One of our readers Mr Nikhil Bhatia writes:
I recently joined two MLM Speakasiaonline and Amway.
I have done a research on both of them.
Speakasiaonline looks fraud to me but Amway is not at all looking like a scam to me.
Also I bought a few products from Amway and those were nice. I have doctors in my family and they too are saying that Nutrilite is a good product and they too recommend to their patients but till now they have not joined Amway business. Some of my friends are using Amway products but they have also not joined. These are the people who like the products and soon they are coming as my downlines.
I came to your blog and I want to know the truth that how selling products can be a scam because I surely don't want to be a part of scam.
Many people are willing to join me but before I do that I want to have a word from you.
1) Why it is a scam and tool scam exists in india or not?
2) Any pointers to people in India who got bankrupt through this business?
3) Is my money being taken from me and given me back? Till now I only see I am paying for the products
4) Many BIG people are in this business from lawyers, industrialists, vice-presidents of reputed companies. If it is a scam then what is happening?
5) Are the Amway Diamond salaries reported by Amway in their business kit fake? If not then where is the money coming from? I think it's the product flow.
Do reply to me.
If its really a scam i am going to RIP my uplines.
Let me congratulate you first for finding out Speakasiaonline is fake and they are only paying you back your own money.
It seems you have not sufficiently investigated or thought well over the Amway scam.
I would like to know whether you have read the judgements of Andhra Pradesh High Court regarding the business model of Amway India. The High Court categorically held that the business model of Amway India is illegal and it is making easy and quick money. If you have not read the judgement, go back to the old posts to read it. Of course there is also toolscam but the business model of Amway itself is illegal.
Secondly, more than 90 per cent of people who joined Amway India discontinue within a year because they keep on losing money buying products and never make money by selling products. These products are exorbitantly priced and unsaleable in the market. One must purchase products worth Rs. 2,000 to be in the list of distributors to be eligible for payment of commission. So in a year, you would be losing at least Rs. 25,000 and the next year you have to pay Rs. 995 for renewing your distributorship.
Thirdly, exactly Amway India is only paying some of the money looted by it to the distributors in the name of compensation plan while retaining sizable amount itself.
Fourthly, many people are carried away by their friends and relatives about the 'good business opportunity' and 'total financial freedom in 2-5 years'. If they know that the business model of Amway India attracted the provisions of Prize Chits & Money Circulation Schemes (Banning) Act, 1978, they never join such schemes and never recruit others also. Under this enactment, they would be imprisoned for three years for joining and making others join such schemes.
Fifthly, almost all Amway distributors lie about their real income. Nobody knows exactly what they earn. There is no way to verify the veracity of their claims. They sell a Rs. 16 worth Glister toothpaste for Rs. 100 and line their own pockets. Nutrilie is also exorbitantly priced and similar product could be found at one third of its price. It is Amway India which makes money all the time and the upline members get peanuts with which they are happy.
Nikhil, try to understand one point clearly. There is nothing like easy and quick money and all these home-based business opportunities are out to cheat you.