One of the things that many independent business owners (IBOs) do not understand is where the actual upline revenues come from. They believe they will get passive residual income, but the majority of them are unsure of how it works or where the money comes from, if at all. In its place, the majority of individuals see a photocopy of an upline's check, or they may see the upline driving a fancy car or something similar. They have little understanding of how the business operates, let alone the notion that there are two enterprises operating simultaneously. In addition, there is the Amway potential and the tools business. To be honest, most independent business owners would be much better off writing a check to their upline for $50 per month and never being involved in the Amway offer.
Upline receives a portion of the proceeds from the transfer of merchandise. Amway pays out approximately 30 percent or more of their overall revenue in the form of bonuses. The majority of IBOs (those who are actively expanding their businesses) earn 3 percent of the incentive, with uplines sharing the remaining 27+ percent of the bonus. When you stop to think about it, it's not such a bad deal. Furthermore, the majority of IBOs overspend on Amway items. They are not merely substituting for what they would typically purchase. There would be a slew of former IBOs who would continue to move 100 PV or more if this were the case. Instead, when an IBO decides to leave, they either stop buying anything from Amway or only use a few things here and there from the company. The possibility, as well as the manner in which it is advertised, merely creates a false demand for Amway items on the market. Considering how amazing the products are, why is it that, after 50 years in business, IBOs only sell a small percentage of their goods to non-IBOs, making IBOs the major and perhaps even exclusive consumer base for the Amway product line?
Then there's the tools industry, where IBOs are only entitled to a meagre 3 percent of the company's income. All of the tool profits are retained by the uplines. While this may appear to be acceptable on the surface, it is important to remember that the tools do not function. Currently, there is no independent proof that the tools promote a natural progression of IBOs, to my knowledge, therefore I cannot comment on them. Since I left the diamond business in 1997 or 1998, I can't think of more than a few new diamonds that have been discovered in the United States. In addition, even if there were a few new diamonds, I believe there were many more who stopped or left Amway for a variety of reasons. One could wonder why a diamond would decide to stop working in the first instance if there was indeed residual passive revenue at stake.
So, where do the revenues from the upline originate from? It's simple: it comes directly from the pockets of those in the downline. If IBOs were to really sell items, some of the income would come from sales and customers, not from commissions. Instead, the vast majority of Amway sales are made simply from upline to downline. Furthermore, practically all sales in the tools industry are generated from upline to downline. As a result, many IBOs spend $500 to $600 per month on products and receive a $10 reimbursement if they hit 100 PV. When you add in the $150 to $250 a month that IBOs spend on tools, the picture becomes much more complicated. Suddenly, that low-risk or no-risk option doesn't seem so low-risk anymore. In addition, if IBOs continue to work it for several years, they can quickly rack up tens of thousands of dollars in charges.
People, this is where the upline revenues come from. If you do the math, the vast majority of IBOs would be better off writing a check to upline for $50 a month and doing nothing else.
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