Amway only makes money not its distributors

One of our readers Ramu describes how only Amway makes money and almost all its distributors who are actually customers lose money.

Amway says it is building Distributors network. But actually they are building customer network. They give away distributorship for free and with no particular experience of selling products - because they are not making you a distributor but only making a customer of Amway.

Once a person become distributor (so called). He has to purchase stuff for his own use (this is forced by upline) and this is how Amway does business.

Distributors are themselves buying products for self or for family members.

Amway pays 21% to the distributor incentive to entire line. They give 20% commission to the distributor, they spend 7 - 8% on promotions/meetings/seminar and 3% is diamond/platinum member’s bonus. Amway as a Company earns 20% profit. So if you add all these around 80% of the MRP is distributed and the Product is just works out to 20% (including manufacturing cost, employee salary, infrastructure expenses etc).

So just imagine you are paying Rs 1000 for a Rs 200 product. Which customer is going to buy such a product??? 
I have worked with Amway (Alticor is the actual entity). And the so called Distributor information is saved in CUSTOMER Tables. So for Amway all distributors are just customers. The one higher on the line earns some incentives and the one below just dreams of getting higher.