Wednesday, 14 October 2009

School teacher appeals to save her marriage from Amway

For the sake of youngman Trivedi, the story of a housewife who suffered due to Amway in her own words.
I, THANNEERU NIRMALA DEVI, am a resident of Jahangir Colony, Chinthalakunta Checkpost, L.B.Nagar, Hyderabad. I am working as a Government school teacher at Gundrampally near Chittyal mandal, Nalgonda district. My marriage was held with one MADHU YUGANDHAR s/o Sri Rammurthy in 1990. During our wedlock, we were blessed with two children. Initially my husband was working as a Veterinary Assistant in Venkiryal. We were happy with our profession and income to lead our life. Six years ago one of friends of my husband Aila Saidachary, resident of Shiva Sai Apartment near NTR vegetable market,L.B.Nagar came to our house and began to explain us by saying that he has a good business opportunity thereby you can become rich within a short span. Your Government employment is nothing before this business opportunity, he said. Initially my husband rejected this proposal. Thereafter Saidachary used to visit our house situated in L.B.Nagar along with some persons by introducing them as his upline members Shyam Sundar Reddy and Sujatha, Prasad and Ramasita (phone no.9392456379, 9963777990) Saidachary with the help of his upline members explained to us about the scheme as follows.
They are the members of Amway India Enterprises, which is an American Company. It gives huge commissions based on the enrollment of members in their scheme. Initially Rs. 4,500 have to be paid to become member of Amway after being enrolled by already enrolled persons as their downline members. The scheme Amway is 6-4-3 principle means each member has to enroll six persons and these six persons in turn have to enrol four persons each totally 24 persons and again these 24 persons have to enroll 3 persons each totally of 103 (1+6+24+72) is called as one leg. Amway is promising to give each Rs. 56,925 per month if any person makes sure 102 persons under his downline either by own efforts or efforts of his downline members. The commission will depend on the enrollment of members ranging from 6% to 21%. Depending upon the enrollment capacity titles will be awarded by the Amway. It was said that there are 23 levels/titles in the Amway business depending on the enrollment.
Thereafter Saidachary brought some more persons by name D.V.S. DEEPAK, PRASAD and RAMASITA, SHYAMSUNDAR REDDY and SUJATHA to our house situated at L.B.Nagar and again explained the same scheme and showed album of photos citing the names of some persons said to be millionaires after they got enrolled into Amway business. When we showed disinterest they asked me and my husband to attend the seminar to be convened by their Diamond members RAJA NAREN, ASHOK REDDY, GULATI, Vara Prasad (Visakhapatnam) at Gachibowli Stadium. Subsequently unable to bear the pressure from the members of Amway, we attended the above meeting in the Gachibowli. After meeting the said Saidachari made me and my husband to meet the above four diamond members of Amway and they prospected us to join into Amway business and told that we too can get rich soon by Amway Business and pressurized my husband to enroll into the scheme by paying Rs.4,500/- as joining fee. Thereafter they insisted my husband to add my name into the application, as this is a family business. I refused to add my name, as I am a Government employee and should not participate in any private business. Thereafter they convinced my husband by saying that there is no need of physical participation of your wife in this business. After enroll of my husband in Amway business, they asked him to enroll his clients in Amway Business. Initially my husband did not ask me to accompany him to prospect the new members for enrolment of new members. Subsequently, instead of profits, my husband incurred losses and made huge debts. As a result of this I have to repay the debts incurred by him. Slowly my husband stopped attending the Government job to follow up Amway Business. He used to sell our household articles also to continue in Amway Business. He also mortgaged my house for Amway business. Due to fear of bad name and decency, I put up with my husband. Since one year back, Saidachary, Prasad, Deepak, Shyamsundar Reddy came to our house and brought pressure over my husband saying that his wife is a Government teacher and she has so many contacts and good reputation as this is a family business wife must be involved in Amway business. They also tried to convince me to do Amway Business. I rejected their proposals since being a Government teacher. I should not indulge in such activities. Since then my husband changed his attitude and began to threaten that he would discard me if I don’t do Amway business. I strongly objected to this proposal. Even though, he brought some of the members of Amway and pressurized me to do Amway Business. Adding to this, when I rejected to do Amway business, the upline members of Amway, brought some of the members of Britt World Wide to our house. These members of BWW began to explain how to build positive attitude and build enrolment chain in Amway business. The work of BWW is nothing but brain washing the members who refused and intended to do Amway business. They appeared more dangerous than Amway business. While so, in February 2009, I read a news items in newspapers that the scheme of Amway is an illegal Money Circulation Scheme and participation in such schemes is also an offence. Thereafter I informed the same to my husband and to his friends that Amway is illegal and promoting illegal scheme. In the last month, Saida Chari along with my husband and some members of Amway by name Shyama Sundar Reddy, Prasad, Deepak came to my house on 20.2.2009 situated at Chinthala Kunta Check Post, L.B.Nagar and pressurized me to do Amway business as my husband is in troubles. If I involved in the Amway business, he may get out of the troubles easily. I strongly rejected to this proposals and warnings. Thereafter they warned me that my husband would discard me if I failed to concede to do Amway Business. Since then my husband has not been coming to our house. Thereafter I informed the same to my brothers. And in turn they arranged a meeting with my husband and his upline members to subside matter. My husband and his upline members vehemently told that my husband would return home only, if I do Amway business. Since then, my husband is not coming to home. Kindly do something and save our marriage.


