So many people join Amway with high hopes and dreams. It’s no wonder considering how the recruitment meetings go. Prospects are filled with delusions of untold wealth and retiring at the age of 29. They are shown displays of wealth from the diamonds who allegedly live a jet set lifestyle with money just rolling in.
I believe a look at reality would be bad for recruiting new people into Amway so they are shown glimpses of wealth that the diamonds allegedly have obtained from the Amway businesses. But when you study Amway’s own disclosures, you’ll see that diamonds might make a decent income of perhaps 100 to 200k annually but that is gross income. Taxes, medical coverage and business expenses likely eat up a lot if a diamond’s income, leaving them in debt like most Americans or perhaps a middle class lifestyle at best.
Again, do the math yourself and it’s hard to reach any other conclusion. Imagine a family of four with a gross income of $200k. After taxes, medical coverage, and business expenses, it East to see that they aren’t buying mansions with cash payments. They likely aren’t even buying a nice car in cash. Sure, some tenured long time double diamonds might have a nice life but these are the exceptions and not the rule.
If not, why is my former diamond (Harimoti) still only a diamond more than 20 years since I left Amway? I even heard that he fell back to emerald for a while which raises sustainability questions.
The truth is that most IBOS are doomed from the start. They peddle average products at premium prices. They also have negative cash flow because of the inefficient training system. Just because a few new people manage to achieve higher levels doesn’t change the fact that more than 99% of all IBOS make nothing or lose money, because they are doomed from the start.