What the audience learned about diamonds was that they can be used to purchase anything, including houses, in the form of a cash payment. Even though it appears to be impressive, when you look at the value of a typical diamond, you will find yourself scratching your head in confusion. Q12 diamonds generate approximately $600,000 in revenue per year, according to Amway. While this is a significant amount of money, a Q12 diamond is a rare exception. Approximately $150k per year is earned by the average diamond (not necessarily a Q12).
If a diamond earns only $150k in gross income before taxes and business expenses, she will be unable to afford even the most basic of Mercedes Benzes, let alone pay for one out of her own pocket. The purchase of large-ticket items such as a house in cash appears to be out of reach, even if the diamond augments that income with income from tools and functions. Additionally, incorrect teaching can have tragic consequences if the diamond is not properly trained. As an example, I will use myself and my former sponsor as a real-life case study to demonstrate my point.
A few years after I left my position with Amway, I bought a house in Hawai'i for myself and my family. When I bought my house in 2000, it was worth $400,000; today, the current market values it at approximately $1 million dollars. My mortgage is almost completely paid off at this point in my life. My real estate agent contacted my sponsor, who in turn contacted me, and so forth (the agent was a friend of mine and my sponsor). My sponsor refused to consider purchasing a home as a result of his upline's insistence on making a down payment in cash. According to the most recent information I have, my former sponsor, who is now a doctor, continues to be without a place of his own to live.
Find a perfect example of poor Amway advice that had a direct negative impact on someone's life by clicking on the link below: I'm not sure if my former sponsor is still actively involved in Amway, but looking back, he made a big mistake by opting out of the housing market because he preferred to pay cash instead. In any case, diamonds don't teach you anything about financial leverage, which is a shame considering how low mortgage rates are at the present time.
Everything diamonds are buying in cash — including expensive items — is, in my opinion, a load of bullsh*t. When he filed for triple diamond bankruptcy about ten years ago, he had mortgages he couldn't afford to pay and credit card debt, which made his financial situation public knowledge. As a result of this diamond's teachings, many people have learned that taking out loans is a bad idea because you must pay interest to the bank.
Keep in mind that diamond teaching and advice should be taken with a grain of salt. Verify any disputed claims and maintain your scepticism throughout the process. It is possible to get yourself into a lot of trouble if you place your trust in someone without thinking about it. As an example, consider the case of my former sponsor. Just looking at it makes me want to throw up my hands and shake my head.
0 comments: