Tuesday, January 10, 2017

Are Amway Diamonds "Broke"?

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. It is the crowning achievement of the 6-4-2 plan (or other variations) that many groups show. The average diamond earns about $150,000, according to Amway. Now $150,000 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/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 or $72,000 a year, leaving $108,000. (Although many - a - diamond pays for their homes in cash) 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 porttrayed 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 in 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 or deeply in debt. My numbers certainly won't apply to all diamonds but it certainly paints a picture that diamonds don't want you to see.

3 comments:

Anonymous said...

The extravagant lifestyle of Diamonds (as shown to those who attend Amway functions) is nothing but glitz and hype. It's not real. It's mere showmanship and fake publicity. Those events are as choreographed and staged as a televised Oscars Night.

The purpose is pure propaganda, to energize and "fire up" the troops. Amway IBOs often report that they are filled with enthusiasm for a month or so after each function. This is what the organizers want.

As for the actual reality of a Diamond's life and finances... it's probably just as ordinary as anybody else's. The telltale sign is that an Amway Diamond NEVER retires. He's always in there recruiting and preaching and drawing the little chalk circles.

If he really were a multimillionaire, he'd be "walking the beaches of the world," as the hackneyed Amway cliche puts it.

Joecool said...

Great comments. Yes, would note that Amway diamonds never "walk away" from Amway to enjoy the beaches of the world. They wok perpetually because without constantly recruiting and selling the hype, their business and income would fall apart quickly.

I believe that most diamonds, aside from the hype of functions, live ordinary middle class lifestyles. You can argue that their "work" is better than a 9-5 job with a boss, but at the same time, a regular job provides some degree of security that the Amway business completely lacks.

If the downline could actually see a diamond's financials, I suspect they would be sorely disappointed at what they see.

Anonymous said...

Did you get fired from Amway? Lol so much hate SMH