The turnover of Amway India has come down to Rs. 100 crore as against the earlier year's Rs. 800 crore and it has been announced by the very CEO of Amway India in a press conference and it was widely published in all newspapers. He also said that the Amway has been changing the course of business in India and is planning open spas all over India to boost the business. It cannot be assumed that all newspapers published imaginary figures announced by the CEO of the company.
And it is not true that upline members do not receive any commission by the sales of downline people. That is the exact business model of Amway and it is the crux of the major income both to the company and the upline members.
In the case of Rajan, it has been clearly stated that through his personal group--and who formed this group other than downline members--he gets an additional wholesale markups between 6% to 21%. As per his personal sales he gets 30% commssion and nobody would believe that he would personally sell all the products going home after home and make millions since there is no shop registered under Shops and Establishments Act.And it has been agreed that out of sales from downline members he gets 4% commission. That is what has been said that the upline members receive commission from the sales of downline members and actually that is the money circulation scheme prohibited under certain laws in India. The exorbitant price is the central point and from that price only money is generated and is circulated.
Rs. 150,000 dollars is sixty millions in India mind it and it is certainly lot of money and not all members make that amount because it is virtually impossible to enroll so many members. In the multilevel marketing, at the tenth level the population of India that is one billion would be covered and there would be none to enroll.
In summary,
1) profit earned through sale of products by downline members
2) Every members who enrolls new members gets 45 points and that is the incentive.
3) Amway India sales have substantially dwindled according to Amway CEO.
4) Several Amway products were found to be misbranded, adulterated and overpriced.
It is high time the Amway wound up its operations in India and start looking for greener pastures elsewhere in the third world.
And it is not true that upline members do not receive any commission by the sales of downline people. That is the exact business model of Amway and it is the crux of the major income both to the company and the upline members.
In the case of Rajan, it has been clearly stated that through his personal group--and who formed this group other than downline members--he gets an additional wholesale markups between 6% to 21%. As per his personal sales he gets 30% commssion and nobody would believe that he would personally sell all the products going home after home and make millions since there is no shop registered under Shops and Establishments Act.And it has been agreed that out of sales from downline members he gets 4% commission. That is what has been said that the upline members receive commission from the sales of downline members and actually that is the money circulation scheme prohibited under certain laws in India. The exorbitant price is the central point and from that price only money is generated and is circulated.
Rs. 150,000 dollars is sixty millions in India mind it and it is certainly lot of money and not all members make that amount because it is virtually impossible to enroll so many members. In the multilevel marketing, at the tenth level the population of India that is one billion would be covered and there would be none to enroll.
In summary,
1) profit earned through sale of products by downline members
2) Every members who enrolls new members gets 45 points and that is the incentive.
3) Amway India sales have substantially dwindled according to Amway CEO.
4) Several Amway products were found to be misbranded, adulterated and overpriced.
It is high time the Amway wound up its operations in India and start looking for greener pastures elsewhere in the third world.
5 comments:
My friend, we don't go "door to door" to make personal sales, where ever did you get that idea?
But please, provide a link to where Amway India sales have slumped to Rs.100 crore. Every link I have found says it's expected to be ten times that. The "imaginary figures" seem to be in your head.
The Financial Express, April 28, 2008 - Amway to take on FMCG giants in India
"We have been growing fast in India and expect to end the current year with a turnover of Rs 1,000 crore and more from last year’s Rs 800 crore."
The Hindu, July 6, 2008 - Amway India targets Rs 3,000cr turnover by 2013
Amway India, a wholly-owned subsidiary of the US-based Alticor, had recorded Rs 800 crore turnover in 2007 and expects it to go up to Rs 1,000 crore this year, company's Managing Director and Chief Executive Officer William Pinckney told reporters here.
You claim to be a journalist? So far you've made numerous utterly false statement about Amway (for example that folk get paid for recruiting) and now you're making up claims from newspapers about turnover.
Is that the type of journalistic ethics you were taught at school? To invent things and make false claims? I would hope not.
So why are you doing it? Is it simple error? Have you been so blinded by what you believe Amway to be about that you're willing to make things up, just to support your belief?
Please, instead consider that perhaps you've misunderstood the Amway business. Look again. Do proper research. Be intellectually honest and be willing to admit where you are wrong.
Amway Watch
Amway Wiki
Amway Talk
(1)Profit is earned through sale of products
(2)No commission is earned through recruiting
(3)Amway India sales have increased substantially in the past year, not decreased
(4)Amway products have won numerous independent consumer awards
Hi guys
Excellent, the way the so called business of Amway is explained in nutshell is just excellent. I would like to say that right examples could also be given to support a wrong cause. Amazobies (the people in Amway business) do exactly the same way. Before I go deep into the subject, I would first put certain records straight.
In the Amway "business" the language used by the IBAs (Independent Business Asso-ciates) is basically altogether different from other human beings. Words carry different meanings with an underlying aim to confuse people so that they do not understand that they are cheated and reach out to the real back end business.
For example one of the salient features of Amway is claimed as "Profit is earned through sale of products". Correct and it is 100% correct. The Amway Company does earn profit by selling its products to its stupid IBAs and it should be understood accordingly. This is how it is? The "sale of products" in the above proposition is nothing but the “sale of products by the company” to the IBAs who are in real terms the “consumers” although the fact remains that they do not buy these products to consume but only to resell which any way is impossible. The mandatory "purchase of products" made by every new IBA at the time of walking into the trap of Amway business is the only actual “sale” to the company achieved through the false promises of making big money and the company earns a huge profit as it rightly claimed.
