Sunday, November 29, 2020

Diamonds Pay Cash?

 One of the things that diamonds taught the audience that diamonds pay cash for everything, including houses.  It sounds impressive but if you really look closely and examine how much a typical diamond earns, you will scratch your head.  According to Amway, a Q12 diamond earns around $600k annually which is awesome but a Q12 is a rare exception. An average diamond (non Q12) earns around $150k annually.  

How can a diamond with $150k gross income, before taxes and business expenses afford to even buy a top of the line Mercedes Benz in cash?   Even is a diamond augments that income with income from tools and functions, buying big ticket items like a house in cash seems far fetched and that teaching can have tragic results. I have a real life example of myself and my former sponsor as a contrast. 

I purchased home in Hawai’i a few years after quitting Amway.  I paid $300k for my house in the year 2000 and my home is currently valued at about one million dollars.  My mortgage is nearly paid off at this point. My sponsor was contacted by me real estate agent (the agent was a friend of mine and my sponsor).   My sponsor refused to consider buying a home because his upline said to pay cash.  My former sponsor, who is currently a doctor, still does not own a home last I heard.  

That is a perfect example of bad Amway advice that directly adversely affected someone’s life.  Now I’m not sure if my former sponsor is still heavily involved in Amway or not but looking back, he definitely lost out by not purchasing a home because he wanted to pay cash.  I guess diamonds don’t teach about financial leverage, especially with mortgage rates at record lows.  

If you ask me, diamonds buying everything in cash, including big ticket items is very likely complete BS.   A triple diamond bankruptcy about 10 years ago made his financials public record and this diamond had mortgages he couldn’t pay and credit card debt.  And this diamond was one who taught that loans are stupid because you have to pay the bank interest.  

Take diamond teaching and advice with a grain of salt.  Verify questionable claims and be skeptical.  Blind trust can get you in a lot of trouble.  Just look at my former sponsor.  It’s just sad and makes me shake my head.  


1 comment:

Anonymous said...

The only thing an Amway Diamond pays cash for is a hot dog from a street vendor. For everything else he uses bank checks and loans and credit cards and mortgages, just like the rest of the world.

This crap about "paying for everything with cash" is pure Amway bullshit.