Wednesday, July 4, 2012

Are Amway Diamonds "Free"?

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 the complete their day jobs.

Now Amway has stated that the average diamond earns about $147,000 a year. That is a decent income, but after yaxes 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.

Is this the freedom you are seeking?


Anonymous said...

You do not even own a website and talking abt 11 billion dollar company. Tell me how much u make and will tell you why u r wher eu guys r.

Anonymous said...

You cannot even for a proper sentence and you are going to criticize this guy on his website?

You know what, I would love to hear your "business overview plan" anonymous and I would like to know how I can do an efficient ROI on my plan WHILE I let the company build residual income and receive the benefits and stock options that any employee in any other company is offered.


Anonymous said...

I always laugh when the suckers talk about Amway being an 11 billion dollar company... like they themselves will ever see ANY of that.

Hey, asshole, how do you think they GOT all that money? From having a brainwashed commissioned sales force (who pretend to be "business owners") where basically 99% of them work for free (actually, at a net LOSS) while dreaming pie-in-the-sky dreams of phony riches that only go to the folks at the tippy-top of the pyramid.

Why do you think Amway has such a piss poor reputation? Just because they have a lot of money at the top from suckering so many lowly IBOs doesn't make them admirable. Heck, the Mafia has a lot of money, too. Only difference is, they actually pay their "employees" a decent wage.


Anonymous said...

Do not worry about the blog owner mate! Just give me last five years balance sheet or profit and loss account of your own then talk about Amway.... you are very good joker!