I was participating in a conversation on another site when someone made the observation that Amway is like an iceberg because you only see the beautiful clean ice on the top of the iceberg and not the rest of the iceberg. For better or worse, the diamonds show you the fine suits, jewels, care, mansions, and private jets, but what you don't see is the financial carnage that occurs in their downlines at various points during the year. It was my previous upline who would encourage audiences that they should skip meals in order to purchase more standing orders because you never know when you might hear the one thing that would make their business explode. I'm sorry, but I don't recall ever witnessing or hearing of someone's business "exploding."
While you won't hear much of the unethical and "wrong" teaching on standing orders because part of it is regulated by Amway, it is during the night owls and smaller group meetings that the genuine teaching is distributed.. This is the point at which you are informed that you must practically sell your soul in order to succeed in Amway. The teaching comes into play at this point, and you should be purchasing an excessive amount of tools in order to be successful. This is the point at which you are instructed not to miss a function unless it is for your own funeral. A rookie or a casual spectator will not notice these things, but if you ever decide to pursue a career in business development, this will most likely become your world. This is how the leaders get their unethical teachings to the lower levels of the organisation: by distributing the knowledge downline through the platinum level members.
During functions and meetings, the backstage area is not visible. Former rubies and platinums have weighed in on the diamonds, with some even joking about how gullible the diamonds are in comparison to themselves. What you don't get to see is where the money gathered at meetings and functions ends up. There had been some previous comments about people practically carrying suitcases full of cash out of the building. The likelihood is that your tools money had a large role in the acquisition of your diamond if your upline resides in a house and drives a fleet of luxurious automobiles.
It's a straightforward conclusion. Amway products having a greater markup than tools, which also have fewer beneficiaries among whom the incentive might be divided. A $7.00 Amway product may only cost $3.00 to manufacture, with the remainder being bonus money distributed among the IBOs at the various layers of the organisation. While a $7.00 CD might only cost 50 cents to make, only platinum-level albums receive any reimbursement from this type of money. However, rank and file independent company owners (IBOs) rarely get a full and honest image of the firm. Just as the underside of an iceberg is shrouded in mystery, so is the underbelly of the moon. I challenge IBOs to conduct themselves like true businessmen and women, and to confront their uplines with the difficult questions about how the money is earned. Do not take hyperbole and anecdotal stories at its value. In the real world of business, schedule C company tax filings are the most common method of confirming the existence of business income. If you intend to "invest" your hard-earned money into the system for the benefit of your upline, you should insist on receiving this information from them.
Would any of you consider purchasing a conventional business from someone who hasn't demonstrated that it is successful? What makes you think an Amway business would be any different? Look for an accurate representation of what you are putting yourself into.
The question of whether or not Amway, a direct-selling firm that has been in operation for more than 60 years, is a legitimate business opportunity or a pyramid scam has been the subject of much discussion. Amway's business model has been constantly defended by the firm as being both legal and ethical, despite the fact that some people have claimed that Amway operates as a pyramid scam. In point of fact, some officials of Amway have compared the business model of the corporation to an iceberg, claiming that only a small percentage of the company's operations are visible on the surface.
The comparison states that the tip of the iceberg represents the sales of Amway's products to clients, while the broader, invisible piece of the iceberg reflects the aspect of the business that focuses on team building and recruitment. In other words, while the sale of products is an essential component of the business, the actual money is made through the recruitment of new members into the organization as well as the development of a productive sales force.
Despite this, supporters of Amway contend that the company is not a pyramid scheme due to the aforementioned fact. Pyramid schemes violate the law since their revenue generation is predicated almost entirely on the recruitment of new members rather than actual product sales. This makes them inherently unethical. In contrast, Amway places a significant focus on product sales. In order to be eligible for bonuses and other incentives, Independent Business Owners (IBOs) are required to sell a particular quantity of products.
In addition, Amway asserts that their business approach is not only centered on recruitment, but rather on establishing successful sales teams rather than individuals. Because of this, IBOs are obligated to provide their downline members with training and support, as well as assistance in reaching their individual sales quotas. This indicates that although recruitment is an essential emphasis for the company, it is not the only focus that the company has.
In addition, Amway conducts its business in compliance with the rules and regulations of each country in which it operates. The Federal Trade Commission (FTC) in the United States, for instance, has conducted examinations into the business operations of Amway and has come to the conclusion that the corporation offers a legitimate business opportunity and is not a pyramid scam.
In light of the aforementioned, it is essential for people who are considering signing up with Amway or any other multi-level marketing organization to first conduct their own study and acquire an understanding of the rules and regulations that are applicable to businesses of this nature in their particular nation before taking any further action. Before devoting one's time and resources to a multi-level marketing (MLM) opportunity, it is essential to have a solid understanding of the relevant laws and regulations, as certain nations have more stringent requirements for businesses involved in direct sales.
In conclusion, some individuals may consider Amway's business model to be a pyramid scam; however, the firm defends its model as an iceberg, with an emphasis placed more on the sales of products and the formation of teams than on recruiting. Amway complies with the rules and regulations of the nations in which it conducts business and has been deemed by government bodies such as the Federal Trade Commission to be a viable opportunity for business ownership. Before jumping into any opportunity, individuals should make sure they have done their own research and have a solid understanding of the laws and policies that govern multi-level marketing organizations in their nation.
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