Wednesday, December 15, 2010


Let’s break down the 6-4-2 plan (Re-print)

Basically, it’s a plan to go direct (platinum) and all you need to do is sponsor 6 of these direct groups and you’re a diamond and will retire early and life in luxury right?

Assumptions: 1PV = 2.5BV. 1PV costs about $2.70.

The 6-4-2 plan has the premise that you do 100 PV, and you sponsor 6 frontline who do 100 PV. Your six frontline in turn sponsor 4 (24 IBOs) each who do 100 PV. And each of these 4 IBOs sponsor two IBOs (48 IBOs).

So your direct empire looks like this:

1 platinum Sponsored 6 who sponsored 4 who sponsored 2
6 1300 PV groups Sponsored 4 who sponsored 2
24 300 PV groups Sponsored 2
48 100 PV IBOs

Total 7900 PV. 7900 PV = (1 PV = 2.5 BV) 19750 BV.
19,750 BV @25% = $4937.50 per month. Annualized = $59,250. Add Q12 bonus 69,250 (platinum group yearly income, not counting retail sales profit. Cost of product
(approximate) $21,300 per month or $255,960 per year to maintain 7900 PV.

The platinum must pay his 6 1300 PV groups. 6 frontline 1300 PV = 3250 BV = $390 per month, or $4680 per year. $4680 x 6 = 28,080.

The Platinum keeps 69,250 – 28,080 = 41,170 (net, but not including operating and system expenses, but this includes the Q 12 bonus)

Now, the 6 frontline must pay their 4 IBOs who sponsored two. 300 PV = 750 BV = $45
Per month, or $540 per year. Thus the 6 frontline earn $4680 per year but pay out $2160 downline for a net of $2520 per year, or $210 per month.

Ok, and then each of the IBOs who earn $45 per month or $540 per year must pay their downline (2 each) $7.50 per month, or $90 per year x 2 = $15 month or 180 per year.
Thus the 300 PV IBO earns $30 per month or $360 per year.

Let’s review:

1 platinum earns $3430 per month, or $41,170 per year
6 1300 PV IBOs earn $210 per month, or $2520 per year
24 300 PV IBOs earn $30 per month, or $360 per year
48 100 PV IBOs earn $7.50 per month, or $90 per year
This is before taxes and expenses, but also does not include retail profits, but hey, we teach buy from yourself right?

OK, let’s look at tools expenses. Let’s say only the platinum, the 6 frontline and the 4 each who sponsored others are on tools (Fair assessment?) That would be 31 IBOs out of a group of 79 IBOs on tools or 39% of the group, and remember that all of these IBOs do 100 PV every month.

Tools cost: KATE, Website, standing order, book of the month, open meetings, monthly functions, major functions (some IBOs have to fly to functions), gas, incidentals, babysitters. Let’s estimate these tools and other expenses to be $160 per month (Very conservative IMO). $160 per month = $1920 per year.

Now let’s review the group NET income.

1 platinum $3430 - $160 = $3270 per month, or $39,240 per year
6 frontline (1300 PV) $210 -$160 = $50 per month, or $600 per year
24 (300 PV) $30 - $160 = <$130> per month loss of $1560 per year
48 IBOs earn $7.50 per month or $90 per year.

Group income = $69,250.
Group Tools expenses = (31 x $160 = $4960 per month, or $59,520 per year)
Group profit = $9,730 for the year.

79 IBOs putting in 10 hours per week = 790 hours per week or 9480 hours per year.

These IBOs on average made a whopping $1.02 per hour for the year collectively.

Platinum made $78.48 per hour
6 frontline IBOs made $1.15 per hour
24 – 300 PV IBOs lost $3 per hour
48 100 PV IBOs made 17 cents per hour.


Anna Banana said...

Joecool your numbers were almost like looking at an Amway compensation plan. Too many numbers. Always confusing for me. Your last set of numbers on an hourly payscale will hopefully wake some people up. Some businesses are more profitable than others for many reasons but anything with pennies on the hour is just bad business sense.

Anonymous said...

So?! This weekend I made some sales and earned $64.82. What's your point?!

Joecool said...

Anna, the hourly payout should be a wake up call for most.

Anon, you made $64.82. Great. What did you pay for voicemail, standing orders and functions?

Anonymous said...

I paid nothing because I don't make use of any such items, yet. Rest assured, I will pay when I am ready to. Why, does that scare you?

Joecool said...

If you paid nothing then you aren't a "serious" business owner who will get long term support from upline.

Anonymous said...

i know i didn't!

Anonymous said...

I said that I will pay when I am ready to. And I do get support from upline but he is not stalking me or trying to do it for me. I have to do the work, now it would be funnier if he did it for me instead so that I can relax and collect the money.

Joecool said...

Anon 8:55. Your upline will cut you slack in the beginning until you start getting dedicated, then they will raise the bar on you.

Anonymous said...

Of course he helps me or as you like to call it 'cuts me slack' in the beginning. That's what a good teacher does. He helps his student to start off right. He helps the student along. As the student gets more of the knowledge, the teacher raises the bar on the student. He understands that you have to start taking more responsibility. He wants to see you succeed. He knows that you won't succeed if he keeps giving you the fish. You must start to fish. Look at the pigeons. When they are babies, both parents feed and care for them. As they go, the parents expect them to start being more on their own. And the day comes when the baby pigeons must leave the nest. Or else they will be kicked out. Same here. Grow up or die.

Joecool said...

Anon from Canada, if your upline is like a teacher, then you are like a 20 year old still in 1st grade.

Anonymous said...

Isn't our Heavenly Father our teacher and us, His children?

Anonymous said...

comparing apples and oranges here, anon. not buying it!!!

Anonymous said...

not me; i'm an athiest. looks like i'm doomed. ah well! XD

**proud Amway hater**