One of the activities that appears to be universal throughout major IBO organisations is the concept of "buying from yourself," which is still prevalent. I believe that IBO leaders teach this because the majority of individuals are unfamiliar with or uncomfortable with the process of selling goods and services. As a result, teaching others to purchase from you makes the business easier to market. In actuality, an Amway Independent Business Owner (IBO) is essentially a commission-based salesperson who receives no perks. However, presenting the chance in this manner is unlikely to produce results, and as a result, the habit of buying from yourself has become commonplace. To the contrary, it appears to be something that most individuals can accomplish, rather than stressing the need of selling to people you don't know.
When you purchase anything from yourself, you are considered a customer rather than a business owner. Purchasing from yourself does not result in a profit for your firm. Would you open a car dealership in order to purchase a vehicle? Now, I'm not saying that supporting your own business is a bad idea; just the contrary. My point is that if you are the major or exclusive consumer of your Amway business, you aren't actually running a business, in my opinion. You are nothing more than a glorified client. I feel that some or many independent business owners (IBOs) fit under this category since they are unable to move items to non-IBOs.
In reality, what an IBO is doing is paying the bonuses of his upline. Amway overcharges their customers by more than 30% of the product's actual cost. They are required to do so in order to be able to make IBO incentive payments. Because the vast majority of IBOs have less than 100 PV, the vast majority of the bonuses gained are funnelled upline when a purchase is made. It is not an equal playing field, contrary to what some IBO leaders may believe. Additionally, some of your uplines who aren't even aware of your existence may benefit from your efforts. Isn't that what you call residual income?
What exacerbates the matter and makes it worse is when an IBO pays for a standing order or attends functions where some of these IBO leaders may instruct others in this unethical business activity, which compounds the problem. You, as an IBO, already prepay for items for which your upline receives the majority of the bonus; however, the problem is exacerbated by other IBOs who pay to be given incorrect information. As a member of the International Business Organization, I heard speakers talk about skipping rent or mortgage payments in order to attend more functions, or having your family forego a meal in order to purchase standing orders. Purchasing from oneself is another another example of faulty advice being passed down from upline to downline in the network marketing industry. A further aggravating factor is that certain uplines profit from delivering incorrect advise.
Purchase practically all of your goods and services from yourself? Can you think of a single truly successful firm where the owner is the primary or even the sole source of revenue? There aren't any that come to mind.
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