Tuesday, April 10, 2012

What Do Amway IBOs Actually Earn?

I think it's a perfectly fair question to ask an Amway IBO what they earn if they are prospecting you as a potential downline for their business. Sadly, it's probably a question that will never be answered, or will be answered in some vague manner, or you may be shown the check of someone upline who got a sizable bonus. I know that some IBOs make money in Amway and I'm sure that some IBOs make decent money, but what do rank and file IBOs earn? It would be my informed opinion that rank and file IBOs make very little, and in fact they lose money if they are participating in the system consisting of cds, books and seminars (functions).

An examination of the common 6-4-2 plan or some other version would quickly reveal that you likely need a hundred or more downline IBOs in order to reach the platinum level. While there are some nice bonuses for that level, it is very likely that a platinum makes very little when factoring in business expenses such as standing orders, books and functions. In many cases, a platinum would be better off working a part time job instead of spending all that time building a business that yields the equivalent of part time wages. A study done in Wisconsin, while dated, revealed that platinums on average lost about $900 a year after expenses. While Amway apologists like to cite the age of the study, I will note that the fundamentals of the Amway business has not changed, and in fact there are even more tools today than back when the study was conducted, therefore dedicated system platinums might actually lose more money than back when the Wisconsin study was conducted.

In my opinion, the only way an IBO can make any money is to sell products to people who are not IBOs, and avoid participating in standing orders, books and functions. That would possibly allow someone to earn a few dollars and perhaps earn a bonus from Amway. but it certainly won't make you wealthy, nor will this income roll in forever as some uplines like to imply. But earning $25 a month doesn't sound that attractive, which is why some groups like to recruit by showing a diamond lifestyle that may include yachts, mansions and sports cars because showing someone $25 might not get them pumped up enough. What is often not mentioned, or glossed over, is that some, or possibly most diamonds get these sports cars and yachts by selling standing orders, books and functions, and not so much by moving Amway products. Sure, the upline might mention that some income is made from tools, but likely won't disclose exactly how you qualify and how much you get when you qualify.

If prospects really knew what Amway IBOs were earning, there would be very few people willing to see the plan. It is why the recruiters imply that diamonds earn millions and have mansions and other trappings. The reality is a stark contrast, which would be apparent to those who carefully evaluate the business plan and do some research on average incomes as reported by Amway. To the information seekers and casual observers, I encourage you to read more and to get as much information as possible. Good luck!

30 comments:

SapphireNoSOT said...

You should append this to
"what do Amway IBOs who are in the SYSTEM actually earn?"

Amway IBOs earn a lot of $$. We are an example.. You know who I am.. The Sapphire who is not on SOT.. :). You know my name, just changed it.. Last time somebody in my team saw my name on your blog and got off Standing order and some people were mad :). Want to escape the experience :)

My income after breaking two Platinums as a Sapphire. Purely from Amway: $93,000.

Me and my wife don't go to functions, are not on SOT and the same applies with the people who work closely with us. And they make money and keep their money. Amway works 100%! Amway+System works 1%..
It still is the best opportunity in my opinion!

Joecool said...

LOL - You're full of shit. Your story has so many holes in it that you can't even catch a cold. You should ask your downline why they got off standing order. Maybe it's because they saw the truth that you aren't telling them?

Joecool said...

By the way SapphireNoSOT (from California) why are you posting some link to a BS website written by an Amway zealot? As if that is supposed to mean something? Until you are willing to man up and post with your real name, don't be posting that kind of crap here.

Anonymous said...

"Bleeeep! Bleeeep! Bleeeep!" Oh, sorry. SapphireNoSOT caused my bullshit alarm to go off.

~Dave

Anonymous said...

If you call a website written by an Amway zealot BS, one needs to understand that a website written by an anti-Amway zealot like you also deserves to be called BS as if it was supposed to mean something! DOH! Grow up!

Joecool said...

I'm not anti Amway. If you actually took the time to read my blog you might be able to understand that. Your story reeks of BS, like most IBOs who post here.

Roger Sancez said...

Im thinking about to sign up with anway but i hear good things and bad things , does anyone been working for anway?
http://lookingfreedom.blogspot.com/

Anonymous said...

@Roger, don't do it.

Claire said...

Do it! It's one of the best business opportunities! It's takes work like any other conventional business but it's risk free! No capital required other than the sign up fee. Try it! If its not for you then you have the option of canceling and get your money back! You have nothing to loose!

Anonymous said...

+1

Anonymous said...

LMFAO

Anonymous said...

I want to know whats the catch?
Making it lok to easy is not helping

Anonymous said...

there is no catch, the business plan is unique and very straight forward

Anonymous said...

The catch is that it takes 2 rare skills to grow the business. 1. Extraordinary convincing skills to get people to believe and join. As many drop out quickly you need to pull in about 20 people a month. 2. Superb motivational skills to keep your group going and duplicating the same. You need to keep this going for the rest of your life.

