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. There is also a disagreement over whether the profit is received by the gems themselves or by their "corporations," which is ridiculous as a defence in this case.
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 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 large function, the cost of that function may be in the range of $25 to $30 per participant, resulting in a profit of $100 for the system on a $125 transaction. 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 parties are frequently conducted in cash, thus it is unclear whether or not the vendors 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.
So for the lower level IBOs, if you move $300 in Amway sales (Approximately 100 PV), you will receive about $10 or 3% while upline enjoys the rest of the $90+ in bonuses from Amway. 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.
Based on my observations, I can only conclude (quite easily) that there is substantially more profit from the sale of support materials for upline to enjoy, and I can also conclude that the support materials are ineffective in training downline IBOs so they can progress to higher levels of the business. However, as PT Barnum once stated, a sucker is born every minute of every day of the year.
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