IBO is an abbreviation for independent business owner. I thought it was cool at the time, but when you look at the big picture, IBOs are simply sales representatives for Amway, with no benefits and no guaranteed wage. Alternatively, a commission-only salesperson. Salespeople make their living by selling goods and services and earning a commission on their sales. Because they have been taught that you make your money by acquiring products from yourself, many independent business owners (IBOs) sell very few items.
Purchases made from one's own inventory may appear to be a good idea on the surface, but doing so does not result in a true profit; rather, it just results in the emptying of one's bank account. Any profit you believe you have made has actually been paid for out of your personal funds. In order to generate a consistent income in any business, you must first establish a customer base. Purchasing the majority of your goods means that you are solely generating profits for Amway the corporation, which manufactures or, in the case of partner stores, distributes the goods. The ones who actually manufacture the items are the ones who earn from their efforts. An independent business owner (IBO) is simply someone who sells things and distributes them in exchange for a commission.
For the majority of "actual" business owners, growing their company may entail advertising, holding special deals, and expanding the number of consumers, as well as raising the amount of product or services purchased by existing clients. An IBO who is "growing the business" is almost never concerned with acquiring additional retail customers. In fact, certain of Amway's limitations, such as restrictions on advertising, make it impossible to reach a large number of clients in a timely manner. Accordingly, the vast majority of IBOs that are "building" are merely looking to add downline who will hopefully purchase their PV and also help them to acquire more downline. By adding people to their downline, independent business owners (IBOs) are able to increase their volume and, consequently, their commissions. As a result, the upline earns their income through the efforts of their subordinates and frequently from the jobs of their subordinates because there are rarely enough consumers to support any major level of sales.
Amway appears to be a dinosaur in this day and age of social networking and high-profile advertising campaigns. Despite the fact that they advertise certain of their product lines on television, the salesmen or independent business owners (IBOs) have limited ability to market their items on a big scale. Instead, it is spread through word of mouth, from person to person. It is a complete waste of time. Is it possible for you to guess why a 30-second commercial during the Super Bowl costs hundreds of thousands of dollars. It's because tens of millions of people are tuning in to see what happens. In terms of generating sales, which do you believe is more effective: a Super Bowl commercial or word of mouth advertising? Keep in mind that wacky IBO behaviour has already tarnished the Amway brand, putting you at a competitive disadvantage in comparison to alternative business options.
Finally, or the bottom line is that an IBO is simply a salesperson who receives no benefits and a commission that is relatively low in comparison to other sales positions. It's a fantastic bargain for Amway, but is it a fantastic deal for an independent business owner?
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