Let’s break down the 6-4-2 plan (Re-print)
Basically, it’s a plan to go direct (platinum) and all you need to do is sponsor 6 of these direct groups and you’re a diamond and will retire early and life in luxury right?
Assumptions: 1PV = 2.5BV. 1PV costs about $2.70.
The 6-4-2 plan has the premise that you do 100 PV, and you sponsor 6 frontline who do 100 PV. Your six frontline in turn sponsor 4 (24 IBOs) each who do 100 PV. And each of these 4 IBOs sponsor two IBOs (48 IBOs).
So your direct empire looks like this:
1 platinum Sponsored 6 who sponsored 4 who sponsored 2 6 1300 PV groups Sponsored 4 who sponsored 2 24 300 PV groups Sponsored 2 48 100 PV IBOs
Total 7900 PV. 7900 PV = (1 PV = 2.5 BV) 19750 BV. 19,750 BV @25% = $4937.50 per month. Annualized = $59,250. Add Q12 bonus 69,250 (platinum group yearly income, not counting retail sales profit. Cost of product (approximate) $21,300 per month or $255,960 per year to maintain 7900 PV.
The platinum must pay his 6 1300 PV groups. 6 frontline 1300 PV = 3250 BV = $390 per month, or $4680 per year. $4680 x 6 = 28,080.
The Platinum keeps 69,250 – 28,080 = 41,170 (net, but not including operating and system expenses, but this includes the Q 12 bonus)
Now, the 6 frontline must pay their 4 IBOs who sponsored two. 300 PV = 750 BV = $45 Per month, or $540 per year. Thus the 6 frontline earn $4680 per year but pay out $2160 downline for a net of $2520 per year, or $210 per month.
Ok, and then each of the IBOs who earn $45 per month or $540 per year must pay their downline (2 each) $7.50 per month, or $90 per year x 2 = $15 month or 180 per year. Thus the 300 PV IBO earns $30 per month or $360 per year.
Let’s review:
1 platinum earns $3430 per month, or $41,170 per year 6 1300 PV IBOs earn $210 per month, or $2520 per year 24 300 PV IBOs earn $30 per month, or $360 per year 48 100 PV IBOs earn $7.50 per month, or $90 per year This is before taxes and expenses, but also does not include retail profits, but hey, we teach buy from yourself right?
OK, let’s look at tools expenses. Let’s say only the platinum, the 6 frontline and the 4 each who sponsored others are on tools (Fair assessment?) That would be 31 IBOs out of a group of 79 IBOs on tools or 39% of the group, and remember that all of these IBOs do 100 PV every month.
Tools cost: KATE, Website, standing order, book of the month, open meetings, monthly functions, major functions (some IBOs have to fly to functions), gas, incidentals, babysitters. Let’s estimate these tools and other expenses to be $160 per month (Very conservative IMO). $160 per month = $1920 per year.
Now let’s review the group NET income.
1 platinum $3430 - $160 = $3270 per month, or $39,240 per year 6 frontline (1300 PV) $210 -$160 = $50 per month, or $600 per year 24 (300 PV) $30 - $160 = <$130> per month loss of $1560 per year 48 IBOs earn $7.50 per month or $90 per year.
Group income = $69,250. Group Tools expenses = (31 x $160 = $4960 per month, or $59,520 per year) Group profit = $9,730 for the year.
79 IBOs putting in 10 hours per week = 790 hours per week or 9480 hours per year.
These IBOs on average made a whopping $1.02 per hour for the year collectively. Or………
The Platinum made $78.48 per hour
6 frontline IBOs made $1.15 per hour
24 – 300 PV IBOs lost $3 per hour
48 100 PV IBOs made 17 cents per hour.
7 comments:
Math to an Ambot is like a crucifix held up to a vampire. They hiss and hide their faces.
Amwayers are allergic to the truth. LOL
Quite shocking, thanks for unpacking the often toutet plan.
One can't even argue this isn't the plan put forward. I and others are definately shown and told no selling, just buy my own stuff and duplicate.
If we assume the $78.48 per hour is something worth having, then it takes 6+24+48 = 78 slaves to make that possible.
In fact, if all of the 78 each just give the platinum $40 per month, then nobody would have to work. Sounds like a better deal to me, and much more efficient too. Those sad to see the $40 go, could work 1 hour per week at minimum wage to get money to hand over, and still get 9 hours per week spare time out of the deal. If you use that you learn Russian or Japanese if you don't want to waste it! That sounds crazy, but from a bottom line perspective, that would be more rational.
From the platinum's perspective, for what it's worth, it would be more ethical too. It's far more fair to simply extort $40 per month from 78 people, than to make them work 40 hours at an average of $1 per hour. Plus under the new deal, the platinum does not have to work either.
Of course,, 78 would be assuming they all did at least 100 PV which is basically impossible. A real platinum group would have over 100 people and maybe closer to 200 people. Not all of them will be on the "system" but this gives you a better illustration of a failed system.
Joe, what will happen if half of 78 quits?
Just curious are there any new bonuses to the Amway plan? Since the past three years their sales are declining. They have the same crummy plan for 60+ years
I have heard about some changes in comp. plan. Once your downline reaches 21% and leg breaks, your leadership bonus used to be and still is 4%. But from September 2017 it should be 6%.
Funny, I have expected exact opposite to happen, that they will try to motivate beginners more. Instead, they are going to pay more to those high in the scheme. But maybe it makes sence as there are really not many of these people, it will be way cheaper, than increasing bonuses to lower ranks. For random Ambot it does not matter anyway, they will clap their hands whatever happens...
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