Spending More Than You Should
Much has been argued and debated about prices in Amway/Quixtar. Critics say that the products are overpriced whereas IBOs contend that the prices are fair considering the value. There’s just one problem with the IBOs argument, however: Every product has the bonus structure factored into the price. So, if you’re stuck at the bottom, you’re paying at least a 3-31% premium on everything you purchase.
So, what if the corporation lowered prices? They would have to make up for the lost profits by selling more products. Unfortunately, the majority of IBOs aren’t exactly retailing like gangbusters these days. I wonder what is the true purpose of Amway’s recent Now You Know (What?) marketing campaign. Could it be one day the corporation will start selling direct to consumers? I can certainly envision marketing like, “Amway. Same Great Products. New Lower Prices.”
I’ve been reading about these new performance bonuses for next year. There’s a 2-year Founder’s Diamond bonus of $500,000 that was recently announced. That’s a nice chunk of change, but how many IBOs are really going to achieve this? I’m suspecting that these super-sized bonuses are really geared towards keeping the kingpins happy and affiliated with Amway. With the TEAM debacle last year, the corporation doesn’t want other IBOs moving over to another MLM, so they have to provide incentive to stay in and work harder. I’m more interested in hearing about the incentives for people who are at the bottom. IBOs – tell us about those incentives!