Tuesday, May 25, 2010

Amway Global - 1 in 125 US Citizens Are Millionaires

I don't know how many millionaires Amway has created. I honestly don't think Amway knows either, except for the owners of Amway who are reported as billionaires. But still there is a myth that Amway has created the most millionaires in the US, save for Microsoft corporation. To be perfectly honest, I am fairly sure that there are some millionaires who can attribute their wealth accumulation to the Amway business. But I suspect that there are far fewer millionaires created by the Amway opporunity in North America than your upline would have you believe.

I googled WikiAnswers to see how many people in the US are millionaires. The answer was 1 out of every 125 Americans are millionaires. It did not specify how much income these folks had, nor did it say what kinds of businesses or occupations were likely to make you a millionaire.

But then again, we can make some comparisons of how many millionaires versus various pin levels. 1 out of about 240 IBOs reach the platinum level where depending on your structure, you might earn $30,000 to $50,000 annually. This is before taxes and business expenses are considered. These figures are approximate. 1 out of about 15,000 IBOs reach the level of diamond where you earn about $147,000 annually. This is also before considering taxes and expenses.

But 1 out of 125 people in the US are millionaires. It sounds like most Americans have a better chance of becoming a millionaire (without Amway) than they do of becoming a platinum in Amway.

1 comment:

Anonymous said...

Buffett's Berkshire Hathaway has probably created the most number of billionaires and multi-millionaires. In addition to Mr. Buffett, there are 4 other billionaires that got wealthy by investing with Mr. Buffett. Total net worth of the remaining four is north of 10B.

Here is link to the forbes article:

The way to calculate the remaining individuals that are wealthy because of their investment in Berkshire is as follows:
BRK.A has 1.21M shares in float. 24% is owned by institutions. So, take that out from the calculation. The remaining 76% are individuals. Since the forbes article is from Mar 2008, let use BRK.A from that month - 140,000$ per share. So, the 76% ownership represents 128B dollars. Now, take out 60B for Buffett's net worth and 10B for the other 4 billionaires. That gives another 58 billion.

So, there are individuals who own the remaining 58 billion. We don't know how many these represent, but we know that they aren't billionaires. Because, otherwise they would be on the forbes list. So, if we assume that they remaining ones are all worth 500M, then we another 120 individuals. I am pretty sure that the distribution is more like: 100 individuals worth 500M+, a bunch more worth 100M+, some more worth 50M+, and even more worth 10M+.