Wednesday, April 8, 2009

Amway Global - The Amway Opportunity Is Like Hawaii's Recycling Program

In Hawaii, we have a recycling program started by the State. For each aluminum can, or glass or plastic bottle, yuo pay the store six (6) cents and after you finish consuming the drink, you may take the empty can or bottle to a recycling center and redeem it for five (5) cents. The extra cent that is lost in the transaction is to cover the administrative fees and the expense of contracting a company to redeem the cans and bottles.

This is a direct parallel with how Amway works. You overpay for your Amway products. The amount you overpay is returned to the IBOs in the form of bonuses and in that cost, Amway takes their profits and adminstrative costs. The only major difference is that Amway pays their IBOs in tiered levels with IBOs who have more volume receiving more. In Hawaii's recycling program, the man with small volume would receive the same rate of reimbursement as someone who had a truckload of empty bottles or cans. Although with recycling, you get some money, the extra cent that goes to the State of Hawaii makes this a negative sum game, as it is in Amway as Amway and your uplines take a cut of the bonus before it reaches you.

Now imagine a recycling program where you needed to pay to learn how to recycle those cans and bottles. Thus you are paying a cent in adminstrative fees, and then in addition, what if the State of Hawaii had a "optional but highly recommended" program where you had to pay to learn how to use the recycling center?

The end result would be the consumer would end up with nothing or a loss because of the adminstrative fees and training fees.

That folks, is what you have in the Amway Global Opportunity. Most IBOs make nothing, and if they are on the training program, they almost guarantee themselves a loss. If Hawaii had a training program for recycling which was not free, then most Hawaii consumers would be better off throwing their cans and bottles away and saving themselve the trouble. Much like in Amway. If IBOs are dedicated to the training system, nearly all of them would be better off doing nothing or doing something more lucrative like delivering newspapers or panhandling.

The only difference is that it is "possible", but highly unlikely that someone on the training system will make some money in Amway. Hawaii's recycling program doesn't offer that, but conversely, Hawaii's recycling program, doesn't have a training system. LOL

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