Getting out of debt appears to be great advice in this situation. On the surface, it appears to be due to the fact that people should not be piling up consumer debt or devoting enormous quantities of their money to automobiles that they cannot afford. But what does it mean for an independent business owner? I'm aware that my former upline instructed our group on how to get out of debt. However, I believe that my prior uplines were acting in their own self-interest when they taught me this. Allow me to translate what I believe they were trying to say:
"You should avoid taking on any debt because it will limit your ability to purchase additional PV and tools. If you have debt, it has a negative impact on my financial flow."
Ironically, despite the fact that many, perhaps the majority, of IBOs are trained to "get out of debt," the end outcome is often more debt. There is greater debt as a result of the increasing cost of items and tools on the market. How many families truly spend $300 a month on household supplies (the approximate cost of 100 PV)? After there comes the additional expenditure of tools that can range from $150 per month to more than $500 per month depending on whether the IBO is married or single, as well as the level of devotion the IBO has to his or her efforts to be "successful." As a result, independent business owners are now spending at least several hundreds of dollars that they had never spent before.
The majority of IBOs, particularly new IBOs, make less than $50 a month on average. In fact, earning $50 a month in this business would set you apart from the rest of the pack. The majority of IBOs make less than $20 a month. Nearly all "serious" independent business owners operate in the negative and never generate a profit with that amount of income and the expenses I outlined above (tools = voicemail, books, standing orders, and functions), according to my research. IBOs can only make money if they sell Amway items like crazy (which I have never experienced) or if they sponsor enough downline to cover their losses. The only people who have truly achieved success are those who sell the tools.
The reason why I believe that my former uplines (who are still in WWDB and appear to teach the same things now as they did when I was an IBO) are teaching self serving advice is because, while they advised me to "get out of debt," they made an exception and stated that it was perfectly acceptable to go into debt in order to attend functions or purchase additional standing orders. IBOs were also instructed to do "whatever it takes" in order to advance to the next function or to purchase additional tools. It is for this reason that I have observed some cross lines go bankrupt and more than one couple lose their houses as a result of following the advice of their upline. And these couples were assured that they need not be concerned since they will be able to pay cash for their properties when they become diamonds. This appears to be yet another evident falsehood perpetrated by WWDB officials, particularly those who have had their own homes foreclosed on.
Let's be very honest about this. It is considerably more likely that you will fall into debt or increase your debt as a result of your participation in Amway's system, which includes voicemail, books, standing orders, and other functions, rather than making money and getting out of debt. If you are willing to look at it objectively, the math supports your position.
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