In my years as an IBO, one of the things that was mentioned, and I believe is still said in some Amway meetings, was that conventional businesses do not make a profit for the first five years. That is a fabrication. Businesses that operate in the traditional manner make a profit as soon as they sell their first product. The initial expenditure in equipment and rental property may prevent them from making a net profit right immediately, but they will earn from the sale of products in the future. The same approach would apply to an Amway firm, with the exception that Amway Independent Business Owners (IBOs) have trouble selling products to customers. Imagine opening an Amway catalogue and comparing their prices to those of local merchants. You'd have a good idea what I'm talking about.
Despite the low start-up costs and low to no overhead expenditures, the majority of independent business owners never make a profit. I will admit that many independent business owners (IBOs) never do a single thing after they sign up. I believe there is an underlying storey to this as well, but I'll leave it at that for the time being. Even among the most serious IBOs, and even among those in this group, the vast majority will never produce a net profit if they are utilising marketing tactics. When you factor in the costs of the website, voicemail, standing orders, books and functions, and CDs, IBOs may expect to have their bank accounts drained of a couple hundred dollars per month at a time, on average. Those who work for Amway, on the other hand, profit from product purchases, and those who work for someone higher up the chain profit from tools. Because the tools have a bigger profit margin than Amway, it seems natural that certain upline members earn more money from tools than from Amway products.
Other difficulties, such as high prices for numerous things (which are higher than local merchants) and a bad reputation resulting from IBO behaviour such as misleading individuals into meetings, combine to create a business opportunity with nearly impossible obstacles to overcome. In fact, only one or two persons out of tens of thousands are able to overcome these odds, and they are usually charismatic in their approach. Even individuals who reach the summit of diamond achievement may find it difficult to keep their qualification. It is fairly normal for someone to get to the emerald or diamond levels just to regress and fail to qualify the following year, as has happened to me. So much for residual income and strolling along the shores of the world's beaches.
As a result, I am not familiar with the specific figures regarding how long it takes for a typical business to earn a profit. It could take as long as five years. But based on my experiences and some number crunching, I'd have to say that the vast majorty of Amway Business Owners NEVER TURN A PROFIT - EVER, and most of them ending up with net losses when business expenses are factored in.
0 comments: