Tuesday 7 September 2010

Need not join Amway or any other crooks to find out it is a racket

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.


14 comments:

IBOFB said...

Amazing, you even contradict yourself in the same post!

You claim -

You have to become a member to purchase products and you have to enroll more members to earn commission.

Completely false. Anyone can buy Amway products from an Amway rep and does not need to be a member. What's more, anyone can sell those products and earn a commission, without enrolling a soul!

I have in the past accused you of being a liar, Shyam. I apologise for that. It is increasingly clear that you're simply not smart enough to lie, and you actually believe this stuff you are writing!

Tex said...

Brear and Shyam - BOTH are stupid! LOL

Shyam Sundar said...

People who have no self-respect never respect others. It is proved time and again.

Shyam Sundar said...

Go to any Amway godown to purchase products, you would be directed to go to some IBO. They never sell products to you. That is what I mean if you want to purchase products, you have to become a member. And an IBO needs to enroll more members to earn more commission that is the inducement.These apologists could not understand this simple logic of Amway.

Tex said...

What's a "godown?"

IBOFB said...

Shyam,

Just to clarify - are you claiming that all Amway India IBOs refuse to sell Amway products to any non-IBO?

Tex said...

Never mind, I looked it up. A godown is a warehouse. The reason why Amway turns down customers is so the customer can first obtain an IBO, who will then get credit for the sale. Did you prefer Amway work around the IBOs, Shyam? Talk about stupid....LOL

ibofb, that was also a stupid question. See above. And you know better, which makes it even more stupid than Shyam, if that's possible. LOL

rocket said...

I've had IBO's refuse to sell me something.

Shyam Sundar said...

Amway shop or the warehouse is from where IBOs purchase products. It is the Amway shop that refuses to sell products in the so-called direct selling business. You are directed to an IBO who insists and persists to become a member by paying the amount.

Tex said...

rocket/Shyam,

That would be stupid on their part. Not only are they passing up an immediate retail sale, they are also passing up long term retail sales and the potential of you becoming a future IBO. Just because one IBO is stupid doesn't make all of them stupid, or even most of them stupid, just like because Shyam is stupid doesn't mean all/most journalists are stupid, or all/most people from Canada are stupid.

rocket said...

I'll say it again Tex. IBO'S (as in plural) have refused to sell me stuff if I didn't want to get into their business.

Why?

I'm paraphrasing here, but the general consensus was it was more trouble than it was worth to get me my products. ie. they made very little profit for their efforts.

Plus they said they were building businesses of galactic proportions, and retailing wasn't a part of their quest to build an empire.

Joecool said...

In my post IBO days, I've had IBOs offer to sell me Amway stuff and without my asking, they offered to sell it to me at IBO cost. Probably a sign that Amway goods are indeed overpriced. To humor some of them, I did buy a few items, even though it's painfully obvious that these folks are more interested in recruiting than in selling and that makes sense, given the way IBOs present the business.

Tex said...

I'll say again rocket. That would be stupid on their part. Not only are they passing up an immediate retail sale, they are also passing up long term retail sales and the potential of you becoming a future IBO. Just because one IBO is stupid doesn't make all of them stupid, or even most of them stupid, just like because Shyam is stupid doesn't mean all/most journalists are stupid, or all/most people from Canada are stupid.

Tex said...

P.S., I'm beginning to wonder whether all Canadians are stupid or not. LOL

The emphasis isn't on whether SOME IBOs don't want to sell, it's on whether ALL IBOs don't want to sell. GET IT????