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IBO Expenses on Joecool’s site

January 14, 2009

There’s a great comment by someone called Dayton Platinum on Joecool’s recent post titled, IBO Expenses. Dayton lists the expenses he’s incurred in his business over the first few years. In his third year, he and his wife hit Q12 Platinum, earning an annual Amway income of $52K.

What I want to highlight are his annual expenses for running his business. He estimates that as a single, his expenses for the first two years totaled between $4000-4800. Now that he’s married, he says to double his expenses, so $8000-9600 a year. Since Dayton is at the Q-12 level, he clearly has more coming in than going out.

Here’s the problem. Everyone who’s in the System is paying about the same amount of money for tapes, CDs, meetings, Major Conferences, etc. If these people are not making money and progressing upwards within the Amway bonus structure, they may be losing at least $4000-4800 a year. This amount might not seem like a lot for one year, but multiply it by two, three, five, or ten years in the business, and you can see how some people complain about losing tons of money in Amway.

So, while it’s great to see Dayton’s success in the business, I only hope that his downline are achieving the same level of success that he and his wife are currently sharing.

3 Comments leave one →
  1. Gina permalink
    January 14, 2009 8:47 am

    You could add to that amount which Dayton says are his expenses…he clearly says that he does not track things like food, maintenance on his car and other basics because he like so many IBOs, figures these are not expenses because they would need to eat, drive and ect with or without Away. He also made no mention of the basic office products, phone use, internet use and so on…

    Will there ever be an IBO who accurately tracks ALL expenses? If this opportunity is so simple and a great way to make money then why do so many IBO’s not track expenses?

  2. Joecool permalink
    January 14, 2009 10:00 am

    One thing that is significant for IBOs to know. Even if you or your downline can achieve this level, you will always have a hoard of downline who will never achieve it, but might spend the $4000 to $4800 a year on the system. The compensation plan is set up that way.

    Also significant is that the Amway retention rate of IBOs is not great so what seems like a solid business (Q12) can fall apart like a cheap suit. I have seen and heard of many instances where this has happened.

  3. DeveloperX permalink
    January 15, 2009 10:07 am

    The goal is to run your IBO business like a business. So you should track your income and outcome. It is a performance based business, so it is on the particular IBO to prove if he/she is sucessful or not. Even though the system they may be in is there to help them out. Also if you do run it as a business, those expenses are deductible. Though you can not treat it as a tax shelter, because in any business you can not show a loss for more than two years. If you do not treat your IBOship like a business, it may cost you. The same way if you do not treat your body like a temple, it will cost you in the end.

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