What exactly is a prosumer, anyway? Amway Independent Business Owners (IBOs) use the phrase "prosumer" as if they know what they are talking about, however the term comes from a book written by an author named Bill Quain. It is true that I did not read the book, but I did read summaries, and the book is essentially about how consumers spend their money, with the difference being that prosumers make money as they spend their money. Written for and promoted to Amway independent business owners (IBOs), the book was published at a period when the popular IBO concept was to "purchase from yourself and convince others to do the same."
On the surface, it may appear to be a decent concept for an IBO, given the fact that the majority of individuals dislike the act of selling. So why not purchase from me and encourage others to do the same? What IBOs appear to be unable to comprehend is that purchasing from yourself qualifies you as a consumer. Nobody is going to purchase their way into riches, and if you believe you will be the first, you are deluding yourself. Else. Due to the fact that I use a cash back credit card, I can consider myself a "prosumer." But take a deep breath and consider this for a moment. Even if I get cash back or am "paid" to shop, I still end up with less money in my pocket. This is true even if I get cash back. Yes, spending more money results in a larger refund (or check from Amway), but, as I have stated before, no one can spend their way into riches.
In Amway, if you transfer 100 PV every month, which costs approximately $300 per month, you will receive a 3 percent bonus, which is approximately $10. The situation wouldn't be as bad if you were genuinely purchasing things that you currently use and if the products were priced at or near the same level as those offered by merchants such as WalMart or Costco. Amway products, on the other hand, are not competitively priced. Amway gives incentive-based compensation to independent business owners (IBOs) in excess of 30 percent for each dollar they sell. Because those bonuses are integrated into the price of the product, Amway is unable to compete on a global scale. That is not to suggest that Amway does not offer some quality products at a reasonable price; but, these products are few and few between, making it unprofitable to participate in the programme on a regular basis.
As a result, the only way to truly make money in Amway is through recruitment. In spite of the fact that there is no direct compensation for recruiting downline, it is necessary in order to profit because you have little to no leverage on your product volume unless you begin to amass a large downline. However, even if you make a profit, your downline will face the same fate as you. There is little to no leverage in terms of volume. After all, why would I bother to spend the time, effort, and money to purchase $300 worth of goods from Amway (plus shipping fees) when I can purchase the same amount of things at WalMart for $150? Even after accounting for the bonus from Amway, I still come out ahead when purchasing elsewhere.
Amway representatives like to utilise the argument that their products are of high quality or concentration in this situation. Quality is subjective, and to be honest, when it comes to the household products and other consumables that IBOs sell, quality is not as important as the bottom line price when it comes to determining whether or not to buy. The fact that WalMart sells roughly half a trillion dollars worth of goods every year demonstrates that price is certainly essential, even more important than the reason IBOs use to justify their loyalty to Amway products. In truth, WalMart's items, in my opinion, are equally as good as its competitors.
The prosumer argument is another another illogical concept created to try to convince people that being an Amway IBO is a smart decision. The bottom line is that you will never, ever be able to "purchase your way to wealth." Make no mistake about it, no one ever become wealthy by just spending money. If you still don't believe me, give me the names of two persons who became wealthy by selling their own products.
0 comments: