My observations have shown that the majority of people that join Amway end up losing money in the long run. They may get involved because they want to make a few more dollars, or because they have been misled into believing that they will become millionaires in Amway within 2-5 years of joining. We were promised that we would be millionaires in a few years, and I believe that was the case with my sponsor. These individuals who recruit new Amway Independent Business Owners (IBOs) are frequently affiliated with a "system" such as Worldwide Dreambuilders (WWDB) or Network 21. (N21). It is possible for these system advocates, who are frequently rich, to deceive recruits by showing them photographs of homes or other luxuries and saying that they obtained these items through their Amway business. We know for a fact that certain diamond leaders who declared that they exclusively made cash purchases had their homes foreclosed on, therefore we know that it is a deceit. I'm confident that there would be fewer sign-ups if the excitement wasn't there. But what is the evidence in support of this claim?
It is straightforward. According to Amway, the average active IBO generates approximately $00 in gross income each month. This average includes diamonds and other high-end IBOs in addition to the average. According to my estimation, if you estimated the median, the average would be significantly lower. In this amount, company expenses have not been taken into consideration.
However, it is the system expenses that cause the majority of IBOs to operate at a loss. Voicemail, standing orders, CDs, functions, books, and other resources are all common components of a communication system. An average IBO who is in the process of creating a business would spend about $250 per month or so on these fees. However, while Amway defenders are quick to point out that the amount is excessive, there are couples who would likely spend more and IBOs who must travel by plane to attend functions who would spend more. Single IBOs who simply purchase the bare necessities may be able to save a little money. Individual business owners (IBOs) with abusive uplines may spend far more than $250 per month on tools and functions. My prior sponsor, I believe, spent easily upwards of $1000 per month on average throughout our time together. (Because I am from Hawaii, the average cost of functions is higher than the national average because of long-distance plane travel.)
Consequently, if the typical IBO gets $200 a month in gross commissions, but the same average IBO spends $250 a month on tools, the average active IBO is losing $50 a month, with lower level IBOs (i.e. 100 PV) losing much more because they earn nothing close to $200 from Amway.
Take, for example, a group of 100 IBOs at 100 PV. (This is merely a representation.) If a hundred business-building IBOs spend an average of $250 per month on tools, they would collectively spend $25,000 per month on tools. Their total volume would be 10,000 PV, which is around 30,000 BV. This would result in approximately $7500 in bonus income every month. As a result, this group spent $25,000 to learn and be motivated, but the group also receives $7500 in bonuses every month. The platinum would receive the lion's part of the bonus, but the vast majority of the rest of the group would suffer net losses as a result of the bonus. As the group expands in size, the bonus may increase as well, but the group's spending on tools will increase as well. In addition, the collective losses would increase, if I may say so.
The only option for the group as a whole to generate money is to forego participating in the tools entirely. The proof is directly in front of us in the form of basic math. System failure is caused by the fact that the cost of the system is likely to absorb all of the Amway-generated bonuses, plus additional funds. Someone please explain in detail how this message does not reflect the reality of working in Amway and a system such as WWDB or Network21.
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