Tuesday, January 12, 2016

Amway Tools & Functions - The Upline's Fund Raiser?

A recent comment left on my blog inspired this article. The comment was that basically, IBO's are "donating" to their upline on a monthly basis. You start by donating upline in the form of monthly purchases. Your 100 PV is roughly equal to $300 and most of the bonus generated by that volume goes somewhere upline. This will go on forever until you either quit and stop buying, or unless you somehow manage to sponsor enough downline who will then "donate" to you.

If you attend those open meetings, you are again donating to the upline's coffers. As an IBO, I was strongly encouraged to attend these meetings even if I had no new prospects to bring. And of course, there was an entrance fee at the door. I don't think this was a major profit center but still, a room with perhaps 1000 attendees = $6000 collected and a room with chairs and a speaker doesn't cost that much for an evening.

If you purchase standing orders, you are donating to your upline on a weekly basis. If the upline can reproduce cds for 50 cents or even a dollar a piece, this is a very healthy profit center. Also, most upline recommend that you listen to a cd each day, thus you need to purchase some additional cds in addition to the standing orders.

Voicemail and book of the month are also monthly donations. Who in the world needs voicemail these days? But uplines still recommend it as they make some serious coin from it. The book of the month might have some value but the uplines are still making profits from these. Think about it, these diamonds claim they want your success but they make you pay for just about any help you receive, regardless of whether that help is beneficial to your business or not. By Amway rules, your sponsor is supposed to train and motivate you free of charge.

The regional and major functions are like the monthly fund raisers for the diamonds. Major functions can have thousand or tens of thousands of people in attendance. If they pay $100 (or more) each, it is a serious money maker for upline. A convention center or arena has costs in running events but those costs (while they vary) might be $10 to $25 per person. The rest is pure profit for the diamonds.

All in all, the profit margin is much higher for these tools and functions than from Amway products. Thus it's perfectly reasonable to think that the diamonds can make much more money from selling tools than from Amway itself. For groups where current qualifications are not required for a cut of the tools, these diamonds might make nearly all of their money from tools and functions. It's more like a diamond fundraiser than a function to help IBO's. Afterall, who gets the biggest financial benefit from the tools and functions? The diamonds or the IBO's?


Anonymous said...

A Diamond's main Amway income is from the tools-and-functions fees. Any Diamond who says otherwise is a lying son of a bitch.

And that money is being bled out of down-line, with absolutely NOTHING IN RETURN being given to aid down-line in building business.

You know what "Diamond" stands for?


"Dracula" because he's essentially a bloodsucker; "Nerdy Distributors" because that's all that 99% of Amway IBOs will ever be.

Joecool said...

Good analogy. They suck the life out of the downline one cd at a time, one book at a time, one function at a time. They don't hit you up for money all at once, but it goes out on weekly cds, monthly meetings and books, ad monthly seminars.

People can lose tens of thousands and more if they stay in the system for a few years.

Unknown said...

I like the analogy as well, and I figured I would throw in this...


Anonymous said...

How about this One:


Qiunan Tang said...

All diamond in my system don't make profit from tools as they never sell tools . Yes , functions might have a small profit left out but never be a large part. Well I am at our larger function right now. It cost $100 to attend , about 24 hours meeting time using a ballroom(1000 people size) in one of Las Vegas hotel and casino in three days. I am not sure how much it cost but I don't think it is cheap.
Then , we have 5 out of top ten amway IBOs attend with at least 20 founder crown total show up to share. I don't known how much you would like to pay for someone selling billions of dollars a year as salesman. I feel it is well worthy for the $100.

Joecool said...

A function is cosidered part of a system and considered as tools. There profits are huge from these functions. That $100 you pay is how your upline achieves some of their success. Functions have a higher profit margin than Amway products so it's easy to see how diamonds make more from tools and functions than from Amway.

You said your upline doesn't sell tools but functions are still considered tools.

Qiunan Tang said...

Functions are a tool to success but it has nothing with making profit from selling the ticket. With about 1000 people attend, 100k income , it might merely about to cover the cost , even there is a profit left, it won't just be a small income compare from product they sold .

Joecool said...

100K gross. Small venue probably cost $20 a person s maybe 80K profit. That's not bad for a few hours of speaking. Make it a bigger function, say 10,000 IBOs and now you have a gross of one million bucks.

Qiunan Tang said...

The 100 dollar cover 3 days , total up about 20+ hours of class . Compare to similar functions it wasn't high at all. Small venue ? 20 dollars per cost ? Jeo you must no idea how much it cost to rent a ballroom in Las Vegas .

Anonymous said...

If that 100 spent in functions helps you generate enough sales then I would say it is worth the value. what business advice were given in the function?

Joecool said...

Renting a ballroom can be cheap in Vegas. You bring 1000 people to a hotel/casino and you can negotiate good deals.

Bu unless the function results in a lot of increased sales, it's useless except for those who profit from the function.

Anonymous said...

Spot on!! No one wants to spend $100+ to listen to a speaker who talks nothing but garbage.

Qiunan Tang said...

Wow! You called our speaker talks nothing but garbage when the wsj called he one of the best salesperson in the earth! You called her garbage when a full room of nearly a thousand people listen to her a like it. Many of them are not first time , many of them were come from oversea. Among them we have all kind of sucuss people , business owners, doctors, lawyers ecf. We have people graduated from top university in the world .
think twice before what you said. Be open, it could hardly be a waste to listen to a really sucuss person speaking.

Joecool said...

And what did they teach you? To buy more Amway stuff, never quit and keep attendiing functios?

Qiunan Tang said...

They teach me how to deal with people. They teach me how to deal with things. They don't teach me to buy more staffs but how to sell more. Those things can apply to any related business. They show us how they get to success.