Friday, March 27, 2009

Amway Global - How Much Does It Cost To Be An IBO?

The actual cost to register as an IBO, I believe is in the neighborhood of $50. Many motivational groups such as BWW or WWDB or others, may have different costs because of product samples and/or tools included in the signup process. But aside from the cost of registration, what does it cost an IBO to run a Amway powered business? Many, if not most IBOs probably sign up thinking they will make money right away, only to find out that ongoing costs easily turn small profits into losses. Some of the costs I will display are optional, but often promoted as mandatory. Listed below are monthly costs:

100 PV = $300
KATE (voicemail) = $20
Website fees + $20
Standing Order (Tape/cd subcription) $42
Extra tapes/cds (two per week) $56
Book of the Month $10
Functions/Major functions (averaged out) $125
Monthly Open Meeting $8

These somewhat minimal estimates of monthly expenses add up to $581. Were you informed that a business building IBO would have to spend in the neighborhood of $600a month? Would you have been interested if this were disclosed? I woudn't have joined if this was disclosed to me. These costs are actually lowball estimates if you are a hard core IBO. These estimates would run you about $7000 a year. In five years, you may have spent $35,000 to build a business where you have a fraction of a one percent chance of making any real money.

What could you do with an extra $7,000 a year? What could you do with an $35,000, say 5 years from now?

The average active IBO earns less than $1,500 a year.

Do the math!

32 comments:

MichMan said...

Amway apoligists will say that doing 100 PV is not a cost of doing business, that if they were not buying those products from Amway they would be getting them at the grocery store.

While that may be true, these ibos were probably not buying shaving cream at $13 per can, or spending over $100 per month on vitamins (as they will in Amway if husband and wife are on Double X).

So yes, many of these products ARE a cost of doing the Amway business.

Joecool said...

Michman, you make a good point, but in my opinion, it is a cost.

Unlike what IBos teach, it is not changing you buying habits because the 100 PV is a defacto quota.

What I also find ironic is how upline leaders convinced the downline of product loyalty, except for certain things such as KATE instead of Amway voicemail, because upline profits from KATE and not IBOCS.

Gina said...

what makes it a cost is the fact that it goes through their business. If they just went to the store like normal people it wouldn't be a cost for the business. They get a refund/bonus check back from Amway based on those purchases, but they don't sell the products....its a cost that in the end with proper accounting, should cancel itself out.

TB 2 IBO said...

Anyone who claims that running a business, Amway or otherwise, is free is stupid or delusional.

Running a business costs money. Running an Amway business costs money.

Having an MLM business allows folks to get some experience in the game of business ownership. It is far less costly and the risk is minimal comparatively speaking.

Which can help and hurt new IBOs. If they treat it like a business, have customers to service as well as build a network of WILLING participants who understand what they are getting into, it can be worthwhile. Perhaps not the millions that some folk claim, but what about a healthy 10-25,000 a year after 4-5 years work?

It is not a game and shouldn't be considered as such.

Joecool said...

TB2 IBO,

I msut ask why uplines (not all) downplay any Amway business expenses. I see some leaders saying "no overhead". No expenses. Low start up cost. Many many IBOs have no clue that running an Amway business will cost them in the neighborhood of $600 a month if they are on tools, with the $600 including the cost of products.

While there is no "requirement" to make purchases, business builders have a defacto 100 PV "quota".

Anonymous said...

"Having an MLM business allows folks to get some experience in the game of business ownership. It is far less costly and the risk is minimal comparatively speaking."

That is how upline sucks people into the business. People who otherwise would never consider starting a business. Then upline will rape and pillage these folks with their support materials.

Anonymous said...

You don't have to spend $600, necessarily. To tell the truth, the cost runs to about $300, including standing order CDs+books ($45), products ($200)+monthly meetings, travel, etc. But, once you have a team doing the same, you recover this cost and some more. It is just common sense to build the team the right way and get maximum profits as soon as possible. Since growth is exponential, your earnings grow exponentially. Do the math!

Anonymous said...

no proof of those earnings--still? hmm. then SHUT UP!

**proud Amway hater**

Anonymous said...

I am an Amway IBO and within the first 6 months of business my income is more than double my expenses. You are not REQUIRED to buy books or cds monthly and you are also not REQUIRED to go to events. There is no monthly PV requirement. We all share books and cds and lend them to downlines so that those costs are cut out completely. I've never even heard of anything called "KATE" ?

You are obviously someone who tried the business and was too ignorant to figure out how to correctly use the system. This is such a ridiculous waste of time, if you have time to be sitting on the computer complaining, it doesn't surprise me in the least bit that you didn't do well in Amway.

