I have heard from IBOs that they believe that Amway has created more millionaires than any other company in the US. I call complete BS on that claim. I am not saying that Amway hasn't created any millionaires. Obviously, the Amway owners are worth billions of dollars. But what the IBOs are apparently implying is that the diamonds are millionaires. I'm sure there are some diamonds who indeed are millionires, especially if they are tenured diamonds, in particular the crowns and higher. But conversely, I believe that many high level diamonds are not millionaires. I believe it is just as common for a diamond to be in debt as it is 100 PV IBOs. I also believe that many diamonds did not accumulate their alleged wealth exclusively from Amway. I believe many diamond's wealth is a direct result of the tools sales and not so much from Amway. It makes perfect sense because the tools have a higher margin of profit than the Amway products.
The reason why this is an issue is because these big pins will stand on stage and show off excessive wealth and imply that it is their Amway income that pays for these mansions, sports cars, jet skis, and in some cases, aircraft. In the US, I attended a function called "Dream Nite" where these kinds of luxuries are displayed, to the tune of the song "I wanna be rich". The diamonds would say that you can have what they have, if only you will do what they advise. These functions still go on today and I believe it is now called Winter Conference for some groups. The diamonds imply that they all wake up when they want and travel and do whatever they want with no monetary worries. I believe they just performing as illusionists. A diamond's income as reported by Amway, cannot support the lifestyles portrayed at these dream nights. and certainly not paying for mansions and aircraft in cash.
Stanley and Danko's book, "The Millionaire Next Door"
http://www.personalfinanceplaybook.com/2009/08/the-millionaire-next-door/
This book makes some very interesting points which I believe applies to Amway diamonds. I will outline the significant ones and I will comment below:
**Predictably, the data shows that most people who you believe to be very rich are not.
**High net worth individuals, statistically, tend to be people that live within their means. They don’t spend a lot of money. They don’t waste money. They tend to be pretty frugal people.
**The authors point out that most of the richest people you know aren’t driving expensive luxury automobiles. That’s what the people who want everyone to think they’re rich drive.
Joe's commentary. The book does say that about 1/3 of millionaires acquired their wealth thru a J-O-B and saved and invested, but did mention that many millionaires were also business owners, such as a pest control company owner, etc. But based on the points made by the book above, I can see where it is likely that diamonds portray a wealthy lifestyle as a recruitment tactic, when the reality is they may be living very middle class lifestyles off stage, or may even be in debt. I have seen evidence of diamonds having their homes foreclosed and being in debt (Ruth Carter's book: Amway: Behind the Smoke and Mirrors). Recently, there was also a report that Triple Diamond Greg Duncan filed for bankruptcy. The report indicated that he could not make his mortgages, or something to that tune. Odd, because when I was in WWDB, some of the upline leaders said diamonds paid cash for everything because paying interest to the bank wasn't very smart.
My question is why IBOs continue to make up these claims? Try googling millionaire or Amway millionaire. There is nothing to indicate that Amway was responsible for creating the "most millionaires" of any US company. If this were true, wouldn't Amway state it on their website? If someone finds any veracity about this claim, inform me and I will post it. Alas, you won't/
I dont see how a diamond would become a millionaire. Amway says average income is 150 k annually. Hence probably half the diamonds ear less. Take out business expenses and tax the net is a middle class income at best. Most diamonds dont requalify and thei business eventually collapses. I think crown ambassadors probably can expect to be millionaires. If you look at any mlm earnings list you only see a handfull of amway people earning millionaire income.
ReplyDeleteHas anyone read there IBO handbook. They have a disclaimer on every page over the pay saying what the average income is. That was mandated by the gove to stop false statements of what you will make.
DeleteProblem is people don't follow the rule and Amway doesn't/can't enforce it.
DeleteIf the average annual compensation of a Founders Diamond (as reported to the IRS in 2010) is $602,467, how many years of living within their means would it take to become a millionaire? But the real question is not whether or not Diamonds are millionaires, but rather, do you have the ability to improve your financial situation by becoming an IBO?
