Losing In Amway – 2013 $$ Retrospective

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.

Major Functions
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:
Communikate: $443.40
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!

Best wishes,

~C

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Holiday Shopping Win! One Of Many Regular Amway Experiences

As we finally get our first snow out here in Vancouver I send out my best wishes that everyone is getting their shopping and holiday errands done safely. In the past few weeks there has been a huge amount of hit and runs happening here in the Lower Mainland which comes along with dark, slippery weather and an increased pace to people’s commutes.

Whether you celebrate the Christmas season or not, its easy to see the stress level in people go up quite quickly as the days count down to Dec 24th / 25th. One thing that many shoppers are doing to alleviate the stress of the crowded malls and shopping outlets have been through purchasing online. You can find many stats pointing to the meteoric rise of online purchases over the past few years and this isn’t set to slow down. Up here in Canada, we follow up the USA’s Black Friday with a “Cyber Monday” sale where ridiculous sales are all available through online vendors.

Being online is what allows me to run my business anywhere I am. A funny story from a week or so ago – I was at my mom’s place and she had asked me a question about how we were doing and what ingredients were in one of our LOC laundry products. I pulled out my phone, connected to the Amway app, (which is free of course), checked the details, pricing etc and shared it with her. She was astonished and asked me how I could find out any details when I wasn’t at my home where my catalogs or computer was. I pulled out my phone and said – my whole business can be run right from here. I had the same conversation with one of my customers who had asked a question about a handbag available through our Ribbon gift program. I pulled up the Ribbon website and showed her a picture of the handbag she wanted and right there had a sale on top of her regular order.

Since I have a full time job at the moment and I’m focussing on building a team and also getting ready for the holidays, being able to do business where ever I am, where ever I go is a HUGE convenience.

But that’s not what I wanted to share specifically. A few days before the whole Black Friday thing, I was in Richmond Center ( http://www.richmondcentre.com ). And I was having a look around for a case for my Galaxy Note 3. I happened to walk by a Fossil store. Since my partner joined me in business she has had her eyes on a Rose Gold Fossil watch for quite some time. So, knowing this and keeping in mind the holiday season is coming up I strolled in to look for a watch for her. The agent was very helpful and informed on giving me information on the differences in the watches. Their general Richmond Center details can be found here: http://www.richmondcentre.com/EN/Directory/Stores/Pages/Fossil_1537.aspx .

So here’s where the cool part comes in. My partner knew about this Fossil watch because I have access to it through our business’ Ribbon Gift Program. And she had gone through the different gift programs and found the watch. So after finding this watch in store and seeing it in person I asked the friendly sales associate what the price was.


At that time on Nov 27th the cost was $190.00. Heck, it still might be. With the upcoming Black Friday weekend coming up I asked what the sales price could be. She shared with me that they would be lowering some pricing on their other jewelry but not the watches. Now, unfortunately, the pricing from the retail store isn’t published online but  I found the watch over at fossil.com which is American and the online pricing was at 135.00. It was not available to ship to Canada at that pricing. As a Canadian we regularly find that we get shafted pretty hard with markups compared to our American friends. Just ask US border cities how flooded they get from Canadian shoppers crossing the border to get much lower prices on everything from Electronics to Tires to Milk. So after the current currency switch this $135.00 watch is around $143.00 which allows for the normal $50.00 – $55.00 increase in markup for the retailer.

So if you head on over to http://www.myribbongift.ca/Product/Album and choose the “Spendid” catalog you will find that this exact watch is available through the Ribbon Gift program. The Splendid gift category costs $150.00 at a retail cost for me and my customers. So what that means is that I bought the same watch from myself for $40.00 less than what the actual retail store wanted to charge me!! $40.00 in savings? That’s pretty sweet. What was sweeter, though, was that as a business owner, I got the retail markup on this product paid back to me from my company a few days ago. So I saved $40.00 on the purchase, AND I got paid in CASH $22.50 for the wholesale to retail difference. That’s not sweet. That’s awesome! But wait! There’s more! I also got PV for my purchase which helps increase the amount of bonus I get on the overall volume run through my whole organisation! But wait!!! There’s even more! Because I made the purchase with my company’s partnered Mastercard I got even MORE PV just for using the card. And because WWDB teaches us about being financially responsible I paid that purchase off my card a few minutes later through online banking.

