How much does an Amway Platinum IBO make?

Successful Networkers Earn Money From CD, Book, and Seminar Profits
Feb 26, 2010 Christopher Pascale

In many Amway Global organizations, Platinum level IBOs earn money not just for their network of product distribution, but also for their network of BSM sales.

Amway Global IBOs are dream-driven entrepreneurs from varying backgrounds. While some want to supplement their retirement, others aspire to reach the Diamond level that is said to encompass independent wealth through a residual six-figure income.

On the way to achieving this dream, IBOs must first reach the Platinum level, which is when they max out the sales volume chart, receiving a bonus rate of 25% of their business volume. According to a release in 2005, the average Platinum IBO took home about $48,000 ($4,000 monthly) before taxes and expenses.

Unfortunately for self-employed middle income people, like Platinum level IBOs, they are currently (2010) taxed on their income at a rate of 40.3% after expenses.

Fortunately for these IBOs, they can make money from other sources within their organization, such as hosting weekly presentation meetings and receiving profits for moving Business Support Materials (BSMs) like CDs, books, and seminar tickets.

Expenses for Platinum IBOsThe Platinum level is said to be the most difficult to navigate. On one hand, there is a respectable amount of money being made, but on the other, they have a bigger network covering a larger geographical area.

Perhaps this is the reason why in 1982 the state of Wisconsin found that the average Platinum IBO (then called Direct Distributors) operated at an average annual loss of nearly $1,000 despite having a gross income of $14,000.

While there are many Platinum IBOs making high incomes, there are some that do not make much at all. For example, an IBO with five branches (or legs) in his network who has one carrying 4,000 pv and four others carrying 1,000 pv each would earn approximately $1,500 every month ($18,000 annually) before expenses, explaining how he could operate at a potential loss given that the average IBO will have an overhead of $8,500 for the expense of seminars, books, and CDs alone.

Luckily for working Platinums (as opposed to those who no longer network) their income does not stop at Amway Global.

Open Weekly MeetingsIn helping others develop a network, local organization leaders may host a weekly "open" where IBOs can bring prospects to see the business presentation from someone who's successful, like a Platinum, Emerald, or Diamond IBO.

Keeping costs down, these meetings are often held during the week and can sometimes be reserved at a hotel for under $100 if no refreshments are served.

IBOs looking to use the open meetings to grow their networks will pay $10 for the assistance. A Platinum IBO often has a network in excess of 100 people. If 60 attend, the profit on the open meeting can be as high as $500 with potential for future gains by way of a growing network.

When this money is split between the hosting Platinum and the visiting IBO giving the presentation, the local IBO's income increases by $1,000 every fours weeks, or $13,000 annually.

Profits From Tool MovementWorking Platinum IBOs also have the responsibility of handling large amounts of BSMs, which often include two regular CDs every week and a book each month, as well as seminar tickets for as many as 17 events each year.

How much money is made cannot be said on a universal level. Some organizations charge over $200 for weekend packages to conferences, forcing even locals to pay for hotel rooms. Other organizations leave their IBOs to find their own accommodations, charging less than $100 per ticket.

When it comes to profits made on motivational and educational CDs and books, former Diamond Distributor and best-selling author Doug Wead said his organization offered a flat rate for each unit moved. Others pay Platinums on a growing scale.

Flat rate profits could be $1.00 for every audio moved and $2.00 for every book. A system with a scale can offer Platinums growing commissions for the service of handling certain amounts of BSMs, such as:

•5% for 100-500 BSMs
•10% for 500-1,000 BSMs
•15% for 1,000-2,500 BSMs
One chart, which is not based on BSM volume but the dollar amount of BSMs moved, is documented on this blog as going as high as 33%.

Under the flat rate program, a Platinum with 50 people on two weekly CDs and the monthly book program would earn $5,200 from CDs and $1,200 from books annually, bringing him an extra $533 each month.

The graduated system, offering 5% to the Platinum noted above would earn substantially less given that CDs cost $7.00 and books average around $12.00. On this system he would gain $420 from CDs and $360 from books each year, grossing a monthly BSM income of $65.

They also earn money for selling seminar tickets. Platinums selling 60 $20 tickets to local functions may earn $3/ticket, bringing them another $180 each month, plus another $15/ticket for larger functions, which they may be able to bring 20 people to.

At the end of the year, function ticket sales may bring in an additional $3,660, but this is a liberal estimate since rebates are sometimes passed on to IBOs, and tickets are given to prospective business associates free of charge.

Platinum IBOs' Bottom Line After BSM ProfitsAs already noted, incomes vary. For the IBO grossing $18,000 on product sales volume, roughly $17,500-23,000 can be added for weekly meetings and BSM profits on CDs, books, and seminar tickets.

These numbers bring this IBO’s gross income to a range of $35,500-41,000.

For some IBOs who do not know that any money is made on BSMs, the reaction of the increased income of their mentors can range from disenchanting to heartbreaking. For those with inspiring uplines who travel great distances to help them, the cost of consultation may be seen as extremely affordable.