owners. They rely on a large number of people in their downline to purchase things and tools to maintain their lifestyles. The fact is that many prospects and current IBOs are unaware that they are nothing more than commissioned Amwa sales representatives. People just do not aware that these diamonds are no better or worse than the general public in terms of quality or quantity. They do not have the ability to walk on water, and if IBOs were to learn the true financials of a diamond company, they would be startled. Diamonds, I believe, are frequently living from paycheck to paycheck (like are many other people) and may be in debt (as in the case of Greg Duncan's bankruptcy). However, this is not the image that diamonds portray. Even though diamonds represent a luxurious existence, no one knows what their true lives are like. None of us know because diamonds will show off slide exhibitions of their lifestyles, but they will not divulge their actual financial information. The reason for this is that the information is unlikely to be flattering.
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