Tuesday, June 23, 2009

Amway Global - Why Don't IBOs Track Expenses?

In my observation of IBOs and the things they talk about, it is apparent to me that IBOs are taught to ignore their expenditures. I believe upline teaches their downlines to disregard expenses. Some upline teaches that "the facts don't matter". It would seem apparent to me, that any real business owner would track their income and expenses. That is how you determine whether you made a profit or not. A business exists to make a profit.

It seems as though too many IBOs don't understand, or are indoctirnated to believe that their Amway business doesn't exist to make a profit. IBOs will justify their lack of profit by saying they learned to be a nicer person, or they learned how to ru a business. If you received a side benefit by running an Amway business, that is good, but is it why you joined in the first place? Would you have signed up to be a nicer person, knowing there would be no profit, and maybe even losses when considering your expenses?

It is Joecool's opinion that uplines teach thei downline IBOs to ignore facts and to ignore their expenses because it keeps them in the "system" where uplines can profit handsomely. Uplines teach their IBOs that functions and standing order are vital to their success, when the exact opposite is usually true. It is more likely that standing order and functions are the reason why so many IBOs lose money. But it is a clever scheme to teach downline IBOs that they are successful by attending a function, or listening to the latest standing order, regardless of their sales and income.

If IBOs were to run their businesses as a business, which includes tracking expenses, most of them would soon realize that their uplines are exploiting them one standing order and one function at a time. Simply do the math and compare your income with your monthly expenses and you'll see. Most IBOs earn nothing or $9 at best. Factor in the system and you will sustain monthly losses. I challenge IBOs to dispute this.


Amthrax said...

Someone left a comment on my blog today:

anyway you know of telling an ambot that they should at least track expenses to see if it’s a good move. told my brother that and he said most businesses don’t turn profits for years so he doesn’t care and if the dream is big enough the numbers don’t matter.

This is why some IBOs don't track expenses; they think that delayed gratification and "investing" in the business with tools will lead them to the promise land.

Mike said...

Why don't IBO track expenses?

To keep the IBO in the dark about the expenses of the business, as well as controlling their behavior.

Gina said...

"This is why some IBOs don't track expenses; they think that delayed gratification and "investing" in the business with tools will lead them to the promise land."

Exactly....the sad realization is that this is the biggest error in running a business. While some businesses run at a loss for the first years they know exactly what that loss is, they analyze it and constantly look to make any changes to facilitate turning that loss into a profit. Never does a business disregard expenses or any kind of loss because there will be a pay off at some point....and they don't just keep waiting for some day....they set a time frame and make the necessary call to end it if need be. That is how one runs a business.

Free From Q* said...

"he said most businesses don’t turn profits for years so he doesn’t care and if the dream is big enough the numbers don’t matter."

This is utter BS. I know way too many business owners that turned profit their first year or least broke even. (being they were properly capitalized - sorry to confuse IBOs with real business talk)

I also have known people who didn't turn profits after 2-3 years and they wisely cut their losses - not spout "dreams" mantra.

Levi said...

while none of you have proven that what you do is working for you all that IBO's dont know what they are doing.
All this is a bunch of hooey, Each Ibo has a job in which they take care of thier monthly household expenses and they try an opportunity to make more through the Amway Global model. whether they do or dont make a successful business how is that better or worse that what you all do?

you all choose to stay with one source of income,(probably because anything more would be an overload for you) while there is nothing wrong with that I choose to get a second, third maybe even a fourth source of income. tell me whats wrong with that?

Joecool said...

The difference Levi, is that IBOs try to promote Amway as the greates thing since sliced bread. This is despite hard numbers showing that most IBOs earn very little and possible lose money due to system expenses. Nobody here is saying a job is the greatest thing and that you can retire early and be rich working a job.

Levi said...

and most americans are barely above water with a job, should the kid out of high school then say " maybe I should not get into that since the success rate is so low?"

you can point out how bad it is but do you provide a solution.

Levi said...

But that is just the point of my blog site. A job can barely do anything for you but hardly keep your head above water. why would you not seek out a secondary life source? especially when jobs like mine come and go with foreclosures and layoffs. I am not using scare tactics, I am simply pointing out why not have a backup to your primary income.

Joecool said...

Levi, who said a job can barely keep your head above water?

