One of the most important aspects of running a business is keeping an eye on the bottom line. A company's net profit (or loss) is what matters at the end of the day. According to reports, many independent business owners (IBOs) do not consider their bottom line, most likely at the urging of their uplines. I believe that uplines instruct their subordinates to ignore the bottom line because, for the vast majority of IBOs, even the most dedicated ones, it is a loss. In this way, IBOs are taught that Amway is capable of saving marriages, or that the Amway opportunity has transformed you into a better person, or that the Amway opportunity has transformed you into a better spouse. All of these things are wonderful side advantages of being an Amway distributor, but in strictly business terms, the vast majority of independent company owners (IBOs) are failures in the profit and loss categories. (Do you truly become a better spouse and father if you are out virtually every nite creating an Amway business?)
According to the facts, some of which have been disclosed by Amway, this message is quite apparent. The majority of independent business owners (IBOs) are unable to or do not sell a significant amount of Amway items. Even after putting in a lot of effort, the majority of IBOs will never sponsor a downline. Even individuals who are successful in sponsoring others are likely to see their downline leave within the first year of their participation. In fact, many independent company owners (IBOs) are unable to find somebody who is willing to look at the Amway business plan. I believe this is the reason why you hear so many stories about Amway that have elements of deception, deception, and dishonesty. Even after deducting business expenditures, it is likely that the IBOs who perform the labour will make less than $1 in NET return on their investment. In fact, when system expenses are taken into account, the vast majority of system IBOs operate at a loss!
As a result, the bottom line for the vast majority of IBOs is a loss. Yes, some independent business owners make money. Some people make a lot of money, but the people who make money appear to have been around for a long time. I feel that a disproportionate number of onlookers are under the impression that the platinum level is profitable. After all of the expenses linked with the system are taken into consideration, I feel that a dedicated system platinum earns very little money. This was substantiated by a research undertaken by the Wisconsin Attorney General's office, which found that the average platinum lost about $1000 per year. While Amway advocates would argue that the study is out of date (it was conducted in the 1980s), I would want to point out that the fundamentals of the company have not altered. In fact, the introduction of KATE and other system materials has increased the costs even more than they were back when the Wisconsin study was conducted!
As independent business owners, how does your bottom line look? What percentage of your PV bonus check did you receive at the end of the month still has value? Or is it a loss that you can excuse by arguing that you are a nicer person than the other person? Would you have participated if the plan had stated that you would be nicer but would lose money as a result of your participation? Would you have joined if you had known that you would lose money yet gain new Amway friends as a result of your decision? Would you have joined if you had known that a platinum was likely to be losing money or not making much money in the first place? Profit should always be the ultimate goal in any company venture. How does yours appear to be structured?
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