Independent Business Owners (IBOs) can earn money
from the sale of tapes, books, and tickets. These
IBO leaders pay for the production facilities,
equipment, technicians, accountants, assistants,
and other employees necessary to produce such
training and motivational materials. They incur
the expenses and, of course, realize profits or
losses from their efforts as with any other
leaders are successful managers of large
businesses. Some leaders have thousands of other
IBOs in their organization, spread across North
America. As business leaders and managers, they
have the responsibility to educate and motivate
these other Independent Business
is important to note that professional development
and education is an international
multibillion-dollar business. Authors such as Dr.
Stephen Covey (The 7 Habits
Effective People) earn incomes from the sale
of books and other materials. Bookstores
everywhere offer hundreds of “how-to” books,
tapes, and videos on a variety of topics. Thus,
what these IBO leaders are offering are
professional development materials focused
specifically on their business.
It has been well documented in recent years that the leaders of many AmQuix support organizations
earn a majority of their income from the sale of tapes, books and function tickets. Numerous
lawsuits among the diamonds and emeralds about the division of BSM profits, evidence the fact that
main business of the those making up the IBOA Board of Directors
is that of selling the BSM's (Business Support Materials), rather than selling Amway products. It is rather ironic that the Amway/Quixtar business,
which they are promoting, is not the true source of the majority of their "business" income.
No doubt training and continuous education are important for any business owner, but the relative cost of the AmQuix systems in comparison
to the incremental sales that an IBO personally generates is terribly out of proportion.
Many groups prospect IBOs to have sales of just $200/month. This generates just $56 in total monthly bonus payouts for the group,
despite the fact many groups recommended a system where the tape purchases alone can exceed $50/month.
Those IBOs at platinum and above might share in $20 of bonus money on $200 in sales. The $50 in tape sales however would
generate approximately $44 in monthly profit to this upline group.
Even if an IBO had $2000/month in personal sales these continous education costs would still exceed 10% of the gross
profit those sales generated. As a percentage of typical IBO gross profits the support system is terribly expensive.
Link to the Lawsuits.