My observations have shown that the majority of people that join Amway end up losing money in the long run. They may get involved because they want to make a few more dollars, or because they have been misled into believing that they will become millionaires in Amway within 2-5 years of joining. We were promised that we would be millionaires in a few years, and I believe that was the case with my sponsor. These individuals who recruit new Amway Independent Business Owners (IBOs) are frequently affiliated with a "system" such as Worldwide Dreambuilders (WWDB) or Network 21. (N21). It is possible for these system advocates, who are frequently rich, to deceive recruits by showing them photographs of homes or other luxuries and saying that they obtained these items through their Amway business. We know for a fact that certain diamond leaders who declared that they exclusively made cash purchases had their homes foreclosed on, therefore we know that it is a deceit. I'm confident that there would be fewer sign-ups if the excitement wasn't there. But what is the evidence in support of this claim?
It is straightforward. According to Amway, the average active independent business owner earns approximately $115 in gross income per month. This average includes diamonds and other high-end IBOs in addition to the average. According to my estimation, if you estimated the median, the average would be significantly lower.
However, it is the system expenses that cause IBOs to operate at a loss. Voicemail, standing orders, CDs, functions, books, and other resources are all common components of a communication system. An average IBO who is in the process of creating a business would spend about $250 per month or so on these fees. However, while Amway defenders are quick to point out that the amount is excessive, there are couples who would likely spend more and IBOs who must travel by plane to attend functions who would spend more. Single IBOs who simply purchase the bare necessities may be able to save a little money. Some IBOs who have abusive uplines may spend far more than $250 per month on tools and resources. My prior sponsor, I believe, spent easily upwards of $1000 per month on average throughout our time together. (Because I am from Hawaii, the average cost of functions is higher than the national average because to the long distance journey.)
If the average IBO generates $115 per month, but the same average IBO spends $250 per month on tools, the average active IBO is losing $135 per month. Lower level IBOs (i.e., 100 PV) would lose even more than the average active IBO.
Take, for example, a group of 100 IBOs at 100 PV. (This is merely a representation.) If a hundred business-building IBOs spend an average of $250 per month on tools, they would collectively spend $25,000 per month on tools. Their total volume would be 10,000 PV, which is around 30,000 BV. This would result in approximately $7500 in bonus income every month. As a result, this group spent $25,000 to learn and be motivated, but the group also receives $7500 in bonuses every month. The platinum would receive the lion's part of the bonus, but the vast majority of the rest of the group would suffer net losses as a result of the bonus. As the group expands in size, the bonus may increase as well, but the group's spending on tools will increase as well.
The only option for the group as a whole to generate money is to forego participating in the tools entirely. The proof is directly in front of us in the form of basic math. System failure is caused by the fact that the cost of the system is likely to absorb all of the Amway-generated bonuses, plus additional funds. Someone please explain in detail how this message does not reflect the reality of working in Amway and a system such as WWDB or Network21.
The facts, on the other hand, speak for themselves.
The Amway business concept has been around for several decades, and while there are some people who have been successful with it, there are also many people who have been unsuccessful with it. Some people have gone as far as to assert that the Amway business model as a whole is a hoax, and that the true source of revenue does not come from the sale of items but rather from the recruitment of new people to join the organization.
The "system" is a collection of training materials, seminars, and other resources that are sold to members of Amway in order to assist them in building their businesses. This "system" is one of the most important aspects of the business model that Amway employs. These systems are sold as vital tools for success in the Amway business, but detractors believe that they are nothing more than a method for top-level members of the organization to generate money off of the individuals they recruit. The systems are marketed as essential tools for success in the Amway business.
There is overwhelming evidence to demonstrate that these systems are not as effective as they are touted to be, despite the fact that advocates of Amway have asserted that these methods are effective. For one thing, a considerable portion of Amway's members wind up incurring financial losses, rather than profits, as a result of their participation in the business opportunity.
In addition, Amway and the organizations with which it is affiliated have been subjected to a large number of legal proceedings and regulatory investigations over the course of its history. A significant number of these cases have centered on charges of unethical business practices and misleading advertising.
In light of these facts, it is abundantly evident that the assertions made by Amway supporters on the efficacy of the "system" are, at best, inflated and, at worst, entirely fraudulent. Although it is undoubtedly feasible to earn money through the Amway business model, doing so is by no means a given, and the methods that are marketed to members of Amway as indispensable tools for success are probably going to be more of a detriment than a benefit to their efforts.
Before settling on a choice about whether or not to become an Amway distributor, it is essential to carry out adequate research and think carefully about all of the information that is now at your disposal. There is no doubt that there are examples of people who achieved their goals, but there are also a great number of cautionary tales; ultimately, it is up to you to decide which way you want to go.
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