All of my uplines make a more than comfortable living, and I'm doing just as well. Get over yourself.

Larry Weissman said...

What happens is we get caugt up in the moment of 'getting rich'.
Here is the cost breakdown of Legal Shield (formerly PPL):
cost $149 assiciate (IBO for life)
monthly membership $17-$36 (equivalent of autoship)
OPTIONAL webiste to do business (versus paper applications) $20 monthly
weekly training $10 (room share)
weekly business overview for guests ($10 for IBO, guests free)
monthly regional event ($20)
------------------------------
membership payouts first 3 or 5 give you $69, after that $103, and it goes up from there. Hope this helps. Larry 213-494-8220

Kishan Paul said...

such a looser explanation....

Anonymous said...

anon@6:31, you're just plain worthless.

kishan, my sentiment exactly!

Anonymous said...

Annual Membership Fee: $50

If you use AT&T or Sprint, get 20% monthly discount. So if your monthly bill is $100 you get $20 back every month, that adds up to $240/year

Income: $240 - $50 = $190/year (without doing anything)

Now how one can say that this is a business of loss?

Anonymous said...

Nobody wants amway products...they have weird ass brands and I would rather go to Walmart. The days of door to door salesmen and the purchasing of these products are dying with each elderly person that passes away

Anonymous said...

I'm a new IBO and I must say that I am astonished by the prices of the products. I was told that you can spend the same money you would at the local supermarket and actually make something off of it. I'm finding that isn't exactly the case. Example: My wife and I drink a lot of water so the "Perfect water" brand seemed like an instant fit. However, where I would usually pay 3.99 for a case of 24 16.9 oz bottles (Aquafina), the "perfect Water" is 40.80 for the same number and size of bottles. That's ten times the normal price! And that's at IBO cost. Retail is 47.00. To make it even worse, you don't even get full credit on the pv/bv. I admit that I'm not totally clear on how that all works, but I do know that I sell/spend 40.80 worth of product and get credit for selling half of that.

Joecool said...

Good post. Not to mention that perfect water doesn't apparently have any special benefit for the IBO except costing a lot.

Anonymous said...

Crazy how this company had great success for awhile with these requirements. And thank god was too young to be apart of its crash lol. Ill say that amway would be the myspace to Melaleuca being the facebook of today. Similar product idea since shopping does apply to everyone or atleast 98% of our globe. But running off a CDM model instead of MLM helped them change the game. took a good idea and made it great. probably why their retention rate in the business is superior to every network marketing company today or atleast ive seen. Love chatting about network marketing, jessepd2@hotmail.com if you have any history or good facts to exchange

Anonymous said...
This comment has been removed by a blog administrator.
Anonymous said...

I have been an IBO for years there is no monthly minimum to stay in business. The only requirement is a yearly membership renewal but you DO NOT have to stay active with mandatory purchases however, you won't make money that way. you don't even HAVE to sign others up of you dot want to. It is your business you work it the was you want to and you are paid on the volume of products you use....One thing that walmart will never do is to pay you for using there products but, Amway does!!! people please so your home work bbefore you bad mouth a company that Jason been around for 50 years and still going and growing strong. by the way, I do not work my business and currently have no dowline, my choice. But I still renew ever year

Joecool said...

LOL, Amway pays you and WalMart doesn't? That's a good one.

So you buy double x vitamins for $55 and get "paid" a dollar.

I buy a 60 day supply (twice as much) of multi vitamins at Walmart for $24.99 and I don't get paid.

Who's better off?

I can get almost anything cheaper at Walmart instead of Amway nnd I don't have to pay for shipping!

RachelsPartyof5 said...

I'm not even an IBO but the organic ingredients in Double X pale in comparison to the GMO infested vitamins at Walmart. You get what you pay for. IMO

Chris Garland said...

I have a few suggestions:

1. Put one of your walmart viatamins in a glass of water and right beside it put a Double x vitamin in a glass of water. Watch the difference! The walmart garbage does not even dissolve into the water..its discusting to watch actually. The totally organin double x completely dissolves into the glass of water totally and that is the same that happens in your body. Now who's better off? Pay a bit more for a REAL product or put garbage in your body from walmart and say uneducated about what really works?

