In my years as an Amway Independent Business Owner (IBO), one of the things I heard was that conventional businesses do not profit for up to five years. I believe this is still true in some Amway meetings. That is a fabrication. Businesses that operate in the traditional manner make a profit as soon as they sell their first product. The initial expenditure in equipment and rental property may prevent them from making a net profit right immediately, but they will earn from the sale of products in the future. The same approach would apply to an Amway firm, with the exception that Amway Independent Business Owners (IBOs) have trouble selling products to customers. Imagine opening an Amway catalogue and comparing their prices to those of local merchants. You'd have a good idea what I'm talking about.
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 believe there is an underlying storey to this as well, but I'll leave it at that for the time being. Even among the most serious IBOs, and even among those in this group, the vast majority will never produce a net profit if they are utilising marketing tactics. When you factor in the costs of the website, voicemail, standing orders, books and functions, and CDs, IBOs may expect to have their bank accounts drained of a couple hundred dollars per month at a time, on average. Amway uplines, on the other hand, are reaping substantial earnings from product purchases, with someone higher up the chain reaping income from the tools as well. Because the tools have a bigger profit margin than Amway, it stands to reason that certain uplines earn more from the tools than they do from Amway.
Other difficulties, such as high prices for many products (which are more than those charged by local stores) and a bad reputation as a result of IBO behaviour such as deceiving people into attending meetings, combine to create a business opportunity with practically insurmountable obstacles. Yes, a select few, usually charismatic individuals, can overcome these odds, but only one or two out of tens of thousands of people are capable of doing so successfully. Even individuals who reach the summit of diamond achievement may find it difficult to keep their qualification. It is fairly normal for someone to get to the emerald or diamond levels just to regress and fail to qualify the following year, as has happened to me. So much for residual income and strolling along the shores of the world's beaches.
As a result, I am not familiar with all of the specific statistics regarding how long it takes for a typical business to earn a profit. It could take as long as five years. However, based on my personal experiences and some numbers crunching, I'd have to conclude that the vast majority of Amway Business Owners NEVER MAKE A PROFIT - EVER - and that the vast majority of them end up with net losses after business expenses are taken into consideration. In addition, when I consider the fact that Amway is said to have low or no overhead costs, I can only conclude that the Amway opportunity is a bad deal.
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