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Tuesday, September 14, 2021

IBO’s are Free Labor

 One of those metal and canvas roofed gazebos that can be purchased at a department shop for $100 was in the backyard of the Platinum's home. Although his may have cost a little extra because it had mosquito netting walls, it was well worth it.

One that appeared similar to the one in the Platinum's backyard was depicted in a photo I found on the internet, which you can see here.

We had a significant wind storm one night, and his canopy went up a few houses down the street in various bits, indicating that they weren't properly anchoring or weighing down the structure. So he went out and got one of those wooden gazebo kits from Lowes or perhaps another retailer. However, I believe he purchased it from a store where I have seen similar kits. It was roughly $2000, and I thought to myself, "Holy sh*t, can't you just buy one already manufactured for that price?" I guess I don't know much about construction and construction materials because I don't work in the field.

So now it's time to put together the pile of excrement that is Platinum. Normally, you'd expect him to call a carpenter or someone who has previous experience putting boards together. The IBOs are then asked to come over and assist him instead of sending out a call to the general public. Ambot snatched my hammer out of the junk cabinet and was giddy with anticipation as he prepared to go over to serve his Platinum. As a result, a small group of IBOs eager to please their Platinum clients showed there. And, to their credit, after they had it all put together, it actually looked pretty good. Not too shabby for some free labour.

Another time, the Platinum decides he'd want to convert a corner of their bedroom into a master bathroom, and the Platinum agrees. Ambot knows someone who performs renovations, and he arranges for him to come over and give him a price estimate. Unfortunately, I don't know how much the quote was for. A bathtub, sink, and cupboard, a toilet, 2x4s and drywall to frame in a room, tile or linoleum for the floor, and then the electrical and plumbing. On the low end, supplies can cost two or three thousand dollars. Depending on whether you want one of those toilets that closes automatically or a Roman tub for two, I think the sky is the limit. On top of that, there's the matter of labour. So, for the sake of argument, let us assume that labour costs are around the same, i.e., around $5000 or higher for a bathroom. I believe the sack of shit also had a second quote from a renovator in it as well. And he's not happy about it. It's too pricey, and he despises the idea of spending money. However, he is quite interested in having a bathroom in the bedroom. As a result, he comes up with a brilliant idea. If he can put together a group of IBOs, they will be able to construct his bathroom. Unquestionably, that's a fantastic concept. Cutting into the house's existing plumbing and electrical wiring by folks who don't know what they're doing is a dangerous situation. It's likely that you checked out a book from the library to learn how to do it. Ambot made the correct decision to keep out of this one. Due to our termination of our affiliation with these individuals before the bathroom was constructed, he never saw the completed bathroom, but he later learned of it via another IBO. It appears to have been the shits. You have to ask about the appropriateness of having employees read a manual while connecting electric lines together in the first place.

As a result, these upper levels believe they can order their IBOs around and get work done around their homes for free because they trick the IBOs into believing it is a trade in which they will "spend meaningful time with me." In other words, the privilege of their time is equal to the amount of money they would receive if they worked.

You get what you paid for, as the old adage goes, and this is certainly true.

Are Independent Business Owners Actually Free Labor?


Introduction:

Companies that engage in multi-level marketing (MLM) are frequently thought of in conjunction with the concept of Independent Business Owners (IBOs). MLMs use a business model in which people sign up to become independent business owners (IBOs) in order to sell products or services on behalf of the company. In spite of the fact that multi-level marketing companies frequently push the concept of monetary autonomy and the availability of business prospects, some people believe that independent business owners (IBOs) are effectively performing unpaid labor. The purpose of this article is to investigate the nature of independent business owners' (IBOs') involvement in multi-level marketing companies (MLMs) and investigate the elements that contribute to the impression of IBOs as being unpaid workers.


Getting to Know Independent Business Owners (IBOs) Independent Business Owners are people that sign up with multi-level marketing companies as independent contractors in order to promote and sell the products or services offered by the company. They are responsible for creating their own client base, making sales, and recruiting others to join the multi-level marketing business under their team and function as independent business owners. IBOs often earn commissions on their own sales and receive incentives based on the sales performance of their downline, which comprises of persons they have recruited into their network of distributors.


The Fallacy of Entrepreneurship One of the primary criticisms leveled at multi-level marketing schemes is the inaccurate depiction of independent business owners (IBOs) as business owners. Even though they may have some discretion over their working hours and approach to making sales, the multi-level marketing business is ultimately in charge of determining the products, as well as their prices and promotional materials. IBOs frequently have to contend with stringent regulations and constraints imposed by the MLM, which reduces the amount of entrepreneurial flexibility they have.


Expenses and Investments: In order to become an Independent Business Owner (IBO), individuals are typically required to spend their own money on the acquisition of a beginning kit, training materials, and inventory. In order to be eligible for commissions and bonuses, IBOs in MLMs are typically required to keep their inventory at a certain minimum level. IBOs are expected to pay for themselves to travel to and participate in a variety of pricey conferences, seminars, and training sessions. In addition, IBOs are frequently required to pay for their own travel expenses. The fact that IBOs are expected to make these kinds of financial obligations lends credence to the widespread belief that they are not paid appropriately for their work.


IBOs, being independent contractors, do not receive the employment benefits and protections that typical workers have. This is because IBOs are not considered to be employees. They are not eligible for benefits such as guaranteed minimum wages, medical insurance, paid time off, or retirement savings schemes. IBOs are responsible for bearing the financial risks that are associated with their business activities because they do not have access to the safety nets that are generally provided in regular employment contexts. This lends credence to the claim that IBOs are engaging in activities that would normally be performed by unpaid laborers.


High rates of failure: A considerable number of independent business owners do not find major monetary success in their endeavors. MLMs are notorious for bragging about the achievements of their highest earners, yet statistics show that the vast majority of participants are unable to turn a profit at all from their involvement. The economic strategy of multi-level marketing (MLM) mainly depends on recruiting, which can result in the market becoming oversaturated and a limited consumer base. The high failure rates that many IBOs report experiencing are suggestive of the fact that their efforts do not always result in appropriate recompense for the labor that they put in.


Exploitative pay Structures The pay structure that is used by MLMs is one of the primary factors that contributes to the idea that independent business owners (IBOs) are working for free. MLMs frequently use compensation structures that are convoluted, multi-tiered, and heavily weighted toward recruiting rather than actual product sales. IBOs have the opportunity to earn bonuses and overrides depending on the sales that are made by the members of their downline, thus they are incentivized to recruit and build their downlines. Because of the way this organization is designed, a disproportionate amount of focus is placed on recruitment activities rather than the actual sale of items or services.


In spite of the fact that MLMs place a strong emphasis on the idea of autonomous entrepreneurship, the reality for the majority of IBOs is very different. The lack of control, hefty initial investments, lack of job benefits, high failure rates, and exploitative compensation systems all contribute to the idea that independent business owners (IBOs) in the MLM industry are effectively working as free labor. Individuals who are considering becoming involved in multi-level marketing (MLMs) should, similar to individuals who are considering becoming involved in any other type of business opportunity, thoroughly analyze the dangers, possible rewards, and the true nature of their job as IBOs.


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