Wednesday, August 11, 2010

Amway - Diamonds Are Broke?

I recently read an article on what constitutes wealth. Some say an annual income of $100,000 would make them wealthy, some say assets exceeding $4 million would do it, and some estimated that $2 million would make them "rich". Of course, everything is relative and someone earning $25,000 a year would think that $100,000 a year is wealth, etc. College students might think $40,000 a year is awesome because many have little money to begin with. I'm sure someone like Bill Gates would not consider $4 million to be astonishing. It's all relative. If you are content with what you have, you are likely relatively well off already.

But let's talk about Amway diamonds. I say diamond because it is basically the pinnacle of success. It is the crowning achievement of the 6-4-2 plan (or other variations) that many groups show. The average diamond earns about $150,000, according to Amway. Now $150,000 sounds like a lot of money to young people or to those with lower wage types of jobs, or those who are just starting out in their careers. But we also know that diamonds earn income from the sale of tools. Some groups advertise (verbally) that someone might earn $100,000 a year from the tools/speaking income.

Let's be generous and say the diamond earns $300,000 a year from Amway and tools income. Income tax and medical insurance for the family will eat up about 40% of that right off the top, leaving about $180,000. Fantastic you might say? Well, a diamond certainly would live in a million dollar mansion, which would give you about a $6000 a month mortgage or $72,000 a year, leaving $108,000. (Although many - a - diamond pays for their homes in cash) Fantastic right? Well, diamonds are constantly traveling to various functions, flying first class and staying only at 5 star hotels right? So an average of 1 trip per month with a family, first class and a 5 star hotel would probably cost about $5000 or more per trip, or about $60,000 a year, now leaving $68,000 for this diamond's yearly budget. A good diamond with a family surely consumes 300 PV per month for household goods, or about $900 a month or about $11,000 a year, leaving $57,000 for the rest of the year. A good diamond is often a Christian who would faithfully tithe 10% of his income, or about $30,000 a year, leaving the diamond with $27,000 a year, or about $2250 a month to pay for their monthly electric and utility bills, gas, car payments, meals and entertainment.

Yes, some expenses may be slightly higher or lower, but what I am trying to illustrate is that even an above average diamond with tools income is more likely to be broke than wealthy if they live the lifestyles porttrayed at functions such as dream night or other major functions. Do the math. It is unlikely that diamonds pay cash for everything and it is unlikely that fabulous lifestyles can be sustained on a diamond income. There is plenty of evidence out there. Diamond's homes foreclosed, diamonds behind on income taxes, a prominent triple diamond in bankruptcy proceeding, many diamonds selling off their homes in a bad real estate market.

I truly believe that it is quite possible for many diamonds to be broke. What do you think?

51 comments:

Anonymous said...

How much do you make rig now? You probably make minimum wage

Joecool said...

LOL, it is irelevent what I earn. But minimum wage is still a whole lot more than what most IBOs earn.

Anonymous said...

You need to educate yourself before talking ignorants

Anonymous said...

Interesting way of thinking. Everything I am taught from the seminars and functions from diamonds it to be debt free. While it is true you have normal living expenses I think that you are way off and jealous that you do not have the ambition to change your own circumstances and want to hold others back. Good luck to you in life.

Anonymous said...

I am a Nigerian of 25 years age,having no job,but aqired marketing as a university curse.

I hearde about AMWAY,through,One Mr Abed Zomas Ezirionye,who came back to Nigeria from Australia.

Now,I want be a member of AMWAY in Nigeria and other close neboughring countries.

How and where,do,I be enrolled.

Thanks,

Chijioke Kingsley Okebaram E.

Anonymous said...

well I know a lot of diamods in amway soem are richer than others my parents are also diamonds I want to be a diamond on day too because I can see how this bussiness works and what it can offer you the thing is most people dont understand it and dont believe in it or are affraid of it maybe sometimes they are just satisified with their income and dont want to do this bussiness I have to say its the besy MLM.

Anonymous said...

