Saturday, 14 April 2012

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.


DayaRam said...

मि।श्यामसुंदर कृपया आप लोगो को बहेकाना बंद कीजये आपके ब्लॉग पढ़कर न जाने कितने लोगोने MLM बीजनेश छोड दिया.. आप सिर्फ लिख देते हो लेकिन कोई MLM कंपनी को कोई फरक नहीं पड़ता. कृपया आप मुजे बताये आपने जिन कंपनीओ के खिलाफ नेगेटिव ब्लॉग लिखा हे उनमे से कोनसी कंपनी का व्यापार बंध हो गया एक भी नहीं..आप ने कुछ दिन पहेले आपने RMP के बारे मे लिखा था आरएमपी का व्यापार बिना किसी रुकावट आज भी चल रहा हे ओर चलेगा कंपनी ओर नए प्रोडकट्स लॉन्च कर रही हे.. हा कुछ असंतुस्ट लोगो की वजह से थोड़ी सी दिक्कत आई लेकिन आरएमपी ने अपना रास्ता बना लिया जितना बदनाम करोगे उतनी हम तरक़्क़ी करगे जय जय MLM

Shyam Sundar said...

I understand that Dayaram thinks that after writing about the scams, all the scams would come to end. It is a superstition. My blog is only intended to bring awareness among public regarding the scams indulged in by fly-by-night operators who are out to make fast buck with the greediness of the gullible.
If Dayaram thinks the fraudulent companies would close down their operations after reading this blog, it is his innocence and or ignorance. The fraudsters would never admit that they are cheating the gullible. They are interested only in their fraudulent earnings.
If at least ten people are stopped from getting enrolled in such schemes, the purpose of my blog is served.

Peter said...

If you don't know Hindi Shya, just get lost and stop blogging, You are an Indian you fool by Born or what??? Were you born in Shri Lanka?? hahaha..

Stupid fellow, at this time you have created a controversies, at one place this country is fighting to Kill Un employment and at the other End, Brain Less like you have put a Question Mark on the Future of more than 3,000 employees of Nmart who earn more than 5,000 a Month to run their Houses.. Bull Shit Bull Shit Bull Shit

People like you, should Join TEAM ANNA, they give free Food too.. If you think you have done something nice, just Get up, look your Damn face in the Mirror, and Ask Yourself, how many Kids, How many families will crave for their Salaries this month to feed their families? ever thought of that??? No you never nor your SP have ever thought, do you know that India is the only country these days who is fighting for the economic growth??????? and due to you kind of people, more people will become jobless, homeless and food less.. Just think, your own Kids are asking to get a glass of milk and you have't been paid for this month, you don't have 2 rupees to buy a milk for them.. ever thought of that? there are families like these who are working at Nmart, you have spoiled their days, their month and their hunger..

You might be a crore pati or millionaire, but not every man or woman who work at Nmart are, you speak of Speakasia, you have tried to close the company and guess what??? You have nabbed the throat of the company through that many people who invested money in that, they just died, their money just went to the Govt., in fact you are the one who is responsible to spoil the working lives of poor people, you don't see Future cuz you can't see it, you don't see how many people earn, how many people buy products free every month just to get their expenses lowered, what do you say?? don't you run to sip a cup of tea or coffee just when you get that free?? Don't say no as no one is true by heart, not even you, not even Anna.

When you wake up tomorrow, Go to the Mirror, look at your face, and ask, How many families have you feeded yesterday and how many you will feed today, how many families will you be able to feed them whose lives you are just rolling them by creating these un employments...

Else, i believe God is in everyone, the moment the God will knock the doors of your Heart, you will be the one to see the world, else your are just a dead man, born to spoil the lives of others.

For me, You have spoiled my life at this Date.. Will meet you some day.