I've been reading some ongoing disputes over whether the system income for higher pins is more than their Amway bonuses, which I thought was interesting. I feel that the systems like as BWW, WWDB, N21, and LTD generate more profit for upline than the selling of Amway items, and that this is true. Although it appears that there are legitimate written contracts outlining how tools income is divided up among the upper pins, the exact distribution of system income remains a mystery. This one piece of information should be enough to pique your interest.
However, it is quite simple to verify that the technique generates significantly more income than Amway. If you move $100 worth of Amway items, Amway will reward you with around $33 in bonuses in exchange for your efforts. Depending on your level, these bonuses will be divided among the Amway IBOs (middlemen) in your organisation. As an alternative, if your organisation purchases 20 CDs at $5.00 each, the system will make approximately $90 in profit because CDs cost approximately 50 cents apiece to produce in mass. Other Amway defenders will point to the fact that some organisations sell cds for $2.50 or $3.00 as proof of their point. While this is true, there is typically a "member's fee" that must be paid in order to participate. Once the member's fee is taken into consideration, the system's profit remains constant if not slightly increased.
Suppose you purchase a $100 or more ticket to a large function. The cost of such function may be in the area of $25 to $30 per participant, so the system may make $70 profit on a $100 transaction or more if the price is greater. The minor activities, such as open meetings, books, and voicemail, I believe, have lower profit margins; nonetheless, in the aggregate, it's easy to conclude that the profit from the system outweighs the profit gained by moving Amway items. It is for this reason that your upline leaders frequently emphasise the importance of systems.
The only thing that remains to be determined is how much each individual earns. There has been some speculation that platinums receive a discount on the sale of standing orders and CDs, but I have never heard of a platinum sharing any of the profits from functions, voicemail, or any of the other things available for purchase. This is perplexing to me because I believe the platinums are the ones who put in the greatest effort in the system. The platinums are frequently the ones that conduct the majority of house meetings and handle the group's downlines.
As a result, for lower level IBOs, if you move $300 in Amway sales (about 100 PV), you will receive approximately $10 or 3 percent, while your upline would collect the remaining $90+ in Amway bonuses. And then, when you purchase and move a large number of tools, you receive nothing, while some of your uplines reap the benefits of the entire business. While I have no objections to upline making a profit on the sale of training materials, I do have an issue with the fact that the tools do not function properly. It's amazing how few IBOs make it to the point where they can make a real profit. When it comes to new platinums, Amway supporters will bring out those who are added each year, but they will not highlight the platinums who do not requalify. In order for lower-tiered IBOs to make a profit, they must sell products to actual customers, which is difficult given that Amway products in general are more expensive than comparable products offered at retail locations.
As a result of my observations, I can only conclude (quite easily) that the sale of support materials generates significantly more profit for the company's upper management. In addition, I can only conclude that the support materials do not effectively train downline IBOs so that they can progress to higher levels of the company. On this subject, I am open to hearing opposing viewpoints.
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