Folks – we did this for almost everyone in our families this season. On her side and my side. We were buying Christmas gifts for them anywaywe were planning on spending money this holiday season just like you probably are. Why would we give our money to a random store when we can buy gifts for our friends and families and not only get a competitive price – most times get a better deal and then GET PAID for buying gifts for friends and family? Hello? Anybody home McFly!? And if it makes sense for us to make money off of purchasing gifts for friends and family – why the heck aren’t you getting CASH back for your purchases? Why should only we benefit? We shouldn’t be the only ones. And this is just one small benefit this business provides us in our every day lives.

Now to be fair – we still have to go out and get some gifts from other stores. Not everything is available in the Ribbon Gift Program or through our company. And we definitely aren’t against buying stuff at retailers. I mean heck, we were at a Walmart today and there’s a bunch of local stores around our community that we love shopping at and need to get a couple specialized gifts from in the next few days. But the idea, I hope, is clear – if you are going to spend money – and you can get it from your own store that will pay you MONEY back for buying it – why wouldn`t you?

The worst case scenario is that if you really want to price match, you could just buy the stuff at wholesale pricing if you’re one of those coupon cutters or price matchers. Either way, money stays with you or comes back to you. Or if, it happens to be a bit more expensive, you’ll get that back on your monthly PV Bonus (If you do what is taught – most don’t – or they aren’t taught right). I always like to challenge people who still question me about the legitimacy of this business with examples similar to what I shared with you above.

My business is partnered with Fossil through our giftcard program. Do you really think that Fossil would ever let itself be associated with an illegal Pyramid Scheme?

My business is partnered with Avis and Budget rental cars. . Do you think that a company that is desperate to keep a good image with the public and increase how the public sees it positively would associate itself with an illegal pyramid scheme?

My business is partnered with Disney. I’m not Mickey Mousing around here folks – THE Disney Store. Do you honestly, seriously, truly think that Disney would EVER let itself be associated with a company that scams people?

My business is partnered with Dell Computers. As they are focusing more heavily on customer experience and reputation do you really think that Michael Dell would want his company associating with a Pyramid scheme?
(Go to http://www.amway.ca – click on more products – click on Partner Stores & Services – click on “All” at the right side of the alphabet)

For American consumers –

My business is partnered with Apple. Yes. iPhone, iPod, iMac – That Apple. They’re partnered with Starbucks, Home Depot, Under Armor, Office Depot and Best Buy.
(Go to http://www.amway.com – click on more products – click on Partner Stores & Services )

Guys – there are many many many more that are partnered with my company. In this day and age where a scandal can break out and go world wide viral in 2 hours – every company would avoid a scam or a pyramid scheme like the plague. So if its OK for them, these multi million and billion dollar companies who have images to uphold to partner with my company….why not you? Honestly? What do you know that Apple doesn’t? What do you know that Disney doesn’t?

I wanted to share that small experience that I had because all I do as a business owner, and anyone who shares you the opportunity does – is exactly what I just shared with you above. We buy things we already would buy normally. We spend money we were planning to spend already. And we redirect that to our own personal business so we either keep money in our pockets or we get cash back for the wholesale to retail markup.

You already do what I do. You already do what that person who wants to show you this business does. The only difference is, I get paid to do it. I also get paid to help people do it but most importantly how to do it right.

Like any activity or venture in life – there are right ways to do it, and wrong ways. And that’s why I’ll keep saying it – if someone wants to show you how to do what I’ve just shared with you – make sure there’s a 4 – 6 week education process that they’ll take you through. There should be multiple meetings, homework and information to go over. Get to know them first. Make sure they’re accountable. Because guys, this business is not a pyramid scheme. My company that I partner with did over 11.5 Billion Dollars in sales last year. They are partnered with some of the heaviest retail hitters on the planet. The business is legit. What you need to make sure of before you start is that the people who are going to help you are legit and ready to help you succeed first. And you’ll learn that through going through a process before you ever need to spend a dime to get started.

Needless to say, I came away from this shopping experience quite happy. I hope you all have a fun shopping experience as Christmas gets closer. But more importantly, I wish you all the warmth and love of your friends and family throughout the holiday season. May your holiday be full of good food, much laughter and many smiles.

Peace be with you and have a joyous Holiday Season.

