Dear Eric,

Our sponsors were only in the business a few weeks before we got involved and they quit after their first function.  We grew our business to almost the 4000 level losing down line faster than we could sign them up. We were more than 20 in depth from our closest up line Direct Distributor and only four of them were still active and less than a dozen were still registered IBO's.  

We were told to plug into the system (book, tapes, and functions) and the "Dream" would come.  We were told that the systems would give us the teachings, the support and the encouragement to build a huge business consisting of a network of IBO's.  We were told that if we simply changed our buying habits and bought products from the Amway Corporation through our own independent wholesale and distribution business that we could save an average of 30% or more over our typical everyday household expenses.

We were also told and trained to teach that if we recruited others to also change their buying habits they would save and we would be paid residual rebates on the volume that flows through them and any others that they recruited to be involved.  We were told that if we plugged into the system and listened to our up line that with in 12 months we should be generating an extra $2400.00 plus on a monthly basis.  

We were also told that with in 2 – 5 years we should be generating over 100k annually and should be in a position for both my spouse and I to quit our full time jobs.  We were involved for five years and were totally plugged into the system and worked diligently at recruiting new personals as well as helping the people in our down line do the same.  We made nowhere near the income that we were told we would.  

In fact we went deep into credit card debt and were spending more money on being involved with the system that we were making from moving the products.  We were also spending twice the amount of money on purchasing the so called discounted products than we would have spent if we continued our normal shopping habits prior to becoming involved in the business.
 
To give you a sense of the money that we spent staying plugged into the system, I looked at my 1998 tax records prepared by my accountant.  They show a business loss of over $8000.00.  We did not claim the business in 1996 or 1997 because of the first years being big losses as well.  

However, I do remember there being years that the losses were well over 10k and my accountant asking me when I was going to give it up.  

In summary I would estimate my tax recordable losses to be between 40k and 50k. However, this does not include any finance charges for the accumulated credit card and personal loans debt, the drop in my credit score, the accrued late charges due to paying my bills after the due dates in order to purchase the next tape or function ticket in that pursuit of a "Dream" that was not a reality.           
 
Call me with any questions.
  

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