In many email's I have read where Emerald's earn over $100,000 per year and Diamond's make over $250,000 per year from their Amway business.
I am not challenging that claim. On this page I am trying to find out how they could earn that level of income solely from an Amway business using the information in the Amway Business Review (SA-4400) that is effective as of Jan 97.
As you review these numbers, please remember that individual results will vary based on volume and organizational structure.
First some assumptions. I am going to assume that the emerald or diamond is a Q12 direct, which means they maintained at least 7,500 PV volume in all 12 months of the fiscal year. I am also going to assume the three or six directs they sponsored are also Q12 directs. This type of business is probably the exception and not the typical emeraldship and diamondship that you will find.
I am also going to assume that all of these directs have maintained an average of 20,000 business volume (BV) in each of these months. 20,000 BV would translate into an annual volume in excess of $250,000 (real dollars), which should be a VERY profitable direct if it is structured properly.
The 25% performance bonus check on 20,000 BV would be $5,000. Let's assume half of that goes to downline performance bonuses so that would be $2,500 times 12 for a total of $30,000.
The leadership bonus is 4% of the BV for each leg. This would be $800 per month or $9,600 per year per leg.
The average profit sharing bonus, an annual payment, for fiscal year 1995 was $2,088. Let's round to $2,100 and double it, since this would not be an "average" business. For a diamond, let's double it again.
The average Pearl bonus for fiscal year 1995 was $1,407 per month, which would be about $17,000 for an emerald. Let's round this up to $20,000 and let's double it for a diamond.
The average Emerald bonus, an annual payment, paid in fiscal year 1995 was $10,139. Let's round this up to $11,000 for an emerald and double it for a diamond.
The average Diamond bonus, an annual payment, paid in fiscal year 1995 was $40,794. Let's round this up to $41,000.
Now let's add up the numbers.
Pretty impressive incomes aren't they? The emerald income does come close to six figures, but they do fall short of the claims I have read in numerous email on the internet, and as you can tell, I have been VERY generous in my assumptions! I have no doubt that some directs do maintain an average of 20,000 BV for 12 months out of the year. But to have an emerald or diamond at these levels plus all three or six legs at that volume would be an exception, not the average business.
I did not forget the ruby bonus. This assumption implies that no one had ruby volume. If the emerald or diamond also has ruby side volume, then you should add about $22,000 to the incomes above.
Now let's look at an "average" business. I am going to use the arithmetic averages posted in the SA-4400 to come up with an emerald's and diamond's income:
The average ruby bonus from the SA-4400 is $677 per month, which would be $8,124 annualized.
I want to repeat that individual results will vary based on volume and organizational structure. I am sure that many emeralds and diamonds make more than the numbers I just came up with.
So where is the difference coming from? On the next few pages, I'm going to review income opportunities that Direct Distributors and above have from the "system" which, according to them is the only way you will succeed in the Amway business.