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.