Thursday, September 15, 2011

The Real Amway Business - Selling Tools To Downline?

I have been reading some ongoing debates about whether the system income for higher pins is more than their Amway bonuses. I believe the systems such as BWW, WWDB, N21 or LTD, does generate more profit for upline than the sale of Amway products. How the system income is divided though, is still a mystery as it doesn't appear that there are bonafide written contracts explaining how tools income is split up among the higher pins. There is also the debate of whether diamonds themselves or their "corporations" receive the profit, which is laughable as a defense.

But it's very easy to determine that more income is made from the system than from Amway. If you move $100 worth of Amway products, Amway will pay about $33 back in the form of bonuses. These bonuses will be split among the Amway IBOs (middlemen), depending on your level. On the other hand, if your group bought say 20 cds at $5.00each, the system will profit about $90 as cds cost about 50 cents each to produce in bulk. Some Amway apologists will cite the fact that some groups sell cds for $2.50 or $3.00. While this is true, there is a "member's fee" which must be paid. And when you add in the member's fee, the profit for the system is the same or possibly higher! Even when you factor in the system employees, you can easily see the math and determine where the real money is made.

If you buy a major function ticket for $125, the cost of that function might be in the neighborhood of $25 to $30 per attendee, so the system may generate $100 profit on a $125 sale. I believe the smaller functions such as open meetings, books and voicemail have smaller profit margins, but still overall, it's easy to conclude that the profit from the system is greater than profits generated by moving Amway products. I might add that the sales on these functions are often made in cash, thus who knows if the diamonds are even paying the IRS taxes on these sales.

The only question is how much each individual earns. I have "heard" that platinums get a discount on the sale of standing orders and cds, but I have never heard of a platinum sharing any profit for functions, voicemail, or any of the other materials. This is puzzling to me as I believe the platinums do the most work in the system, helping downlines.

So for the lower level IBOs, if you move $300 in Amway sales (Approximately 100 PV), you will receive about $10 or 3% while upline enjoys the rest of the $90+ in bonuses from Amway. And then when you purchase and move tools volume, you receive nothing and some of your uplines enjoy all of the profit. While I don't see any problem in upline making a profit for selling training materials, I see a problem in the fact that the tools don't work. So few IBOs progress to levels where an actual profit is earned that the use of tools cannot be justified. Amway supporters will point out the new platinums emerging each year, but do not mention the platinums who do not re-qualify.

Based on my observations, I can only conclude (quite easily) that there is substantially more profit from the sale of support materials for upline to enjoy, and I can also conclude that the support materials are ineffective in training downline IBOs so they can progress to higher levels of the business. But as PT Barnum once said, a sucker is born every minute.


ExAmbot said...

It is an established fact that there is a monstrous amount of profits from the

system i.e. sale of motivational tools, including meetings, cd's, books etc. it

is also a well know fact that diamonds and above (and emeralds too) make 50-85%

of their incomes from the system. it is a know fact that the system is a huge

side business, and a pyramid in nature. it is a know fact that this side business

went out of control (amway control) to the point rich devos lamented that in the

famous early 80's tapes about kingpins and their cronies collecting more than 20%

in incomes from the system. it is a know fact that since this side business

operates independent of amway control it's run like mafia organized crime. if you

fall out of favor with the kingpins and their cronies you are cut off from the

system income and there's nothing or no one you can complain to. it is a know

fact that consequently this is a source of much consternation with some kingpins

who break off to form their own motivation organizations to really keep more of

the system income for themselves. it is also a know fact that differences between

kingpins over the system income has resulted in many lawsuits between the said

kingpins when some get circumvented and/or kicked out of their organizations.

some diamonds do not requalify as diamonds yet they continue to collect from the

AMO's system profits. this is well hidden from many ibos who believe their upline

diamonds requalify. i heard that WWDB gives unqualified diamonds 2 years to fix

their business and requalify failure to which they are cut from the lucrative

speaking circuit.

you are right "...the tools don't work..." and that is a problem indeed. because

the closed market swindle is not designed for the majority or even at least most

to win. so 99% of all multi - level participants are doomed to fai by design and

they do, a known fact.

there is another problem too. i take exception to you not seeing any "problem in

upline making a profit for selling training materials." no this a big problem.

ambots are lied to that these tools are support materials for the amway business.

nothing could be further from the truth. when system profits run at 50-85% then

one is not in amway business but in sale of motivation materials business while

using amway as a front. it's deception. i have heard some diamonds lament if only

they could do the system business only they would do away with amway. but they

can't. amway keeps their pyramid system business legal if you will.

ExAmbot said...

In fact in conclusion in the multi level industry or whatever it is called one is not in the business of the products and/or services. make not mistake one is in the business of recruiting, training and motivating. this applies to all multi levels. those who understand this can have a shot at some level of so called "success"* and some become kingpins. that is where the business is.

*to me "success" represent somebody who is has managed to con a lot of people. i have no admiration or respect for the perceieved successful, diamonds, and others

Anonymous said...

I love a good conspiracy theory!