This piece was inspired by a comment published on my blog recently. The implication was that independent business owners (IBOs) are essentially "donating" to their upline on a monthly basis. You begin by making regular monthly purchases from your upline to support them. Your 100 PV is about equal to $300, and the majority of the bonus created by that volume is distributed upwards. This will continue indefinitely until you either quit and stop purchasing, or else you manage to sponsor a sufficient number of downline members who will then "contribute" to you.
If you participate in such open meetings, you are once again contributing to the upline's financial resources. When I was an IBO, I was actively urged to attend these sessions, even if I did not have any new possibilities to share with the other participants. And, of course, there was a price to enter the building at the door. Despite the fact that a room with possibly 1000 guests equals $6000 in revenue, a room with seats and a speaker does not cost that much for an evening's worth of entertainment.
With standing orders, you are donating to your upline on a weekly basis, which is really convenient. If the upline is able to reproduce CDs for 50 cents or even a $1 a piece, this is an extremely profitable business opportunity. Aside from that, most upline propose that you listen to a cd every day, which means that you will need to acquire some additional cds in addition to the standing orders.
Monthly donations are also made for voicemail and the book of the month. Who in the world still uses voicemail in this day and age? However, uplines continue to recommend it since they earn a substantial amount of money from it. Although the book of the month may be of some value, the uplines are still making money from these sales as well. Consider this: these diamonds profess to care about your success, but they need you to pay for virtually any assistance you receive, regardless of whether or not that assistance is conducive to your business's success. According to Amway regulations, your sponsor is required to train and motivate you at no charge.
The regional and major functions are analogous to the monthly fund raisers for the jewels in terms of scope and scale. It is not uncommon for major functions to draw hundreds of thousands or tens of thousands of people. If they pay $100 (or more) each, it is a significant source of income for the upline. A convention centre or arena incurs expenses in order to host events, although those expenses (albeit they vary) are typically between $10 and $25 per participant. The diamonds make a tidy profit on everything else.
Overall, the profit margin for these tools and functions is significantly higher than the profit margin for Amway items. As a result, it is completely logical to believe that the diamonds can make significantly more money from selling tools than they can from selling Amway products. Those diamonds who work in groups where current qualifications aren't required for a cut of the tools may be able to earn practically all of their income from the tools and functions. It's more of a diamond fundraising than a celebration to assist IBO's with their endeavours. After all, who stands to gain the most financially from the use of the tools and functions? Which is more valuable, the diamonds or the IBOs?
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