Recently, a anonymous person emailed me a written spreadsheet which indicated how profits from seminars are compensated. I am guessing that this would apply for major functions, where tens of thousands may attend, and millions of dollars collected to more regional types of meetings where thousand of dollars are up for grabs.
Basically, the income is derived by adding up the collections for IBOs and guests, and subtracting the expenses. That becomes the net income. The LOS then takes 10% off the top of the net profit. After that, it appears that the remaining profit is distributed to the host couple and speakers. The spreadsheet says in bold "Speaker is paid last".
Thus if a function had 10,000 IBOs and guests, and they all paid $100 to attend. The gross is 1,000,000. Say the expenses to run such a function were $100,000, then net is $900,000.
The LOS gets $90,000 and the rest is spread amongst the host couple and the speakers (I presume). So if a function has 5 speakers, they would all get $162,000 for a speaking engagement. (Average diamond income reported by Amway = $146,900)
So we can conclude, based on this evidence, that an "average" diamond could conceivably make more money from one (1) major function han this Amway business makes in a year.
Some of this of course, is my speculation, but you can observe a function and massage the numbers based on the formula given here.
5 comments:
So in this example.
If Joecool was the highest "pin" and everyone else was in his downline at the function. And he was the keynote speaker.
Would Joecool make 90,000 (LOS) plus 162,000(speaking) for a total of 252,000. And then Joecool spoke at his uplines function for another 162,000, and then at a crosslines function for 162,000
That is not to shabby, for speaking in front of folks and not really saying much..execept that they need to attend more functions.
It wouldn't have to be speculation if the "leaders" were honest about it.
In our organization, Platinums alone got $10 per ticket to a major convention.
And the total payout was a lot larger percentage than 10 percent.
We never reached higher than Platinum. But from talk between our Emerald and Diamond, the breaks for each pin upline were around $10 each. So the Sapphire would get a cut, the Emerald would get a cut and each upline Diamond would get a cut.
If a Diamond did not have any pins between him and a Platinum, he would keep the Sapphire and Emerld cut to himself. In other words, he would make $20 to $30 per ticket in that group, versus a ticket sold to through and Emerald where he would make significantly less.
Speaker fees were $20,000 for a Diamond speaker at one day regional seminar. Diamond fees for a weekend seminar was $40,000.
Those pins higher than Diamond commanded even a greater speaking fee.
Another layer of the onion exposed.
Very interesting.
Life's tough at the top of the pyramid.
The Kingpins and the DeVos crime family make all the money; the rest, all unfortunately are the paying suckers, the deluded, believing they can be that one-thousandth of one percent who succeed to a Emerald or Diamond pin level in the financial holocaust of the Amway closed market swindle!
Post a Comment