More often than not we come across a question whether have you joined any scheme or consumed any products of these crooked company or have you joined any person to become a member of any scheme of any company. But the pertinent question is 'Is it necessary to join any scheme or use any product to understand that it is a racket?' All we can say is that it is not necessary. We can sense the racketeers and keep them aloof. Way back in 1998, when Amway India launched its products in my home city, we were invited to a demo and speech in a posh restaurant. After hearing the speech for fifteen minutes, my wife declared that it was not our cup of tea. We just walked out of the meeting.
The whole scheme stinks. You have to become a member to purchase products and you have to enroll more members to earn commission. And also earn commission on the sales turnover by your downline members.
Nearly a decade later, Andhra Pradesh High Court confirmed what my wife said. "It is, thus, evident that the whole scheme is so ingeniously conceived that the inducement for aggressive enrollment of new members to earn more and more commission is inherent in the scheme. By holding out attractive commission on the business turned out by the downline members, the scheme provides for sufficient inducements for its members to chase for the new members in their hot pursuit to make quick/easy money."
But still, some Amway apologists strive hard to convince people that they do not earn any money by enrolling new members. Laughably, they claim that actually they lose if they enroll new IBOs. The whole idea behind Amway business model is 6-4-3 plan with the help of which you earn Rs. 56, 500 every month, of course, provided you and your downline members purchase products worth not less than Rs. 2,000 every month. That is what the High Court judgement pointed out: "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". And if one does not sell products worth Rs. 2,000 in any month, he would stand to lose the commission. That is why he keeps on buying products from Amway and loses his money after finding no one to buy the 'wampum'. Of course, everyone is not as smart as some apologist to book orders first, get payments before delivering goods. It is hard to believe such people exist.