ReplyDeleteLoosers like u People Just blabber ..
ReplyDeleteAnd people like you don't know how to spell. Maybe Amway attracts less educated people. LOLOL
ReplyDeleteNegative enerrrgggyyy
ReplyDeleteaaaammmmmbot!
DeleteAnonymus!8:
ReplyDeleteAmway's Diamonds make about a 1/2 million a year. Not bad!! How many of you out there are making that much? So stop your nonsense blabber and childish analogies, conclusions, and suggestions stemming from sheer ignorance. You don't know diddly about the business because you've never done it before! Come join Amway already. You'll never regret it.
How much are their business expenses and how many of their downlines are losing money?
DeleteI live in the midwest and By connections, I came to know not 1 but 3 families that are diamonds. They all lived in the south side of chicago worst Neighborhood. They went to the convention, they risked it and now they live in a lifestyle that Everyone wishes to have. Business expenses? Amway gives them discounts that they end up saving rather than losing.
ReplyDeleteOne of the Diamonds told me in order to win in this industry you MUST help out your downlines, its like a Huge family helping each other out.
Diamonds can live in nice neighborhoods and they can also be drowning in debt trying to show off the diamond lifestyle. If you sit down and do the math, you can easily see this is true.
DeleteBaaaaaa!
ReplyDeleteThis is interesting. Being an IBO myself and seeing what I've seen, it's not always easy for IBO's to admit that diamonds aren't millionaires. But it's probably true. The writer of this blog was a 4000 PV. That's about halfway to the top of the bonus scale, which is 7500. The main reason why peoples' businesses "crumble and fall" and because people who became diamond fall out of diamond is probably because they didn't build the business big enough. For example, if someone hit the top of the scale like I mentioned earlier, they're a silver. If they hold it for three months, they're a gold. If they hold it for six, a Platinum, and twelve is a Q12 Platinum. So if I sponsor Bob and I go Q12 doing 100 points myself and Bob does the rest of the 7400, then Bob finally goes Platinum, I need 4000 points outside of Bob's points to remain a Q12, or else I lose my qualification. And the outside volume has to be even bigger as people move up the pins. That's why people in the business think it's important to get wide. And a 4000 PV business may not be super profitable, but a lot of people don't totally understand the concept of an asset, meaning people invest quite a bit of money but even more TIME into building a business. My upline double diamond hasn't made less than a million dollars since 1997. My upline Emerald's best month of business is $185,000. In just one month. And people talk about taxes being taken out and then ending up at a middle class income, do you realize how much money can be returned after taxes to a business owner? All the info sessions, team meetings, conferences, miles driven, and tools we buy can be refunded in our taxes. AmWay gave out more cash incentives and bonuses to it's business owners than any other direct sales company in 2014. 7,855 people qualified as new platinums last year, which is anywhere between $55-80,000 a year with bonuses. Amway has more products with a money back guarantee than any other direct sales company this far. It's 180 days. Which is unheard of. They have the #1 selling vitamin, meal replacement shake, water and air treatment systems, and the #2 selling energy drink in the world. And these people aren't just about making money. They're about building relationships and helping people grow. I'm not trying to convince people to join whatsoever. Its not for everyone. I just think it's nice to have more than one perspective. Peace out girl scout.
ReplyDeleteI notice you didn't name your diamond. And I'm certain you don't know that they made a million dollars every year because no diamonds disclose their income to their downline. They may show you a check but the check is gross income and doesn't give enough information for someone to determine what a diamond's income is.
ReplyDeleteAt 4000, I wasn't profitable because the defacto requirement to purchase tools and functions ate up all the profit I made.
THe number of new platinums is irrelevant because Amway sales were down double digits last year. Those new platinums probably replaced a bunch to failed to requalify.
The tools and business expenses are not returned to you in a refund. You can get a portion back for legitimate busines expenses. So if you spent $5000 on tools and you are in the 10% tax bracket, you would get back about $500 after spending $5000.
Notice that Unknown at 7:11 PM avoids telling us just how much money she personally has made (or lost) in Amway.
ReplyDeleteYawn.