Friday, February 11, 2011

IBOs Must Lose Money!

Most IBOs who get involved in the Amway opportunity lost money. IBos and critics have debated this issue for years, but the fact is that IBOs lose money, because they must! For the sake of this discussion, let's disregard IBOs who sign up and do nothing. Those who sign up and do nothing get exactly what they put into the business. Let's instead, talk about the IBOs who put in some work, and purchase and use training and tools from the upline.

If you analyze the common 6-4-2 plab or any variation, the "2s", or bottom layer is the majority of IBOs. They are at the 100 PV level, thus the typical IBO at that level is moving 100 PV, and getting a bonus from Amway of about $10 a month. These IBOs will also be spending possibly several hundreds of dollars a month for training and tools. The next layer up of the "4s" will earn maybe $40 to $50 a month, they also spend up to hundreds of dollars a month on tools and training. It is very likely that the platinum is the only one who might clear a small profit in the end.

IBOs will justify their position by claiming that they will eventually go platinum, and eventually go diamond. Really, for those in the US or Canada, can you actually name even a dozen new diamonds from the last several years? I believe there are fewer diamonds now than a few years ago as it appears that Amway is shrinking in the US and Canada. But for those who cling to the notion that they will go platinum or diamond, here's the counter point.

For every platinum, there will be typically be up to a hundred or more IBOs downline losing money. Therefore, if there emerged 10 new platinums, then it is likely there are a thousand or more downline losing money. The more new platinums you have, the more people exist who are losing money. And let me be clear, they are losing money because of the training and tools. The training and tools are just a drain on IBO resources and the training and tools do very little to help IBOs learn to run a profitable business.

My conclusion is that IBOs lose money because they have to! The system of products, tied together with tools and training guarantees financial losses for more than 99% of those who participate. It is well known to everyone, except, apparently to the IBOs. I hope this blog post helps.

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