Friday, 6 May 2011

6-4-3 scheme of Amway is the most cunning scheme

Amway's business model is 6-4-3 scheme. This might be described as the most cunning model ever invented. There were similar models earlier in the open money circulation schemes like each member join some members to earn commission on enrollment. This model has out beaten every other model.
According to the 6-4-3 scheme, every member has to join 6 members and each of the six members has to join four members and each of the four members has to join three members to complete one cycle of 102. Then the first member could earn a commission of Rs. 62,500 every month. This is what is described as easy and quick money by the Andhra Pradesh High Court. It could also be described as mathematical impossibility because it is impossible to continue the chain without break. 
It is apt to reproduce here what was exactly stated by the Honourable High Court.
It is, thus, evident that the whole scheme is so ingeniously conceived that the inducement for aggressive enrollment of new members to earn more and more commission is inherent in the scheme.  By holding out attractive commission on the business turned out by the downline members, the scheme provides for sufficient inducements for its members to chase for the new members in their hot pursuit to make quick/easy money.  On the part of the promoter by pushing each member to achieve the minimum sales worth Rs.2,000/- per month, (this sale includes enrollment of new members) he is assured of about 1000 crores per annum.  All this squarely satisfy the description of quick/easy money.  In addition to this, it is an admitted fact that each person in order to continue to be the distributor, shall pay renewal subscription fee of Rs.995/- per annum.  In para-11(b) of the counter affidavit on the admitted number of distributors of  4,50,000 this amount is calculated at about Rs.45 crores per annum.  These figures are not denied by the first petitioner(Amway India)  in its rejoinder.  The plea of the first petitioner that there is no compulsion that a member shall renew his distributorship looks to us to be specious.  Once a person becomes a distributor in a scheme of this nature where the sops in the shape of commission are so luring, it would be very difficult for a member to withdraw from their membership to avoid payment of the annual renewal subscription fee. (Para 34).
                From the whole analysis of the scheme and the way in which it is structured it is quite apparent that once a person gets into this scheme he will find it difficult to come out of the web and it becomes a vicious circle for him.  In any event the petitioners have not specifically denied the turnover they are achieving and the income they are earning towards the initial enrollment of the distributors, the renewal subscription fee and the minimum sales being achieved by the distributors as alleged in the counter affidavit.  By no means can it be said that the money which the first petitioner is earning is not the quick/easy money.  By promising payment of commission on the business turned out by the down-line members sponsored either directly or indirectly by the up-line members (which constitutes an event or contingency relative to enrollment of members), the first petitioner is earning quick/easy money from its distributors, apart from ensuring its distributor earn quick/easy money.   Thus the two ingredients are satisfied in the case of promoter too.  We are, therefore, of the considered view that the scheme run by the petitioners squarely attracts the definition of “Money Circulation Scheme” as provided in Section 2(c) of the Act. (Para 35).

1 comment:

Unknown said...

PLZ TELL how much u get from hidden source for defaming amway.if u r not practising some things in life u cant become habitual for same manner without getting enough knowledge and understanding amway people like u think that only doing some discsussion n only joing people without explaing them how to deal WITH amway instantly u can make money??one thing always keep in mind,despit many peoples negative view,that we aproximately give our hardwork mony to people in retail shop without any hasitation n problem.give them our 28 year sallery without that time no single rupee discount gurantee given by retailor.and in return we purchase qualityless phosphate products harmful for environment.In job,u r bounded only with hardwork n just obeying spare time waste only time with barganing for middleman needs,thinking like cheaper,suggesting economists about world economy with friend,this is our real achivement.we job mentally people can easily teach great players about their games yhat how they should play.our countrie economy should be in such a way supposing ourself as a famous economist.we r not ready to change anymore BUT REALY WANT THAT SITUATIONS AROUND US SHOULD GET CHANGED.So instead of blaming AMWAY,do something useful for ur family without wasting time in group of Great scientist friends.ITS SIMLE PEOPLE CAN ONLY ARGUE OR CAN MAKE MONEY, NO MATTER WHAT IS SOLD.