I've been reading some ongoing debates about whether the system income for higher pins is greater than their Amway bonuses, which I thought was interesting. I believe that the systems such as BWW, WWDB, N21, and LTD generate more profit for upline than the sale of Amway products, and that this is true. Although it appears that there are legitimate written contracts explaining how tools income is divided up among the higher pins, the exact distribution of system income remains a mystery. There is also a debate over whether the profit is received by the diamonds themselves or by their "corporations," which is laughable as a defence in this case.
However, it is very simple to determine that the system 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 group purchases 20 CDs at $5.00 each, the system will make approximately $90 in profit because CDs cost approximately 50 cents each to produce in bulk. Some Amway defenders will point to the fact that some groups sell cds for $2.50 or $3.00 as proof of their point. While this is true, there is 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. Even after accounting for the system's employees, it is simple to analyse the math and understand where the true money is created in the system.
If you purchase a $125 ticket to a major function, the cost of that function may be in the neighbourhood of $25 to $30 per attendee, resulting in a profit of $100 for the system on a $125 sale. 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. I should mention that sales at these functions are frequently made in cash, so it is unclear whether or not the diamonds are remitting their sales taxes to the Internal Revenue Service.
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 most effort in the system, assisting 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. Because there are so few IBOs who develop to the point where they may produce a real profit, the usage of tools is not warranted. 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.
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. However, as PT Barnum once stated, a sucker is born every minute of every day of the year.
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