~ C

Amway Odds

I stumbled upon a well typed up blog the other day about Amway Odds. Like all blogs – this one, and mine included – take with a grain of salt since you probably haven’t met any of these people in person before. You have no way of knowing their motives, who they are and if they have fruit on the tree to be talking about what they’re posting about.

I always chuckle how the big bad Amway cult blogs out there will assure you their experiences are 100% true, their stories completely in context, their opinions – unquestionable! And anyone looking into the opportunity will find these “truths” and take it as fact. Scary stuff. Blogspot and wordpress….very reliable sources to trust, indeed. I would hope that people who have bad experiences in University or college don’t start going off on wordpress about it because that would automatically stop thousands of people who take their negative opinion about schools as fact and not look to educate themselves.
Anyway, enough pokes at those negative guys who post almost every single day about how bad WWDB and Amway are. I did have a point to this post.

Right – this blog post I found – I can’t take credit for it but I liked how it went into details with some numbers. People always ask “what are the odds”? Here’s a great post all about that.  Its from 2012 so its about a year or so old but still provides a relevant point of view.

I’ll cut off with a reminder – this is a great opportunity but if you aren’t being taken through an education and qualification process by your potential sponsor and its a hype up / sign up deal – walk away. This business is only as good as the people who will help you. And if you don’t have an opportunity to build a friendship and a trust before you go into business – that’s scary. Check it out, get all of the information your potential upline is able to give you over 3 – 5 weeks and get your questions answered. And if at that point you still have a bad vibe I would say honestly its not a good fit and you should walk away. Those negative guys out there would never say that you were given logical advice by a WWDB IBO though…so maybe I didn’t give you this advice after all….

Family reunion coming up next week in Spokane – going to be absolutely awesome!
Have a great week!

~ C

Credit and original post found at: http://amwayexperience.wordpress.com/2012/02/10/what-are-your-odds-in-amway/

“A common question often comes up when someone is shown the Amway business plan, ‘Can I really do it?’. Well if we look at some of Amway’s published statistics, such as the fact that in 2005, .0120% of “Direct Fulfillment IBOs of Record” qualifed at the Diamond level, and claim that your “odds” of going Diamond are 1 in 8333.

First of all, Amway is not a game of chance. Examining odds and comparing yourself to the average person is a terrible exercise for your self-image. Average in the year 2012 isn’t something to be proud of. A recent article on The Huffington Post revealed, “The latest debt to income ratio calculation indicates the average Canadian household debt to be in excess of 150 percent of annual income.”

Now I sure hope you aren’t making the decisions the average Canadian makes. Spending 150% of your annual income is the reason there is such a wealth gap and massive debt problems for most North Americans and the World. I can almost guarantee the top 2% of Canadian wealth does not spend anywhere near 150% of their income, probably well below 100% of their annual income. So stop comparing yourself to the average person, it’s not healthy, compare yourself to excellence and make decisions that aren’t average to achieve it.

But since this post was written to look at the odds lets dig deep into them, any please stay with me on this one. I am going to show you how to greatly improve your ‘odds’ by putting a little effort into this business plan and by making decisions that aren’t average.

The ‘odds’ of your success vary dramatically based on a number of factors. The first factor is, of course, determining precisely what “success” is for you. For example, in their investigation into a proposed new business opportunity rule, the FTC said that MLM company Shaklee reports 85% of folk who join that company do so purely to receive products at distributor pricing. “Success” for a such a person would be placing an order and receiving it successfully!

If this was your goal in joining Amway (and it is for many people), then I would personally count that as a successful venture.

Goal: Buy Amway products at distributor pricing
Odds of success: 50%

50%?!?!? Surely everyone who registers with Amway as an Amway business owner gets their products at distributor pricing? Well … yes (UK&ROI market aside, which has a slightly different model) … however statistics revealed in the Team vs Quixtar dispute of 2007 show that only 50% of folk who registered with Amway ever placed an order after joining.

I’m sure you’ll agree though, that shopping from Amway is not a game of chance. There are things you can do to influence your success – you could for example, actually place an order! Voila – your “odds” have suddenly doubled to around 100%.

Define what success is for you. Going Diamond in the Amway business is not everyone’s goal.

So what are the real odds of success in Amway for various goals, and what factors influence them? Well, clearly if your goal is wholesale price purchasing, then your odds of success are close enough to 100%if you place an order. Just as clearly, someone who joins and never even places and orders products is extremely unlikely to ever make any money. Indeed, I would suggest the probability of success for that group is 0%. Using this kind of information, just like bookmakers with horses, we can come up with “odds” that better reflect reality.