Before you even think about embarking on such an illustrious endeavor, you might want to start using proper punctuation. It definitely makes you look smarter.

Anonymous said...

This is totally off base. If you are smart and bank you full time job income for several years like most Diamonds and even emeralds that are coached properly. You will have a nice nest egg, plus a six figure ongoing income, Many diamonds and many emeralds live debt free. No mortgage. In fact I know diamonds and evenn very well off emeralds that write checks for homes.

Joecool said...

Diamonds can't bank their income. The diamond lifestyle costs too much.

Anonymous said...

Hey Joe you aren't that cool or very smart either.Your opinion doesn't mean much from 4000
pv business.You can't expect a ton of profit from only 3 legs.You didn't follow the plan. If
you really knew anything about business or this
one,you wouldn't have quit.You probably treated
it like a hobby thats why there was no money.
Fact, real business people know there is a lot
of tax rightoffs,if you had a real accountant,
you could pay as little as 5% of your income.Its
not just what you make but what you keep.You must be an employee somewhere, just because you
pay a lot of tax,you think everyone does.WRONG!
There is a lot of profit in this business,I've
experienced it, you didn't stick around long
enough to see it. You're Tough Luck!

Joecool said...

Hey anon from Canada, real business people know how to spell words. Tax "Write off" is the correct term. Maybe with your Amway millions, you can purchase yourself "hooked on phonics".

Sure there's a lot of profit in Amway. The Amway owners are billionaires. Unfortunately, you aren't Amway. You're just an IBO who's losing money but thinks you are successful because your upline told you so!

Anonymous said...

Lol...I think it's a little funny how offended ppl get from an OPINION isn't this a blog? Joecool is just saying how he/she feels about the Amway business. Not everyone will like the company and NOT everyone will be as successful as others. One's success in this business is based on their motivation, entrepreneurship, and skills. Which is all available to you from BWW as training tools. Joecool makes sense, but it's like that with any amount of income...you don't buy a Bentley on a Kia income. I am an IBO in this company so I know it takes a lot of effort, time and money to grow a successful business. Work hard now Play harder later.

Anonymous said...

HELLO? anon @10:46, this isn't a legitimate business. when are you going to get it through that thick skull of yours?!

**proud Amway hater**

Anonymous said...

Wow it sounds like a lot of people this they "know" about the Amway business.... you should really do some research before you create a page and talk a bunch of crap on it! You can earn a lof of money in Amway and the company would not be around after 50 years if it was a scam. It did a billion dollars in June 2011 and in completely debt free. You want to talk about something... if the US ran its government like Amway runs their business then we wouldn't be in debt or having the stock market drop 600 points in one day! Research and learn about a company and the pay out plans before you bash it.

Anonymous said...

^ blah blah blah...

BentonBob said...

I got into AMWAY in the early 1990's and was totally enthralled by the atmosphere, the people and the dream. Those things remain a happy memory despite my exit from the business after a couple of years. I think the thing that many people don't consider is that timing and luck play a large role in determining success. Not that such an idea is all that revolutionary; the axiom "it takes money to make money" has been around a lot longer than AMWAY.

There are lots of examples of those who made it to Diamond and then walked away; many of whom spoke at the functions I attended in Northern California back in the 1990's. The problem I have with the system is that it promises too much. I heard claims of the business saving marriages, helping people find Jesus, and other promises that should cause the objective person to display incredulity. The thing is, if diamond was the pinnacle of success, why would so many walk away from the life?

Amway is indeed a profitable company. The products are good, but expensive for a middle class household to afford. I absolutely disagree with the founder's political leanings and that would be reason enough for me to remain wary of the business.

As for running the country like Amway, as suggested by August 8, 2011 Anon, I could argue that the country IS in fact run like Amway. Very few at the top and everyone else at the bottom dreaming of getting to the top while the cards are stacked against them. We are dangerously close to (if not already) an oligarchy in our country. The answer is NOT more individualism, it is buying into the idea that we are all in it together.

