Friday, 9 October 2009

IBOFB, help Amway India's counsel to file answer in High Court of AP

IBOFB and his young follower Trivedi both are silent when I told them about the Writ of Mandamaus filed by the Corporate Frauds Watch in the Andhra Pradesh High Court asking the court to seek explanation from the Government of Andhra Pradesh why it has not initiated action against Amway India. The clever IBOFB who pronounced that the counsels of Amway India who filed the in the affidavit earlier writ petition in the AP High Court should be given a dress down, is now silent when he was asked why Amway India's counsel is dragging his feet to file the answers as instructed by the High Court of AP.
The wise IBOFB should better give his intelligent support to Amway India's counsel for filing the answer.
Youngman Trivedi should read Andhra Pradesh High Court judgement which thouroughly analysed the 6-4-3 plan and held it illegal. What is more he is asking from me. If it is not a pyramid structure, what else is it, Trivedi? It is an endless chain and everyone tries his best to recruit or enrol more people into the pyramid and that is why it is mathematical impossibility.


dtytrivedi said...

well i am saying u again, should i start or u are showing it to me......

and u will notice the difference because this not the first time amway sales and marketing plan was put under legal scanner.

so what do u think...

Should i start or u are showing the big trap in 6-4-3 sales and marketing plan.

I already understood when u said ruby = 6% so lets just start fromt the grass root.

what u say?

I am giving u chance....

or still we should carry on this unending meaningless discussion

Tex said...

Shyam is stupid. He can't carry on a meaningful discussion.

IBOFB said...


It is not an endless chain, you are simply wrong to state as much. The FTC investigated this in the 1970s and found it to be false, with the "chain" being a similar length, and often shorter, than in traditional distribution chains.

You are simply ignoring reality and basing your judgements on a misunderstanding of an extremely simplified model used for the purposes of explanation.

Why the High Court, who one would assume are intelligent people, fell for the same poor thinking is a mystery to me. The Amway plan has been investigated officially in many countries, including I believe by the Indian Reserve Bank, and nobody else has come to the same conclusion. Could you perhaps entertain the thought that it is you, and a couple of local judges, who have made the error of interpretation? It's quite possible the blame lies in the hands of Amway counsel for a poor explanation, and I'm more than happy to help out if they ask! As for whether they're "dragging their feet" or not, I've no idea, you have far more information about that than I do (relying merely on newspaper reports), however I'm more than aware you're looking at the case through someone tinted glasses.

A core error in your understanding seems to be that you think it's an endless chain because eventually everyone will be recruited. The error is that you think the purpose of the business is to recruit people! It's not - it's to sell more products to more people, just like every other business. Just like every other business it suffers from the potential of market saturation - this occurs when there is no more market for the products - it is not to do with how many people are trying to sell the products.

If every potential customer is already buying Amway products, then it plays no role at all if there's one Amway distributor or ten million. The exact same principle applies to all businesses - what truly matters is the size of the market for the products, not the number of sellers. Indeed, in a true saturation scenario, Amway is a much fairer and kinder business than any other. If you open a store selling rice, and can find no customers - then you will be significantly out of pocket and have a warehouse full of rice. If you open an Amway distributorship and discover you can find no customers - then you can return everything to Amway for a full price!

Every business in the world has it as a goal to reach market saturation, to have every possible person buying their products. Every business in the world.

That doesn't make them scams.

Legal Scan said...

Tex, don't act like a bully and nobody is afraid of your bullying. If you lose your tongue with a racist tone, nobody would tolerate. Your frustration could be understood. Go meet a psychiatrist.

Joecool said...

Amway is an endless chain of recruiting. It is why thete are recruitment meetings daily. It is why showing the plan is emphasized far more than selling products. What would happen to most businesses in Amway if recruiting stopped for a few months?

Apparently you haven't done enough recruitng yourself right IBOFB? LOL Or should I call you icerat?

dtytrivedi said...

joecool u are rite and u are rite that if they don't recruit further people they sales won't increase...

So thats similar incase if the Mc donalds or Star bucks or any other company which works on franchise model who stop giving franchise their sales won't increase....

Well i think its needless to say that amway sales and marketing plan is based on franchise concept, u all must be knowing more than me.

so more franchise doesnot always mean more sales as u all know what recently happend with star bucks, they felt really burdensome and couple of its outlets were closed.

am i right guys....

dtytrivedi said...

