- 5 - $100 of merchandise monthly, the initiator of the group will receive commission based on monthly sales of $7,900, subject to commission-sharing adjustments. Mr. Landrum estimated that the person who established a successful 6-4-2 grouping would receive $1,800 to $2,200 in monthly commissions and then might proceed to gain even greater benefits as a “direct distributor” who might then triple his organization and receive an “Emerald bonus” and then expand to have six legs and a “Diamond organization”. According to Mr. Landrum, Amway distributors with an emerald organization make $75,000 to $100,000 annually, and those with a diamond organization make $125,000 to $250,000 yearly, “And it goes up from there” as he put it.1 Petitioners had no such experience during the years in issue and all the earlier years of their participation in Amway distributorships. There simply is no resemblance between the wonderfully optimistic projection that Mr. Landrum recited and the reality of petitioners’ experience during their many years of association with Amway. 1 See Nissley v. Commissioner, T.C. Memo. 2000-178, for this Court’s recent summary of Amway operations with somewhat more detail and less fantasy, at least as to himself, than Mr. Landrum provided.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011