Thursday, April 5, 2012

Amway Freedom?

When I was an IBO, I often saw my upline diamond driving around town in his used Mercedes 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 possibly 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, a diamond has to work nights and weekends. Some freedom. **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 a few years later. Who knows where he's at today?

Now Amway has stated that the average diamond earns about $150,000 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. There is no large barrels of cash rolling in with no work.

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 their 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. We had "play days" and had the opportunity to "earn time" with the diamond.

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. Sometimes I wonder if diamonds can actually afford to fly first class to all functions?

After breaking down projected income and considering projected expenses, I can only conclude that a diamond probably lives a 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 Freedom lol. That is a joke I hope!

Anonymous said...

I dont know enough but the facts laid out seem reasonable. I think a diamond earns a middle class salary and needs to continue working if he has only six lower level legs. At that level these legs could crumble. However i assume a diamond who has emerald or higher legs must earn a decent income and these stronger legs should be more stable. Neverthelless diamonds are properly better off than they wereat whatever they were doing before the

Anonymous said...

This is an add on to my comments just published. So freedom would only be if yoou have a few diamond legs sponsored. To do this you probably need to indentify the types of personality capable of being a diamond and forget the rest. At least thats how i saw the business many years ago. Since then tools seem to be a dominant part of income generation. Maybe this makes diamond income levels more generous. As i think forcing tools on innocent and naive beginners ,most of whom have no capabilities or hope of staying in, is organised crime , i could never be part of it. I dont know if any organisations operate without this practice nowadays

Anonymous said...

How can someone on 300 grand be in debt unless he is an idiot. Or its a case of fast ladies and slow horses