Anonymous said...

Anything worth achieving in this life takes a tremendous amount momentum, enthusiasm, and dedication. There are a lot of great opportunities out there. Most of the time it's not the opportunity that's botched, it's the people. If you possess a desire, definite purpose, and a positive mental attitude you'll be a happy camper! :)

Anonymous said...

except in amway. sorry, but i'm allergic to liars. :)

Anonymous said...

This is the cheapest way to advertise by word of mouth. It is a scheme that's my opinion :)

Anonymous said...

Ok im hearing alot that is concerning to me. First of all this business opportunity is mainly for people that want to make some extra money and for dreamers of owning a business. If you don't want to then don't its your decision. My name is Justin Potter. Im a just starting IBO. im also a tattoo artist that has goals an dreams of starting my own tattoo shop and creating a franchise if you will. Now like most people its fear or money that stops them... Well im not afraid it was the money to start... Don't have it.. But that don't mean im going to give up my dream and stay plunged into the matrix... Winners find a way... Amway can be that way... Ive made 567 dollars my first week!!!!! Why bc im not lazy... Bc i have a dream... Bc i depend on myself and my not boss to write my check.... Im unpluged for the matrix....country boy can survive.. That is what Anway is about...is it guaranteed to work for everyone no...but thats the trick... Its you!!!!! Your the reason it will work.... Its your fault if you fail....the courage is getting back up and trying again.

Joecool said...

So did you sell about $2500 in Amway products in your first week or are you lying about what you made?

Anonymous said...

Hes right you have to open your mind and stop being lazy this will help you this will help you in so many ways you have no idea you just have to keep going and everything is up to you!! You are the only one that will make it work!!

Anonymous said...

You job it's a pyramid lol but they will only give you a raise of 2 bucks think and open up your mind a little bit more Amway gives 1000 raises but it's up to you common sense

Joecool said...

Sorry, you are wrong. Amway doesn't give any raises.

Joecool said...

Who said non Amway people are lazy?

Anonymous said...

No one said non Amway people are lazy, you did. Like anything else in the world, in order to be successful in life you can't be lazy and you need to be open minded to all things. Amway lets you get paid what you're worth, you put the QUALITY work into it and you'll succeed just like SOME businesses. In a lot of jobs, you're stuck in a dead end job that you work your butt off for nothing but the same paycheck you would be getting if you didn't work your butt off for. @Joecool If you had a 4000 PV business and you weren't in profit, you did something terribly wrong. 7500 PV IBOs (aka platinums) make at least $45,000 in bonuses, and that's at the VERY LEAST. It's simple math. At 4000 PV you reached the 21% criteria, that's 21% of your BV. BV is always roughly double of your PV, which is 8000 BV. 21% of 8000 is $1680 a month. That's just the bonus check, that doesn't include your customers. If you weren't profitable, then you really messed something up.

Grant Hill said...

If you want to get started, I'd be happy to answer any questions you have. granthill2015@gmail.com

Anonymous said...

False, this is not how you get paid. You get paid on the difference between you and your leg. Your 8,000 pv total (you+team) pays $90 (ninety dollars) if you built a huge downline in 1 leg, plus did 50/150 personal.

The only way to make $1680 a month is to sell $4,000 in product to customers and keep the profit and bonus, no downline.

Seriously, I have an Engineering degree and Accounting experience.... I participated for 2 years with Amway optimizing their system... It just doesn't happen with a perfect stacked system, people that are convinced, and the rewards don't come as promised unless you hit the holy grail of Amway downline... Even then, you have to keep it up for decades.

I watched Q12 platinum sink to 600pv total business volume after he put tens of thousands of dollars into it; which isn't hard to do at $1,000 a month in product, training materials, info sessions, trainings, and for functions...

I' m having a rushed lunch but just had to post. Sorry no time to spell check and fact calculate. Just know:

It's possible, just highly improbable. The lottery would produce better odds than you being $10,000 ahead after 5 years.

Anonymous said...

Who are you uplines that don't push SOT and functions? What geographic area are you in? That's the Amway that I want to join.

Joecool said...

Really, all uplines push their tools because they make big bucks off it.

John J. Viall said...

Thanks for posting this; from the research I'm doing right now (related to Besty DeVos having been chosen to be Secretary of Education), I see a thousand red flags. I'm finding plenty of warning signs: that Amway, except in 10% of cases or less (probably less) is only going to benefit the company.

The average IBO, Amway admitted in 2010, made only $202 in gross income per month. Gross. Not profit.

Joecool said...

If you read carefully, that $202 average is of "active" distributors. Only 47% of distributors are considered "active" so the real average is about $99 a month, and that is gross income, not considering business expenses.

Basically, IBOs are simply customers of Amway since most sell little to nothing. The IBOs also end up becoming customers who purchase training cds, books and seminars from the alleged "successful" IBOs.