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Friday, August 13, 2021

Amway IBO Expenses?

 In order to get new customers to view or register with the Amway business, many uplines will employ fraudulent recruitment strategies to entice them to do so. One of the most frequently heard statements was that joining Amway has very little risk and has no or very little overhead. In the absence of an IBO participating in any system-related training, this is true. Many, if not all, uplines, however, have the goal of getting as many IBOs active in the system as feasible. This is most likely due to the fact that selling standing orders, voicemails, and seminars generates a bigger profit margin for some uplines than the actual movement of Amway volume does. As a result, some newcomers may join Amway under the impression that it will not cost them much, only to discover that 100 PV might cost them over $300. They may be unaware that standing orders and functions are ongoing and can result in an additional cost of several hundreds of dollars each year if not addressed. Uplines will then explain the expense by claiming that the IBO is making an investment in his or her company.

New IBOs, and especially new IBOs who are single, should carefully consider the financial implications of becoming a business-building IBO before deciding to join. Most prospects are unaware that establishing an Amway business via the use of system tools and "coaching" can cost them up to $500 or more per month in expenses. In order to consume 100 PV worth of items on a monthly basis, a single person would need to consume XS beverages and Nutrilite vitamins practically exclusively. And, second, how many singles or prospects were consuming cases of energy drinks and vitamins ($300 per month) prior to being introduced to the Amway business opportunity? How many people were willing to shell out hundreds of dollars for a weekend event that may have necessitated the purchase of travel and a hotel room? I don't believe there are many people like this in the world. Nonetheless, I believe this is due to the promise of financial independence, early retirement, and the ability to stop working altogether that they have been marketed. Nevertheless, the facts would suggest that how many (former) IBOs continue to purchase Amway products and attend seminars after the dream has faded or reality settles in would be surprising.

I know a lot of former IBOs, but I don't know any of them who continue to buy Amway products on a regular basis, and I don't know anyone who has ever paid money to attend an Amway/AMO gathering after they have retired from the IBO ranks. Amway's sales figures support this assertion, as the company makes very few sales to those who are not Independent Business Owners (IBOs). A large portion of Amway's products and services are consumed by the Independent Business Owner (IBO) salesforce. Since my departure from the company, I have purchased a few Amway products for myself. However, I only did so to amuse friends who were still working in the industry. Since then, they have all resigned. After all, it is only natural to anticipate that once the desire to establish a business fades away, the desire to purchase Amway items will likewise fade away.

The majority of enthusiastic, young, and motivated people who sign up are generally unaware of the existence of these IBO charges. The fact that these tools and systems costs are optional is acknowledged by Amway; nonetheless, certain uplines who push the tools may argue that it is insane to try to establish an Amway business without them and/or heavily encourage new IBOs to participate. We "had" to be at the next function, no matter what, according to a popular belief among participants. If you don't make it, your company will be six months behind schedule. Because new IBOs and prospects aren't aware of the alternatives, they will frequently follow the herd. Unfortunately, there is absolutely no independent evidence that the tools and seminars have any effect on increasing IBO volume and/or sponsorship rates. I believe that the tools are worthless, and that the vast majority of IBOs would be better off handing their upline a $100 check every month rather than investing their time and money in the business or purchasing any items. I am a knowledgeable and seasoned professional.

IBOs and information seekers should be aware of these prospective IBO expenses and assess whether or not the expenses would be worth your time in the first place. Keep in mind that even if you do not make a penny from your Amway business, someone upline will profit handsomely from the tools you use to promote it. What matters is that you have your own best interests at heart, regardless of what your upline tells you.

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