A lot of people used to talk about "creating a business" when I was an Independent Business Owner. However, many people who spoke about starting a business had no idea what they were talking about. I believe this is due to the fact that they were taught that growing a business entailed listening to cassettes and attending functions. Alternatively, sponsoring people may be necessary in the course of growing a firm. In my section of the Amway universe, growing a business was primarily about recruiting and demonstrating the strategy to customers. Evidently, I was misled, as were a large number of other people.
A customer base is typically considered to be the first step in the process of establishing a business. A profit is made when a business moves items and services. People who participate in groups that emphasise buying from yourself or other prosumer nonsense will generally struggle because the revenue they make in their business comes entirely from their own pockets. Alternatively, their jobs may actually be providing the funds for their own bonuses. The only way to profit in this model is to sponsor a large number of downline members so that the pyramidal pay structure can work in your favour. Those that are successful in sponsoring people who purchase things have the opportunity to profit from their efforts. Those that do not sponsor their employees typically do not remain in the business for very long.
Many independent business owners (IBOs) compare themselves to a franchise. Imagine owning a true franchise where your long-term success was dependent on your ability to open additional franchise locations. If you, as the business owner, and your family were responsible for the majority of the goods purchases, what would you do? Is it possible for this franchise to survive? Most likely, this is not the case. However, this is exactly what many Amway Independent Business Owners (IBOs) do, and they are misguided in believing that they would be successful. The only reason Amway Independent Business Owners (IBOs) are able to maintain this model for a longer period of time than a standard franchise owner is because they do not have to rent office space or recruit workers. If they did, they would lose even more money and/or would go out of business much more quickly as a result.
It would be instantly apparent if an Amway IBO ran their business like a regular business that they were not making any retail sales to non-IBO clients when the first month's utility bill or lease payment arrived in the mail. Considering the fact that you are purchasing a product from yourself, how much money do you make?
Building a business entails a wide range of activities. These items may include advertising and product marketing, but they are not need to contain any training in order to be effective. When reduced to its most basic form, the Amway business is all about selling and consuming products, while also encouraging others to do so as well. Why do IBOs believe that such comprehensive training (including standing order and functions) is required? Challenge IBOs to prepare a detailed business plan for their Amway business, including estimated revenues and expenses, and then submit it to me to see what you come up with in response. If you believe I am being unfair, write up your Amway presentation and hand it in to a loan officer at a bank to prove your point. Take a look at what they have to say. Seriously.
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