Amway business plan

Network 21's presentation of Amway's basic business plan (figures taken directly from the official seminar presentation):
In this business opportunity, to "earn" $112 in Network 21 you:

Spend 400 dollars a month.

Wait! What?? Costs 400?

Bearing in mind there are other more advanced plans, this was the first plan represented in the presentation as we understood it. The next plans are where you hassle your friends / network market to them, which evidently is what was being done to me. This basic plan displayed and detailed in this article was consuming / onselling products directly, with no downline.

The money you are spending is "retail prices" on "everyday" products, you then get back a discount (25% "saving on retail").

Depending on how much you spend. due to the discount you are making a "saving" of 100 dollars, plus a 3% bonus of $12.

To quote the presentation you have just made a "total profit of $112".

Lets look at the basic plan simply, with half a brain, with no marketing hype:

You spend 400 dollars on products (energy drinks, water filters, supplements pills etc) per month.
Personally I currently spend 0 dollars on those products. How much do you spend on such products a month? Keep this figure in mind when considering Amway products as a viable business venture.

Secondly the prices the products are sold to you at are quoted as "retail". Some people say "overpriced". Refer to the article where we compare Amway's product prices for more information.

Either way, in the best case scenario, even if these "retail" values were fair, you have spent $400 (plus approx 3% / $12 in shipping costs)

400 dollars a month on overpriced products I dont need or want. They are useless to me.

Let's do the math
+112 "profit"
-400 product spend
-12 shipping
=-300

The $112 profit represented in the seminar is no profit at all, it is a loss.
That is minus 300 dollars a month. All cost, no profit, in fact a decent loss.
This does not even take into account the startup or running costs!

That makes your 9 to 5 day job look like paradise, and Network TwentyOne look like...you decide.
Explore your other investment and business options, there are good ones out there, because the Amway business compared to asbestos is very similar.

6 Comments:

IBOFB said...

wow ... you really seriously didn't pay attention ....

Mr Million said...

IBOFB it would only be fair to disclaim you are "an Amway business owner" (work for Amway), and thus have a vested interest in bagging commentary that does not align with your biased views.

Secondly I have the seminar recorded.
1. You were not there are could not know precisely what was represented to me.
2. Even if you did know exactly what was represented to the room, if I "did not pay attention", please point out how page 8 of the seminar, entitled "The business plan" differs from the above figures.

There is no difference, they are exactly the same because that is where I sourced the figures.

Joecool said...

IBOFB schooled again. LOL

Anonymous said...

I hope to bump into you one day mr million I dont know where , but someday :)

Mr Million said...

Why is that "Anonymous"?
No need to thank me ;)

ConnieF said...

Mr Million: I think what IBOFB meant was 'you really seriously paid attention". It was just a freudian slip on his part ha ha ha.

Anyone with half a brain can see that Amway's business plan is:

1) You pay your hard earned $$ to buy our overpriced sh*t.

2) We also overcharge you for 'tools' which are really the mechanism for brainwashing you to buy more overpriced sh*t.

3) We take your money and give you back a measly %.

4) We blame you personally when the "business plan" fails to produce what we promised.

Wow, where do I sign up? NOT!