The way I was shown 'the plan' in the UK, initial profit depended on doing a small amount of retail. The example was 10 customers each spending £20 a month = £200 worth of sales, profit about £48 plus small 3% bonus total of £52.50
By continuing this small retail business and introducing other people to duplicate this the bonuses increased to £1000 a month plus the £48 from retail.
On paper it looks quite feasible, when you swallow the 'buying direct from the manufacturer, cutting out the middle man, blah blah) That's until you see how much these 'wholesale' prices are...
The reality is that few people outside the business will pay the premium prices for products so distributors end up buying lots of stuff for self-use, kidding themselves that they'd be buying this stuff anyway (yes, but much more cheaply!) and putting the difference between the price you pay Amway for the products and the 'recommended retail price' towards the cost of books, CDs, meetings etc.
Also, no business grows as the snowflake diagram on the plan suggests it will.
I can understand why people outside the business are bemused as to why people listen to these tapes/CDs. Perhaps the following will help:
If you listen carefully to the tapes, the real message is 'use the system' ie keep going to meetings and listening to tapes. "Tapes are like oxygen." Some of it is motivation - stories of other no-hopers who now have fantastic lifestyles, but mostly it's 'keep on keeping on'.
I was in a different LOS but I bought some World Wide Dreambuilders cheaply off ebay for research and they were just the same as the tapes I used to listen to. Even had some of the same jokes.
They are trying to reassure a distributor that a) they are doing the right thing b) that if they are persistent success will come c) that winners never quit d) that losers who quit are never going to succeed at anything in life. Other messages include ignore people who try to steal your dream, they have nothing to offer you, one day they'll see how successful you are and they'll either come round or be totally jealous.
At meetings we were often told that it could take listening to many, many tapes before you suddenly 'got' the message and then your business would explode (Amway-speak for grow fantastically quickly).
To be honest you really need to have been in the business to understand why people listen to these tapes and listen to them over and over again. If you've had an unsuccessful plan (showing the business to a prospect who wasn't interested) or come back from a potential customer without a sale, it helps to hear a story about someone who had the same experience but who now has a 'huge' Amway business. Without that injection of faith it's very easy to quit and of course that's the last thing they want because then you'd stop buying tapes and going to meetings and then where would they be?
Regards,
Helen
Loving Father <cantonoh2003@
Thanks all!!!!
My current phase of the "Team" encounter is the experience of:
- anything I say that is not Pro-Team is considered negative.
So others have faced what appears to be common response of:
"You're being negative; don't you want me to succeed? Don't
you want me to fulfill my dreams which will make YOU happier?"
lol [:D]
Looking at the upside – I do enjoy reading many of the business
books "Team" recommends. Watching the DVD's or listening to the
CD's…. that's a different story. lol
When talking about the "Team" I choose my words carefully. I
asked my wife:
"Since the Amway / Team breakup it has come out that one does not
make much "if any" money off the products; so how DOES one make
money?"
Her explanation was anything but.... financially sound. The more
questions I asked the more irritated she became. She said she would
give me a compensation outline.
Allow me to share one antidote.
Wife: "One gets a number of different bonuses based on how much you
buy; - and how many people you have under you; - and how much they
buy"
Me: "I don't understand? The purposes of a business is to make
a profit. One must have more revenue coming in that going out. In that
set up one will ALWAYS be buying more than revenue come in. How do you
make a profit?
Wife: "the items I buy I must buy anyways so I'm not loosing
money"
Me: "but you're not making a profit"
Wife: "you just don't understand. When I get enough people
under me buying the bonus can get to $1,000 a month an much, much
more……
Me: "how many people and how much do they need to buy to receive
$1,000 bonus a month?"
Wife: "I'll get the paper that outlines bonuses"
I still haven't seen this 'how to make money' paper. lol
I didn't say this but I felt like saying:
Instead of buying over priced products –
1)Why doesn't everyone just shop at there local store purchasing
their products at a cheaper price.
2) and every month everyone send $100 bucks to their upline and be done
with it.
It accomplishes the same thing.
Hal Vaughan wrote:
"What you tell your wife can easily be called "negative" and written
off, but if you use questions to get her to think it over, she might
realize, on her own, what is happening."
"…. handle it carefully. If you take this away from her, you're
not taking away a scam. From her point of view, you're stealing her
dreams and chance to succeed. That's why it is important to use
questions that make her think."
Xxfarmhandxx wrote:
"They will tell her that you are jealous or afraid that she might
become more successful than you and that you will do everything you can
to sabotage her success. They will advise her to do things such as buy
tools in quantity or many more tickets to functions than she will be
able to sell. They will advise her to hide these things from you. They
will try to convince her that she should do these things because she
loves you and is going to make a very large residual income so that you
will not have to work again and in the end you will see the error of
your ways and be ever so grateful."
Jennasknnr wrote:
"…also let me impress on you to be careful approaching your wife
with anything "negative"."
Gimpymommi wrote:
"….and don't forget The Dreams."
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