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Thursday, October 29, 2015

Real Businesses Take Years To Profit?

One of the things I heard as an IBO and I believe is still said in
some Amway meetings is that conventional businesses do not profit
for up to five years. That's bogus. Conventional businesses make a
profit as soon as they sell their first product. They may not have a
net profit right away because of the initial investment into
equipment and rental property, but they do profit by selling goods.
The same principle would apply to an Amway business except that
Amway IBOs have difficulty selling products. If you opened an Amway
catalog and compared their prices to local retailers, you would know
what I'm talking about.

Despite the small start up costs and the little to no overhead
costs, most IBOs never turn a profit. I will acknowledge that many
IBOs probably never do a single thing once they sign up. I believe
there is an underlying story behind this as well, but I will move
on. Out of the more serious IBOs, even in this group, most of them
will never make a net profit if they are using tools. Factoring the
cost of the website, the voicemail, standing orders, books and
functions and cds, IBOs simply get drained of their money a couple
hundred of bucks a month at a time. Amway uplines meanwhile, are
earning profits on product purchases and someone upline are also
earning profits on the tools. The tools carry a higher profit margin
so it would make sense that some upline earns ore from tools than
from Amway.

Toss in other challenges such as high prices for many products
(higher than local retailers) and a spotty reputation from IBO
behavior such as tricking people into meetings and you have an
opportunity with nearly insurmountable handicaps. Yes, a few rare
few and usually charismatic people can overcome these odds, but only
one or two out of tens of thousands are able to do so. And even
those whe reach the pinnacle of diamond, may not be able to maintain qualification. It's very common for someone to reach the level of
emerald or diamond only to backslide and not qualify the following
year. So much for residual income and walking the beaches of the
world.

So I don't know the detailed statistics about how long it takes for
a conventional business to turn a net profit. It may take up to five
years. But based on my experiences and some number crunching, I'd
have to say that the vast majorty of Amway Business Owners NEVER
TURN A PROFIT - EVER, and most of them ending up with net losses
when business expenses are factored in.

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