Amway Global, Amway, & Quixtar
Most of us have heard of Amway Global, Amway, or Quixtar. So what's the deal with these? Do they work? Can I build a successful business with this company? In this post I'm going to point out some of the upsides and downsides to this business and it's compensation plan.
Upon going to this site, one of the first things I noticed was "Over 33 billion in bonuses paid out since 1953". That is a lot of bonuses paid out. The money for these bonuses have to come from somewhere, and I'll tell you it's not out of the company owner's pockets.
I had quite some trouble even attempting to find the compensation plan. Once I did locate it, I realized it was eighteen pages long. I thoroughly read all of it, I'm still quite confused. It's made to be confusing. Here is the biggest kicker though: Sign up/Renewal fees. 99$ minimum to sign up. If you plan on having someone sign up, you'll want them to get the "Starter Pack", which runs approximately $300, THEN you have a annual renewal fee of $60 conveniently placed by Amway right after Christmas.
Now throughout their site it shows that the average GROSS income for an "ACTIVE" IBO is $202 month. only 46% off all IBOs were considered active. So I guess the AVERAGE person in Amway makes roughly $100 a month. And they also tout some few people making six figures. Those few also take the average down.
I read a blog post about how much it takes to be an Amway distributor. Essentially 100 "PV" is roughly equivalent to $300 depending on the type of products you purchase. There goes your $202 a month. Plus there's many other fees that your your up line will push upon you. It's not unheard of to find people who spend upwards of $600 a month while really trying to promote their business.
Now for the grand finale. Your volume flushes monthly. This is HUGE. Essentially for you to become a Platinum in Amway, you need to have approximately $22,500 go through your business in a single month. If you miss it, Tough luck, maybe next time. Amway will be happy to take that volume away.
So big question: Does Amway work? Short answer, probably not in the way that they make it out to seem. You're not going to create that "Passive income" and be able to sit back. If you did that, even at the diamond level, it's very likely that your business would fall in a matter of time.
The concept of Amway is really not bad, as explained by your run-of-the-mill IBO. They most likely want to make you succeed. You have to realize that there is millions of dollars invested into it from outside investors. they plan on earning their money back. Amway is extremely efficient at creating large amounts of money, and NOT paying it out.
So here's the interesting point: Amway's 18 page compensation plan can be found
here. Don't worry if you get confused, you're supposed to.
Why Time and Money? What benefits does it have? Here are a few points that you will rarely see in any other MLM-type business.
- Your volume never flushes. It stays there until you get paid on it.
- Your people never flush. You don't have to lose 10% of your work after New Years.
- There are NO outside investors. The owners make money the same way you do, causing them to have a vested interest in you as a business owner to make you the most productive possible.
- You don't have a monthly minimum purchase to stay in.
- It's free to sign up.
Here is our compensation plan, Simple and short enough it can fit conveniently into this blog:
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HOW YOUR COMPENSATION PLAN WORKS
Have you ever looked at a business compensation plan and found yourself confused? A lot of plans are just downright complicated. Here at Time & Money, we believe that simpler is better. We want you to understand how our plan works quickly so you know how to maximize your income from it. Isn't that why you want to go into business?
Our plan is a binary setup. That means you create 2 organizations, a left and a right. You can build to unlimited depth and that volume counts toward your income. To qualify for income and member pricing, there is a $5 / month membership fee. There are 4 ways to make money in our plan.
- Weekly Share Pool
You qualify for the Weekly Share Pool by creating "shares". A share is 200 volume on your left side and 200 volume on your right side (Personal volume counts on the weakest side). A share pays you $7. There is no limit to how many shares you may have in a week. The maximum payout from the Weekly Share Pool is $10,000 per week per business*.
**We believe in sharing as much profit with the group as possible. To guarantee that, the owner's income is developed exactly like yours. From every dollar, the Weekly Share Pool is paid out, and the balance is split 50% / 50% between the 4 week Volume Pool and the 12 week Profit Sharing Pool.**
- 4 Week Volume Pool
- You qualify for the 4 Week Volume Pool by having $100 in sales and/or personal volume in the 4 week time period ending on the date posted on your Payout Date page. Everyone who meets those qualifications get their shares added to the pool. The Volume Pool is then divided by the number of total shares. That number is the share price and you will recieve a commission of the share price multiplied by how many shares you had in that 4 week period. The maximum payout on the 4 week pool is $40,000 per business* per period.
- 12 Week Profit Sharing Pool
- The 12 Week Profit Sharing Pool is qualified for by having a share anywhere in the 12 week period ending on the date on your Payout Date page. All shares are totalled and the funds in this pool get divided by the number of shares. This determines the share price. You will recieve a commission based on your number of shares multiplied by the share price. The maximum payout on the 12 week profit pool is $120,000 per business* per period.
- Customer Retail Profit
- There is a difference between retail and member pricing. You can buy products at member pricing and sell them for whatever price you wish. Retail pricing is provided only as a guide.
* (A person may own more than one business)
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