Quite the interesting title, yes? Well, I chose it specifically to get the attention of people who are specifically looking for “Negative” on the anonymous interwebs about the Amway business opportunity. Why would I do that? Well, as mentioned in my previous post about a month or so ago, I’m here to share with you how much money / dollars / cash / dinero / moolah someone who does barely anything with their Amway business would lose. Wait….did I say lose? Oh dear…..my mistake. I apologize. You see, I’ve been fortunate to have been mentored and coached by World Wide Dreambuilders. Based on what they have taught me, even though I barely had any increase in my overall organization (ie: I was pathetically lazy, didn’t put any work in and barely increased the size of organization – #sadface) AT THE END OF IT ALL I STILL DID NOT LOSE MONEY!
How that can be when some of the most hardcore negative website posters out there will say EVERYONE loses money in Amway is a total mystery, apparently. Well, unlike those other “sources” I’ll do what I did last year (see: https://transparencyofadreamer.wordpress.com/2013/04/10/wwdb-and-amway-cost-2012/ ). Share with you my operating costs of running my Amway Business, share the costs of utilizing the WWDB (World Wide Dream Builder) training and mentorship system and how over the course of the year I came out IN THE BLACK. And the scary thing is – this is just me doing barely anything in the business. Ask any traditional business owner how much their overhead was and be prepared to wince.
I share these details because I believe it can help provide some perspective when people end up seeing so many multiple “opinions” online from “anonymous” sources. Anyone who goes through an education and information gathering process with a potential sponsor would see and be educated on what I’m sharing with you now in reference to costs of running the business. Maybe not in the first one or two meetings, but definitely before you launch. I also share this because I don’t see any other “sources” who claim to be “ex-Amway distributors” accurately discussing or sharing monthly resource costs to run the business within the past few years to present. That sure adds credibility now, doesn’t it?
But for now, the point is that even for the most low activity business owner, if you do what is taught, stay diligent with your personal finances, you will not go backwards. Please see below for the actual breakdown of expenses. Expenses are for myself as one IBO.
So: with that said – lets get to the numbers, shall we?
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
– Side note this did not increase in price over the last year.
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
– Side note – this did not increase in price over the last year.
Premier Membership: (Hosted and created website, personal web training / prospecting website, free iOS/Android apps, 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
– Side Note – this did not increase in price over the last year.
Current Totals: $111.90 /month. $1342.80/year.
Dream Night: $70.00 (includes catered dinner) / (No increase in price over the past year)
Spring Leadership: $125.00 (no increase in price over the past year)
Family Reunion: $250.00 (includes catered dinner / breakfast / hotel room for 1 night) / ($10.00 increase from previous year)
Health & Beauty Product Seminar: $25.00
Free Enterprise Days: $125.00 (no increase from previous year)
Total Cost: $595.00
Major Function Hotel Costs
Varies by location. Average $150.00/night X 5 Nights = $750.00
(Increase of approx $50.00/night over previous year due to industry costs / increases)
(2 Nights for Spring Leadership / 1 Night For Family Reunion / 2 Nights for F.E.D.)
Business Support Materials (BOV’s / Web Tours / Books / CD’s for prospects etc)
$20.00 / month X 12 months = $240.00
2013 total Cost Run Down:
Digital Delivery: $300.00
Premier Membership: $599.40
Major Functions: $595.00
Major Function Hotels: $750.00
Business Support Materials: $240.00
Total Business Cost: $2927.80
Lets bring it all together here, folks.
Total Cost To Run Business: $2927.80
Just like I said last year – “Oh No! I’ve been scammed! I’ve lost money! My upline lied to me! I didn’t put in any work to sponsor anyone this last year and its everyone’s fault but mine! The business doesn’t work! What a total scam!!!”
Hold on now Mr. Negative – Due to running my own business in a country that incentivises business owners to run their own business I received tax benefits that entitled me to a refund for the 2013 year. Add profits from retail sales and volume bonus’ and at the end of year, with all incoming funds combined, you wouldn’t lose money.