2. Amway works. Plain and simple. Its like any other business..put work into it...treat it like a business and you can make it work for you. Of course there are some expenses to run your business. Go open a Mcdonalds and let me know what your "costs" are to run day to day operations. If you're going to argue about how amway is no good at least sound educated. I mean go open a mcdonalds for 1.5 million and then pay your insurances on a "monthly basis". Hmm..lets say amway costs you 500 month to run, which it DOESNT... that's nothing compared to your workers comp insurance you would carry owning a mcdonalds of 5000 a month. Get real guys...

3. Amway works! I'm proof. Why does it work? Because its built on honesty, trust and hard work. If you think you are going to sign up...tell one friend about it, they say no and you're not rich yet then you get mad and talk bad about the business. How about get some mentality and when someone says its not for me say ok, great, and go to the next person that opens their mind and understands its a no brainer business that pays you for buying stuff you are already buying at stores! Hmm...buy paper towels or paper towels with a dollar bill taped to them? Hard choice hu? If you have a broke mentality going into the business save your money and don't do it...you wont succeed. If you want something in life rather then kissing your bosses ass every day then go for it. Take some no's and keep powering through! Start listening to people that are not broke like your friends and family and take a shot at something in your life for once!

Anonymous said...

Amway works. It's that simple. There is a cost to running any business.

Go open a mcdonalds and then go publish comments about how your upset that it costs for workers comp insurance, electric, payroll ect. Give me a break!

If you have a broke mentality in life you will stay broke. Change that and you have a chance doing amway. It takes work, hard work and an understanding of how it helps people. I'd imagine the people leaving these negative comments live paycheck to paycheck and will until the day they die.

Start chasing your passion not a paycheck...
Go for something...quit listening to other broke people and do something that can change your life! Amway stands for the American way of life, yes it takes work, yes it takes some money, yes it takes some time, but guess what??? Being broke and dying broke takes those things too!

Joecool said...

Amway doesn't work. Even if one person succeeds, that is not proof that it works. Luckily, my stomach has acid to dissolve vitamins. LOL

What is a broke mentality? Something your upline taught you at a function?

Anonymous said...

Just a question for an IBO.. I do not know how it works but I an interested in finding out the information. As an IBO do any of the profits you make have to go to someone else above you?

Anonymous said...

You dont need to purchase all those things to run your amway buisness and make money....and as for the 100 pv its the switching your shopping habits....if you owned a pizza hut and you were selling it for $10 but you could get the same pizza at little caesers for $5 on a night when you want pizza are you gonna go to little caesars? No your gonna buy it from yourself instead to promote yourself and to get the profit off of it back

Joecool said...

I would go to little Caesar's if it was cheaper.

But for the record, Amway is not cheaper.

Anonymous said...

You get what you pay for. Cheap products = cheaply made crap

Samuel Birkholz said...

In response to the anonymous post on October 15, 2013. Your sponsor does make money off you, but your check essentially comes from them. They pay you for your success. Essentially it's the concept of them getting 15% while you get 85%. If you sponsor one individual as motivated as yourself, then the 15% your sponsor keeps is partially replaced by the amount you keep when cutting your downline's check. Granted your own sponsor will also make more due to your success, your chance of being successful depends on your team or network. Believe it or not, there are products priced similar to windex glass cleaner, and body lotion from Bath & Body Works.

I am a new IBO and have been doing very well marketing the cheaper products. I find it easier to sell 10 of the $6-$12 products than it is to sell one of the $60-$75 products. I admit I did a lot of research and planning before deciding to give this a shot, but I literally spend under or around $100 a month myself. I do sell over $500 of products a month to other, now loyal, customers. This gives me 200 PV (give or take 30) per month.

Lastly, I am going through a process with a close friend in order to see if they want to join in this business. I will admit my process is a little different than what may be traditional, but I hope to lead by example and give anyone I sponsor a fighting chance.

If you have any more questions feel free to ask here, or find a representative near you. All I would say is be honest with people. If you are uncomfortable or feel like you are only participating due to pressure, let them know. Personally, I believe if I can't have someone on my team, I would love to win their business. If they have no interest in what I have to offer, either job related or product related, I hope I can still have their friendship. I hope this helps. Feel free to post here for more information.

I would also like to add that in no way am I trying to recruit people from here. I deal locally and hold to my ethics.

Jordan Amerongen said...

Two thumbs up :D

Jordan Amerongen said...

Walmart pay employees terrible wages, does shit to no reasearch and sources its products from around the world where people slave away to make cheap products. Atleast Amway has its own research and quality products and pays their employees a respectful wage.

Joecool said...

But at the end of the day, Walmart employees get a paycheck and they can buy things with that money. Better than paying Amway so you can sell their goods.

In Amway you are a commission only employee who incurs their own expenses to sell Amway stuff.