Wednesday, October 6, 2010

Amway Global - IBO Expenses Exceeds Income?

So many IBOs are loyal to their upline but unknowingly get duped. They think that they will all be successful and living in the lap of luxury by following the system and upline advice. However, simple math proves that the system of voicemail, standing order, books and functions are just leeches on IBO resoirces and guarantees that the IBO group as a whole cannot make a profit. Even those who work very hard and do what they are told are hard pressed to earn a profit.

Here's the premise. Let's look at a group of 100 business building IBOs. They all do 100 PV like loyal soldiers. So 100 PV = roughly $300. 100 IBOs would then spend $30,000 a month on Amway products. Since Amway pays about 32% of their take back as IBO bonuses, 30,000 BV would generate about $9,600. If everyone split this up equally, it would be $96 each. But it doesn't work that way. Uplines somewhere get a cut from these bonuses so most IBOs will get about $10 and the upper level ones will get more, based on their personal group volume.

Now since these are the business building IBOs, they are expected to be on voicemail, standing orders, book of the month and functions. Of course, indivudal circumstances will vary, but many IBOs on average will spend between $150 and $250 a month on these various tools. At $150 a month each, the expenditure would be $15,000a month spent on tools to earn $9,600. If the group is a bit more hardcore and spends $250 a month, then the group would spend $25,000 a month to earn $9,600.

This continual system of expenses exceeding income systematically drains the IBOs of their resources and the upline continues to enjoy their luxuries at their downline's expense. How long can any business last with expenses exceeding income? It is for this reason that I believe upline leaders also teach their downline that they are nicer people or better spouses, because it takes the focus off the losses or gives the IBO a justification for the continuous net losses.

IBOs, and prospects should think about this message carefully. Keep track of your income versus expenses. A business exists to make a net profit. If not, why are you in business to begin with?

1 comment:

Anonymous said...

i don't want to hear any more "personal growth" crap. i get that from going to church twice a week and reading my bible!!!