The 2008 Amway Global Sales Incentive Brochure reports for example that 0.3685% of North American IBOs qualify as Platinums or higher – that’s about 1 in 271. Yet we know that half of those 271 never even place an order, so their “odds” of reaching platinum were effectively zero. So …

If you place an order, your odds of being a platinum are about 1 in 135.

The TEAM vs Quixtar lawsuit in California also revealed that only 23.4% of Amway business owners ever sponsor anyone. While I’m sure there is folk who have qualified platinum purely on customer sales, without having sponsored anyone, it’s likely that the percentage who do so approximates zero. So …

If you sponsor at least one person, your odds of being a platinum are about 1 in 63.

Refining it further, the TEAM case revealed that only 12.9% of Amway business owners ever receive a bonus on downline volume. To receive a bonus you must have a downline and at least 50PV of customer volume, plus be at a higher bonus bracket than the downline.

If you qualify for a bonus on downline volume, then your odds of being a platinum are 1 in 35.

Let’s put this in perspective. If all you do is join Amway and do enough to earn a bonus on downline volume, then already your “odds” of being close to developing a business earning $50,000K/yr+ (Q-12 Platinum) is approaching 1 in 35.

Clearly, earning a profit in the Amway business involves a lot more than simply signing a form and paying the registration fee, I hope that doesn’t surprise you. Taking action makes a difference! Indeed, the BERR vs Amway case in the United Kingdom revealed some even more astounding statistics –

  • only 6% of IBOs bought Amway products to sell on
  • 10% of IBOs make a profit

It’s a reasonable assumption that those agents who made a profit included virtually all of those who sold the product to consumers. If so –

If you have customers, then your “odds” of making a profit from an Amway business are approximately 100%

Amway is not a game of chance. It’s a business. Treat it as such and the odds of success are clearly very good indeed.”

Business Numbers

As you’ve seen from my previous posts, I like numbers. This is weird considering math was my worst subject ever. Nevertheless – our lives are constantly being run by numbers in one way shape or form. So as I was walking around a local mall the other day I saw the opportunity of a lifetime. And there was a contact number to go with it.

“This could be your little store!” said the sign. In many malls you’ll find kiosks that are in the middle of the walkways aside from the full sized retail stores. Another way for the mall to get more money for its space. Smart, in my opinion. And there are always lots of different options at these small kiosks. Hand made jewelry, cell phone cases and accessories, body mod jewelry, hair products, toys, hand bags and so on.

Now, being a business owner I was curious – what would the cost be to own my own little store in Coquitlam Center? So I called the mall admin number that was on the sign.
A polite woman answered and advised me that to rent that kiosk I would have to pay as such: Oh – this is a 10×10 kiosk by the way. My computer corner desk is a bit smaller than these.

January – August: $1,000.00
August – November: $650.00
December: $2,000

A week.

My jaw almost hit the floor. And the prices could go up from there depending on where in the mall you are. In areas near the center court where there was more foot traffic these prices could go up!

So let look at a year in business for My Little Store.

$1,000.00 x 4 weeks = $4,000.00 x 7 months = $28,000.00
$650.00 x 4 weeks = $2,600.00 x 4 months = $10,400.00
$2000.00 x 4 weeks = $8,000.00
Total Rent costs = $46,400.00

Add a business licence to operate. Add insurance (might not be necessary since it could be included with the rent/lease). Add theft budget. Add purchase cost of merchandise.
As if the lease/rent wasn’t enough – if you want to have a bit of time away to tend to other businesses or to be with your family – you would have to hire an employee!

Retail generally will be at minimum wage. $10.25/hr x 20 hrs/week = $205.00 x 4 weeks = $820.00/mo if the employee is part time. If full time: $10.25/hr x 40 hrs/week = $410.00 x 4 weeks = $1,640.00/mo.
So over the course of a year your employee will cost you $9,840 if they are part time. If they are full time they will cost you $19,680.00.

So with the numbers we can confirm that this business will cost us at minimum either $56,240.00 (PT Employee) or $66,080.00. And we know that with business licence stuff and merchandise purchases etc these costs will be going up. Holy crow!!! “My Little Store” has a HUGE frigging cost!

