Making profits?

If you are just to break even and make profits you must go well beyond the basic business plan represented.
You must market these products to many many friends, and get them to sign up under the same pretence (probable losses of 300 dollars a month?). Not easy.

This system relies on you and your downline to spend hundreds of dollars on questionably priced Amway items for as long as they (and you) can afford it, or until all your friends drop out, go broke, or become alienated or your enemy, and dont speak to you any more, and you have burnt all your bridges. Let's be honest, even if they gave away money, the company has such a negative image it's difficult to trust them, let alone convince your friends to.

So if you're not yet a "diamond", how do you make a big profit?

Continuing on from our previous article where we established the basic Network 21 / Amway business plan results in a loss of $300 a month, assuming all personal consumption.

Examining another example given in the presentation, as we understood it:

To make the 7500 points required for the 21% bonus, in your down line you could do the following:

Convince 25 people to spend approximately $1200 every month. or 5 people to spend $6000 dollars a month, on products they probably dont need? Do you know anyone in the world that would spend $6000 on household goods monthly? Dream on.

Lets make this more realistic (but still doubtful). Convince 75 people to make payment of 400 dollars a month (30 thousand dollars total) on these questionable products, and you will have your 7500 points.

Earning 7500 points will grant you the bonus of 21% of $30,000 spent turnover.
$6300! What a payout structure!
For the amount of effort it would take to get 75 people in your downline, That amount of profit is peanuts.

If you did ever manage to get 75 people to sign up to spend 400 dollars a month on Amway products how long do you think they would continue to keep paying 400 dollars a month (losing money) before dropping out, and thus you losing your bonus? Not very long. You would have to have part of your brain missing to want to lose hundreds of dollars a month. Or the alternative story to sustaining the bonus you could get the 75 people in your down line to get 75 people in their downline, and so on and on. Is this really feasible business? How many leads would you need? Lets be realistic. In MLM, the market for any product will always eventually reach a saturation point, if it has not already. Especially if the company has been around for 50 years. However they do say a sucker is born every minute. Fortunately, or unfortunately (depending on your economic and environmental stance), the earth's population is always expanding.

The systems outlined might be beneficial for some. There are a thousand other systems and opportunities out there that are much easier and can make you millions, and some are outright scams. Question the facts, investigate all systems yourself, they may be a much easier path to financial freedom.

8 Comments:

Anonymous said...

"There are a thousand other systems and opportunities out there that are much easier and can make you millions. They are a much easier path to financial freedom." - So, Mr Million, have you found your perfect system or easier path to financial freedom? Share it.

Mr Million said...

Yes I have, but at this stage I don't have the time to elaborate in detail and dedicate the effort to helping people on a mass scale in this respect, as much as I would like to. It is something I am considering for future endeavours.

Perhaps if there is more demand and I have the time I may one day share my "secrets" to wealth (to those outside my circle of friends). The methods really are not that special. I'm a fan of simple and easy riches.

Also what works for me may not be for everyone else, in the same way Warren Buffett could not do Bill Gates' job. Having said that I am quite confident anyone can become a millionaire if they applied these methods.
I will say a good starting point I recommend everyone look into is to start your own business.

Rescuing a Relative from the Clutches of N21 said...

Seconded. One of the first things an MLM rep will try to tell you is that there are "employees and business managers" on the one hand - making salaries - and "business owners and investors" - making money from other peoples' work - on the other. "Freedom" is described as 'earning enough money to pay for your ongoing life costs'.
Buying into the MLM, reps will claim, will put you into the second group. It might... eventually... if you're lucky enough to be that one in several thousand who can actually make a replacement income profit from the system. That's conservatively a 0.01% chance of 'freedom'.
As an alternative, starting your own business makes you a business manager - but you can aspire, with time and effort, to employing sufficient staff and sub-managers to do the 'work' and free you to move to the second group. This may happen... eventually... if yours is not one of the 70% of start-ups that fail. That's a 30% chance of 'freedom'.
I know which path I'd choose.

Mr Million said...

Indeed.
Starting your own business definitely does have risk, but it is a much more controlled risk. Whereas the 99% (often quoted in online material) risk of failure through Amway is almost impossible to beat, given factors like over saturation, negative image, and overpriced products.

In the Network Twentyone seminar presentation (slide 2) they emphasised the negative connotations of being "employed, self employed / owning a small business" and also working hard for somebody elses benefit (your boss), yet praised being an independent "business owner".

Tell me, what is the difference between owning a "small business / self employed" and being an independent "business owner"? Nothing, right, they are exactly the same? Yet somehow one is bad, and the other is good? You can only laugh at such moronic comparisons.

What's so independent about lining your upline, and Alticor's bottom line before your own?
Even though their official classification may not class you as their "employee" an IBO does not own Amway, nor have a share in the company (i.e. stock), they are working drones / salesmen for somebody elses company.
Maybe it's just me, but I fail to see the independence there.

Anonymous said...

I agree with Mr million. I was an IBO for a few years and had about 35 downlines but I can tell you I lost a lot of money purchasing things at that I ended up using for 4years after I left Amway and N21. The reason for this is that they expect you to buy in bulk. And if you are a leader like I was you are brainwashed to belive that you must buy it so that your downlines buy it. I think they try and turn you into a mindless consumer. Illogically excited about new products.

I must admit I appreciated the books on personal develoment but the CD's were just an exercise in brainwashing. I learnt a lot but there is a better way to acquire knowledge without losing your money and even more ways to legitimately make money. Be your own person.

I must say another disturbing thing was the "edification" or praise that you had to give your upline...no different to sucking up to a boss.

Truly from one who was in the system and really applied it religiously believing all the CD's etc I do feel duped and not in a good way. I can't call it a scam but I will say that if you want to get rich and retain your dignity and friends skip Anway and possibly N21. You'll have a lot more self respect after.

Anonymous said...

I have recently been approached by N21 reps. I must admit that I did feel a blind sighted and due to lack of transparency, I felt uneasy by the whole process. If I had to take a business plan to an investor without transparency and willingness and preparedness to answer any question, would lead to huge doubt on my credibility right? So what is it that they are being discrete about and why?

Anonymous said...

They won;t reveal everything to you because then you might see it for the scam that it is.

canefan said...

After being out of the "business" for 9 years now I am a still angry with myself for being such a sucker. The obvious manipulation is stunning. The most disturbing thing was the use of the Bible to manipulate people. They liked to tell people that all they had to do was "name it and claim it". This basiclly said that you can order God to grow your business. Those not sponsoring enough people obviously had a spiritual problem as there couldn't possibly be Nything wrong with the "system". Upline would also advise people when to and not get married. My only exanaination is that I hated my job and I believed what I wanted to believe. More than the several thousand dollars I flushed I down the toilet I wish I could get the 2 years back. I did get to know some wonderful people but how many of my "friends" were just stringing me along to maximize profits.