Anonymous said...

ill enroll you from dominican republic. this is my email. samuelmejia14@gmail.com send me an email and we will talk.

Anonymous said...

Bro you dont know the diamond lifestyle!!! what are you talking about.. for starters you stated they travel and they pay for plane tickets?? bro the first class tickets are payd by amway and so are the hotels and the food .. plus the 5000 plus gift card for expenses!!! here in DR a daimond also gets payd some for the semminars!!! you have no idea what you are talking about.. but hey you are not to blame. your joecool!! LOL

Anonymous said...

@BentonBob. You, my friend, get it. Well said.

Anonymous said...

You seam to forget one very important aspect about Being an Amway Diamond. All the Trips, Cars, Tools, Houses, and Expenses that go with running your Independent Business, are Tax Deductible. Not to mention most of these Diamonds do amazing things with the income they make. Such as donations and job building...also Tax Deductable

Anonymous said...

10.8 Billion dollars in sales in all of 2011!

Anonymous said...

How is it not legit? What do All other Legitimate businesses have that Amway Doesn't? Products, services, Networks and Structure? I would say that having High Quality Products made in the USA with a 6 month 100% Satisfaction Guarantee, with over 600 patents and patent pending, not to mention the Certifications, Growth Incentive Programs, Donations to world wide causes such as 101 campaign for the Children, Exclusive Sponsorships such as Miss America, Spokespeople like Kurt Warner, and 100 million Hours of Volunteer time by IBOs (including Diamonds) qualifies Amway as a legitimate Business. Oh yea in 2009 Amway Net Sales was $7.1 Billion, 2010 $8.4, and 2011 $10.4. Meanwhile Walmart, a "Legitimate Business", went from 2009 $32 billion to 2011 $26 billion.

Anonymous said...

You would Be surprised as to how many successful people cant read or write. Albert Einstein never passed the 6th grade. It has nothing to do with Grammar Skills, simply A Dream, Confidence, and a Drive.

thong said...

i can lead you to the team of world no.1, barry chi and holly chen, my email is robert1thong@hotmail.com, i can help you

Anonymous said...

and humans evolved from trees...

Anonymous said...

do they hand out barf bags? paper or plastic?

Anonymous said...

tell that to employers...oops, that's considered profanity in the wonderful world of amway, isn't it? fuck. :/

Anonymous said...

*facepalm*

Anonymous said...

looks like someone needs to educate themselves all right...

Anonymous said...

BS

Anonymous said...

...ripped off of the unsuspecting. what a damn shame.

Anonymous said...

You need to have the right kind of drive/ambition to be in Amway. It also helps if your upline isn't trying to scam you by selling you 'tools' you don't need. Vince Berland of the 'flying eagles' and his bunch ran into a quite a stink with Amway Corporate because of it. They were draining their downline of income by extending hope that these books and tapes would help increase their businesses.

They were more concerned with selling entertainment than with actually doing the work of coaching/building their downline businesses. Amway can work with the right kind of support/effort. But once you've been burned there's really no desire to try it again. Amway can be a great business. But there are also other ways of living a good life. I wish success to those who are in it and working towards their dreams. But don't be too hard on this Amway hater. He might have good reasons for his hard feelings. And if not, it just isn't for him. It is what it is.

Peace all.

Anonymous said...

BS :)

Anonymous said...

The owner behind this letter must be a middle if not a lower class human being.I suggest you do some real research before informing.TeamVision (EquipoVision) making the diffrence.GO DIAMOND

Anonymous said...

brat

Anonymous said...

you need to to understand how someone achieve diamond in amway before you talk about diamond lifestyles. not everyone passed by the graduate exam we sit.
if you want to cont. pl e mail at aslkmz@yahoo.com

Anonymous said...

HELP! My son is very much into Amway Dreambuilders right now. Just beginning really and his "team" has him going to meetings in other cities, buying tapes, etc., but I haven't seen much in product sales. How can I convince him that this is not the way to go as far as career? and what it is? They have him now wanting to sell his car and xbox for money to build his business. Anyone? Please, I'm getting desparate. Don't want him to be heartbroken along with a broken sprit.

