Monday 7 December 2009

Amway's 'great business opportunity' is only cheating

Now let us have a look at the Business model of Amway, "The Great Business Opportunity".
If anybody gets enrolled as an Independent Business Owner IBO, his performance level is three per cent provided he sells products worth 100 PV. If he sponsors six people and if each of them sells products worth 100 PV, the sponsoror's performance level reaches six per cent. If each of these six people sponsor four people each, the performance level of first sponsoror reachers 12 per cent. Again these 24 distributors sponsor three people each the performance level of the first sponsor reaches 21 per cent. At this level his gross monthly income would be Rs. 56, 925.
It is another thing that there is no compulsion to sponsor people. Then there would be no business at all. Sponsoring should be done and each sponsored person should do 100 PVs, then only the first sponsor would get Rs. 56,925 per month and the annual earning would be 6,83, 100. So, if the first sponsor is doing only 100 PVs and all his downline members are doing 100 PVs, there would be enormous income for the first sponsoror. By the way, this is what is called 'mathematical impossibility'. Nobody could find so many people on earth.
This is what was pointed out by the Andhra Pradesh High Court. The first sponsor is earning income if the downline members are doing the business. That is why this is called easy and quick money.
If this is not pyramid structure, what else is?
This is extracted from the Amway India website only.

11 comments:

Tex said...

Shyam,

You ignored the words "if" and "provided." These words were meant as an example, a word with which you also have a problem. These are easy words to understand, unless you have soap in your eyes. LOL

dtytrivedi said...

tex u don't understand examples are made to be followed and imitated!!!!

quixtarisacult said...

Shyam,

These erstwhile supposed Amway business people generally avoid actually 'selling' products to make this 100 PV requirement. Generally they only buy for their own consumption, which by the way makes them merely 'customers' in the Amway 'model' which has always been operated on the 'buy from yourself and teach others to do the same' model.

Consumption of what should be 'inventory' or 'inventory loading' with no intention to sell makes all the erstwhile supposed businessmen and businesswomen merely consumers, significantly the only customers Amway basically has. Any commissions paid by Amway--for all intents and purposes--serve as only a 'cash back' deal which isn't so much different than 'cash back' deals some credit card companies offer their customers.

Being 'core' (loyal) to Amway products forces the Amway believers to pay much more for goods than one might pay in an open market. Amway goods are sold in a monopoly market which tends to make buyers defacto slaves who pay upwards of twice as much for goods that sell for much less in the open traditional market place.

Enthusiasm for a scam causes people to lose contact with reality and enter into a world where terms like 'prosumer' seem to make sense. Folks falling for Amway might also believe in bigfoot, Santa, and the tooth fairy.

Amway indeed operates a pyramid scam wherein all links in the chain selling are subject to breaks and failure. People pursuing Amway dreams might enjoy walking up down elevators.

Personally, I believe it would be very embarrassing to even broach to anyone else that I was 'doing' Amway. It would be tantamount to saying that Amway was 'doing' me.

Amway is 'doing' nut jobs like tex, trivedi, and unfortunately others. I don't really include IBOFB in this catagory because evidence seems to show that Steadson isn't actively pursuing the Amway 'bidnez,' but his pursuit is to convince others that it is a perfectly legit path for them to follow. Recently Joecool revealed that Steadson's level in the business is actaully very puny, although now Steadson claims he has multiple Amway businesses.

Shyam, possibly what Indian readers of your blog do not understand is exactly how bad of a reputation Amway has in the U.S. where the scheme has been operating longer than it has in India. All that is not readily known about Amway in India and other parts of the world is what gives Amway a foot in the door; but knowing the 'vehicle history' report on Amway closes these doors, and significantly, it is the Internet that keeps Amway from maintaining a monopoly of information about itself.

Shyam, thanks for getting the world out about how Amway really rolls. Indeed, Amway apologists like to paint Amway as some great success story while in reality, Amway is a pernicious money sucking cult, the mirror image of Scientology.

dtytrivedi said...

i have been repeatedly asking people those who claim that the product are higher (offcourse then it must be nutrilite or artistry).

but when i ask them to whom they would compare the answer is blank!!!

ok i really appreciate regarding asking ur sales and marketing plan.

there are two to three things which i want to share with u.

when u say "It is another thing that there is no compulsion to sponsor people. Then there would be no business at all".

there is rule in direct selling which says this that one has to follow guidelines otherwise they are running pyramid schemes.

u can check this on world federation of direct selling website and direct selling website.

and second thing, when u say first sponsor in amway will be earning highest then it is false conclusion.

there are plenty of examples where the downlines have been earning more than upline. business is designed in such a way that any downlines and even their downlines has an equal opportunity for going ahead.

then u must be questioning how downline can go ahead of upline !!!

here is the catch ur income width is dependent upon ur breadth of first level of downlines.

for e.g. (just for the sake of understanding)

if my upline generates volume of say 500,000 lacs per month through one downline that is me. But i am generating through four different downline (first level). then i would be earning more.

even there is certain limitation for upline if he generates income through one downline

dtytrivedi said...
This comment has been removed by the author.
dtytrivedi said...

do u know one thing that if for e.g if i genrate business say Rs 1 crore per month through only one downline.
then i never achieve the pin of diamond not even emrald.

at max i can achieve is founders platinum!!!

same in case of my downline if hed does the same.

but if any downline in my team if he generates the business Rs 5lacs (or more) through each six people than he can go diamond!!!

why because he had worked harder than me in building in his network.

dtytrivedi said...

recently i came to know about nutrilite that -

Nutrilite grows up to 70 botanicals and 1.4 million kgs of herbs, including echinacea and chamomile every year at the
Trout Lake Farm, the largest certified organic herb farm in North America!!!

now qiac u must be getting why nutrilite is different from others when it comes to vitamins, minerals and dietary supplements.

tell me cheaper product available in the market in comparison with nutrilite product !!!

Tex said...

qiac is an idiot. LOL

qiac, I told you that you are talking about the past with product pricing, but thanks for your long and empty post, it's good to see you are feeling "normal" again. LOL

quixtarisacult said...

Textarded...

You are a significant waste of skin besides being the Corporate Frauds Watch troll.

Show the Amway prices to most 'normal' people and their lower jaw bounces off the floor; yet you somehow make the claim that Amway prices for their mostly generic brands is competitive? Go ahead and convince yourself 'fool!'

Oh, by the way Textard, my comment was to Shyam, not a Amway scammer.

Trivedi...

Normally I can't make 'heads or tails' out of your odd-ball comments, but I did notice that you represent that Artistry and Nutrilite are somehow 'OTC' (Over the Counter) products. Over the Counter? What counter are you talking about? These goods aren't sold over the counter anywhere are they? Few are legitimately retailed, unless of course all the ABO, IBO middle men distributors are merely just customers (which is what Amway represents them to be whenever they make their wild claims).

trivedi, go ahead and scam yourself, remember I said it was okay. That goes for you also 'Textarded.' I don't care a wit that you get suckered by the Ada Racketeers. You deserve the very best! You can keep bending over for old Rich.

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

Tex said...

qiac,

You haven't SEEN the reduced prices, have you? LOL

quixtarisacult said...

textarded...

Reduced? Sort of like a grossly obese person loosing a couple pounds, right?