Practices – Does your upline have everyone fly/drive all over the country to attend these meetings? This costs you thousands of dollars/year for the travel, hotels, meals, etc., and if the solution in section C for major functions were enacted, this cost would come WAY down.
IBOs often say, “But my upline isn’t like that, they even SHOWED me how much tool profit they make! In a word, COWDUNG! There will always be exceptions, but here’s how you tell whether your upline was scamming/will scam you or not. It’s very simple, in breaks down into P&P. P&P stands for prices and practices.
Prices – How much do CD/DVDs cost? Open meetings? Monthly seminars? Major functions? Voice mail? Web sites? Here’s the typical 2012 prices: CD – $7, Open meeting $5, monthly Seminar meeting $25, Major Functions $125, web sites $10/month (some LOS groups charge less for CDs but more for their web sites, so watch out for this bait-and-switch within a bait-and-switch), voice mail $25/month,.so if you are a prospect looking at the Amway business and the tool prices are similar, there’s only 3 options:
1. First, and by far the most likely, the Emeralds and above make about what is described under the “Tool Profit Size” section, or
2. A particular tool scammer is MUCH less efficient at producing the tools. However, for a typical $7 CD, full production costs are about $1, so even doubling the production cost to $2 results in a $5, instead of $6 profit, so this option is HIGHLY likely to have minor impact on the profit. And here’s a guy who operates as an individual and offers CDs for as little as 85 CENTS each (2012 pricing), I doubt there’s an LCK who can’t at least match him: http://www.marketwaveinc.com/viewproduct.asp?id=4, (link may not be available, see home page at www.marketwaveinc.com): or
3. The system OWNER may be keeping more of the profit for themselves, but then they are setting up their organization for a mutiny, in which case they would lose ALL of their revolting downline ATS profit when they break off and form their own system, which has been done numerous times even though they were getting paid, just not enough in their opinions. It’s better to share the money ripped off from the downline than lose the entire amount of scammed money.
So if the prices for the group you are looking at are similar to the above prices, you are being ripped off and should expect to operate at a loss until about the Platinum level.