Saturday 9 August 2008

Amway's 6-4-3 principle racket

Amway repeatedly uses the Sales and Marketing Plan of 6-4-3 principle in its publicity (it is available at http://www.amwayindia.com/images/SalesMarketPlan.jpg). According to the plan, initially a person (stage-1) sponsors six members (stage-2) and these six members in turn enroll/sponsor four persons each totalling to 24 members and these 24 members in turn enroll/sponsor three members each totalling to 72 members (stage-4) thus making a total of 103 members known as one leg of the sponsor at stage-1. In this illustrative example, as per the calculation done and shown by Amway itself, the IBO at Stage 1 earns Rs. 56,925 per month for enrolling/sponsoring 102 members his donwline though his monthly business is only worth Rs. 4,500. In conventional distributional channels, it is not possible to get Rs. 56,925 for selling products worth Rs. 4,500.
IBOs never register with local authorities for selling products. Some top level IBOs may be incorporated their entitites but all other IBOs remain mere independent business owners without registration. Simply claiming it is false, it cannot escape its liability.
Glister toothpaste or for that matter for all its products, the Amway India pays sales tax to the Andhra Pradesh Government as per the cost of ex-factory price of its products. IT is easy to find with Amway India to find how much ex-factory price it is fixing for its products and how much tax it is paying. In fact, it is paying sales tax for the Glister toothpaste claiming its ex-factory price as Rs. 16 only.
It can be checked with the Indian subsidiary of Amway.

3 comments:

IBOFB said...

Again I have to ask - are you simply ignorant, or are you being deliberately dishonest? I'm beginning to wonder if perhaps you are being paid by a competitor.

You state -

the IBO at Stage 1 earns Rs. 56,925 per month for enrolling/sponsoring 102 members his donwline

This is completely false

The "IBO at Stage 1" earned nothing from enrolling 102 members. I'll explain the truth in a moment.

You continue -

though his monthly business is only worth Rs. 4,500.

This is completely false

As shown in the example you use -

the monthly business for this IBO is worth Rs. 463,500

You have simple noted his personal retail sales. What you oh so conveniently (and dishonestly?) ignore is that the IBO in question has RS. 459,000 in wholesale sales.

Dishonest or ignorant? Which is it?

Discuss Amway with folk who are honest and know what they're talking about

Rocky said...

this guy probably failed at the plan... hes just frustrated..

Anonymous said...

attend few open meeting which will help you to understand the 6-4-3 plan.