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?
11 comments:
I cant see how a diamond can be financially free. With a gross income of only 150k, the after expenses and taxes etx net income is about 50 k annually. Just enough to live reasonably on. And then most dont requalify.
Your facts are totally off... if you actually bothered to get the truth and go to the Amway site and pull up their business overview you would know that. Get a brain.
My facts are totally off? Which one?
That fact is that you lack a brain.
"Amway has stated that the average diamond earns about $147,000 a year"
Incorrect.
It's hilarious to me that you can respond in 3 minutes repeating to me what I just said in an attempt to make me look bad but you can't post my reply about what facts are off... while you're wasting your life away in front of a computer screen Amway is soaring and taking its IBOs with it. I feel sorry for you.
This article is a reprint. At the time I wrote it, it was correct, Give me the current number and I'll update it.
What facts are off?
Even if the average diamond income was $250,000 they are not going to be living high on the hog after business expenses. Certainly not enough to sustain what is shown as a diamond lifestyle.
From Wikipedia:
Quixtar reports that the average income for an "active" Quixtar IBO in 2005 was $115 a month ($1,380 annually), as documented in The Quixtar IBO Compensation Plan[12] and on a Quixtar website.[13] The average annual Quixtar income for an IBO that qualified at the Platinum level in 2005 (0.1683% of IBOs) was $47,472 and for a Diamond (.0120% of IBOs) it was $146,995. T
You got that information from Wikipedia, first of all. Anyone can go on there and write anything. Go to the reputable sources- like maybe the Amway website. They'll have the accurate, up to date and LEGALLY PERMISSIBLE information you can quote.
Like this from Amway's business reference guide?
The average monthly Gross Income for “active” IBOs was $202.
Approximately 46% of all IBOs were “active.”
U.S. IBOs were considered “active” in months in 2010 when they attempted to make a retail sale, or presented the Amway IBO Compensation Plan, or received bonus money, or attended an Amway
or IBO meeting. If someone sustained that level of activity every month for a whole year, their annualized income would be $2,424. Of course, not every IBO chooses to be active every month. “Gross
Income” means the amount received from retail sales, minus the cost of goods sold, plus monthly bonuses and cash incentives. It excludes all annual bonuses and cash incentives, and all non-cash
awards, which may be significant. There may also be significant business expenses, mostly discretionary, that may be greater in relation to income in the first years of operation.
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