It is to be noted that the people who take up the business of Amway do not earn any profits just by selling the products of the company because it is next to impossible to sell these products in the open market particularly in India-like third world countries. Then how would these stupid IBAs earn profits, those too so huge profits that this deceptive company promises through its “senior” people (uplines) in its regular meetings showing testimonies of success stories? Is it possible to earn great profits and big money just by selling the products to the prospective consumers? Assuming that it is possible, how do the IBAs to identify these prospective consumers every time to have regular sales so as to make good profits?
More so when there is no publicity back up by the company promoting the products by way of advertisements as the company itself claims that it does not “waste” money on publicity and the money, thus saved is in stead passed on to the consumer? How much time has the IBAs have to spend in convincing the prospective consumers for selling them the products by telling them all the lies and pestering them to buy? Where do have to go everyday to sell these products and who would buy these stupid products for such an exorbitant prices when established and regularly advertised brands are available for much cheaper price? And ultimately what is that the IBAs get in net effect by confining themselves to only selling the products and there by earning a profit?
Having found that it is impossible to sell these products to unknown people, the IBAs try to catch hold of friends, relatives, colleagues, neighbors, acquaintances etc and try to use all their family and social leverage to “sell” them the products or try to give them freely so that they would buy them in case they are satisfied with their quality or entice them into the business with copy cat promises which they themselves have not been benefited. In any of these possibilities, the IBAs do not earn any profits; forget about those huge profits but by enticing and enrolling new people into the business every time, because it is alone the company that gets a sale.
Krishna Mohan, Journalist, Hyderabad, India
Amway claims that its salient features are:
(1)Profit is earned through sale of products
(2)No commission is earned through recruiting
(3)Amway India sales have increased substantially in the past year, not decreased
(4)Amway products have won numerous independent consumer awards
Hi guys
Excellent, the way the so called business of Amway is explained in nutshell is just excellent. I would like to say that right examples could also be given to support a wrong cause. Amazobies (the people in Amway business) do exactly the same way. Before I go deep into the subject, I would first put certain records straight.
In the Amway "business" the language used by the IBAs (Independent Business Asso-ciates) is basically altogether different from other human beings. Words carry different meanings with an underlying aim to confuse people so that they do not understand that they are cheated and reach out to the real back end business.
For example one of the salient features of Amway is claimed as "Profit is earned through sale of products". Correct and it is 100% correct. The Amway Company does earn profit by selling its products to its stupid IBAs and it should be understood accordingly. This is how it is? The "sale of products" in the above proposition is nothing but the “sale of products by the company” to the IBAs who are in real terms the “consumers” although the fact remains that they do not buy these products to consume but only to resell which any way is impossible. The mandatory "purchase of products" made by every new IBA at the time of walking into the trap of Amway business is the only actual “sale” to the company achieved through the false promises of making big money and the company earns a huge profit as it rightly claimed.
It is to be noted that the people who take up the business of Amway do not earn any profits just by selling the products of the company because it is next to impossible to sell these products in the open market particularly in India-like third world countries. Then how would these stupid IBAs earn profits, those too so huge profits that this deceptive company promises through its “senior” people (uplines) in its regular meetings showing testimonies of success stories? Is it possible to earn great profits and big money just by selling the products to the prospective consumers? Assuming that it is possible, how do the IBAs to identify these prospective consumers every time to have regular sales so as to make good profits?
More so when there is no publicity back up by the company promoting the products by way of advertisements as the company itself claims that it does not “waste” money on publicity and the money, thus saved is in stead passed on to the consumer? How much time has the IBAs have to spend in convincing the prospective consumers for selling them the products by telling them all the lies and pestering them to buy? Where do have to go everyday to sell these products and who would buy these stupid products for such an exorbitant prices when established and regularly advertised brands are available for much cheaper price? And ultimately what is that the IBAs get in net effect by confining themselves to only selling the products and there by earning a profit?
Having found that it is impossible to sell these products to unknown people, the IBAs try to catch hold of friends, relatives, colleagues, neighbors, acquaintances etc and try to use all their family and social leverage to “sell” them the products or try to give them freely so that they would buy them in case they are satisfied with their quality or entice them into the business with copy cat promises which they themselves have not been benefited. In any of these possibilities, the IBAs do not earn any profits; forget about those huge profits but by enticing and enrolling new people into the business every time, because it is alone the company that gets a sale.
Krishna Mohan, Journalist, Hyderabad, India
You find yourself raoming in the malls, cinema halls, footpath and other public places looking for new downline, become extra friendly with them, ask for any general favor, be nice to them. Once he gets in talks with you, you introduce your business plan. It is only after 2-3 years, one comes back into one's senses to find that how his few golden years have vanished into this trap.
In the greed of becoming workless and earning millions in next 4-5 years, you actually lose your entertainment , family time. Whenever you look around, you dont see human beings, you see only prospective downline. Height of materialism.
I liked the siddhu's comment very much.
"In the greed of becoming workless and earning millions in next 4-5 years, you actually lose your entertainment , family time. Whenever you look around, you dont see human beings, you see only prospective downline. Height of materialism."
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