Thursday, January 31, 2013

How To Make Money In Amway?

I have been reading some ongoing debates about whether the system income for higher pins is more than their Amway bonuses. I believe the systems such as BWW, WWDB, N21 or LTD, does generate more profit for upline than the sale of Amway products. How the system income is divided though, is still a mystery as it doesn't appear that there are bonafide written contracts explaining how tools income is split up among the higher pins. This piece of information alone should tell you something.

But it's very easy to determine that more income is made from the system than from Amway. If you move $100 worth of Amway products, Amway will pay about $33 back in the form of bonuses. These bonuses will be split among the Amway IBOs (middlemen), depending on your level. On the other hand, if your group bought say 20 cds at $5.00each, the system will profit about $90 as cds cost about 50 cents each to produce in bulk. Some Amway apologists will cite the fact that some groups sell cds for $2.50 or $3.00. While this is true, there is usually a "member's fee" which must be paid. And when you add in the member's fee, the profit for the system is the same or possibly higher!

If you buy a major function ticket for $100 or more, the cost of that function might be in the neighborhood of $25 to $30 per attendee, so the system may generate $70 profit on a $100 sale or more if the price is higher. I believe the smaller functions such as open meetings, books and voicemail have smaller profit margins, but still overall, it's easy to conclude that the profit from the system is greater than profits generated by moving Amway products. It is why the systems are often emphasized by your upline leaders.

The only question is how much each individual earns. I have "heard" that platinums get a discount on the sale of standing orders and cds, but I have never heard of a platinum sharing any profit for functions, voicemail, or any of the other materials. This is puzzling to me as I believe the platinums do the most work in the system. The platinums often do the most home meetings and manage the group's downlines.

So for the lower level IBOs, if you move $300 in Amway sales (Approximately 100 PV), you will receive about $10 or 3% while upline enjoys the rest of the $90+ in bonuses from Amway. And then when you purchase and move tools volume, you receive nothing and some of your uplines enjoy all of the profit. While I don't see any problem in upline making a profit for selling training materials, I see a problem in the fact that the tools don't work. So few IBOs progress to levels where an actual profit is earned. Amway supporters will point out the new platinums emerging each year, but do not mention the platinums who do not re-qualify. The only way for lower tiered IBO's to profit is to sell products to actual customers, which is difficult when Amway products in general costs more than comparable products sold at retail outlets.

Based on my observations, I can only conclude (quite easily) that there is substantially more profit from the sale of support materials for upline to enjoy, and I can also conclude that the support materials are ineffective in training downline IBOs so they can progress to higher levels of the business. I welcome opposing views on this issue.


ExAmbot said...

For emeralds and above you can multiply their scAmway income by at least three for systems equivalent. A BWW crown ratted out the figures at a hush hush leaders' meeting once. Should be same or similar for WWDB and LTD. Yaeger or his system raked in the $40m range in the mid 1990's. Either way he must have kept a good change for his self.

ExAmbot said...

But the way to really make $$$ in scAmway is to branch off into an own tool scam. And don't forget to create a factory that makes your own cd's. Then it doesn't matter who goes crown amb. you own the $$$ all the way to the bank!

Joecool said...

Right. It's why diamonds "broke away" from their llifelong awesome "mentors" to form their own groups.

Anonymous said...

At the time I was involved in Amway in late '90s, SA-40 (Wow! I still remember the form #), it clearly stated that the chances of reaching the "direct level" was 1%......JUST reaching it. That's not even high enough to "retire" on.

Amway company charges such a high amount for products, from catalogs, it's no wonder people don't buy them or very little.

I laugh, every time I see an Amway advertisement, and I am thankful I left that behind long time ago.

OK. Time to go & become productive now.