People wonder sometimes how do they lose money if they simply join schemes like that of Amway Enterprises or for that any matter any such scams. Moreover, recently Amway Enterprises has announced that there is no entrance fee to join it as IBO. If anybody asks them to become they would readily agree to become a member. They never realise that they are entering a cobweb.This is how they lose their hard-earned money.
Every IBO must buy products worth at least Rs. 2000. That means in effect they purchase products worth Rs. 24,000 every year. They would be encouraged to approach their friends and relatives to become members and purchase products with the inducement that they would earn more commission if the new recruits also buy products. However, it would be very hard for them to convince the new recruits to purchase products. On the other hand, they could find no one to purchase products which are exorbitantly priced from them. Wisdom would dawn upon them soon and they would be ready to stop purchase products within a short period. However, his upline would bring pressure on him to buy products and recruit more people. The new recruit would be told that if he creates his own group he would earn lot of commission.
He could not create his own group who would be willing to buy products every month. He would be disillusioned soon and starts blaming himself. He hears from his upline blatant lies that every other IBO is making lots of money and it is his fault for his failure.
By that time the IBO would have spent sizable money from his pocket to buy products. He does not know what to do. It is a Catch 22 situation.
Ultimately he resigns and stops buying products. But by that time he is poorer by several thousands of rupees.