For starters, let me state unequivocally that Amway is a fully legal corporation, and that I am in no way suggesting or insinuating that Amway is criminal. However, I believe that the way Amway firms are handled is similar to a pyramid scheme. When it comes to upline bonuses and tools income, the efforts and tool purchases of the lowest level IBOs will be the most important factors to consider in most groups. Many independent business owners (IBOs) are misled into believing that the opportunity to surpass your upline or the fact that you are not compensated for recruiting downline shows that they are not running a pyramid. This is not correct. I believe the tools business is a pyramid scheme that may or may not be in violation of the law. Keep in mind that the Federal Trade Commission did not rule that the tools company was legal.
In most cases, unless you belong to a very small group of people whose real product sales to non-IBOs are adequate to cover the costs of running your entire firm (including functions), it is true that the lower level IBO's jobs are the primary source of money for the uplines. How many organisations sell virtually exclusively to customers that are not IBO members? I'm not aware of any, at least that I'm aware of. In fact, how often do independent business owners (IBOs) sell enough products to cover their expenses for even a single month in a year? Most financial harm is done by the groups that preach "purchase from yourself," because the downline's expenses are then met solely by the downline's jobs, bank accounts, or by driving the downline into debt, which causes the group to suffer the most financial harm.
I've seen and debated group arrangements in forums numerous times, and I've come to the conclusion that tool sales completely wipe away whatever profits or bonuses that some of the downlines may have received in the past. A business owner will only break even or make a little profit when he or she is able to sponsor enough downline to absorb their losses for them. The 4000 PV level (or platinum) is where I believe a devoted CORE IBO would break even and potentially begin to earn a meaningful profit, based on my experience. However, we do know that most platinum groups contain 100 or more IBOs in order to create 7500 PV, which is a significant number. Consequently, we might conclude that less than one percent of IBOs generate a net profit. If IBOs want to produce a net profit at a lower level, the only option to do so is to avoid purchasing tools and paying for functions. Participating in a system such as WWDB or N21 nearly always results in a net loss for those that do so. "
Of course, my job may have a pyramid structure, with the CEO receiving the highest compensation. Nonetheless, in a firm, even the lowest-paid employees receive a salary and have money at the end of each month. IBOs, on the other hand, cannot make the same claim. As a result of these considerations, I believe Amway to be a lawful pyramid scheme. Entrepreneurs and information seekers are welcome to participate, but I challenge them to take the time to sit down and evaluate their capacity to generate a net profit. The majority of the time, the results of the analysis will be negative. People in the United States, and particularly those in the United Kingdom, may find it difficult to even bring up the subject of "Amway" without receiving peculiar looks in their direction. Wishing you the best of luck in whatever you chose.
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