Saturday 14 April 2012

Amway only makes money not its distributors


One of our readers Ramu describes how only Amway makes money and almost all its distributors who are actually customers lose money.

Amway says it is building Distributors network. But actually they are building customer network. They give away distributorship for free and with no particular experience of selling products - because they are not making you a distributor but only making a customer of Amway.
Once a person become distributor (so called). He has to purchase stuff for his own use (this is forced by upline) and this is how Amway does business.
Distributors are themselves buying products for self or for family members.
Amway pays 21% to the distributor incentive to entire line. They give 20% commission to the distributor, they spend 7 - 8% on promotions/meetings/seminar and 3% is diamond/platinum member’s bonus. Amway as a Company earns 20% profit. So if you add all these around 80% of the MRP is distributed and the Product is just works out to 20% (including manufacturing cost, employee salary, infrastructure expenses etc).
So just imagine you are paying Rs 1000 for a Rs 200 product. Which customer is going to buy such a product??? 
I have worked with Amway (Alticor is the actual entity). And the so called Distributor information is saved in CUSTOMER Tables. So for Amway all distributors are just customers. The one higher on the line earns some incentives and the one below just dreams of getting higher.
 

2 comments:

DayaRam said...

मि।श्यामसुंदर कृपया आप लोगो को बहेकाना बंद कीजये आपके ब्लॉग पढ़कर न जाने कितने लोगोने MLM बीजनेश छोड दिया.. आप सिर्फ लिख देते हो लेकिन कोई MLM कंपनी को कोई फरक नहीं पड़ता. कृपया आप मुजे बताये आपने जिन कंपनीओ के खिलाफ नेगेटिव ब्लॉग लिखा हे उनमे से कोनसी कंपनी का व्यापार बंध हो गया एक भी नहीं..आप ने कुछ दिन पहेले आपने RMP के बारे मे लिखा था आरएमपी का व्यापार बिना किसी रुकावट आज भी चल रहा हे ओर चलेगा कंपनी ओर नए प्रोडकट्स लॉन्च कर रही हे.. हा कुछ असंतुस्ट लोगो की वजह से थोड़ी सी दिक्कत आई लेकिन आरएमपी ने अपना रास्ता बना लिया जितना बदनाम करोगे उतनी हम तरक़्क़ी करगे जय जय MLM

Shyam Sundar said...

I understand that Dayaram thinks that after writing about the scams, all the scams would come to end. It is a superstition. My blog is only intended to bring awareness among public regarding the scams indulged in by fly-by-night operators who are out to make fast buck with the greediness of the gullible.
If Dayaram thinks the fraudulent companies would close down their operations after reading this blog, it is his innocence and or ignorance. The fraudsters would never admit that they are cheating the gullible. They are interested only in their fraudulent earnings.
If at least ten people are stopped from getting enrolled in such schemes, the purpose of my blog is served.