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Managing Your Finances

October 14, 2008

When I was in the business, I used Quickbooks to manage my business finances. Because of that, I knew exactly what was going in and out of my business. Unfortunately for me, when I looked at the state of my business after two and a half years, I could plainly see that profits were non-existent when placed next to expenses from tools, functions and gas. This information helped make my decision to leave the business very easy.

In these tough economic times, nearly everyone needs to take a closer look at their personal and business finances. For those IBOs who are in the black and profitable, congratulations. Here are some questions:

  • How much time are you spending to earn this your monthly bonus check?
  • Do you know your expenses down to the penny?
  • How are you downline doing? Are they in the black too? Red?

While it’s good that you are making some money after expenses, ask yourself how much effort have you put into your monthly bonus check? Proponents of the business talk about being able to duplicate your efforts using your downline; how are they doing? Are they in as positive a situation as you are? If they are not, what are you doing to help them?

For those IBOs who are in the red, here are some questions to ask yourself:

  • How long has it been since you were last in the black?
  • How much time are you spending on the business?
  • How are you downline doing? Are they in the red too? Black?
  • Do you know your expenses down to the penny?

If you’ve been in the red for some time, maybe it’s long past due to reconsider your involvement in the business. While the tapes and functions may say that success is just around the corner, is that really true in your case?

Finally, for those IBOs who don’t know if they are in the black or red, answer the following questions:

  • What are you doing to keep track of your finances?
  • Collect all of your receipts and start adding everything up. Add up your bonus checks from the corporation. Which number is bigger?
  • How are your downline doing? In the black or red?

Dude, if you can’t manage your own finances, how do you expect to teach your downline to do the same? They are looking at you for guidance… and if they’re not, shouldn’t they be?

A good IBO makes sure to know the exact state of his or her business at any one time. A great IBO should know the status of his or her downline organization. If an IBO is doing great financially but his or her downline is in the dumps, that IBO, in my opinion, is not doing a very good job.

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12 Comments leave one →
  1. mike permalink
    October 15, 2008 1:11 am

    I had some collectible items to sell on Ebay, I did a bit of research and starting selling the items that were in higher demand, and sold those items first, I was able to sell them for more than I bought them as well as cover the cost of using Ebay.

    When I got to the items that had lesser demand, I tried to sell those, and they did not sell.

    So at that point I stopped, why pay for the Ebay service in the hopes that someone would buy them.

    I cut my losses early and got out.

    I guess I could have listened to some tapes telling me to keep on keeping on, but then Ebay would be getting all my money.

  2. October 15, 2008 8:10 am

    Amthrax,

    If your tool expenses were a fraction of what you paid (let’s use <5% as a realistic figure), do you think both you AND your IBO’s would have made money and still be in the business?

  3. October 15, 2008 9:06 am

    None of my IBOs participated in the System (thankfully), so I can’t speak for them. If even tools were 5%, I was making a pitiful amount of money given the time effort. We were taught the BFYATODS model, which doesn’t lend itself to profitability from the get-go. My System liked to say, “You don’t have to sell… just teach others to become smart consumers.” So, without a strong customer base, I was doomed to failure. Knowing what I know now, I wouldn’t join because I don’t want to sell these products.

    So, to answer your question, I may have broke even if the tools were cheaper or made a little money, but I would still not be in the business today.

  4. October 16, 2008 10:28 am

    Would your IBO’s have participated in tools if they were 5% of the cost you paid?

    Do you think this would have led to more volume and therefore profit?

    Unless you have a HUGE personal retail volume, you will make MUCH more profit from your IBO’s than your personal retail customers.

    Do you understand that?

  5. Porkchopjim permalink
    October 16, 2008 7:57 pm

    Unless you have a HUGE personal retail volume, you will make MUCH more profit from your IBO’s than your personal retail customers.

    Thank you, Tex!

    You just admitted that your plan is to make MUCH more profit from your ‘business partners’ than from actual customers!

    JUST LIKE THE KINGPINS YOU CLAIM ARE FALSE PROPHETS!

    The Tex Transparency Initiative: You can’t cure the cultist stupidity called ‘Tex’!

  6. October 17, 2008 11:31 am

    pcj,

    Yes, but each of the IBO’s in my group have their own choice whether to have a largely customer retail or IBO volume business. I get paid on whatever PV is consumed either way. The difference with the LCK’s is they make MUCH more money from their tool scam, so they prefer IBO volume over customer volume, as customers don’t buy tools. Why would the LCK’s want their IBO’s to waste their time finding and serving customers if the big bucks are in the tool scam?

    But thanks for posting and “enlightening” us with your pcj Perjury Initiative once again! LOL

  7. Porkchopjim permalink
    October 18, 2008 7:54 am

    Yes, but each of the IBO’s in my group have their own choice whether to have a largely customer retail or IBO volume business.

    Your pretend group, you mean.

    Why would the LCK’s want their IBO’s to waste their time finding and serving customers if the big bucks are in the tool scam?

    And why would LCK’s produce tools that ‘help’ their ‘business partners’ build larger businesses when the real money is in selling tools to repeat customers?

    They don’t, and they haven’t.

  8. October 18, 2008 1:42 pm

    pcj,

    How would you know whether my IBO’s are “pretend?” You wouldn’t have a clue, just like the rest of your comments.

    Plus, you missed the entire point of the post, as usual.

    The real money is when more IBO’s get involved, including plenty of churn as well. They do, and they have.

  9. Porkchopjim permalink
    October 20, 2008 9:19 am

    pcj,

    How would you know whether my IBO’s are “pretend?”

    I’m sure they’re just as real as your multitude of black friends that you call racist names in public because you’re cool.

    Plus, you missed the entire point of the post, as usual.

    The real money is when more IBO’s get involved, including plenty of churn as well.

    I didn’t miss anything: it’s you who is trying to cover up your losing internal consumption ‘bidnez’ model where you can only finally get a profit by convincing enough people to keep eating their own products until they can convice enough others to do it as well…and all while consuming a steady diet of mind-control blather sold to them as ‘tools’ which is where the only true money in Amway is made. That other story is for gullible followers…who aren’t too bright to begin with.

  10. Joecool permalink
    October 20, 2008 1:03 pm

    Tex’s entire business is pretend. Who in their right mind would do business woth tex? LOL

  11. October 21, 2008 5:42 am

    pcj,

    Like I said, you wouldn’t know. LOL

    A swing…and a miss! I get it now, I thought you were trying to hit the ball, but you are trying to show what a great pitcher you are! LOL

    Same with you, jc. LOL

  12. Porkchopjim permalink
    October 24, 2008 2:35 pm

    Like I said, you wouldn’t know.

    We’ll just put that in the column of things you think I don’t know.

    A swing…and a miss! I get it now, I thought you were trying to hit the ball, but you are trying to show what a great pitcher you are!

    Heaven forbid you try to stay on the subject instead of trying to divert and show yourself to be a retard.

    The Tex Transparency Initiative: it wouldn’t work without Tex!

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