Amway apologists claim that IBOs would not make money by enrolling new members. Yet the IBOs concentrate only on enrollment. WHY?
Every IBO must purchase products worth Rs. 2000 every month to maintain basic PV; otherwise he is not entitled commission. They should purchase products every month either for sale or for personal consumption. Since they could not sell these overpriced 'wampum', they keep on concentrate on enrolling new members all the time.
Amway is now collecting Rs. 995 for every new member enrolled and in return it offers a couple of CDs and other things. That way it is lining its pockets. Moreover, every year the IBOs have to renew the membership by paying Rs. 995 which is another way of looting the IBOs. That is why, IBOs who could not enroll members drop out of the scheme. Still, they do not complain but blame themselves for poor performance. They never realise that the scheme is inherently fraudulent.
Some overenthusiastic IBOs purchase more products spending several lakhs of rupees and burn their fingers like B Sujata of Vijayawada.
So, the conclusion is, the IBOs concentrate only on enrollment all the time instead of selling products because they could not sell the overpriced products in spite of the claims of 'great quality'.
20 comments:
Bottom line is very few items are sold to actual customers.
IBOFB/David Steadson can bleat on and on about the superior quality and how competitive they are, but the reality is that the market suggests otherwise.
Because there's simply not a whole bunch of retail customers (in North America anyway). Any examples of retail sales to actual customers are anecdotal and atypical of the majority.
Sorry if that doesn't help your mission you're on to save Amway (you're not doing a very good job) Steadson, but that's the reality. Just because it bugs you doesn't make it wrong.
@rocket - Time to come out of the closet, coward. Tell us who you are.
@Shyam - enrolling people IS getting customers. But of course you won't accept that, even though both the US and EU authorities have explictly stated this is just fine.
That's why Brear has to come up with his bizarre conspiracy theories, to explain why again and again and again independent judicial authorities around the world side with direct sales companies on this topic.
Oh, for the non-Indian's reading this website, that Rs.995 fee is about a whopping US$22.
By comparison, Amway India's total revenues (registration fees plus product sales) for 2010 reportedly exceeds Rs.18,000,000,000 (more than US$406 million).
Shyam also claims -
Every IBO must purchase products worth Rs. 2000 every month to maintain basic PV; otherwise he is not entitled commission.
This is false. Shyam is (surprise!) wrong again. The rule regarding personal volume requirements states -
4.19 Retail effort: To be entitled to earn a Performance Bonus on downline volume during a given month, an Amway Business Owner who qualifies at 15% level in a month must have at least 50 PV of personal purchases of Amway products for retailing in that month.
Personal volume requirements do not apply until an IBO is at the 15% bonus level, and the rule explictly states it is 50PV for retailing. Products purchased for personal use do not count.
Oh yes, and we all know how well the rules are enforced.....
Yes, let's enrol people to buy from themselves and be considered my customers, and independent business owners at the same time.
Semantics doesn't make it a real business there Steadson.
Come out of the closet? Not that type of guy Dave, sorry to disappoint.
Rs.995 is a lot of money in India, IBOFB. A family could comfortably live with that amount for a month. These crooks have been easily pocketing that amount.
The rule of purchasing products worth Rs.2000 to be eligible for commission has been stated by Amway India only in their affidavit in the AP High Court.
Regarding the inflated business volume stated by Amway India must be one of those false claims as there are few newly recruits in India.
Not surprisingly, the website of Amway India still claims the old number of 2007, 4.5 lakh IBOs proving that there are no new recruits, leave alone the number of dropouts.
Let me remind you, IBOFB, that the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 clearly prohibits recruitment. The latest judgement of the Supreme Court of India also stated that it is nothing but cheating. Just read the full text of the judgement here. http://www.skmastanvali.com/sco.pdf
dear shyam, first of all i didn't purchased product worth less than Rs 2000 previous month, even my some of my downlines did the same in Sept.
So ur claim that one has to purchase Rs 2000 monthly is totally false.
And another thing we get 0 benifit on enrolling.
Whole income is on turnover which is done through purchase and retailing.And on the base of that we are earning.
I don't know which amway plan u talk about.
U are just deliberately putting Amway in that price chit act case.
there is absolutly no way i am going to earn anything if i recruit 102 people and do nothing?
@dtytrivdei - I've asked Shyam to explain away the fact you make no money if you recruit 102 people and nobody buys anything, not surprisingly he didn't answer, as it doesn't fit into the lie he is trying to promote
@rocketthecoward - if it's not enforced, that makes Shyam's claim even more wrong doesn't it!
@shyam - doesn't matter to your argument if it's a lot of money to some India families. It's not a lot of money to Amway, yet you claim this is how they are "lining their pockets"!!
Trivedi, it is not my claim. That was the claim made by Amway India inits affidavit.
