And so another tax year has come and gone.
Many online sources that are negative towards the Amway opportunity and the WWDB training system state that they have been lied to, that you end up going into large amounts of debt to access all of the “tools” and to go to all of the major functions. The claims state that you are bound to lose a lot of money and go backwards financially. I am surprised that these people do not show the same amount of concern to people who go into hundreds of thousands if not millions of dollars into debt to start up their own traditional business’…..but that’s not the point of this post today.
I make it very clear that I cannot dispute what other people may or may not have experienced in their partnership with Amway or World Wide Group. However, my experiences are telling me that they possibly were not coached or taught correctly as I am having a much different experience.
I have been very clear regarding the process we put potential business owners through to appropriately prepare them for this opportunity (See THE PROCESS) . I have also gone over many online concerns regarding being audited or the claims that this opportunity is promoted as a tax shelter (See “You’re told that everything is tax deductible!” section). All I can do is speak from my experience within my line of sponsorship; At no point have I been told to cheat on my taxes, to misrepresent what was and was not a business expense or to provide false claims. I have been taught how to correctly keep all receipts and proof of purchases as well as how to correctly complete basic book keeping to provide to my CGA.
So with another year behind me I figured I would go into some of the numbers a bit regarding the basic cost of the business and training system that seems to be sooo vilified around the web so people can see how much it puts me into debt and makes things worse. /sarcasm
Communikate: (Toll Free 1-800 number access / voicemail / voice messaging service / conferencing solutions / Fax services / dedicated email)
Monthly cost $36.95. Yearly Cost = $443.40
Digital Delivery: (Unlimited access to WWDB audio library featuring training / teaching / motivation for direct streaming and .mp3 download for use on iPod / Smartphone / mp3 players on the go)
Monthly cost: $25.00. Yearly Cost: $300.00
Premier Membership: (Hosted and created website, personal web training / prospecting website, free guest tickets for major functions, training utilities, discounts on personal development / training books, discounts on training tools)
Monthly cost: $49.95. Yearly Cost: $599.40
Current Totals: $111.90 /month. $1342.80/year.
Dream Night: $70.00 (Includes catered dinner)
Spring Leadership: $125.00
Family Reunion: $240.00 (includes catered dinner / breakfast / hotel room for 1 night)
Free Enterprise Days: $125.00
Total cost: $560.00
Current YTD Total: $1902.80
Add approximately $20.00/mo for any business building requirements such as prospect targeted CD’s, BOV’s, webtours or personal development books etc. Current cost would then come to $2142.80 for the year.
Cost would go up slightly for five hotel nights for major functions (one already included w/Family Reunion ticket). This cost would depend on where one stays etc.So based on these numbers we have a yearly overhead of $2142.80. Lets add $500.00 for those extra five hotel nights at the Major Functions as a general cost. We’re at $2642.80 for the year.
Oh no! I’ve lost money! I’ve been had! They’ve lied to me! Its all downhill from here! Not considering the lack of real work put into seriously growing our organization this year….
That aside – we have to take into account the amount Amway has actually paid us for volume that was generated by our personal use, our customer sales and our 1 downline leg’s personal use and customer sales.
This past year we were paid out weekly for retail payouts and monthly for volume bonus’. Unfortunately, with our low activity in the business, our earnings definitely did not cover expenses. But because I run a legal business in Canada, my tax return has already covered a majority of it before any payouts are even considered.
Now for a business that only has one leg in personal width, that has (unfortunately) not put in a lot of work in expanding that personal width we have come out on top in the black. Does this still seem like I`m going bankrupt because of all of those “tools”? Does it look like those major functions are bleeding my bank account to death?
But wait!! The cost of all of those other functions like Regionals and 2nd look meetings! Those cost money too! But of course they do. So four Regional’s per year is an extra $80.00 total. And lets just say there are four 2nd look meetings as well…so that would come to an extra $40.00. Altogether we’re looking at an additional cost of $120.00 for the year.
“But! But! It costs you money to drive to these places and buy coffee when meeting people and stuff like that!”
Indeed it does. Now, if you believe that in a year I bought hundreds of extra dollars worth of gas and drinks outside of my normal non-business budget for business purposes then I can tell you with confidence that I would have a larger organization and as such have a higher revenue stream from the corporation.
The point I’m making here is that I didn’t lose money. In fact I came out ahead.
Now my question to you is this: can you start any other business and come out ahead or end up right on par in your first two years of business? To be fair you probably can. But with the potential results that this can provide? You’d be hard pressed to find one.
All of the doom and gloom out there you’ll see on those negative blogs and websites do a good job of amplifying their negative experiences. Well, here’s some actual numbers to run with. And you’ll see that running an Amway business utilizing the World Wide Dream Builders training system does not put you into a financial hole. Anyone who says otherwise is either lying or was not trained and coached in such a way to run their business responsibly.
Of course this is just a blog. I’ll say it again like I always do – blogs are not credible sources of research. I could be fudging these numbers and these experiences. So could any of those negative blogs and websites. And if you think I am being dishonest – I hope you look at all of the negative blogs and websites just as skeptically. Because if you don’t – you were looking for negative from the beginning and for an excuse for a way out. As such, you never would have built this anyway. Check credible sources and talk with people you can meet face to face or at least speak with over the phone. And if someone is trying to sign you up in something that didn’t have an education and qualification process, be careful.
I hope that sharing these numbers have given some transparency into the reality of the cost of running one of these business’ and how it can basically pay for itself without having to build a huge organization. I wish our team was bigger. But this still is a process. I’m learning and growing all the time and even though I’m not quite set to walk away from my job yet, as I look to really start putting more effort in the results will keep getting better and better. I mean hey, its not like I’m losing money or anything, right? 😉