Friday, January 4, 2013

Amway Brings You Freedom?

When I was an IBO, I often saw my upline diamond driving around town dressed in a business suit. I used to wonder why he keeps 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 for them, 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 the complete their day jobs. This is probably why diamonds sleep until the "crack of noon", because they are working all night!

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, and stays in 5 star hotels. It is probably why diamonds need free transportation to and from the airport and why they stay with friends when traveling as much as possible.

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. It is very expensive and time consuming to travel from city to city showing off your freedom and diamond lifestyle.

Is this the freedom you are seeking?

12 comments:

Anonymous said...

I cant see how a diamond has either a big income or security. He needs to work given the quit rate. A diamond would only have it easy if a number of his legs has diamonds. Not many have that. Hence i suspect a high non requalify rate for diamonds after say 5 years. If you read amway,wiki you see loads of diamonds no longer active and loads who have say only one leg with big pins.

Anonymous said...

Can anyone tell me how much income a diamond will have when he retires from amway. Dont tell me it depends. Here is the reality. Say he retires at 60. I have taken 60 because any normal person will not have the energy to be out at night working the business at that age. For arguments sake say he has 6 legs over platinium but under emerald. That would be a decent business. And finally say he no longer speaks at conventions as the younger ones are preferred. So how much would he make. I assume in anycase the business crumbles as soon as he stops.

Anonymous said...

Seems funny this diamond was not identified. Surely someone knows ruth carter if she was working the business for 15 years and who she worked for. Now she is making money telling stories about people who were making money telling stories about making wealth they never had. A funny bunch this amway lot.

Anonymous said...

According to the book the diamond guy was earning 3million gross and only 300k net. That cant be right. At that gross he was much higher pin than diamond. Apparently he rented planes to go to meetings. Then the guy was an indiot.
Doesnt seem to add up.

Anonymous said...

I think in a pyramid structure like amway you need to keep working as replacing fallout is key. Greg duncans, a crown, upline diamond qualified diamond in 1987. Last year he was requalifying at emerald. He probably only had one strong leg being the duncans. By contrast the duncans have about 6 diamond legs with several diamonds underneath many of those legs. They probably have a solid and profitable business. Of course they need to know how to manage that income and not invest in property at the top of the market. My message however is a diamond needs to have a number od big pins below both in width and dept before he thinks about walking. Thats not easy

Anonymous said...

I did a quick review of achieve north america magazine over last 3 years. Seems to me there were only a handfull of new diamonds listed. Is that correct. Also when i look at amway wiki practically all high pins date from before 2000 or even earlier. Is this thing stalling in the USA.

Anonymous said...

Hi joecool. Do you know if those United States amway wiki listed diamonds with older pin dates (1980/1990)are still in the business. Here in the uk none of them are.

Joecool said...

Correct. And in Amway, once you are a diamond, you are recognized as a diamond forever, even if your business falls apart and you aren't making any money.

Joecool said...

That is correct because it also factored in the money from his tool business.

amwayscam said...

I feel terrified looking back a year ago or even more, I used to be one such cult just hoping to make money in Amway which never could come true! Sales experience is always nice but Amway should be used to learn some people skills and nothing beyond. Of course it is difficult to just learn sales and be there in Amway because up line keeps bugging morning to evening.

Anonymous said...

"...Amway should be used to learn some people skills and nothing beyond."

In fact tighten this just one more notch - The same skills are actually available for far le$$ or free at the local library mixed in with your friends, family, social gatherings, etc. for practicals and without bugging a soul ;-)

ExAmbot

Anonymous said...

A brain washing scam for sure and damn near impossible to profit and a sure way to make your friends and family hate you and loose everything you own to keep feeding the amway monster like a dope fiend aching for thier next hit