Don’t get me wrong, if you look at cost to run the business vs barely running a 50/150 business you could run at a loss. And a loss is a loss – there’s no beating around the bush about that. Before a tax return, you may not break even if you do not do what is taught. But one of the benefits of running a business is being eligible for legal tax write offs to run said business. If I only got my standard return of 400.00 – 600.00 from just my regular job (its what I got before I was in business), then I would have to agree with the naysayers that it definitely is possible to lose money while doing what is taught. However, my point is that while a tax return cannot considered income, my overall bottom line from incoming funds from running my business overall and at the end of the day / year did NOT put me in the red. That is my point which runs completely counter to word on the internet street. Any funding to pay for running my business on a monthly basis to give me the tax return that I received was worked into my monthly budget so as not to go backwards in my regular finances. That, and the monthly and weekly income Amway paid me went directly towards covering the costs of running my business. So – bottom line = payments to me from running my business in total from Amway Bonus’ / Amway Retail Payout / Legal Business Tax Refund – I didn’t go backwards ultimately even with a “technical” loss.
I maintain that anyone can lose money in Amway if they are not taught how to budget correctly, how to track their business expenses and ultimately if they do not stick to their budget. Above I’ve shown how the breakdown can work if someone is diligent and on top of their affairs. Period.
After all the numbers came in for 2012 I was in the black. This year, I’m in the black even moreso. Am I happy and excited that I barely grew my business this past year? Absolutely not. As I said above, I’m a bit embarassed. I’m counselling with my upline regularly for coaching to improve myself to grow my organization – but ultimately it was my lack of action this past year that restricted my growth. In spite of that, not only did I NOT lose money. I was further ahead than I was last year.
Oh of course there is a bit more of expenses to be sure.
4 regional seminars/ rallies per year = $80.00.
6 Organizational Opens = $60.00
Total = $140.00.
So now I’m in the black a little bit less. Oh my good lord, no! / sarcasm.
“What about gas to drive to your meetings / plans?”
Excellent point! My gas for business / personal usage is included with my normal paycheque gas budget I set for myself on a bi-weekly basis much like food and bills etc. As such, it’s not a seperate expense. Thank goodness for WWDB and my upline to teach me how to budget properly so as not to go backwards in my finances! I had to follow my budget though.
“What about the coffee and food you buy at your starbucks meetings?”
Very valid question! Yes, there may be some extra costs associated with doing a Meet and Greet at local coffee shops. However, like I said last year – if I had purchased hundreds of more dollars in coffee and snacks for Amway Meet and Greets – I would be in Silver Qualification by now and my Amway payout would be MUCH more. The unfortunate truth (hence my blog title “Transparency”) is that I barely had any meet and greets or sit downs to expose this business to people this past year. As such, my expenses were quite low. But, its good to know that I had A LOT of breathing room based on the overall outcome of the cost of running my business.
So, as I wrap up I hope I made my point very clear – you will not lose money running your own Amway Business powered by World Wide Dreambuilders…. IF you are diligent with your finances, and if you don’t blow your budget your coach sets with you. You WILL lose money running your own Amway Business powered by ANY training system IF you don’t have a budget, if you don’t ask for help to set a budget, if you ignore your budget etc.
It’s never fun to publicly state that you didn’t really do anything with your business and barely grew. Yet, in spite of barely growing (only added one downline in 2012 and they added two downline in 2013 – I have hit 50/150 consecutively for almost two years now) I still came out on top. Better than last year, to boot. I did not go into debt to do this. I DARE you to ask any traditional business owner how much it cost them to run their business. When I tell someone it cost me under $3,000.00/year and they spent anywhere from $15,000/year to $500,000/year they want to throw up in their mouth. I know I would.
I have no employees. No stock. No warehouses. No utilities to pay outside of my home. I barely grew, but came out in the black. The hardest part, but the most financially rewarding is now to duplicate what I have done. As I duplicate, my profits will multiply. Thats the beauty of exponential growth. I can’t do that with my job at Rogers.
Finally – I will say again – if you have someone who is looking to show you this business, they should be taking you through some kind of education process. This process should be, at minimum 3 – 4 weeks. You should be given educational books on the industry, educational audios to listen to as you research as well as have multiple meetings to see the way the business works and to have your questions answered. Usually at the second or third follow up you should be given details on the finances – how much it costs. If your potential sponsor is affiliated with WWDB and is doing what they are taught, you should be educated on some of the numbers I shared above in regards to cost for access to your training and mentorship system.
If you get a weird vibe from your potential coach or if the person is going for a hype up, sign up on you and isn’t looking to get to know you over the course of 3 – 6 weeks – run away. You will find many better sponsors who will have your best interest at heart. A sponsor who has your best interest at heart will be happy to take the time to educate you, answer your questions and go over details over a 3 – 6 week process. Keep in mind – they will be wanting to make sure you are worth their time to help build your own business. And you won’t find any other business that will have people wanting you to succeed more than this one.
Summer is almost here! Enjoy the sun!