Saturday, 19 September 2009

This is how Amway India is lining its pocket as per its own affidavit

Let us have a look at the second part of the judgement which highlighted how Amway India is making easy and quick money. This is not my perception nor averment. I am only quoting the judgement of Andhra Pradesh High Court.

"Each member on his enrollment pays Rs.4,400. Payment of Rs.4,400 by a member on his enrollment and his future earnings through marketing/enrolling other members constitutes event or contingency relative to his enrollment. The distributor gets all this money as a consideration for promise made by the sponsor at the time of his enrollment. Thus as far as the member joining the scheme is concerned, both the ingredients of Section 2(c) of the Act, i.e., a) making of quick or easy money, and b) the chance or opportunity of making quick or easy money depending on an event or contingency relative or applicable to the enrollment of members into the scheme are satisfied.
As pleaded by the petitioners i.e. Amway India, themselves, out of Rs.4,400 a substantial part, namely Rs.1,800 is collected as subscription fee, license fee, business kit etc. To qualify for earning commission a member has to earn the minimum monthly PV of 50 which he will get by selling products worth Rs.2,000. Thus Amway India (First petitioner) would automatically get a business of the quantum of Rs.1080 crore (4,50,000 x 2,000 x 12(months) ) per annum which would yield an astronomical profit and it cannot but be stated as “easy/quick money” without any service to the distributors/members irrespective of whether they sell the products or not, though the company may conveniently refer it as “turnover by sale of products”. Significantly, this assertion made in the counter affidavit is not denied in the rejoinder of the Amway India. They have merely tried to explain the said allegation by offering certain justifications. The Amway India have not specifically denied that they would get a sum of Rs.1,080 crore by ensuring that each distributor maintains the minimum sales level. Even though the scheme per se does not stipulate that each distributor has to maintain the minimum required business level, prescription of minimum level of 50 PV to qualify for getting commission is sufficient inducement for the members to relentlessly strive for maintaining the PV level at or above the said minimum levels.


dtytrivedi said...

exactly now thats where the problem lies, u see who brought the business in india kanti and hemi gala, but they are not the highest earners, infact Dr braich they are earning more than them.

Even Bill and peggy britt one of the earlies distributors in amway, (through them britt world wide system has been made) they are having really a good pin triple diamond, but there are many distributors, who earn more than them who join after them much much later .

Have u ever thought, why this is so......

Government has not thought about it.

look i am focusing on the most crucial issue where people often misunderstood. I want ur reply regarding to my question.

If u r interested let me know

dtytrivedi said...

infact if u give me opportunity i will also show u this in 6-4-3 sales and marketing plan with ease that it is not so that the person who is top earns does not always make the highest money, infact it is the business structure which earns him money accordingly.

let me know if u want to know about this

IBOFB said...

Yes, apparently employing 13,000 people, developing a business over 50 years, researching and designing products, manufacturing them, marketing them etc etc ec and then, god forbid, selling them, is "quick & easy money" on the part of Amway.

It's a ridiculous assertion.

Just as ridiculous is the somewhat confused claim that marketing the products to dozens and dozens of people, doing phone calls, visits, invitations, presentations, followups, product demos etc etc and then, god forbid ... selling them some products! ... is also "quick & easy money".

I challenge Shyam to be an Amway distributor for 6 months and find out for himself how "quick and easy" it is.

I challenge Shyam to setup a manufacturing company like Amway and find out for himself how "quick & easy" it is.

I don't care whether a judge claimed it or not, it's a prime facie absurd claim. I just wish they'd hurry up and get the full case heard so Shyam can spend his life on more fruitful things.

Owner said...
This comment has been removed by the author.
Tex said...

Yes, he should focus on more fruitful things, such as shutting down the tool scam in the U.S. as it has apparently been shut down in India and the U.K. Want to see the proof of the tool scam? See this link:

rocket said...

Oh Jesus, here comes David Steadson (aka IBOFB) fighting the good fight defending Amway, for no reason other than, you know, because!

After all, Amway has a PR dept, but evidently Steadson figures that he can do a better job for free!

IBOFB (David Steadson) said:

"I challenge Shyam to be an Amway distributor for 6 months and find out for himself how "quick and easy" it is."

I challenge Steadson to demonstrate what he has produced recently in the way of success. If you can't, then understand that nobody in their right mind would even consider taking you seriously.

Secondly, for a guy who is saying that Amway is a business requiring a lot of effort, he had a post on his blog titled

"Amway IBOs get all their products free plus extra cash!"

Doesn't sound like it's a tough business there.

I won't even get into the fact that Amway's corporate structure means jack squat when it comes to individual IBO profitability. Who cares that they've been in business for over 50 years?

Make up your mind! Is it easy or isn't it?

Good to see you again!

Love you!

Tex said...


You missed the point of ibofb's post. It was done to show how statistics can be misleading. Please go back to the factory and ask for a brain this time.

The issue isn't "Amway", it's the "Amway tool scam". WAKE UP!!!