dtytrivedi said...

amway has been in news many times since 2007.

Even In text book like Principles and practices of management by Philip Kotler the examples of amway is used.

Needless to say he is well renowned author in the world.

Even Business today magazine which is india's leading magazine had given four page info of direct selling and leading players in direct selling and trends in the direct selling industry.

dtytrivedi said...

well i will show u a profile of person Mr dhingra who is now Diamond qualifiier. he lost his vision before he achieved this pin, and he is not in BWW but winners group. he is an excellent speaker.

I also tell u a person named pankaj titoria who didn't had 4500 Rs to start this business.

He faced hundreds of challenges and now he is emrald producer.

I have such endless examples like u have such examples

dtytrivedi said...

if it is illegal business then why the newspaper and magazines are showing much about amway and direct selling industry.

Are they nitwit or they haven't gone through your website!!!

dtytrivedi said...

ok let me explain in ur way. As u are lawyer i will quote in ur way....

before i tell u let me summarise u what i am saying.

Amway does not tell any distributor to force its downline to recruit the people, infacts its against their code of conduct. If u don't believe me then take look at this.

Amway has code of conduct which every distributor has to follow but many don't.

According to Amway code of conduct
8.3 Sponsoring Guidelines:
Amway Sales & Marketing Plan must not be presented
• as a get-rich-quick opportunity.
• that Amway Products are bought and sold for Distributors
personal use.
• that there is no requirement to retail Amway Products.
In seeking participation of a prospect in the Amway Sales and Marketing Plan, the sponsoring Distributor must comply with the following guidelines:
8.3.1 Must disclose the average profits, earnings, and sales figures and percentages as published from time to time by Amway.
8.3.2 Must use only Amway-produced and Amway-authorized literature. Amway authorises for use privately produced sponsoring aids submitted to Amway through a qualified EDC member or other Amway designee. For further information on how to submit materials, please contact the Amway office.
8.3.3 May use those earnings and/or commission representations based on their own personal experiences, provided that they at the same time disclose the average profits, earnings, and sales figures and percentages as published from time to time by Amway.
8.3.4 May cite lifestyle examples, e.g. travel, automobile, homes of successful Distributors, and contributions to charitable causes, provided such benefits were actually accrued as the result of building a successful Amway Distributorship.
8.3.5 Must not say that a successful Distributorship can be built in the form of a “wholesale buying club” in which the only products bought and sold are those transferred to “Distributors” at Distributor cost for their personal use.

8.3.6 Must not say that there is no requirement for the retail sale or marketing of products.
8.3.7 Must not promote the enjoyment of tax benefits as the best or principal reason for becoming an Amway Distributor.
8.3.8 Must not say that Amway is a “get-rich-quick” opportunity in which it is easy to achieve success with little or no expenditure of effort or time.
8.3.9 Must not present the Plan or solicit participation in the Plan through mass mailings, telemarketing, national advertising, computer communications, or any other means by which person-to-person contact with the prospect is not present.

