Let's take a look at the Amway 6-4-2 strategy:The objective is to become direct (platinum), and all you have to do is sponsor six of these direct groups and you'll be a diamond, and you'll be able to retire early and live a luxurious life, right?
Assumptions: 1PV = 2.5BV is taken into account. 1PV costs approximately $2.70.
The 6-4-2 strategy is based on the concept that you perform 100 PV and that you sponsor 6 frontline members who perform 100 PV as well. As a result, your six frontline members sponsor four (24 IBOs) each of whom does 100 PV. Furthermore, each of these four IBOs sponsors two other IBOs (48 IBOs).
As a result, your direct empire looks somewhat like this:
1 platinum ring I sponsored 6 who sponsored 4 who sponsored 2 6 1300 PV groups, and they funded me. Sponsored 4 individuals who sponsored 2 24 300 PV groups Sponsored 2 48 100 PV IBOs were sponsored by the company.
7900 PV in total. 1 PV = 2.5 BV = 7900 PV = (1 PV = 2.5 BV) BV = 19750 BV. 19,750 BV multiplied by 25 percent equals $4937.50 each month. Annualized earnings are $59,250. Subtract the Q12 bonus of 69,250 (which is the platinum group's annual income excluding retail sales profit). The cost of the product (approximately) is $21,300 per month or $255,960 per year for 7900 PV to be maintained.
The platinum must pay his 6 1300 PV groups in order to remain in business. The cost of six frontline 1300 PV = 3250 BV = $390 per month, or $4680 per year is $390 per month. $4680 divided by 6 equals $28,080.
The Platinum retains 69,250 minus 28,080 = 41,170 dollars (net, but not including operating and system expenses, but this includes the Q 12 bonus)
The six frontline members must now pay their four IBOs, who funded two of them. 300 PV = 750 BV = $45 per month or $540 per year, assuming a 30% return on investment. This results in a net annual income of $2520, or $210 per month, for the six frontline members who earn $4680 but pay out $2160 to their downline members.
To be clear, IBOs earning $45, or $540 annually, must pay their downlines ($2 each) $7.50 per month, or $90 per year x 2 = $15 per month, or $90 per year totaling 180 in a year. As a result, the IBO with 300 PV makes $30 per month, or $360 per year.
Let's go over the basics:
In one month, a platinum earns $3430, or $41,170 in one year. 6 1300 kilowatt-hours IBOs earn a monthly salary of $210, or a yearly salary of $2520. 24 300 kilowatt-hours IBOs are paid $30 per month, or $360 per year, for their services. PV = 48 100 watts IBOs are paid $7.50 per month, or $90 per year, for their services. This is before taxes and expenses, and it also does not include retail profits, but hey, we teach you to buy from yourself, so what do you expect?
Let's have a look at the costs of the tools. Imagine that only the platinum, six frontline employees, and four individuals who sponsored others are on tools (Is this a fair assessment?) In other words, 31 IBOs out of 79 IBOs on tools, or 39 percent of the group, and keep in mind that all of these IBOs put in 100 PV per month, on average.
The following expenses are incurred: KATE, a website, a standing order, a book of the month, open meetings, monthly functions, major functions (some IBOs must fly to major functions), gas, incidentals, and child care. Let us assume that the cost of these instruments and other charges is $160 per month (Very conservative IMO). $160 per month x 12 months = $1920 per year
Let's have a look at the net income for the group.
1 platinum ring In this case, $3430 minus $160 equals $3270 each month or $39,240 per year. 6 members of the frontline (1300 PV) The difference between $210 and $160 is $50 each month, or $600 per year. a total of 24 a total of 24 (300 PV) $30 - $160 = $130> per month, for a total annual loss of $1560. 48 Independent Business Owners (IBOs) earn $7.50 each month or $90 per year.
The total income for the group is $69,250. In the case of group tools, the cost is (31 x $160) = $4960 per month or $59,520 per year. For the year, the group earned a profit of $9,730.
79 IBOs working 10 hours per week is 790 hours per week or 9480 hours per year for a total of 7980 hours.
In total, these IBOs earned an incredible $1.02 per hour on average throughout the course of the year. Or………
The Platinum earned $78.48 per hour on average.
Six IBOs on the front lines were paid $1.15 per hour.
PV = 24 – 300 watts IBOs were losing $3 each hour.
During the first hour, 48 100 PV IBOs earned 17 cents.
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