Look guys, amway does mention to recruit people but recruiting people does not mean that it will increase the sales through recuitment.

Recently a guy a former amway distributor had 30 people recruited under him in 1 or 2 month.

he got benifited even less than 1000 Rs.

I can definitly say recruitment becomes meaningful only when a group creates a turnover..

i have created a sales and marketing plan online and i am confident enough that it is sufficient enough to answer all the query regarding recruiting, commision and turnover.

i have shown to more than 50 people, and 40 of them were not in amway and 15 among them were former amway distributors.

so in case if u want to have a look on the sales and marketing plan indian version.

just tell me.

Joecool said...


You are way off base with your McDonlad's analogy. McDonald's doesn't open up franchises only to increase sales. They also do research to make sure that a new store has enough market to succed and sustain sales.

Amway IBOs, even failing ones are desperate to sign up anyone. They would sign up all their neighbors if they could, regardless of teh likelihood that any of them will succeed.

Also, McDonald's would be around for a very long time without opening up a single new store anywhere. How long would IBOs be in business without recruiting?

People like Big Macs and fries, they will seek a Mcdonald's to bu one. How many people seek an IBO to buy Amway products? Not many I bet.

quixtarisacult said...

Promoting a fraudulent business plan, also while knowing the nature of the swindle, significantly makes one complicit, a crime commonly called 'intent to defraud'.

Recruitment seeks not to bring new salespersons onboard, but new customers, all willing to pay what can only be described as extortionary prices for products which would normally remain unsellable. This explains why the Amway so called 'independent business men' are actually no more than duped drones who swallow the Amway prosperity dream and then willingly allow themselves to be swindled into buying unremarkable goods and all the propaganda designed to keep them buying.

IBOFB makes the claim that it is legit business to sell to as many people who will sign up and buy. Granted, this may be a distribution system, but one of the worst imaginable ever invented, and which significantly makes losers out of those who mistakenly adopt it, fodder for the financial holocaust.

Relying on 'Pro-sumer' logic, which in and of itself is totally illogical, the adherants of the Amway cult believe that paying more will in the end provide a gravy train that is generated 'even while they sleep'.

The Amway System is designed from the top down to make believers losers in a closed market swindle where the monopoly sellers of products and the monopoly sellers of tools take the rest of the 'all believing' dupes to the cleaners. Isn't it appropriate that Amway loves to market detergents to their own children, while these dupes are taken to the cleaners themselves?

Tex, I wonder why you insist on being obnoxious. Calling someone stupid seems to reflect badly on you more than on Shyam, who I might add is much more respectfull to Amway apologists than you are to him?

Tex said...

qiac, you're stupid too. LOL

dtytrivedi said...

Hello my friend joecool your point are totally valid--- but i would like u to tell that this business is based on franchise system

Mc donalds would do research for opening a single store why the reason is obviuous time, money, expertise and many similar stuffs.
According my knowledge, to by a frachise of mcdonald it would cost about 30 – 50 lacs and what in case of buying amway distributorship hardly Rs 995.
Amway business plan was designed in such a way that it covers limitation which has in franchise business. So that it any one can join the business and in case of mc Donald its not like that.
The franchise model has 4-5 limitations
Products are limited
Limited geography
Single level franchise
Full time business

Amway covers all this,
Now regarding to ur point
“Also, McDonald's would be around for a very long time without opening up a single new store anywhere. How long would IBOs be in business without recruiting?”
Well my answer would be i am the proof of it------me and my mother were just distributors of amway for since last 3-4 yrs, were just using the products and we had our 7-8 customers. One of our customer was using cosmetics products for her business which would gave a business of around 150pv.
Until 2-3 months back we decided to build the business actively when i completed my higher studies.

dtytrivedi said...

Another thing which i want to tell u, when it comes to recruiting in amway or other direct selling companies
An excerpt from a news article of direct selling when it comes to selling and recruiting people.

"It's not just about selling the product; it's about recruiting other people to sell and become part of your lineage of sales reps," said Brent Schoenbaum, a retail partner at Deloitte & Touche. "If you're not good at recruitment and you're just selling the products, you're not going to make enough."