Wednesday, 25 November 2009

Amway swindle no different to Ponzi scheme

'Amway's' own figures reveal that virtually no one persists in the organization's so-called 'Multilevel Marketing Scheme' . Indeed, more than half of all 'Amway' recruits never renew their first annual contracts. The percentage of would-be 'millionaires' who remain faithful to the 'Amway' myth after 5 years, is laughable.
Classic Ponzi schemes are mathematically impossible and economically unviable, because thay have no real external source of revenue. Victims are merely buying infinite shares of what can only be their own finite money. Yet, despite their absurdity, classic Ponzi schemes remain hidden so long as they continue to attract fresh believers. A proportion of the victims' money can be used to maintain the illusion of authenticity. In this way, Bernie Madoff survived without any real investigation for 20 years. The majority of victims assumed that his activities were perfectly lawful, simply because financially-illiterate, law enforcement agents refused to challenge them.
Essentially, the 'Amway' swindle is no different to a classic Ponzi scheme, in that it has virtually no real customers and, therefore, insufficient external revenue to pay most of its participants a net-profit. However, the 'Amway' swindle' was initially designed as a much-more-sustainable form of Ponzi scheme. The perpetrators systematically blame their victims (by falsely defining them as 'Independent Business Owners' rather than 'Investors') when inevitably they lose money.
The so-called 'Amway Business Opportunity' appears to be functioning only because more and more individuals continue to be churned through it. Tellingly, due to the fact that most people in N. America and W. Europe already know that 'Amway' is an absurd swindle, the organization has been obliged to move its main activities eastwards in search of fresh victims.
Currently, around one million Indians are being churned through the 'Amway' swindle every four years. Like their American and European predecessors, virtually none complain.
Exactly as in the case of Bernie Madoff, the majority of 'Amway' victims have assumed that 'MLM' must be perfectly legal, because financially-illiterate, law enforcement agents have refused to investigate.
David Brear


dtytrivedi said...

its confirmed that amway's sales turnover is based on wholesales price. As the billing of the product is done on the base of wholesales price of the product when it is purchased.

I have asked to area manager of amway.

dtytrivedi said...

not only this, it is now mandatory to give Permanent Account Number to Amway office otherwise he/she will not get income from amway.

Tex said...


It's the Amway tool scam, stupid.

quixtarisacult said...

It's the Amway closed market swindle 'fool!'

"Steal a little and they call you a thief; Steal a lot and they call you Amway!"

Tex said...

You haven't seen the graph with the increased non-IBO retail sales, have you? IDIOT.

Shyam Sundar said...

The independent owners of GoldQuest International also claimed that they have been paying income tax by presenting their PAN (Permanent Account Number)cards. Once criminal cases were filed now they are running helter-skelter. Paying income tax or presenting PAN cards doesn't make the business model legitimate. It is a money circulation scheme camouflaged with sale of products.

Tex said...

Shyam, that makes every business that sells anything a money circulation scheme camouflaged with sale of products. LOL

Legal Scan said...

Tex, selling a Rs. 10 product for Rs. 100 is nothing but money circulation scheme anywhere in the world. The sizable amount of Rs. 100 goes to the fraudulent company and the rest is shared by upline members. The downline members are the losers. LoL.