Joecool said...

I'm sorry to hear about your son's situation. Sadly, it sounds like your son has bought in an trusts his upline more than family and friends. The dreambuilders leaders teach this. That they should listen to leaders and not friends and family who have no vested interest in their success. I think it's awful if they are advising him to sell his car to attend functions, etc. This is the insidious part of the business. They'll turn around later and say your son did it on his own.

I would encourage your son to make sure there are product sales and to track expenses as there's no reason to keep attending functions and buying cds if the sale don't increase as a result.

Anonymous said...

You are totally missing the point here. The point is not whether they can be poor from bad lifestyle, rather, the point is that they have the means to afford things that the average person can't. That's all there is to it. Even Bill Gates can be poor but he's not because I'm assuming that he takes care of his money.

Anonymous said...

Scamway, I mean Amway, is not a business...it's a way of life. The coaching and dream-building that is involved is how they brainwash yourself into believing that what your doing is the right thing. Why would that be necessary? Because it involves taking everything you know, everything you do and flipping it upside down and starting over. You have to believe that you no longer need to run down to the store anymore and buy toilet paper when you can order Amway products. What if I have massive diarrhea and ran out of Amway toilet paper? Nope. Sorry. Have to keep washing my butt in the shower till my Amway order arrives. In my opinion, Amway keeps people indoors and ignores retailers. It takes away your God given right to walk outside and go to the store, get some exercise, and see what new items are in the store you can purchase. It seems like Amway promotes obesity by keeping people locked up in their homes and glued to the Amway homepage looking for toilet paper and soap. But wait! Hold on here! Why would anyone want to do such nonsense? That's what the tapes, cd's, seminars are all about...keeping you brainwashed into believing that this lifestyle is whats best for you on your silly adventure to rich-ville. The one thing Amway is good at is getting you to be a proud member of the NFL club (No Friends Left). Heck, I reached Diamond NFL level in about 2 months...no one wanted to talk to me because they were afraid I was going to sell them a box of soap. I left their business, too silly and ridiculous. You have to have the mentality of a used car salesman to even have a remote chance at this sorta lifestyle. It wasn't for me. I had a trunk full of tapes and cd's and zero in the bank. Lesson learned.
John.

Enrico Cross said...

The business is not for everyone.

Anonymous said...

cults are not for everyone, except for suckers like you.

Anonymous said...

you're an idiot

Anonymous said...

yeah saying that to yourself will really make you a better person. keep it up.

Anonymous said...

It is a way for almost anyone to be in business for themselves. It's 'direct selling'. Encourage your son to focus on getting a few customers and make some retail profits in the beginning. Don't worry about the other stuff. Most people in Amway are just good folks like you and your son trying to get ahead in life.

Luis Guevara said...

I used to be a platinum for 2 years and honestly my pay was less than 2k a month. Amway has been around for over 50 years and since then their compensation plan has never changed. They need to modernize it because the competition is everywhere and many new companies are eating at it bad. I read that by 2017 Amway will be gone if it remains the same. Its proof they aren't doing so hot anymore because they eliminating partner brands and telling ibo to now only buy from their exclusive brands.

Anonymous said...

Stupid ...

Anonymous said...

...at the expense of others.

Anonymous said...

and Diamond is far from the top of the bonus scale. It's only about 1/3 up the scale.

Unknown said...

So I am starting my 4th month in Amway and I am in LTD as well as I am a full time student. I have hit silver 7500 this month already and am on my way for Q12 this year. Last month I made $3411 as my bonus and I am strictly customer volume as I am a med student I dont have the funds to put money into my business with life expenses. And so last month alone I made $5,041 total. Amway does work. You just have to be open minded and mature enough not to be talked into doing it and mature enough not to be talked out. Just go out there and succeed!

Joecool said...

I don't believe our story.