Tuesday, October 12, 2010

Amway - What Is The Average IBO Income?

One of the things that Amway defenders like to criticize Joecool for is writing about things that are "outdated". I find it humorous that despite their silly outdated information defense, there is plenty of evidence that leaders from more than ten years ago teach the same old stuff such as dedication to the tools and doing whatever it takes to attend functions. They still show off luxuries as a way to entice new prospects and they want people to think that they can earn unlimited income from Amway. Well, the same can be said of their beloved corporation. Amway reported that the average "active" IBO earned $115 a month and that was based on a survey Amway did in 2001. That is nine years ago. Seems Amway is guilty of what Amway defenders criticize.

Anyway, I believe that Amway's average income claim is inflated by diamonds or other big pins. To prove this point just takes basic math. Keep in mind that Amway's $115 a month average did not include IBOs who "did nothing". But lets examine "the plan" that many IBOs show in recruitment meetings. In many groups, they show a 6-4-2 plan which includes a total of 79 IBOs. The plan also assumes that all IBOs do 100 PV. Thus the group PV would be 7900.

7900 PV is about equal to 23,700 BV. PV to BV ratio is about 3 to 1. 23,700 BV would generate a bonus of about %5,925. $5.925 is 25% of the 23,700 BV. Well, with 79 IBOs generating a bonus of $5.925, the average income of all of these active IBOs is $75 per month. There you have it. Bonafide mathematical proof, based on the
6-4+2 marketing plan that the average IBO income as reported by Amway may very well be inflated by the income of some big pins (diamond and higher). Even if you factor in the annual platinum bonus, the group average income still doesn't add up to $115 a month. And keep in mind that this is assuming that all IBOs in the group do 100 PV.

So what is the average IBO income? I cannot say for sure as there are many factors, but it is my informed opinion that the average IBO income is likely to be less than $115 a month. I also believe if we were to look at median income, where the highest and lowest amounts were disregarded, that would probably be less than $36 a month. So IBOs, what kind of bonuses are you receiving? Keep in mind that these incomes are gross and income taxes and business expenses have not yet been factored in. When factoring in expenses such as voicemail and functions, the vast majority of business building IBOs will realize a net loss.

18 comments:

colin said...

i thought you where rather generous with the 75.00 a month on avrg ibo income. Arent the sales down in north america?

Joecool said...

I believe that sales are down in North America, but since many IBOs are on the "prosumer" program, their bonuses basically come out of their own pockets anyway. Also, the $75 a month in my example is from a group where all IBOs did 100 PV and got a bonus. If you factor in the ones who join and do little or nothing, the average income would be more like $25 a month.

colin said...

So if a ibo spends 40 hours a month building their business they will be making 1.88/h. That number will be much less if they are working the business 60 hours a month. They would probably make more picking up pop cans at the local park or alley

Joecool said...

On my other blog, the truth about the amway global opportunity, I did a series of blog posts about what's better than Amway. Panhandling, working for minimum wage, and other opportunities were identified that were much more lucrative than an Amway business.

Spundun said...

There are typos in the following quote regarding punctuation and $ symbol. Please correct it.

"7900 PV is about equal to 23,700 BV. PV to BV ratio is about 3 to 1. 23,700 BV would generate a bonus of about %5,925. $5.925 is 25% of the 23,700 BV. Well, with 79 IBOs generating a bonus of $5.925, the average income of all of these active IBOs is $75 per month. There you have it. Bonafide mathematical proof, based on the "

Also it'd be great if you can cite online sources of the numbers, like how did you come up with the collective bonus from the collective BV.

Thanks.

Anonymous said...

Actually their sales have increased every year for the last 10 years. In my first TWO weeks I made an extra $140. The next month I made an extra $120 and then my third month I made an extra $280! That's just in my spare time and it can only grow. And at 7900 you are at a 25% bonus range so I dont know where you got your numbers from.

Anonymous said...

made all of that--at the expense of others. sorry, but i'm just not buying it. :)

Anonymous said...

Wow i can tell that none of you people have ever been in a network marketting business an have no idea what your talkong anout

Anonymous said...

i can tell you weren't in school very long, were you? your spelling is an utter joke.

Anonymous said...

Your math completely ignores any form of retail profit.
You ignore the 50 percent inactivity that lowers the average IBO income, but chose to say that diamond pins increase average.
You are manipulating statistics to serve your agenda.


If you plan to criticize something then, do so well. Your claims of fraudulent cliams are also fraudulent.


Readers, you should expect more of those who publish. Even if you agree with a position, question its legitimacy.

Blind respect for authority is the greatest enemy of truth.

Anonymous said...

huh?

Anonymous said...

Sounds like somebody drank the coolaid... Anonymous. It took you three months to make $280 in extra income for one month.. and that was your spare time? At that rate you can break $1000 within a year. Wowww... Only the people at start-up (top-tier) realize big gains off the backs of the worker-bee's efforts. I'm not impressed with pyramid based "extra" income.

Vess said...

Scamway, eat fresh.

Anonymous said...

i made $92000 my first years as an IBO with amway love let y'll guys keep talking

Joecool said...

And I'll let you keep on lying.

Anonymous said...

Then why don't you get those real stats to prove other wise, and tha people are making this amazing living through a way aside for the people at the top. Or are you a sucker that got sucked in as well.

Anonymous said...

and they probably still make more money than you.....

Joecool said...

Panhandlers make more money than most MLMers. LOL