I've been seeing some continuous disputes regarding whether higher pins' system income exceeds their Amway bonuses. I believe that methods like BWW, WWDB, N21, and LTD make more money for upline than selling Amway products. However, how the system's income is distributed remains a mystery, as there do not appear to be any legitimate written contracts describing how the upper pins' income is distributed.
However, it's simple to see that the system generates more revenue than Amway. If you sell $100 worth of Amway products, Amway will reward you with $33 in bonuses. Depending on your level, these bonuses will be distributed across Amway IBOs (middlemen). However, if your group purchases 20 CDs at $5 apiece, the system will profit around $90 because CDs cost roughly 50 cents each to create in volume. Some Amway defenders will point out that some organisations offer CDs for $2.50 or $3.00. This is correct, but there is a "membership fee" that must be paid. When you factor in the member's fee, the system's profit is the same, if not larger!
If you buy a $100 ticket to a major function, the cost of that function may be in the range of $25 to $30 per attendance, resulting in a $70 profit for the system on a $100 transaction. Smaller activities like open meetings, books, and voicemail, I suppose, have lower profit margins, but it's easy to conclude that the system's profit margins are bigger than the profits made by moving Amway items.
The only question is how much money each person makes. I've "heard" that platinums get a discount on standing orders and CDs, but I've never heard of a platinum sharing profits from functions, voicemail, or any other stuff. This perplexes me because I believe the platinums are the hardest workers in the system.
So, for lower-level IBOs, if you move $300 in Amway sales (about 100 PV), you'll get around $10 or 3%, while your upline gets the balance of the $90+ in Amway bonuses. Then, when you buy and shift a lot of tools, you get nothing while some of your uplines get all of the earnings. While I don't think it's a problem for upline to profit from selling training materials, I do think it's a problem if the tools don't work. So few IBOs make it to the point where they can make a profit. Supporters of Amway will point out the new platinums that appear each year, but they will ignore the platinums who do not re-qualify.
Based on my observations, I can only infer (very readily) that the selling of support materials generates far more profit for upline, and that the support materials are ineffective in educating downline IBOs to advance to higher levels of the business. On this subject, I welcome competing viewpoints.
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