IBOFB, It is inherent in the scheme that every IBO should purchase products to maintain minimum. So they are bound to purchase and the recruiter is bound to earn money.
The answer for this question is in the affidavit of Amway India, how Raja Naren earned money even he did nothing after recruiting so many people. Still IBOFB asks stupid questions all the time.
IBOFB, It is inherent in the scheme that every IBO should purchase products to maintain minimum. So they are bound to purchase and the recruiter is bound to earn money.
The answer for this question is in the affidavit of Amway India, how Raja Naren earned money even he did nothing after recruiting so many people. Still IBOFB asks stupid questions all the time.
IBOFBthepropagandamachine
You know that Amway's rules are rarely enforced, and it makes no difference how it is "sold" to the prospect.
The new recruit will not and cannot be expected to know that according to you, he is not an independent business owner, but simply a customer of his upline seeking his own customers.
That's not business ownership! Why do you think it is?
Not even counting the simple fact that Amway prices are "hopelessly overpriced" according to some former top level IBO's.
IMHO, Amway "lines it's pockets" by skimming a little from a lot of people, so no, I disagree with your little "factoid"
Maybe once you hit 1000 PV you'll have a different perspective!!!
LOL. You have serious ego issues my good man!
And @rocketthecoward continues with his cowardice and lies. He well knows I've exceeded 1000PV (indeed, I've done it in multiple countries).
He also well knows that virtually all business owners, of any type, are customers of other business owners, and looking for customers, and until they act like a business, they're not a business.
He, like Shyam and Brear, are the ones who, contrary to the law and contrary to common sense, wish to endow Amway with extra-governmental powers in one area, while simultaneously attacking virtually all they do ... they consider Amway to have the ability to grant people business ownership purely by giving them a title!
Amway cannot ... and Amway does not. Registering as an Amway IBO does not make me a business owner any more than signing a reseller agreement with Microsoft makes me a software business. It merely gives me the right to operate such a business if I so choose.
C'mon coward - who are you? What are you hiding? Why are you hiding?
It would be perfectly acceptable if you respected other peoples wishes to operate with nicknames, but you do not. Yet you are too cowardly to reveal your own name while spreading lies about others.
What a gutless whimp.
IBOFB (David Steadson)
I have nover, nor would I ever suggest that Amway should be given any special powers from the government........and I'm not sure how even you, the master spinner would be able to deduce that from anything I've ever said.
As far as Amway not being your own business, are you serious?
You're going to come here and tell me that all across North America the Amway opportunity NOT being told to would be distributors that this is their own business? Ha! I'm seriously smiling as type this......what a joke. you're either stupid, or deliberately obtuse if you are now switching to that train of thought.
Allow me to expand on your absurd assertion. You stated:
"....Registering as an Amway IBO does not make me a business owner..."
Uh, IBO means Independent Business Owner, unless that acronym has changed recently?
You spelled wimp wrong.
Thank You! Come again!
From Amway.com:
Amway believes that hard work should be rewarded. Put simply, the Amway Independent Business Owners Compensation Plan rewards you for selling products and for sponsoring others as Independent Business Owners who do the same.
Hmmmm. No mention of retailing to other business owners.
You're pretty smart though IBOFB, likely the corporation has it wrong.
By the way, I've never been privy to the fact that you made 1000PV or more.
You're so secretive about your level, I just assumed that it was such an issue because you've had dismal results and weren't successful.
My bad.
I'm sure you're making fabulous money in Amway.
@rocketcoward - wow ... in the one post you claim you both don't believe something and say you do at the same time!
On what basis do you believe that Amway calling someone a "business owner" makes them a business owner?
Does the IRS know Amway has the right to declare people businesses?
I have on more than one occassion told you my business was larger than JoeCool ever did. I suppose if you think he was lying about reaching 4000PV (more than possible) than you might not realise that meant my business exceeded 1000PV.
You say -
Hmmmm. No mention of retailing to other business owners
Yet right before it you say -
selling products
If we ignore the fact that, virtually by definition, if you are selling to another Amway business then it's likely a wholesale sale, if your selling to an Amway IBO who is not operating a business, then "retailing" to them is clearly covered by "selling products"
You're still a coward and wimp.
Thanks for spelling wimp right.
So you don't see any reason to explain why they aren't business owners in spite of being told that this is their own business?
You've never told me your level.
So what you're saying is that if someone isn't actively building the business, and they are buying products through their business (!) it's a retail sale for their upline.
Sounds like a buying club to me.
So what level are you at? It is the internet after all, you can claim anything you like.
Might as well make it a whopper of a tale, I can't imagine anything else coming from you.
I'm really sure that the Amway business is sold as a way to buy stuff from your sponsor.
And you still don't allow dissenting opinions on your site, yet you call everyone else cowards Davids Steadson?
Classy! But not unexpected.
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