Wednesday, October 19, 2011

Amway - Diamond Freedom Is A Myth?

When I was an IBO, I often saw my upline diamond driving around town dressed in a business suit. I used to think why does he keep working if he can walk away and collect residual income? My sponsor told me that the diamond only works because he cares about his downline and wants to help them. So there are two possible scenarios, the diamond is working to help his downline out of a genuine concern, or possoibly he is working because he has to! The only difference now is that the diamond works the nite and/or graveyard shift, because many IBOs are building the business after they complete their day jobs. **We should also note that my former upline diamond dropped down to the emerald level around 2005 and has since re-established his diamond level.

Now Amway has stated that the average diamond earns about $146,900 a year. That is a decent income, but after taxes and paying for basic expenses such as medical and dental insurance, the average diamond probably lives a very middle class lifestyle. Keep in mind that a large portion of a diamond's income comes in the form of an annual bonus, thus a diamond's monthly income may be quite small. Yes, diamonds may have other sources of income such as speaking engagements and income from standing orders and functions. But this income depends on the diamond's continued appearances and efforts.

So is it likely that a diamond is "free"? I would have to conclude that a diamond is not free, and may actually have to spend more time maintaining his group than if the diamond simply had a 9-5 job. For one thing, a diamond needs to maintain a personal group to keep qualifying for bonuses. With a poor retention rate in Amway, I am fairly sure that a diamond spends much time recruiting personally sponsored IBOs to maintain this group. Additionally, a diamond must help his six or more groups of downline platinums to maintain their businesses or face the possibility of falling out of qualification. My former diamond dropped down to the emerald level but has since re-qualified at diamond. A diamond must also dedicate time to reward up and coming movers and shakers, to keep them motivated. I got to spend time with my upline diamond when I was considered a promising up and coming pin.

In order to continue to receive tools income, a diamond must also travel to numerous functions and speaking engagements. Although the tools income allegedly doubles a diamond's income, it also adds a lot of expenses, especially if the diamond and his family travel first class to show off the diamond lifestyle.

After breaking down projected income and considering projected expenses, I can only conclude that a diamond probably lives a middle to upper middle class lifestyle, and probably works as much as a man with a 9-5 job, except that a diamond works nites and weekends. A good portrait of this is shown in Ruth Carter's book (Amway Motivational Organizations: Behind The Smoke and Mirrors). In the book, the diamond had a net income of over $300,000, but lived in debt, could barely pay his mortgage, and was always on the run from one function to the next.

I believe that diamonds may actually be busier at the diamond level than an average Joe who has a 9-5 J-O-B. The difference is that the diamond works the night shift. Is this the freedom you are seeking?


Anonymous said...

"Amway has stated that the average diamond earns about $146,900 a year." It is an inaccurate figure. Amway legal document in 2011 published a higher average income closer to $350,000.
There are profitable "Diamond" businesses and average "Diamond" businesses.

Just like NFL players' average annual salaries are in the 1-2 million dollar range, rookies earn ball park $350,000 to start. The star players earn the multi-million dollar contracts.

1 in 10,000 high school basketball kids make it into the NBA.
80% of realtors make less than $30,000 yr and even fewer earn over $100,000yr

Joecool said...

Nice strawman argument. Amway started posting new income figures for founder's diamonds which is a small percentage of diamonds. Your other comparisons are irrelevant as less than 1/4 of 1% of Amway IBOs ever reach platinum.

Anonymous said...

To Anonymous at 9:33 PM --

A player in the NFL (star or rookie) doesn't have to recruit new players to join the team. He doesn't have to buy a continuous flow of "tools" from upper-level management.

Everyone admits that only a very few top-notch players will make it in the NFL or the NBA. But the Amway racket tells its prospective recruits that anybody can be successful, as long as they duplicate up-line.

There is absolutely no valid comparison between Amway and professional sports. Grow up.