For starters, I'd like to point out that Amway looks to be a fully legitimate corporation, at least according to the text of the law. Because of this, I am not asserting or inferring that Amway is illegal. However, I believe that the way Amway firms are handled is similar to a pyramid scheme. When it comes to upline bonuses and tool purchases, the efforts and purchases of the lowest level IBOs will be accountable for the majority of the group's income. Many independent business owners (IBOs) are misled into believing that the ability to outperform your upline or the fact that you are not paid to recruit downline makes this an attractive opportunity. Consider the implications of this for a moment. Isn't the purpose of most Amway gatherings to inspire and recruit new members?
There are very few groups in which actual product sales to non-IBOs are sufficient to cover the costs of running your business, functions and all. Therefore, it is true that the lower level IBO's jobs serve as a primary source of income for their uplines, unless you belong to one of those extremely rare groups. How many groups are like that, where the majority of the sales are to retail customers rather than to downline employees? I'm not aware of any, at least that I'm aware of. In fact, how often do independent business owners (IBOs) sell enough products to cover their expenses for even a single month in a year? Most financial harm is done by the groups that preach "purchase from yourself," because the downline's expenses are then met solely by the downline's jobs, bank accounts, or by driving the downline into debt, which causes the group to suffer the most financial harm.
My observations and discussions of group structures in forums have led me to the conclusion that tool sales quickly wipe out whatever profits/bonuses that any of the downlines may have received. After all of their efforts have failed, an IBO will finally break even or make a small profit when they have sponsored enough downline to absorb their losses. Dedicated CORE IBOs would break even and possibly earn a small profit at the 4000 PV level, which is equivalent to platinum status, I believe. A hard CORE committed IBO, on the other hand, can still lose money at levels as high as 4000 or as low as platinum. However, we do know that most platinum groups contain 100 or more IBOs in order to create 7500 PV, which is a significant number. Consequently, we might conclude that less than one percent of IBOs generate a net profit. If IBOs want to produce a net profit at a lower level, the only option to do so is to avoid purchasing tools and paying for functions. Participating in a system such as WWDB or N21 nearly always results in a net loss for those that do so. "
Of course, my job may have a pyramid structure, with the CEO receiving the highest compensation. Nonetheless, in a firm, even the lowest-paid employees receive a salary and have money at the end of each month. IBOs, on the other hand, cannot make the same claim. As a result of these considerations, I believe Amway is a product pyramid. Entrepreneurs and information seekers are welcome to participate, but I challenge them to take the time to sit down and evaluate their capacity to generate a net profit. The majority of the time, the results of the analysis will be negative. People in the United States, and particularly those in the United Kingdom, may find it difficult to even bring up the subject of "Amway" without receiving peculiar looks in their direction. Best of luck in whatever you decide to do.
0 comments: