Tuesday, April 11, 2017

Outearn Your Amway Sponsor?

One of the silly defenses that Amway supporters use to defend their business, is that it must not be a pyramid or it must be legitimate because you have the opportunity to earn more than your sponsor. While many downlines in fact do earn more than their sponsors, it's likely because about half of all IBOs don't do anything or they stay for less than a year and factoring the business expenses for those who are on tools, the reality of suffering business losses also causes people to exit the business. It's not that hard to earn more than people who quit or do nothing. But even at that, someone who quits is often better off than IBOs who continue because someone who quits has no business expenses which is likely to result in a net loss.

An IBO at the 100 PV level will earn about $10 in bonus income from Amway. If they are attending functions, buying standing orders and voicemail, they will operate at a net loss. Thus, unless their business grows each month (highly unlikely, even if they do as upline advises) then they will suffer losses each month and those who quit will be better off. It is why I have stated that doing nothing or staying home and watching television can honestly be better options than joining Amway and the systems such as WWDB, N21 or BWW. It is why reasonable people can conclude that working for minimum wage, even a few hours a week makes you better off financially than joining Amway and the systems.

The defense that someone can outearn their upline or sponsor is silly. The true benkmark of this statement would be for a new guy to start a business, and in 2-5 years, outearn some tenured diamond. It will never happen because that upline diamond has direct influence over the fortunes of their downline. It is why you have seen diamonds quit, or split from their upline to start their own training systems. They cannot affect change from downline, without upline consent, thus the breaking away from their "mentors" or leaders. At times there have even been lawsuits over the tools income. Do people really sue their mentors? Don't diamonds teach you that suing people is wrong? That you don't get something for nothing? Yet you can easily google these events or find instances of this happening.

You can surely outearn your sponsor. All it takes is for your sponsor to quit. However, your sponsor quitting might mean you don't outearn your sponsor, because you'll suffer a net loss and a quitter is simply at zero. Taking losses is not outearning someone. Keep in mind that everyone in Amway is equal. You are all unpaid commissioned Amway salespeople, bound to Amway's terms and agreements. You don't own your downline. You don't really own much as an independent business owner. You can ourearn your sponsor, but that means squidly diddly when your sponsor makes nothing or takes a loss. Come back and chirp when you outearn your upline diamond. Do I hear crickets shirping now? :-)


Anonymous said...

The entire real purpose of Amway, financially speaking, is to keep Diamonds rich, and to limit the number of down-line who become Diamonds.

Joecool said...

Diamonds may say they want you to go diamond and join them, but they don't. If you go diamond, they get less money from tools.