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Sunday, August 15, 2021

Are Amway Diamonds Fake?

 One of the things I recall being taught at a function was to "fake it until you make it." This was one of the first things I ever heard. This was done in order to create the appearance of being successful. It has been stated that you will be successful as a result of your affiliation with Amway; therefore, you should dress the part. This is something that I believe is still taught today. Amway Independent Business Owners (IBOs) want to make a good first impression on prospects, therefore they strive to appear successful. It also contributes to the reason why IBOs dress in suits. Everybody should be under the notion that they are involved in a multimillion-dollar enterprise, according to them. What's more, guess what? WalMart is a multi-billion-dollar corporation, but its staff do not dress in suits!

What I find so remarkable about this is that I honestly believe that the diamonds are the most frequently imitated precious stones. Throughout the country, events dubbed "Dream Night" have taken place during the past few months, drawing large crowds. A formal dinner with slide exhibitions of homes, planes, sports vehicles, golf club memberships, wonderful vacations, and shopping sprees is held during a function that includes a sit-down supper. The diamonds and other Amway heroes also attend. I honestly believe that many of the gems on the market are the work of the most notorious forgers in the world. The lifestyles depicted in these films are most certainly not possible to maintain on a diamond income alone, even if it appears to be substantial when combined with tool revenue. It is supported by simple mathematics.

Even with tool revenue, a diamond income (non-Q12) might be in the range of $250-300K. If you compare this figure to that of a working stiff earning about 40K or $50K per year, you need keep in mind that a diamond firm has other expenses to consider. How much do you estimate it would cost a (diamond) family of four (4) to travel first class to five or six functions, depending on the distance travelled? A round-trip ticket for four persons travelling first class from Hawaii to California, for example, would cost more than $1000 per person. A diamond who is in demand as a public speaker would take several of these flights every year. As a result, this particular business expense (assuming that the diamond travels first class) would consume a considerable chunk of a diamond's revenue. Take note that the $250 or $300K I mentioned is before taxes and business expenditures are taken into consideration.

Then, how much of that diamond money is diverted to taxes and corporate overhead? I challenge all IBOs to take a deep breath and sort this out. In my estimation, a diamond has a relatively average and middle-class lifestyle after taxes, medical insurance, and business expenses are taken into account. Amway supporters would argue that this is possible without a traditional 9-5 job, however an Amway operation requires ongoing attention because IBOs join and leave on a daily basis. Some people who join up never do anything with their time. The work of replacing IBOs is a never-ending one. It is for this reason that you will never see or hear of any gems who have "walked away" to receive residual income for the rest of their lives.

Another variation on the theme of "fake it till you make it." Isn't this just a case of lying and hoping that you'll eventually succeed?

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