Comments on: Nuskin Profits Hit By Convention Costs

By: ibofightback

ibofightback — Thu, 08 Nov 2007 18:13:18 +0000

I was talking about the recent Amway UK convention. There were no speakers other than IBOs and Amway staff. Come to think of it, the costs might have been 3-4million pounds not dollars.

Most major N21 seminars I go to have live local entertainment for an hour or so on the saturday evening, and it's not unusual to have outside paid speakers either. In some parts of the world meals are included too.

By: Ty Tribble - MLM Blog Author

Ty Tribble - MLM Blog Author — Wed, 07 Nov 2007 15:31:56 +0000

Amway brought in Dr. Phil to speak which is another story altogether. I would bet that Nuskin and Amway gave away a bunch of swag (which BSM companies simply do not do) and the companies probably included meals and other entertainment (unless you count the GOADS or some other hokie band), the BSM companies do not do that either.

Trust me, I could put on a helluva event for 10,000 people for $3 mil.

By: ibofightback

ibofightback — Wed, 07 Nov 2007 14:05:35 +0000

Well, no, because that normally is full retail price when tickets are pretty much all sold wholesale price with the resellers profiting, so that profit isn't all profit for the guys running the event. You'd typically have to take off another 30%. Given both NuSkin and Amway have said their events cost $3-4million to put on, it would also appear that your "know for a fact" expense estimate is not correct.

By: Ty Tribble - MLM Blog Author

Ty Tribble - MLM Blog Author — Wed, 07 Nov 2007 13:00:23 +0000

Outside of Bo Short and Andy Andrews, I can't think of any Amway guys who get paid to speak at a non-Amway event.

That is my point.

Obviously Amway leaders are making money when they rake in $3 Million for a weekend event. Paid speakers do not cost that much money. I would guess that you can get John Maxwell for less than $100,000. The room rental, sound system, stage hands, etc, let's say they cost $1 million (I know for a fact that is high). That leaves $1.9 Million left over...for profit!

By: ibofightback

ibofightback — Tue, 06 Nov 2007 19:13:53 +0000

I can't speak for other organizations but many N21-associated leaders do paid speaking gigs for non-Amway events. What's more N21 *does* regularly bring in outside speakers to it's events.

But claiming the N21 speakers "aren't real speakers" just goes to show how little experience you have with them - or perhaps it's just respect. I've never heard Bo Short, but I have heard Andy Andrews, and I don't think you'd argue with me in saying he is a "real speaker", and I've read good reports on Bo Short. Where they "not real speakers" when speaking to TIF/Passport/whatever?

Of course they were/are.

By: Ty Tribble - MLM Blog Author

Ty Tribble - MLM Blog Author — Tue, 06 Nov 2007 15:26:33 +0000

Of course ibofightback is ignoring the fact that most BSM organizations do not bring in real speakers for their events like many Network Marketing companies do.

Then I love how you gloss over this one:

"that according to court affidavits he made nothing from the seminar except speaking fees and the usual ticket profit-sharing"

Ticket profit sharing is huge and speaker fees for these guys can be big as well. I can't think of a single place that most of these guys would be paid to speak except Amway events.

By: ibofightback

ibofightback — Tue, 06 Nov 2007 14:46:45 +0000

That works out at a cost of around $3.2 million for the convention. Amway reportedly spent $4 million on their recent convention for UK IBOs which attracted around 5000kr.

Critics of BSM companies often seem to think these events cost nothing but venue hire, perhaps these figures will have them rethink that. I believe for example the $3 million for Woodward ignored expenses (ignoring of course the fact that according to court affidavits he made nothing from the seminar except speaking fees and the usual ticket profit-sharing)