And guess what….there’s no guarantee that this business will be profitable. In fact most business’ fail within the first year if not first five years! And do those business owners get their money back? Of course they don’t! They have to cut their losses and liquidate if they don’t make it. Do I see a lot of negative blogs about how business ownership is a scam when so many people don’t make it? When so many people and places go out of business? Do people cry that the system scammed them? They might blame the failure on the economy or bad luck or some other such thing. But aside from that, its simply accepted that this is the way it is. No big deal, right?

I pay something like $75.00 for my IBOAI and business licence.

$49.95/mo pays for my own customizable website. Maintenance and upkeep are included. It links directly with my manufacturer and service provider. For which I do not pay a cent for my merchandise. Unless its for my own personal use or for demonstration purposes.

$36.95/mo pays for my own toll free contact number. Its a free call to me from anywhere in North America. Its my fax service, dedicated business email and voice messaging service used to stay in constant communication with my organization and my coaches. Everything in one place keeps things simple and the many features make it useful to run my business on a daily basis.

$25.00/mo pays for weekly training, education and motivation that is in direct relation to my business and my industry so that myself and my organization can get uplifted and motivated and educated. And they can do so without me even being present.

$49.95 x 12 mos = $599.40/yr
$36.95 x 12 mos = $443.40/yr
$25.00 x 12 mos – $300.00/yr
Business Licence – $75.00/yr
Total Annual Cost – $1417.80

There are other costs for functions etc but at this point which business seems more affordable? “My Little Store” that can fit only a few products or a large amount of tiny ones that have a small markup potential that costs me more than my current yearly income just to run? Or my online mall that has access to over 450 products that I, and almost everyone uses on a daily basis that can cover its own cost?

While the sign was cute, I think I’ll stick with what I got. Thanks anyway for the opportunity Coquitlam Center!

~ C

2012 – By The Numbers

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.

Major Functions
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? 😉

Best Wishes,

~C

Another One Bites The Dust.

Being in the industry that I’m in I get the “P” concern fairly normally. Its dropped normally in regards to illegal activity because most people do assume that if an opportunity is not a “job” its automatically a “Pyramid Scheme” and they don’t know how else to describe an opportunity they think would be against the law.

Pyramids are illegal when money flows up to the top of the chain of people/organizations but does not flow back down to employees, investors etc. The world is full of legal pyramids. Our jobs would fit into this category. All of the people at the top make a good amount of money from the efforts of people lower than them, but there is money that trickles down to the employees in the form of an income. That’s legal.

Just today the Federal Trade Commission placed a hold on all of the assets of a fairly well known “Network Marketing” company, Fortune High Tech Marketing. Also known as FHTM,  the company allowed representatives to make money by selling services such as Dish Network, Frontpoint Home Security, Various cellular phone services as well as the company’s exclusive home and beauty lines. According to Attorney General Jack Conway:

“This is the beginning of the end for one of the most prolific pyramid schemes operating in North America…This is a classic pyramid scheme in every sense of the word. The vast majority of people, more than 90 percent, who bought in to FHTM lost their money.”

The FTC press release goes on to state:

To participate in the scheme, consumers paid annual fees ranging from $100 to $300. To qualify for sales commissions and recruiting bonuses, they had to pay an extra $130 to $400 per month and agree to a continuity plan that billed them monthly for products unless they canceled the plan.

The FTC press release can be found here: http://www.robbevans.com/pdf/fortuneftcnewsrel01.pdf

The FHTM website redirects to an attorney’s website who seems to be handling the freezing of assets etc. To be fair, this is a lawsuit that has been placed in federal court by the FTC due to the amount of findings of people who have lost a large amount of money. There is no decision by the courts at this time and it could come through that FHTM comes through as a legal enterprise. However it just confirms how careful one should be when checking out Network Marketing opportunities. Normally if there is not an education and qualification process and someone is looking to get you through a ‘hype up – sign up’ deal I recommend that you walk away. If you go to a business presentation where they are looking to sign you up at the end of the meeting – walk away. Run if necessary.

Lastly, the ongoing tenure of the company should be a huge part in a decision to start your own enterprise. That and the people who you are looking at to coach and mentor you as you grow in your business should be a huge concern when you are looking at any opportunity.

I’m so very lucky and fortunate to be linked up with a rock solid servicing company and to be in business with some amazing people full of integrity and honesty. I hope the same for you if you look to start your own side business.

~ C