This is the major part of the Andhra Pradesh High Court judgement which nailed the dubious business model of Amway.
"As is evident from the contentions advanced on behalf of the Amway India as noted earlier, the Amway India have taken the stand that there is no quick or easy money involved in the scheme and that the money which the sponsor member gets does not depend on any event or contingency relative or applicable to the enrollment of the members into the scheme. But on a careful analysis of the true nature of the scheme as explained above, it is quite apparent that one of the components of the income earned by a sponsor member is the commission which is calculated not only on the personal PV of the sponsor member, but also from the PV earned by all the remaining 102 members falling within his group. There is, therefore, no gainsaying that a substantial part of the income which the first sponsor member of the group gets depends on the event or contingency relative or applicable to the enrollment of members into the scheme. This conclusion can be tested by a further analysis of the income figures given in the earlier paragraph. Supposing the sponsor member at the top does not introduce any member and if he merely sells the products given to him, he gets an income of Rs.12,420/-. If he sponsors only six people and they in turn do not sponsor any member, then he will get an additional income of Rs.23,760/-. If those six members whom he sponsored again sponsor four members each, he will get a further income of Rs.1,14,480/- and if the 24 members sponsor three members each, he will get a further sum of Rs.6,83,300/-. Thus the money which the member at the top of the line gets depends upon the members whom he enrolls or the members enrolled by him enroll.
From the aforementioned discussion, it is proved that the scheme provides for easy/quick money to its distributors.
From the aforementioned discussion, it is proved that the scheme provides for easy/quick money to its distributors.
5 comments:
oooh ok shyam, pls let me know where the problem is in sales and marketing plan.
go to the link and find some faults
http://dtytrivedi.blogspot.com/2009/07/amways-sales-and-marketing-plan-is.html
heey what careful analysis, i tell one thing the person's ulltimately income depend upon sales of product and not enrolling members. Don't u understand that.
if u didnt understand network marketing then let me share u this, u r income is dependent on ur width of impediate sponsors and ur consistency of ur income depends upon depth of ur downlines.
And yeah, any body can go head in this business its not that the person who entered first will make money more.
pls don't analyse business by urself.
Mr Trivedi, this is not my statement or averment. This is the observation made by the Andhra Pradesh High Court in its judgment basing on the affidavit filed by Amway India itself in the court. It is not my personal opinion nor the opinion of the judges. It is the affidavit of Amway India which gave the necessary details to come to that conclusion.
Mr Trivedi, this is not my statement or averment. This is the observation made by the Andhra Pradesh High Court in its judgment basing on the affidavit filed by Amway India itself in the court. It is not my personal opinion nor the opinion of the judges. It is the affidavit of Amway India which gave the necessary details to come to that conclusion.
well then to be frank the government soon will realise that they have misunderstood it, because amway is a legal business in more than 80 countries!!!! if it was one or 2 or even ten then it would have been different case, if it was new company then it would have been a different case but with all due respect, this company is now 50 yrs old
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