Friday, September 19, 2014

Amway Will "Set You Free"?

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?


Anonymous said...

I heard rumors before the intenet. The average diamond made 2-3 times more in tool income in the 80s and early 90s. I wonder if the leaders would stay if the system income drops even more? The numbers you point out are already depressing enough.

Joecool said...

Already we've seen some Amway diamonds take their groups to MLM's with bigger payouts. I wonder how they did it when they were probably saying Amway is the best, etc etc? Maybe outright lying?

Anonymous said...

Joe, with Amway leaders they lie so much. They becomes normal and just becomes habit. The diamonds back when I was involved are long gone. They often say Amway has a 50+ yr history. But who cares when the income is very short term. Might as well join the highest paying Mlm and let the dice roll.

Joecool said...

It wasn't just the lies. The diamonds most likely were living in debt. The lifestyles they show off are not possible on a diamond's income. Couple hundred thousand gross income isn't much after taxes and business expenses are factored in.

Anonymous said...

When I question a platinum, ruby,emerald, or diamonds income. Showing them Amway's own literature. I get this rehearsed predictable response. Were wwdb and our diamonds make 2-3 times more than the average. Even heard brad duncan tell us how some of wwdb diamonds make more than crowns from other groups. Sad part is doesn't matter the lies.....their ibo don't a question the answers

Joecool said...

I was in WWDB and I remember the diamonds saying that WWDB was the most profitable group. But it would be quite easy math. Not to mention how would WWDB know what other diamonds are making since they are quite private when it comes to actually showing proof of their income.