Monday, 14 March 2011

Very few free-thinking readers realise crooked ways of Amway copycats

One of our free-thinking readers, Mr Shashank Agarwal, writes:
Dear Shyam,
Good analysis. I totally agree with you Speak Asia Online is a total fraud. The company's main business is to add more panelists (fancy name put for dumb people). Let me share a calculation for all.
Let's say in India, 10 Crore(one hundred million) are potential buyers for this scheme and each will have to add 2 people as left and right child. Then amazingly what the calculation says:
x (log 2)=log(10 Crore)
x=26 (nearly).
This means that if you are first person to buy this scheme then the circulation goes down to 26 levels only which will cover whole of INDIA.
So, all those who are going to buy this make an estimate at what level you will be going into it. Because, that is very much sure that when company reaches to lowermost it will certainly run away. Moreover it's just a website, much easier to reach people and even more easy to run away.
Do not forget company is charging Rs. 11,000 first and then starts to return. If it had been a fair company it should had charged a token of, say, Rs . 500 at first and then would pay for surveys accordingly.
So, all those who are convinced that this company is legitimate, think again.
Dear Shashank,
You got the point right. For many it is not that easy to comprehend this simple analysis. For,  many people are overawed by their friends or relatives and/or easy and quick money inducement by these companies. The same analysis is applicable to Amway India too. You hardly get any money by buying the products worth Rs. 2,000 every month and if you want to make money, you have to invest more money to purchase products and try to sell these exorbitantly priced wampum. After sometime you blame yourself for not achieving the sales and quit. By that time you would have incurred heavy loss.
Many people fall for this easy and quick money and never calculate right. That is pathetic. The Madras High Court rightly commented, "The authorities close the stable only after horse escaped." The authorities turn a blind eye to the problem and never take action against them in the beginning itself. It is high time, people like you joined hands and take initiative to shut down these companies.

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