Wednesday, August 26, 2009

Amway Global Average Income $115/Month?

Amway reported that the average IBO income was $115 a month in 2001. As far as I know, there hasn't been an updated figure. The $115 is not really accurate as Amway disregarded about 1/3 of all IBOs as the $115 per month only included "active" IBOs. Some Amway apologists of course, make ridiculous arguments that someone who asks his brother to buy something is active an thus makes $115 for simply asking a question. Of course we know that to receive a bonus, an IBO must qualify by moving at least 100 PV in volume.

But wait, an IBO who moves 100 PV will likely get $9 or $10. How can an average IBO receive that much income? It is my guess that adding in Amway Crown Ambassadors and other high pins into this figure makes it much higher than the reality for most IBOs. If you look at the 6-4-2 plan, it assumes that all IBOs in that move 100 PV, yet the majority of them only receive the 3% bonus, or about $9 or $10 or so.

How much volume would you have to move to actually earn about $115 in a month, which is average? If you sponsored 4 downline and you and your downline all moved 100 PV, you would receive about $90, and each downline would get about $9, thus your bonus would be $54. (Based on each IBO doing 100 PV, 300BV and you are in the 6% bracket). But if you were to sponsor 5 downline, all doing 100 PV, 300 BV, you would receive about $162, and you would pay out $45 to downline. You would have a gross income of $117 a month.

So if you are able to gain and maintain 5 downline, all move 100 PV and about 300 BV each, you would then be in the 9% performance bracket and you would gross about $117a month. You would be considered average or above.

Things to note: Only 1 in 5 IBOs are able to sponsor even one downline. IBOs who sponsor multiple downlines are likely to be less than 1 in 5. Also, even if you can sponsor 5 and reach the 9% level, which would be a notable achievement in Amway, you would probably still have a net loss when if you calculate in taxes, voicemail, books, cds, standing order and functions.

Still think you can simply "choose" to succeed?

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