Thursday 9 July 2009

Imaginary earnings and Imaginary tax payments of Amway distributors

Shyam
Our Mr. Steadson's cannot deny that 'Amway's" so-called 'Business Opportunity' is the bait for an advanced fee fraud, whilst his latest 'baiting' tactic (feigning laughter) is as transparent as his previous efforts.
It is a matter of public record that (over the past 35 years) a total of around 1 million annual contracts have been signed with 'Amway UK', but the rolling drop-out-rate has been 100%. In the recent BERR investigation in the UK, it was discovered that, out of approximately 33 000 transient 'Amway' non-salaried commission agencies that existed during 2006-2007, less than one hundred were making sufficient income from 'Amway' to cover their operating expenses. Of these tiny few solvent agencies, virtually none were making enough profit to warrant the payment of any income tax. Indeed, UK tax officials whom I have encountered, have a tendency (genuinely) to laugh out loud when the made-up term, 'Multi Level Marketing,' is mentioned. Yet, in order to recruit ( for the past 50 years) 100% 'Amway' adherents have had to hide the truth about their own loss-making 'Amway' participation, and/or tell lies.
Since the investigation and public interest petition to have 'Amway UK' closed down became public knowledge, the number of transient, insolvent UK 'Amway' commission agencies has fallen to an insignificant number. This was less than 5000 last October, but 'Amway UK' doesn't have to reveal the latest embarrassing figures until October 2009.
Now do we really believe that our smug Mr. Steadson is one of the near-to-non-existent 'Amway' adherents who has managed to generate an overall net-profit from 'Amway,' or is he one of the countless millions who have been obliged to tell lies?

David Brear

1 comment:

IBOFB said...

Oh believe me Mr Brear, the laughter is real! Indeed I had a good chuckle reading this post too! :)

You are correct about the poor performance of Amway in the UK, I have no disagreement there. In my opinion there are various reasons for that, a number of which came up in the case. Mind you, it's interesting to note that according to the judgmene, of the 33,000 mentioned, only 2970 were doing any retailing. Retailing is a requirement to earn a bonus on downline volume throughout Europe, including the UK. Thus you would not even expect anymore than 2970 to make any money at all. Still, I have personal friends in Amway UK that were making 5 and 6 figure incomes, so clearly it can be done!

With regards you current numbers claims, you are completely incorrect. According to the Amway income disclosure, there were around 8000 ABOs at the end of September 2008, and more than 3000 have joined in the first 6 months of this year alone.

Interestingly, you claim that people had to "hide the truth about their own loss-making" in order to recruit. Yet, when you look at the facts, the examples given in the judgement of people lying about their incomes were from an organisation that had shrunk substantially in the past decade. Apparently lying about their success was not working well at all!

On the other had, the Lowes, who were honest in respect of their success, had a thriving growing business! Interestingly enough, I heard Jackie Lowe say recently that they personally had 75 registered customers. I've heard both her and Trevor over the years talk about their retail customers. A couple of years ago I had an interesting conversation with an Amway UK employee. They were ranting about the dishonest scamming UK Diamonds. I mentioned Trevor Lowe and his attitude completely changed to one of respect and admiration and he spoke of Trevor's integrity and professionalism. Clearly not all Diamonds are the same. Just as clearly, considering the Lowes continued to qualify as Diamond in the UK throughout the past few years, running an Amway business with integrity and professionalism leads to a much more stable and profitable business.

It's a shame not all do that.