A rice trader in a small town of Ponnuru in Guntur district of Andhra Pradesh was inspired by the dubious business model of Amway and he started his own version. He asked his clients to buy 50 kilograms of rice at a rate whichwas well above the market price and told them to bring in more members to get attractive commission.
First, people hesitated to buy rice at that price, say Rs. 1400 for 50 kilograms of rice when its market price is only Rs. 650. However, after hearing the attractive commission the trader offered to rope in more members they jumped in. First they purchased the rice and asked their friends and relatives to purchase the same. However, since it is a small town, the number of purchasers dwindled very soon and they could not rope in more from other places. And many were skeptical of the infinite chain. The business was wounded up soon. However, it was the trader who went all the way to his Bank with a wide grin.
Soon, Amway would face the closure since people are realising that it is a swindle. That is why Amway is trying even harder to 'recruit' i.e. rope in more people into its racket. The one billion population of India is very attractive to these crooks and there is no dearth of daydreamers who want to become rich overnight.
This is precisely the reason for trying to bring awareness among people not to fall prey to the machinations of these crooks. I have great faith in our people's ability to think and to realise that Amway's 'business opportunity' is a myth.