From the perspective of a manufacturer, this makes perfect sense. You do not have to pay for advertising.
In a sense, Amway Independent Business Owners (IBOs) donate or devote a significant portion of their spare time to promoting Amway's products and services. Attempting to start a (false) nice conversation with a complete stranger at the local Barnes and Noble or local cafes or the local supermarket results in completely free advertising for Amway at work, school, in the office, at their church, and during family barbeques. Some have created the term "stalking" to describe IBOs who are constantly on the lookout for fresh possibilities.
That's great for Amway, to say the least, is the initial response. But how did you get the concept that it was beneficial to your health in the first place? It's understandable why Walmart or Costco would want to sell you items at a higher price while also paying you to conduct all of their promotion for them for free.
A large number of clients and consumers would recognise that their time is valuable and would remember to factor it into the price of the things they are purchasing. Finally, they would remark something like: "Oh, hold on! As a result, I'm paying extra for the goods while also providing free publicity to the firm! In addition to receiving free promotion, it is the IBOs who recruit additional salespeople to join the company and to sell and push Amway items on behalf of the company.
In Amway's instance, most people aren't going to notice because they are looking at their phones for dollar signs. They have "dreams" of wandering the beaches while the money pours in from all directions. Amway and alternative marketing organisations (AMOs) such as WWDB or Network 21 persuade people that by engaging in this conduct, they are actually making themselves wealthy rather than incurring debt. They appear to be able to persuade others to overlook obvious realities, such as the fact that your company is losing money as a result of standing orders and functions. It will be ingeniously disguised as an investment in your company, or as evidence that you are developing as a person, or as evidence that true success is just around the corner.
Amway is currently spending money on advertising, but I feel this is mostly to give their independent business owners (IBOs) some legitimacy. "See, Amway advertises on national television," they can point out. "How can they be a scam?" you might wonder. In truth, I do not believe that Amway advertising dollars have made a meaningful difference in the bottom lines of the majority of independent business owners.
Recent reports from Amway and some of their supporters indicate that IBO retention is on the rise in the United States and Canada. Although they present no evidence or even hint that IBOs are lucrative, their report is nonetheless compelling.
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