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. I'm not sure if that is true or not, but regardless of whether they do or do not, how long does it take for an Amway business to turn a profit? According to my understanding, Amway executives say this because their independent business owners (IBOs) are losing money and they want them to believe that the majority of people will lose money for the next five years. During that period, Amway leaders can benefit by selling these individuals CDs and function tickets, preventing independent business owners (IBOs) from earning a profit.
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 feel there is an underlying storey to this as well, but at the same time, those who do nothing end up receiving what they deserve as a result of their actions. When it comes to the more serious IBOs who put up the effort to develop a business, the vast majority of them will never make a net profit if they rely on tools to do it. The tools are inefficient in assisting IBOs in the development of their businesses and are frequently the cause of the business losses experienced by the great majority of IBOs who employ tools.
When you take into account the costs of the website, voicemail, standing orders, books and functions, and CDs, IBOs are essentially robbed of a couple hundred dollars a month, or even more if an IBO is extremely dedicated to consuming tools. Profiting from product purchases is not something that IBOs normally do because you can only sell a certain amount of merchandise when it is not priced to compete with retail prices. In the end, many IBOs find that their target consumers are sympathetic family and friends of their own.
Add to that other difficulties such as a tarnished reputation as a result of IBO behaviour such as misleading people into meetings or outright lying, and you have a business opportunity with nearly impossible obstacles to overcome. Yes, there are a few exceptional and typically charming individuals who can overcome these challenges, but only one or two in tens of thousands are capable of doing so. Even individuals who reach the summit of diamond achievement may find it difficult to keep their qualification. There are numerous stories of former diamonds or diamonds who have decided to leave the industry. So much for the "residual income" urban legend.
As a result, I am not familiar with the specific figures regarding how long it takes a conventional business to earn a profit. It could take as long as five years. However, based on my personal experiences and some mathematical calculations, I'd have to say that the vast majority of Amway Business Owners NEVER MAKE A PROFIT - EVER.
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