Friday, April 17, 2009

Amway Global - Can IBOs Compete? Really?

IBO, or "Independent Business Owner". It's a selling point, for people to say they own a business. They like the title of being CEO or owner of (insert name) Enterprises. But in the real world of business, it seems that most IBOs and their Amway powered businesses seem like a joke. The reason for this is because of some of the zany things that some IBOs say and do. Granted, these IBOs probably were taught (by upline leaders) and believe in what they are saying. But can an IBO actually compete with the open market? I say no and I will explain further below;

IBOs cannot compete because they sell a variety of products, most of which can be found in local stores and often times, found cheaper in those stores. Now even if the exact product cannot be found in a local store, such as LOC, a similar product can be found, such as simple green. Secondly, when a customer goes to a store, they can read the labels, touch the goods, and take a good look at a product. These factors put IBOs at a great disadvantage. Thirdly, a customer who may like certain Amway products, such as the bathsoap or whatever, will still need to go to the local store to purchase perishable goods so there is no savings inthat respect.

Online stores such as has a greater appeal, in my opinion, because purchasing a book is something that people are willing to do online, and many customers don't have a need to touch or feel a book, and would not have to go to the bookstore "anyway" to buy other good.

So can an Amway IBO compete with other online businesses and real businesses? In my opinion, the answer is clearly "no". The Amway produced numbers back my opinion. Very low sales volume to non IBOs, low monthly earnings for IBOs, difficulty in sponsoring others because of the reputation of Amway. If you are on standing order and attending seminars, you make your chance of succeeding practically impossible as the expense of running your business will likely exceed any earnings and/or rebates that you may earn. Some, but very very few people will succeed. Many will try, but the challenges and barriers to success are simply too great for the average person to succeed. A world class runner couldn't outrun me if I strapped a hundred pound weight on each of his legs. Same as how a business owner cannot succeed with high prices and other inconveniences, and not much else to offer the customer.


mike said...

The major approach that is taken by the system is to go out in initally approach people in the hope of recuiting them as IBO's and then if that is not realized then set them up as a customer..

They may buy retail product, in my limited experience that did not happen.

The purpose of this approach is to build the value of the product as a means to earn income, vs just buying the product.

It is possible to only retail products, however in the grand scheme of things, it is a uphill battle and there is a very limited marketplace to sell in.

There was one guy wanting to sell Amway's energy drink to bars and gyms.. nothing has been heard from him in a either he is too busy selling, or his was not able to make the sell.

For me, knowing what some of the items were priced at and have tried the products, find no reason to buy them..I have still have some of the products and use them from time to time..but there is cheaper and the same if not better products out there...

Sorry Amway IBO' sell here.

Gina said...

You forgot that people don't generally like to be harassed by a sales person....this is why no one particularly like car shopping.

MichMan said...

Here's the problem with an ibo trying to sell the product in a gym:


Amway's wholesale prices to distributors on these products are higher than the retail prices of similiar products found in convenience stores.

Why would a gym owner buy XS for over $2 per can plus shipping, hoping to sell it for $3-$3.50? Especially when he can buy Red Bull for a dollar and sell it for $2?

He makes the same profit with Red Bull and has much less money tied up in inventory. Additionally, he has a well known product to sell, versus a lesser known product at a substantially higher price.

Also, does the gym get a discount for purchasing in bulk? No.

Does the gym get favorable payment terms if it has good credit? No.

And what does the gym do six months from now if the ibo is not around any longer?

paul downer said...

Amway is a great company.

you want to make sure you have a marketing game plan.
right now as i am writing this i am in a class with other people thats why you see the same post .our teacher is showing us strategies so we dont have to chase family and friends. if u want more information i will be sharing all that i have learnt for free.My name is Paul Downer
and you can check me out at

Anonymous said...

what? no contact info? gee, what a downer!!!