Cost of being an IBO
Note: All calculations are in CAD.
Hello guys. I’ll try to give you an idea how much a serious / core IBO is suppose to spend in a month. I was told many times that there is no investment involved in this business. All I have to do is redirect my current expenses, teach others to do the same and viola! I’ll be a millionaire. While there is not a huge up front cost, monthly expenses are not affordable for the majority. And average IBO, according to Quixtar, makes $115 gross i.e. before expenses.
a typical serious IBO spend:
$60 STO (Standing order, tapes and books)
$24 open meetings (1 meeting per week, usually on Tuesday costing $6 / person or couple)
$100 / month on seminars (6 conferences, 4 major conferences, and if you have hit 600 PV or above at least once, you got to go to atleast 2 “leadership” trips. One trip costs AT LEAST $200 / person. Expenses are travel, ticket and hotel. If you are a couple, it comes near $300. With babies, add baby sitting cost)
300 PV = $650 extra (300 PV is actually $750 as $2.5 = 1 PV but I subtracted $100 I saved by avoiding Wal-Mart)
$50 on Shipment, GST + PST of products
$100 extra fuel
$21 communiKate (Lite, not full version)
= $1015 / month (extra)
If you do 50 PV retail, according to Quixtar rules, it’ll put 50 * 2.5 = 125 + retail profit = $200 back in your pocket making it $815. But please ask yourself;
- Do you really retail 50 PV?
- Is it taught to you as much as other stuff?
- How many products have you sold at retail cost?
But on other hand, your conference expense might go up if you are a couple or need baby sitting etc.
Please note that I’m not trying to give you an exaggerated version of the cost. I’m
- Talking about a plugged IBO, who is supposed to do 300 PV. In plan they show 100 PV, but when you become "serious", 300 PV is a must.
- Not including leadership tapes
- I drive Toyota corolla so my fuel expense was relatively less. And fuel is more expensive now.
- I used communiKate Lite here, not full version
- Cost of website is more now I guess. One Domain right?
- In calculating conference expenses I stayed extremely low profile, calculating single person cost only.
- I did not include the cost of lit packs, extra prospecting tapes and ridiculously expensive brochures. $30 for six peaces of paper!
- I'm assuming you’ll not lose any lit pack / tape.
- I did not include the cost of banquets and rallies in your city, as I am unable to determine their frequency. I’ve been into 6 of them in 9 months but Toronto is a big city! They usually cost $20 bucks.
- You might say: So what, I’ll get tax benefit. I’ll write more on that soon. But the products purchased while chasing PV target are not tax deductibles.
So it comes to $800ish per month, if you are a core IBO, single person, don't need a baby sitter and retail 50PV at retail cost. And while many people bear them, what are their odds of making enough income? Please read the diamond myths while we are on that. And how much an IBO makes? Average income of an IBO (according to Quixtar): $1400 / year (That is gross, expenses not included. Sneaky eh!)
Chance of becoming a millionaire from Quixtar: 0.022%
Total number of Millionaire households in America: 4-6%
Just two last questions:
Did you know that cost of running this business will be this much?
If not then you were lied to.
Do you tell your prospects what is the cost of running this business?
If you don’t then you are lying.