And since nearly all Amway IBOs who attend functions as you do, suffer losses, why would someone benefit from joining Amway?

Levi said...

Joe, google it, read the paper, watch the news, anywhere will say how people are struggling to to do any more than just pay thier bills.
are you kidding me?

Why would someone benefit by just having one source of income if it only keeps your head above water?

I dont know about you but I see and hear of people struggling to pay thier bills, everywhere I turn more jobs are being lost, welfare gets higher, this is not a scare tactic but come on dont act like it aint happening.

just yesterday the headlines in my news paper reads
JULY 8 2009 " report: 1,200 more auto jobs to be lost"
explian that? does it not exist? do you get out of the house much? watch tv, read a paper?

another article reads "up to 8,350 jobs could be lost.."
are you really gonna pretend it ain't happening?

Joecool said...

Levi, yes, I know people are sturggling. People here where I live are struggling. The economy is bad right now.

But again, tell me how it is beneficial to join Amway when their prices overall, are higher than where I already shop, and what's more, a comandeering upline will want to to spend my hard earned dollars on functions.

Levi said...

If that is your truest worry then honesly send them to me, I wont pressure them, I wont sell them insane dreams, I will give them options and choices, those who can afford 7.00 per day can afford to do this business those who cannot then lets give them something else to look at. But to just burst their bubble and send them on thier way when they just thought they found the answer is hard and where do the go from there? they still need answers you just told them they looked in the wrong box and to keep on searching.

with me 7.00 per day is all you will ever spend and with only bringing on board 2 people in your first month or first 6 months it will still be progress towards making it work for them. Like I said most people cant even afford to save but some try thier best and can come up with 200 per month in one year that is 2400 that is enough to do the 7.00 per day I talk about. those who are tired of the nonsense everyone is talking about making money and who just want the real thing, well mathmatically you and I know it is there. if 7.00 per day is the only expense then its the only expense.
I have thier answer, an honest one, no meetings, no cd's no do what your upline says or else. bah just help 2 other people and keep doing your 7.00 per day and I will make it happen for them.

Joecool said...

Well, technically Levi, if someone can afford $7.00 a day, they they can save $7.00 a day. Do that and invest the money, you will be quite happy when you are at retirement age.

Levi said...

7.00 per day 200 per month 2400 per year, asumming one starts from age 20 until age 65 thats 45 years you would have 108,000 and asumming the cost of living does not go any higher you would need approx 2000 per mo. to live on after retirement it would last you approx 54 months after retirement. a little over 4 years. unless you plan to die by the age 69 thats all you got secured. now you could put it into mutual funds or cd's or any other method and probably ge you a few more years added to that.

But 2000 per month after 65? or 2500 per month starting a year from now and you can use it to build other income streams and create a much larger nest egg?

Why dont you let the individual
Decide that? Like I said I wont push them , Just give them options either have it now and enjoy life helping those around you or you can get it when you are 65 while 45 years would enable you to save for what will last you 8- 10 years after retirement?
why not invest into My Plan for one year see if it works like I said, when it does take 200 per month for your scenario and keep 2300 for other things you can do now in your life?

Joecool said...

Levi, you have been working this business for 7 or 8 months at least. Where's your extra 2500?

Levi said...

Is this another cheap shot twisting of my words? I have already told you until last month I have been just selling products. I recently put together a proposal scenario and plan to put it in to action. I am working on a presentation that should be ready shortly. Is That ok?

Joecool said...

Why is it a cheap shot? You illustrated this on your blog. You said is was attainable.

So I am asking where you are at?

Levi said...

no kidding but I have been here talking to you for how long? and you have not paid any attention to what I said I have been mainly using products and selling them? I told you I decided I would now implement the duplication side of the business, and I showed you a projection of what my personal Plan was going to look like, then you throw out there that this plan I just begun to put together should have been done since I have been in for 5-6 months? I make a profit here remember that, I am comfortable with the time it has taken me and now I feel I would like to proceed in a new direction with this opportunity and people like you take cheap shots. what the hell man

Joecool said...

Ok Levi, starting on August 1st, I will follow your progress as outlined on your chart.

Levi said...

so if it works you will recommend my concept?

Joecool said...

If you can prove it works just as you illustrated it, I will endorse you.

What will you do if it fails?

Anonymous said...