Saturday 4 September 2010

Amway induces to become IBOs with huge profits

A casual glance at Amway India web site reveals more than one wanted. It opens with 'Amway we're listening' slogan. It claims many things but the catchy points are 'This is where reams turn into reality' and 'Live the Amway opportunity'. The 'advertisement' prominently displays that 'The Amway sales and marketing plan gets even better'. Better for whom? That is the question one has to ponder.
The 'ad' also claims that the new plan is a low risk, low start-up cost business opportunity that is open to everyone. It also claims that it provides a flexible opportunity to build your business through retailing of products and building a network of other people who are engaged in the same activities.
The 'ad' also illustrates how Amway's sales and marketing plan works. In the example one the IBO has to purchase products worth unspecified amount and the IBO has also presumably two or three friends who are 'interested' in buying products, then the IBO would earn Rs. 3,900 per month. But the 'ad ' did not disclose how much the IBO has to invest to purchase products. The 'ad' also claims that it is easier to find more than two or three customers which would boost the IBO's earnings. What it won't say is that it is nearly impossible to find even one customer. This is the actual experience of many IBOs who joined enthusiastically.
Let us move on to the next example. If the IBO sponsored four persons as IBOs the earnings of the IBO would be Rs. 6,150. Once again the 'ad' would not disclose who much money is needed to invest to earn Rs. 6,150 per month.
In the third example, the IBO has sponsored four other persons and and all the four have sponsored other persons (unspecified number) as their downline IBOs, and it is presumed everyone is buying the same amount of products every month, then the first IBO's earnings would be a whopping 56,500 per month.
What the 'ad' won't tell is what is the entry fee to become IBO and what is the price of starter kit if there is one.
Earning Rs. 56,500 is really a great inducement to become IBO and after joining only the person realizes that it is impossible to sell the products, let alone sponsor downline members. This is what is described by the Supreme Court of India as 'mathematical impossibility' in Kuriachan Chacko case. It also stated in the same case that it must be evident for any discerning mind that this scheme cannot work unless more and more subscribers join. The promoters very well knew that it is certain that the scheme was impracticable and unworkable making tall promises which the makers of the promises knew full well that it could not work successfully. It could work for some time in that "Paul can be robbed to pay Peter" but ultimately when there is a large mass of Peters, they will be left in the lurch without any remedy as they would by then have been deceived and deprived of their money. If it is so, it could be said to be a case for application of Section 420 (cheating) read with 34 (joint liability) of IPC of course at this stage.

8 comments:

IBOFB said...

Well, we're making some ground, Shyam - you at least acknowledge things as "examples", though your use of the words "has to" numerous time would I suspect fall under Brear's "thought stopping" beliefs.

Nobody "has to" do anything, stop implying they do.

In any case you say the ad "did not disclose how much the IBO has to invest to purchase products"<

That would be because the IBO doesn't have to invest anything. If he takes customer orders and payments first, then he doesn't have to spend a rupee. If he wants some products in stock then, just like any other business he'll have to purchase it to deliver to clients, then take payment.

The Rs3,900 is *profit*.

You go on to say - "What it won't say is that it is nearly impossible to find even one customer."

That's would be because that would be a lie. It does, like any other business, require work, persistence, and some learning of skills though.

This is the actual experience of many IBOs who joined enthusiastically.

You go on to look at further examples and state "Once again the 'ad' would not disclose who much money is needed to invest to earn Rs. 6,150 per month"

Again, because no money is needed to invest to earn that.

I'm getting the impression though that you believe someone buying products for their own use is "investing" in a business.

That's just plain silly, Shyam.

It's almost as silly as claiming a business model that has been in existence successfully for 70 years (including more than a decade) "cannot work"

Sooner or later, Shyam, when reality keeps beating you over the head with a large dose of facts, you have to decide whether it's reality that is true, or that perhaps there's something wrong with you assumptions and understanding.

Shyam Sundar said...

Look for yourself how silly your points are, IBOFB. The ad says that you earn Rs. 3,900 in the first example. Without investing a stipulated amount how could anybody earn a stipulated amount? It is really silly. When I said it is nearly impossible that means that is the reason why more than 90 per cent dropouts in the first year itself. For your information, examples are to be followed and they are not for the sake of them. If you follow any example only you earn 'lots' of money and get 'freedom' as claimed in the ad.

Tex said...

Shyam,

You're an IDIOT!!!

The tool prices are regulated in India, and are about 1/5 of the cost in the U.S., so the Amway Tool Scam does not exist in India.

The cost of the other items, such as the starter kit and renewal fee, are minor expenses, especially when compared to the tool prices in the U.S.

You're an IDIOT!!!

Tex said...

Oh yeah. I almost forgot. Brear is an IDIOT as well. LOL

Shyam Sundar said...

This pigheaded fellow wanted to something but ended up writing something else. What does he want to say, anyway? LoL

Shyam Sundar said...

This pigheaded fellow wanted to something but ended up writing something else. What does he want to say, anyway? LoL

Tex said...

Shyam,

I said EXACTLY what I intended to say, you're an IDIOT! LOL

IBOFB said...

Shyam,

If I, as an Amway India rep, take orders from customers for around 13000INR at retail price, and receive payment for it, then use that money to purchase the products, and deliver it to the clients, I will have profited around Rs.3900, with no other "investment" on my part other than the Amway registration fee and some time.

It's called business Shyam, you should look up how it works some time.