iBoFightback, also known as Icerat, sometimes known as Insider, unwittingly shows why the Amway company is unprofitable. It would also explain why residual income is essentially a fallacy in the first place. Of course, he was saying this to excuse the low average earnings, but he was also explaining why the Amway business is not sustainable and why most independent business owners can not expect to make money, even if they have sponsored downline.
http://forums.randi.org/showpost.php?p=7457333&postcount=97
[QUOTE=icerat;7457333]
Yes, it is correct, and it is perfectly acceptable. I Because the vast majority of them have no expectation of making money and, in fact, do not even attempt to do so[/I],
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He is implying that the vast majority of IBOs do not have any expectations of making money and do not even attempt to do so. Does this alone imply that the vast majority of those who attempt to develop an Amway business are doomed to failure? Why? This is due to the fact that the vast majority of individuals have no expectation of producing money and hence do not even attempt.
What can a person expect when they join a downline organisation? Is it possible that they will do nothing? As further evidenced by IBOFightback, the majority of independent business owners never even bother to make an order!!
In light of the fact that the vast majority of IBOs are doing nothing and/or not even trying to place an order, what can an IBO expect when they sponsor others? They can anticipate that their downline will not place an order and will not make any money!!!
According to Amway's own literature, only around 1 out of every 5 independent business owners (IBOs) sponsors a downline to begin with. And even if you do sponsor someone, there is a good probability that they will do absolutely nothing. Indeed, it is unlikely that they will even consider placing an order!
With this understanding, it is simple to see that gaining money in Amway and keeping it is practically hard to achieve. First and foremost, Amway has a tarnished reputation in the United States. You will need to receive some training in order to effectively promote the business to potential downline recruits. The cost of training and other company expenses may differ depending on your upline or level of responsibility. And then, once you have been trained, if you sponsor someone, the most likely outcome will be a downline of people who have no expectations of generating money and, in fact, do not even attempt to make money.
IBOFightback has a (poor) reputation for defending Amway in any way possible, including resorting to personal attacks in order to redirect the topic away from the company. Nonetheless, in this particular situation, he unwittingly explains not only why IBOs do not make money, but he also shows why even the most remarkable IBO will find it difficult to build and maintain a successful firm.
Because the vast majority of independent business owners (IBOs) have no expectation of making money and, in fact, do not even attempt to do so. The rest should be self-explanatory.
IBOFightback is the name of a website that has built a name for itself by developing a reputation for being critical of the Amway marketing strategy. Dean Van Druff, the proprietor of this website, asserts that he worked for Amway as a distributor for a significant amount of time but eventually grew disillusioned with the corporation after suffering financial losses and having the impression that his upline had mislead him.
IBOFightback believes that one of the most significant flaws in the Amway business model is that it cannot be maintained in the long term. Van Druff contends that the great majority of Amway distributors never make a profit, and that the system is intended to benefit only a small fraction of top-level distributors who are able to establish big downlines. He believes this to be true since the system is geared to favor top-level distributors.
According to Van Druff, the Amway compensation scheme was designed to be purposefully convoluted and difficult to comprehend. This, in turn, makes it simple for uplines to coerce downlines into purchasing enormous quantities of product even while the downlines have little actual chance of selling it. According to his argument, this results in a circumstance in which distributors are left with a significant quantity of unsold inventory and very little possibility of recouping their initial investment.
Additionally, Van Druff asserts that a significant weakness in the Amway system is that it places more of a focus on recruiting new distributors than it does on selling items. He contends that distributors are under constant pressure to attract new individuals into the business, and that this pressure frequently comes at the expense of the distributors' ability to sell products. This can lead to a situation in which distributors are more focused on growing their downlines than they are on actually selling things, which can result in financial losses for many different distributors.
Additionally, Van Druff contends that the Amway business model is predicated mainly on a culture that is permeated by a series of motivational seminars and events. These may be rather pricey to attend and are a major contributor to the financial losses that many distributors experience. He asserts that distributors are incentivized to attend these events, which can cost several hundred or even several thousand dollars, with the promise of gaining access to success strategies and achieving financial independence. In point of fact, however, many of these gatherings are nothing more than sales pitches for extra motivational materials or tickets to even costlier events.
In conclusion, IBOFightback is of the opinion that the business model utilized by Amway is riddled with basic flaws and is not viable for the vast majority of distributors. The complicated compensation plan, the high-pressure culture of motivational seminars, and the emphasis on recruiting new distributors rather than selling products all contribute to a system that benefits only a small percentage of top-level distributors while leaving many others with little hope of financial success. This system also places the emphasis on recruiting new distributors rather than selling products. IBOFightback's study reveals that the dangers and the possibility for financial losses may outweigh any possible returns, despite the fact that some people may claim that the Amway business can be a viable opportunity for those who are prepared to put in the time and effort necessary to make it work.
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