Tuesday, September 25, 2018

Amway Success Is Obvious?

One of the things the Amway diamonds and other big pins like to do is to flaunt their wealth. They show up at meetings with fancy cars, they like to wear fancy designer suits and my former LOS, WWDB, even had and still has a function called "Dream Night". Dream Night is where the diamonds show off pictures of mansions, jets, cars and vacations and they claim that everyone will one day join them in their lives full of pleasure and excess. Despite these displays of wealth, there is much evidence to suggest that these diamonds may not be able to afford all of these goodies. In fact, I strongly suspect that many diamonds are living in debt because they cannot sustain these fairy tale lifestyles on their incomes, even adding up the Amway and tools income. Now I'm not claiming that all diamonds are in hock, but I would not be surprised if half of them were in debt.

Even lower level IBOs attempt to appear wealthy. They may dress nicely and whatnot, but in the parking lot at functions, you might see a more accurate glimpse of reality when you see what these IBOs are driving around. I remember seeing a bunch of broken down cars, some of them on their last legs at the local functions. Yet if you were to speak to some of these nice folks, you would be told they are doing great and that business is booming.

But my question is why isn't all of this Amway success obvious? Why do IBOs dance around the questions about how much they earn from Amway? Why do diamonds like to copy some once a year bonus and pretend that they earn that kind of income on a monthly basis? If a room were full of IBOs and only the ones with a NET profit were to stand up, only a small handful or less of all IBOs would be standing. Most of the rest probably don't even make enough to cover the cost of their voicemail.

Why can't an entire group of IBOs earn a net profit? The answer is simple. In the vast majority of groups, the cost of tools exceeds the group income that is earned from Amway. Do the math and it's easy to see. Unless your group refuses to purchase any tools and focuses on selling products, then you are more than likely to end up losing money. Success is not obvious, and the reason for that is quite obvious. In a group of say 100 dedicated IBOs, would likely comprise a platinum group. A minimum platinum would generate 7500 PV and about 22,500 BV. But let's round that up to 10,000 PV and 30,000 BV.

30,000 BV would generate about $7500 (25% of 30,000). $7500 divided by 100 IBOs = $75 each on average. Of course, most of that would go to the platinum and everyone else will get smaller amounts, typically about $10 for the rank and file who earned a bonus. Now if each of these hard working IBOs spend $150 each on voicemail, premiere club and functions each month, that expense is $15,000, They would be spending (as a group) twice as much on tolls as the bonuses they generate as a group. As the group grows, so does the gap between bonuses and expenses.

It's very obvious that Amway is a lose money proposition. I just did the math.

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