8.4 No Exclusive Territories: No Distributor shall represent that there are exclusive territories available under the Amway Sales and Marketing Plan.


8.5 No Obligation to Purchase: No Distributor shall represent that there is any obligation to purchase products and/or services except for the standard Amway Business Kit, nor shall he/she represent, purposely allow or gain from any representation or implication that benefits may be derived solely from the purchase of AMWAY products or services in conformity with the Amway Sale and Marketing Plan.

I have the hardcopy and softcopy both let me know which one do u want so i deliver it to u.

Tex said...

Having rules, following rules, and enforcing rules are COMPLETELY different issues.

Tex said...

Having rules, following rules, and enforcing rules are COMPLETELY different issues.

IBOFB said...

It gives huge commissions based on the enrollment of members in their scheme

Wrong. No commissions are paid for enrolling people.

The scheme Amway is 6-4-3 principle means each member has to enroll six persons and these six persons in turn have to enrol four persons...

Wrong. Nobody has to enrol anybody, and if they choose to they can enrol as few or as many as they like.

The commission will depend on the enrollment of members ranging from 6% to 21%.

Wrong. These commissions are entirely based on volume, not enrollment of members.

It was said that there are 23 levels/titles in the Amway business depending on the enrollment

Wrong. All commission levels are based on volume. Some of them require that volume to be split amongst a small numer of others (max 20)

Amway is promising to give each Rs. 56,925 per month if any person makes sure 102 persons under his downline either by own efforts or efforts of his downline members

Wrong. Amway makes no such promise. Commissions are based on sales volume, not enrollments.

that we too can get rich soon by Amway Business and pressurized my husband to enroll into the scheme by paying Rs.4,500/- as joining fee.

Given the extreme errors already pointed out, I have my doubts of the validity of any other of this ladies claims, however if these people promised her they can "get rich soon" then they were breaking Amway's rules.

As with regards the rest, if true much of it also sounds excessive, such as the level of debt her husband was incurring.

However, I can also say I'm not surprised her husband may want to dissolve the marriage. She admits to actively sabotaging his attempts to build his business!

One cannot very well complain her husband's business is losing money while at the same time actively working to prevent his business making money.

Tex said...

She did the right thing, by cutting her loses. Good job!

dtytrivedi said...

hey i would compare this stuff to sales rep.

When i worked as sales rep door to door marketing, many people would follow the wrong way and earned money.

But when they caught they were heavily penalized. often such people get escaped....

The real e.g. is that in Australia Gigaforce is company which works for Optus (a telecom company). we worked over there as a sales rep representing optus. there were couple of sales reps who would book the sales in illegal way.

And guess what the company was finding such people. And guess what, this year only the y caught three people in victoria and they were international students and they were caught booking the sales in illegal way and they were jailed.

what they would do is that first they would represent optus after that they would ask their birth date for the other reasons, and they would also not inform that they came here for selling telecom products like landline connection , internet or T.v connection.

And they were caught and jailed.

On top of this, the place where i was doing job was NSW, Sydney. they held workshop and they did especially for this purpose that Optus is recieving many complaints of faulty sales from the customers and often customers were very much angry as many of them didn't know that their landline connection was changed to optus and they were facing serious problems because often it happens that landline number is not portable.

My conclusion is that a company which is sales based cannot keep watch 24*7 on the sales reps...

For the sales reps it means nothing to them for losing a job because they are hired as commision based job, if they make sales they get commission and if they make no sales then no commission plus they would be also pay extra for the travelling expense.

There are two major reasons why it has attrition rates.

First of all its commision beased
second, it involves travelling cost
third, u need a motivation and reason to this job.

And i think amway has similar characteristics

dtytrivedi said...

and in magazine they often show that they have been looking for such distributors who follow such practices and they have also shown they there were some distributors who they have caught doing business which against away policy like putting amway products in shop or mall.

they straight away cancel the distributor ship whether he is ruby or silver or any damn high pin holder.. they strictly say they follow zero tolerance policy

Ashish said...

Hi dtytrivedi,

Is it possible for you to send me the soft copy of the Amway code of conduct.

Also, I would like to know if you have any blog or website.

Please send me your email address as well.

VibG said...
This comment has been removed by the author.
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