I wanted to make this piece since I'm now engaged in an argument with an Amway Independent Business Owner (IBO) who is talking about his Amway partner stores. The tagline states that Amway undoubtedly conducts due diligence, as do partner stores, because partner stores would not want to affiliate with Amway if they were a scam, and so on and so forth. Hopefully, after reading this piece, you will agree that "partner" stores would be nuts if they did not collaborate with Amway. Maybe someone can explain what kind of due diligence was done prior to joining with Worldcom (previously MCI) and Enron to provide energy goods and services before getting into that. Surely, all of those high-priced lawyers must have been aware of these enormous failures (scams) by this point?
When an Amway Independent Business Owner (IBO) refers to a partner store, we are referring to a one-way street. To clarify, Amway supplies products to these partner stores, but the partner stores themselves do not sell any Amway products and have no affiliation with Amway other than a business agreement (apparently) that allows Amway Independent Business Owners (IBOs) to act as commission-only sales representatives for these partner stores. Amway Independent Business Owners (IBOs) bear all of the work and personal expenses associated with moving partner store products, which are sometimes sold at below-market pricing, in exchange for a tiny fee if they fulfil a minimum quota (100 pv), which is around $300 USD.
Consider the following scenario: a partner store effectively has the full Amway sales staff available to market their items, and the partner store is free to charge whatever they want. Because Amway Independent Business Owners (IBOs) are frequently instructed to purchase from Amway and its catalogues, the entire sales force frequently becomes loyal clients as well. In addition, the partner stores receive no compensation unless the Amway IBO sells at least $300 worth of merchandise, but products from both partner stores and Amway can be mixed together. According to my reasoning, it makes perfect sense for partner stores to collaborate with Amway. They have little risk and the potential to generate a large number of additional sales. There is a lot of upside and no negative.
Even better news for Amway and its partner stores is that Amway independent business owners (IBOs) will recruit and train additional Amway and partner store commission-only salespeople at their own expense and on their own time. Amway and its partner stores have no chance of losing!! I'm nearly tempted to start my own line of Joecool's widgets and open an Amway partner store of my own. If Amway representatives sell my $100 Joecool widgets, which cost me $5 to produce, I will make enormous profits, with the most commission I would pay being approximately 25%. It's a fantastic deal because Joecool is completely risk-free. I only get paid if and when the product is sold. Furthermore, I am not charged if things do not move. I could even be able to offer my catalogue to Amway Independent Business Owners so that they can sell my products. For me, it's heads I win and tales they lose when it comes to gambling.
You can giggle to yourself and, to borrow Amway's catchphrase, "now you know" if you ever hear an Amway IBO gloating about how Amway partner stores like Nike or Barnes & Noble or whatever big name firm may "partner" with Amway.
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