Wednesday, 30 July 2008

MLM is not genuine business

In spite of the tall claims by the multilevel marketing companies including Amway, Herbalife and a plethora of others, it is not a genuine business. They never clarify what happens if the chain breaks at a particular level. The business collapses in the answer. This they never agree. If a person buys the product they may use it. But unless he enrolls more members he would never receive commission or profit through selling of products. This is the fact.
The tall claims are abundant a la the quality of products. In Indian context, people are very cost-conscious. They never a toothpaste for Rs. 130 when a number of branded toothpastes are available in the market for Rs. 10. What makes people to become member of Amway is the inducement and lure of becoming rich. They claim that they can earn huge amounts as commission if they enroll more members and sell more products. If they buy and use them for personal purpose, they never get any money. If they are lured with cash incentives if they enroll more members only, they join the scheme.
It is a scheme not business opportunity. Several thousands of people who became members and could not enroll new members silently suffer without any complaint because they were introduced by their relative or close friend or their personal physician. That is the catch point. On the other hand, they will be blamed for not taking initiative to enroll more members and branded as people with lack of 'motivation'.
A super specialist doctor in Vijayawada prescribes several Amway products to his patients as if they are medicine. It is not medicine and Amway claims that it is food supplement. What is the necessity of food supplement to a patient. He needs only nutrition and good food is enough. As a well-wisher of his patient, the doctor should told the patient to take nutritious food which is cheap. But he prescribes very costly Nutrilite to his patients. Out of respect, the patient may purchase the product blindly believing his physician. But that is exploiting the patient's confidence which is unethical.
The doctor is said to be advising his colleagues in the city to become the member of that MLM company to become rich. "What have you earned in all the years of practice. Look my income from this scheme. Please become a member," he advises his fellow-doctors in the city. But few doctors heeded his advise, and that is another thing. May be their conscience did not agree to that practice.

5 comments:

IBOFightback - Fighting the Amway Myths said...

Again you continue with posts full of falsehoods. Some examples -

1. They never clarify what happens if the chain breaks at a particular level

FALSEI'm not at all sure what you even mean by "breaks", however the Amway compensation plan is extremely detailed. Just because you don't know something does not mean it doesn't exist. It certainly doesn't "collapse".

2. But unless he enrolls more members he would never receive commission or profit through selling of products.

FALSE There is absolutely no requirement in Amway to enrol members to receive commissions or profits. I myself (and I'm sure, millions of others) earned commissions before I'd ever sponsored anyone. Heck, in my first time around in the business that's all I did, earn profit from selling products, and extra volume bonuses. I never sponsored anyone, and never tried to.

3.If they are lured with cash incentives if they enroll more members only, they join the scheme.

FALSE.Amway gives no cash incentives for enrolling other people. You're just making stuff up.

4.He needs only nutrition and good food is enough.

Ideally, yes. In practice - doesn't happen. Several years ago even the American Medical Association started recommending everyone take a multivitamin. This Financial Express article in 2006 stated that 700,000,000 Indians have nutritional deficiencies of one sort or another. And that is probably calculated using "recommended dietary allowances" which are increasingly being challenged as too low by scientists in the field.

Having said that, if the Doctor you mention is using his position to influence people to join an MLM, he is acting unethically. That however is his doing, not the MLM business model.

Why do you continue to post completely false statements about Amway and other MLMs? If you are truly a retired journalist it's an indictment of the profession that you would post articles when you have quite obviously done virtually no research into the topic. Very sad.

Raj Karega Khalsa said...

There are many reputed Doctors in Lucknow, Jaipur, Dehradun who are brainwashed by Amway Agents. These Doctors are now active Amway Distributors who are using their authority to influence their vulnerable patients to buy their expensive Nutrilite (so called Multivitamin nutrition). A 500 gm Protein pack costs Rs.1500/-, They are cheating poor patients by overcharging four times.These doctors are so much brainwashed that they also invite other honest doctors to become Amway distributors. They are betraying their noble profession. A PIL must be filed in Supreme court to stop the dubious claims of Amway Affiliated doctors and so-called Amway agents who are posing as Nutrition experts ( just having a fake diploma by correspondence course).

Raj Karega Khalsa said...

There are many reputed Doctors in Lucknow, Jaipur, Dehradun who are brainwashed by Amway Agents. These Doctors are now active Amway Distributors who are using their authority to influence their vulnerable patients to buy their expensive Nutrilite (so called Multivitamin nutrition). A 500 gm Protein pack costs Rs.1500/-, They are cheating poor patients by overcharging four times.These doctors are so much brainwashed that they also invite other honest doctors to become Amway distributors. They are betraying their noble profession. A PIL must be filed in Supreme court to stop the dubious claims of Amway Affiliated doctors and so-called Amway agents who are posing as Nutrition experts ( just having a fake diploma by correspondence course).

anshuman said...

iam an orthopaedic surgeon working close to dehradun and chandigarh and i strongly assent to what shyam sunder has to say.well it is unethical for a doctor to prescribe nutritional supplements under the garb of selling a magical cure.it does,nt take much to understand that its an atlas and hercules phenomena,sombody passed it to me and i have to pass it down some how talk one into sharing the load.in the past one year more than 4 people have tried fooling me into it but ethical issues dont allow me to concede.why do they pester doctors is really simple to understand nobody buys unless somebody tells them to. i have bigger issues to handle then even think about selling them something which is not going make a difference. you need to understand they are allowed to sell these and not drug s because it doesnt matter. if we agree that the chain never breaks, the member is never misinformed and all indians are malnourished etc, do you still think amway is the answer??? please read pyramid scheme alert and you will understand. one message for all never get into a business you are trained for you are bound to lose. so please all doctors do what you are trained for treat people,, heal them, just do what you do best and money will follow.


Dr. Anshuman roy
Ms, Orthopaedics

tmtmedsource said...

It’s really an amazing blog about Wrist elbow splints. Thanks for sharing with us great information about this lovely topic. I really get benefit from this.