Many people who are in Amway, or were in Amway at one time is very likely to have seen the 6-4-2 plan. I understand some modifications may have been made in certain groups but the basic premise of this post will still hold true. An IBO who sponsors 6 who sponsor 4 who sponsor 2 would have a group of 78 IBOs. All told, this group would allow the platinum to earn about $47,000 (before expenses).
The plan assumes that IBOs all move 100 PV. 100 PV costs about $300, thus each month, this group would spend $23,400, or $280,800 annualized. Amway takes in the $23,400 in sales and returns about 33% in bonuses, thus the bonus on $23,400 is
$7722, or $92,664 annualized. These bonuses are returned to the IBOs based on their volume with IBOs receiving various amounts based on their level. The majority of IBOs will receive $9 or $10 and a select few will make some significant money.
Now let's say this same group purchases tools such as standing order, KATE, functions and other system materials. Lets say the average business building IBO spend on average $200 a month on tools. This same group would spend $15,600 a month on tools, or $178,200 a year. NONE of this money is returned to the IBOs, thus somewhere upline keeps ALL of the profit on the tools.
Thus this group spends $23,400 a month on product and $15,600 on tools. That is a total of $39,000 a month a group of IBOs spends on products and tools. Annualized, this same group spends $468,000 on product and tools.
Amway gives back about $7722 a month in bonuses or $92,664 a year in bonuses and the LOS such as WWDB, BWW, or Network 21 gives back zero to the IBOs.
Thus a platinum business spends $39,000 a month to earn $7722, or annualized, spends $468,000 to earn $92,664.
Simple math CLEARLY shows that only a few can receive any significant bonus. Guess what? If this bonus money were divided evenly, it would result in each IBO receiving $99 each, per month. Amway reports the average active IBO earning about $115 a month. There is a minor variance, but this post clearly shows that Amway groups as a whole, cannot collectively profit unless many products are sold to people who are not IBOs.
Some if not most IBOs are taught to "buy from themselves".