I keep hearing from Amway IBOs that they believe that Amway has created more millionaires than any other company in the US. I call BS on that claim. I am not saying that Amway hasn't created any millionaires, obviously, the Amway owners are worth billions of dollars. But what the IBOs are apparently implying is that all of the Amway diamonds are millionaires. I'm sure there are some diamonds who indeed are millionires, especially if they are tenured diamonds, in particular the double diamonds and higher. But conversely, I believe that many high level diamonds are not millionaires. I believe it is just as common for a diamond to be in debt as it is for a diamond to be living large. I also believe that many diamonds did not accumulate their alleged wealth exclusively from Amway. If a diamond is in debt trying to show off a diamond lifestyle, they are likely to have little equity in their belongings, and possible in debt trying to "keep up with the Joneses".
The reason why this is an issue is because these big pins will stand on stage and show off excessive wealth and imply that it is their Amway income that pays for these mansions, sports cars, and in some cases, jets. In the US, I attended a function called "Dream Night" where these kinds of trappings are displayed, to the tune of the song "I wanna be rich". The diamonds would say that you can have what they have, if only you will do what they advise. These functions still go on today and I believe it is no different now than it was when I was an IBO.
Stanley and Danko's book, "The Millionaire Next Door" http://www.personalfinanceplaybook.com/2009/08/the-millionaire-next-door/
This book makes some very interesting points which I believe applies to Amway diamonds. I will outline the significant ones and I will comment below:
**Predictably, the data shows that most people who you believe to be very rich are not.
**High net worth individuals, statistically, tend to be people that live within their means. They don’t spend a lot of money. They don’t waste their money. They tend to be pretty frugal people.
**The authors point out that most of the richest people you know aren’t driving expensive luxury automobiles. That’s what the people who want everyone to think they’re rich drive.
Joe's commentary. The book does say that about 1/3 of millionaires acquired their wealth thru a J-O-B and saved and invested, but did mention that many millionaires were also un-extraordinary business owners, such as a pest control company, etc. But based on the points made by the book above, I can see where it is likely that diamonds portray a lavish lifestyle as a recruitment tactic, when the reality is they may be living very middle class lifestyles off stage, or may even be in debt. I have seen evidence of diamonds having their homes foreclosed and being in debt (Ruth Carter's book: Amway: Behind the Smoke and Mirrors). Recently, there was also a report that Triple Diamond Greg Duncan filed for bankruptcy. The report indicated that he could not make his mortgages, or something to that tune. Odd, because when I was in WWDB, some of the upline leaders said diamonds paid cash for everything because paying interest to the bank wasn't very smart.
My question is why IBOs continue to make up these claims? Try googling millionaire or Amway millionaire. There is nothing to indicate that Amway was responsible for creating the "most millionaires" of any US company. If this were true, wouldn't Amway use it as an advertising point? If you don't believe me, go and ask Amway yourself.