Category Archives: Amway

How much Platinum Amway IBO earns?

Did you meet Platinum IBO bragging about earning $75.000/year?

Do you believe him or her?

The truth is different. Amway Platinum IBO may earn closer to $30.000-40.000 yearly.

According to 2013 Amway Business Overview brochure, average annual compensation of Q12 platinum was $55.042, and highest annual compensation was $190.264. Only 0.32% of North America IBOs achieved at least Q12 platinum status (but not sapphire or higher) in the year 2012. That is, one of about 312 IBOs was platinum. By the way: approximately one of 1000 IBOs was Founder Emerald, and one of about 3000 was diamond.

Go diamond, you have 0,03% chance.

In 2009 it was $40,125  average,  $966,290  highest,  and just 0.26% of IBOs were at that level – that it one person for about 384 IBOs.

 How about Amway in Europe? How much Platinums earn there?

Based on data from years 2007-2010 it was €2,434 a month (€29,208 a year or about $40.000) at Founders’ Platinum level.

In year 2010/2011 it was €32,548/year, but that data included Founders Platinum/Ruby/Sapphire and was based on Western and Southern European countries, which are richer than Central and East European countries.

Please note, that in Europe there are other limits – 10.000 PV instead of 7.500PV and 21% instead of 25%.

Platinum income depends on downline structure

As you probably know, the platinum income largely dependents on downline structure (and of course on bonus form Amway company).

The more equally distributed the structure is, the bigger income. Unfortunately not equally distributed structures are very common.

Remember, that the bonus is calculated is through differential – percentage difference between Platinum and hid downline.  Imagine that you have 8000 PV in given month, and have two legs – 3900 PV each. That will give you (8000 PV * 3 BV/PV * 25%) – (2 * 4000 PV * 3 BV/PV * 21%) = $6000 – $5040 = 960$ a month. Not so great.

The scenario when all your business turnover comes mostly form one leg – is even worse.

Obviously it would be best to build, say, 6 legs of similar size – but reality is usually different that this ideal example.

But wait… what about expenses?

Numbers above represent money earned. Bot what about money spent on Amway “business”?

In 1982 the state of Wisconsin found (case State of Wisconsin vs Amway and others) that the average Platinum IBO, that was Direct Distributors at that time, lost by average $918 a year – income was smaller than expenses!

The expenses consist of:

  • driving  – increased amount of gas, tire and car wear, oil changes
  • eating or drinking out while making or sustaining contacts,
  • phone calls,
  • motivational and educational books, CDs, etc
  • seminars, functions, meetings
  • babysitting
  • buying overpriced products

All of those may sum up to $5.000-10.000 or more yearly.

The OTHER money (not so obvious Amway platinums’ earnings)

The platinum IBO may earn additional money besides that earned at Amway. For example, he may be compensated for speaking at opens, seminars, functions held by local motivational organization.

There might be also some money fro distributing motivational and educational materials to his group.

This may be substantial amount of money, even bigger than money form Amway.