When I first saw the Amway plan, it was presented in a way that looked like a road to riches. Even if the presenter was careful not to say it was a "get rich quick" scheme, two to five years is a relatively short period of time when compared to working 40 hours a week for 40 years, as was demonstrated in the business plan. In addition, while some exceptional individuals do achieve diamond status, there is a long trail of IBOs who suffer losses, some of which are staggering in nature. One couple who lost their home as a result of following upline advice, and another couple who ended up filing for chapter 7 bankruptcy, are both members of our own group, which I am aware of. I must point out that the bad advice that resulted in bankruptcy and foreclosure was almost certainly given by upline leaders. A woman I know who quit her job to attend a function, following upline advise from WWDB, is also someone I'm familiar with.
So, what has been the experience of a large number of CORE IBOs? I'm not referring to those who "do nothing," but rather to those who put forth an actual effort. Well, if they complete their 100 PV, they will spend approximately $300 per month on tools, while dedicated IBOs will typically spend approximately $200 per month on tools on average. This listing is for a single person only. A couple or family would be expected to do more and spend more as a result of this. So, for these 100 PV IBOs, they will spend approximately $500 per month and receive perhaps $10 in return. Of course, even if they did not participate in Amway, they would still incur some expenses for household goods, but nowhere near the level of $500 per month.
When these expenses are compounded over a period of several years, they can result in staggering losses for the company. IBOs with a strong core may expend even more energy. Rank and file IBOs can only receive relief by selling products (which, given the current prices and Amway's reputation, is tough) or by sponsoring downline who will then bear some of the losses on your behalf. My best guess is that an IBO would be able to break even at a PV level of approximately 4000. However, at 4000 PV, you may only have 30 to 40 downline members at best. The drawback is that only around one in every five IBOs is successful in sponsoring another IBO.
I believe that millions of independent business owners (IBOs) have come and gone through the Amway opportunity throughout the years, resulting in billions of dollars in losses. Numerous of individuals who lose money, on the other hand, believe they are successful since many uplines will edify those who purchase tools, regardless of their IBO performance. If your group and PV do not continue to expand in a steady manner after a few months, it is quite improbable that you are on the path to success.
IBOs and newcomers are welcome. Are you on the path to financial success or financial failure? Keep in mind that, regardless of what your upline mentor may tell you, a net loss does not equal success.
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