Tuesday, February 17, 2009

Amway Global - Sign Up To Be A Salesman?

One thing many IBOs are commonly mistaken about is that they think they own a franchise, or they are independent business owners. They call themselves IBOs afterall.

Let's go over some items that are overlooked. Amway is not a franchisor. People who sign on to sell Amway products are not franchisees. When you sign the dotted line with Amway, you have basically become a commissioned sales person. Any expenses associated with generating sales are yours to bear, although Amway did run some nice commercials recently.

You get paid on volume. The more volume you move, the more you (potentially) get paid. You may be able to "sponsor" others to help increase your volume, but whether you sponsor others or not, you get paid based on volume created. You do not receive a fee for recruiting. It is a wonder why so many IBOs spend most of their time recruiting when they are not paid to do so. I believe it is because they feel a need to get others to work for them so they can "retire early" and "walk the beaches".

I believe the term "Amway Distributor" is more appropriate as Amway sales people buy products from Amway and resell them. For IBOs who cannot or do not sell items to non IBO customers, then you are an Amway customer and not a distributor.

The term independent business owner sounds attractive as you can "own your own business". But the reality is that you are a saleman who is commisioned on movement of volume. Nothing more and nothing less. You can put a BMW emblem on your Ford, but you still own a Ford.


Anonymous said...

I think you need to study more about amway becouse you don't know much about it, and if you need money come and become a bussines man

Joecool said...

Hi Anonymous, thanks for commenting on my blog. Based on the content of your comment, you don't know much about Amway. Please visit again and learn as much as you want. :P

Gina said...

Great post JC...Amway is not a franchisor in any way. They are not considered a franchisor by anyone, not even themselves. Franchisors and franchisees are governed by a certain franchise laws and Amway clearly does not abide by them because they don't need to. Why IBO's wish to twist logic in such a way to consider themselves a franchisee is baffling really.