Tuesday, May 26, 2009

Amway Global - What Was Your Sales Volume?

I keep on seeing IBOs talk about Amway sales. Amway did about 8 billion dollars in sales for 2008 and last I heard, Amway sales for North America was about 1 billion dollars. That is great for Amway! Many IBOs boast about these sales and certainly, Amway made a handsome profit from these sales.

But IBOs are not Amway. An IBO is a "Independent Business Owner". Amway could do 100 billion dollars in sales but if you did not move volume, you get nothing. So for all the proud IBOs out there - what was your sales volume? Did you actually sell products to customers or did you simply self consume your 100 PV? If you self consumed your 100 PV, you are basically a customer and not a business. If you have donwline who copied your self consumption model, then your group is a bunch of customers of Amway and not business owners.

There are some uplines who teach self consumption, and they call these IBOs "prosumers". I believe if you are getting this advice, it is bad advice. A business needs customers to make a profit. If you are participating in a self consumption model, your ability to make a buck depends on your downline purchases, and your ability to continue to add downline. You are also running a product pyramid if you are running your business in this manner.

So I ask again of IBOs - what was your sales volume? That is really the only figure that matters.

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