the Amway Compensation Model explained

Here I explain the Amway compensation model in a simplified manor. As an accompaniment to my video on how I was almost recruited to a mastermind group using Amway to create cashflow, titled 'watch this before you join that mindset group', I created this video so you can comprehend how money is actually generated in this multilevel marketing (MLM) scheme - because I was definitely curious how it all works.

To answer the question I posed of how many people (spending $400/month ie. 100PV) you need to recruit to make $50,000 annually (or $4200/month), this is 70 people. I stopped at 75 as I feel I had illustrated the point that you need to recruit a LOT of people to actually make any significant money.

Note: I do NOT touch on the "break-away" part of the model, which is where when a person beneath you (downline) outperforms you they 'break away' and form their own "business". I confess I am not sure if this happens at any BV level or just beyond the top tier of 7500PV. I think when this happens, Amway still pays 6% of the downstream business back to you as compensation, but I could definitely be wrong on this.

music credit must go to the very talented:

[freedeeztallbikes]

You lost me at they spend $800 themselves

[lovelystar]

Hey hi! Just wanna say great thanks for sharing this compensation plan!!!

21% with multiple legs is a done deal for you:) god bless you. Appreciate for sharing

[wealthNmotion]

Thank you for being a professional and discussing the major component when doing due diligence and breaking down the comp plan. Millions of people struggle to grasp that this is the only deciding factor to determine whether or not you should decide to embark on a entrepreneurial journey. Even in traditional business you wouldn’t borrow a million dollars without knowing how you will pay back the loan. Network marketing is the only industry where that goes out of the window and in true fashion since it’s regular people who are being propositioned with no business background whatsoever. This compensation plan is flawed. 30yrs ago a high net earner realized and took the best part of the plan and removed all of its flaws to create over a 104 consecutive quarters of upward growth even during the recessions. How? Because understanding the business model first and how it functions for the average person will determine the success of a business.

[lac]

Thank you for your time and effort to share this knowledge.

[franciscochavarria]

Thank you for explaining the compensation plan it helped a lot for me to understand.

[motazalzaghari]

Thank you so much for explaining this!

[Captain_Jack]

Loved it. Clear and concise. Thanks : ]

[bachirelhamal]

Very thorough demonstration and analysis, thanks so much for that!

[marcallard]

The old Egyptian would be proud of the business structure!!!

[tylerstephenhunt]

Super helpful and clear in explaining the model. Just what I was looking for, for real. Thank you. I hate MLM's. :)

[rooms]

I attended a session today and was really still confused on what’s the ask. But your explanation really helped understand that.

[surajmanoharan]

Great explanation. Loved it! 😊 . When the text, 'I'll wait' popped up, I laughed out really hard.😂

[j_liz_]

You explained it so very well. one thing I've learn is that numbers can not lie, and you are right it is a type of mind set you need to have and also information if one is gonna step in this type of marketing. The way I understood it with the mindset I have is that I can make those $400 that I would have spend anyways, make me $5400 every month if I can help other people do the same and understand what I understood or I guess in the way that I understood it. Cause if only people would have understood it a couple years ago, maybe people would have been better off financially when this pandemic hit. I most definitely agree with you, I my self definitely don't spend $800 in products that's a lot and with everyone losing their jobs and being on unemployment, I don't think people would be able to even afford that right now. Thank you so much for this video.

[mayakareem]

thank you so much, its a very useful information .

[simob]

The biggest issue it seems with this model is not the products it’s retaining the actual people to stay in you line and to also keep the people in their line. Generally if you has 3-4 people in your down line with their own 3-4 people in their own business then it starts to earn but considering most people get fed up with the model and retaining their lines. If you had one of your line leave with 5 people in their own down line that’s people you need to recruit back not easy considering how much effort and time you may have put in to get to that position

[tamaraledo]

You're not including Customer volume that would be part of the $800. With 4 customer @$100 leaves you with $400 a month that includes cost of samples so that you can service your customers.

[elnewPC]

You're so sweet in making light of this video. Kudos to you

[vikramdivyarao]

Yah very Nice Plan In INDIA we have different Plan.
Simple Plan easy to Understand

[josephspencer]

Thank you for explaining ur very smart n sound fing beautiful take care

[LIONCHASR]

We think that the bill of success is high. Until we get the bill from regret.

" live your life in such a way that the use of your life outlives you."