Thursday, March 3, 2016

Are Diamonds Like Anyone Else?

I recently read an article on what constitutes wealth. Some say an annual income of $100,000 would make them wealthy, some say assets exceeding $4 million would do it, and some estimated that $2 million would make them "rich". Of course, everything is relative and someone earning $25,000 a year would think that $100,000 a year is wealth, etc. College students might think $40,000 a year is awesome because many have little money to begin with. I'm sure someone like Bill Gates would not consider $4 million to be astonishing. It's all relative. If you are content with what you have, you are likely relatively well off already.

But let's talk about Amway diamonds. I say diamond because it is basically the pinnacle of success in Amway. It is the crowning achievement of the 6-4-2 plan (or other variations) that many groups show. The average diamond earns more than $200,000, according to Amway. Now $200,000 sounds like a lot of money to young people or to those with lower wage types of jobs, or those who are just starting out in their careers. But we also know that diamonds earn income from the sale of tools. Some groups advertise (verbally) that someone might earn $100,000 a year from the tools and honorariums (speaking income).

Let's be generous and say the diamond earns $300,000+ a year from Amway and tools income. Income tax and medical insurance for the family will eat up about 40% of that right off the top, leaving about $180,000. Fantastic you might say? Well, a diamond certainly would live in a million dollar mansion, which would give you about a $6000 a month mortgage (So much for buying homes in cash) or $72,000 a year, leaving $108,000. Fantastic right? Well, diamonds are constantly traveling to various functions, flying first class and staying only at 5 star hotels right? So an average of 1 trip per month with a family, first class and a 5 star hotel would probably cost about $5000 or more per trip, or about $60,000 a year, now leaving $68,000 for this diamond's yearly budget. A good diamond with a family surely consumes 300 PV per month for household goods, or about $900 a month or about $11,000 a year, leaving $57,000 for the rest of the year. A good diamond is often a Christian who would faithfully tithe 10% of his income, or about $30,000 a year, leaving the diamond with $27,000 a year, or about $2250 a month to pay for their monthly electric and utility bills, gas, car payments, meals and entertainment.

Yes, some expenses may be slightly higher or lower, but what I am trying to illustrate is that even an above average diamond with tools income is more likely to be broke than wealthy if they live the lifestyles portrayed at functions such as dream night or other major functions. Do the math. It is unlikely that diamonds pay cash for everything and it is unlikely that fabulous lifestyles can be sustained on a diamond income. There is plenty of evidence out there. Diamond's homes foreclosed, diamonds behind on income taxes, a prominent triple diamond formerly in chapter 7 bankruptcy proceeding, many diamonds selling off their homes in a bad real estate market.

I truly believe that it is quite possible for many diamonds to be broke. Many people live in debt these days. Are diamonds any different, even with more income? The math says diamonds are just like anyone else.

10 comments:

Anonymous said...

If there actually are some diamonds who live the sort of sybaritic lifestyle that is touted at the functions, it's because they took whatever money they had from a combination of Amway and their jobs and invested it wisely. That sort of jet-set lifestyle isn't possible on Amway income, unless your name is De Vos or Van Andel. Even the famous bigshots like Yager and Britt had major investments that were not connected with Amway.

This is one of the more subtle lies of diamonds in the Amway corporation -- they quietly combine income from a number of sources and then claim that it's "all from the Amway business."

Joecool said...

Yes agreed. There were also reports (not confirmed) that some diamonds made a fortune from the tools and perhaps that's how some of the jet set toys were purchased.

However, I have also heard (and confirmed at least locally where I live) that the venue for Amway WWDB functions have been getting smaller. Perhaps the tools income is shrinking a bit because information is so freely available.

Anonymous said...

Amway is definitely shrinking in North America, no matter what lies are emitted from Ada, Michigan.

Joecool said...

I believe your statemebt

Anonymous said...

Another cost of being a Diamond is your soul. Nobody but an oblivious idiot could be that deep into and financially successful in Amway without knowing that they are selling false hope to people, wasting their time and money, taking them away from their family and job etc. How they can look people in the eye and do that b.s. Amway shtick is beyond me but then they probably had no conscience in the first place. Which is why they can lie so convincingly.

Joecool said...

I believe you are right. Not only do they know that the dowline will all fail, they also have the nerve to give advice like selling valuables to attend the next function, or to skp meals so you can buy another cd. It's shameless.

Anonymous said...

As long as the diamond can keep up with the attrition rate....

Anonymous said...

Correction: $108,000 - $60,000 = $48,000

Qiunan Tang said...

First , you are blind to facts and number and only use your "believes" a diamond made at very least 300k each year with only amway bounes . If there is any other income , it is a add-on .
Then, the attrition rate is quite high for new member but it is very very low for plat+ .
Last but not least, when you made your first step , it is 10 times easier to make money. I don't know if it should count but knowing that I will get at least 500k in next 3 years even stop working will change how I will invest me money.

Joecool said...

What "facts" am I blind to?

Attrition is high but not for platinums? Platinums are about 1 in 400 IBOs. That's not such a good number.