MLM is not genuine business

In spite of the tall claims by the multilevel marketing companies including Amway, Herbalife and a plethora of others, it is not a genuine business. They never clarify what happens if the chain breaks at a particular level. The business collapses in the answer. This they never agree. If a person buys the product they may use it. But unless he enrolls more members he would never receive commission or profit through selling of products. This is the fact.
The tall claims are abundant a la the quality of products. In Indian context, people are very cost-conscious. They never a toothpaste for Rs. 130 when a number of branded toothpastes are available in the market for Rs. 10. What makes people to become member of Amway is the inducement and lure of becoming rich. They claim that they can earn huge amounts as commission if they enroll more members and sell more products. If they buy and use them for personal purpose, they never get any money. If they are lured with cash incentives if they enroll more members only, they join the scheme.
It is a scheme not business opportunity. Several thousands of people who became members and could not enroll new members silently suffer without any complaint because they were introduced by their relative or close friend or their personal physician. That is the catch point. On the other hand, they will be blamed for not taking initiative to enroll more members and branded as people with lack of 'motivation'.
A super specialist doctor in Vijayawada prescribes several Amway products to his patients as if they are medicine. It is not medicine and Amway claims that it is food supplement. What is the necessity of food supplement to a patient. He needs only nutrition and good food is enough. As a well-wisher of his patient, the doctor should told the patient to take nutritious food which is cheap. But he prescribes very costly Nutrilite to his patients. Out of respect, the patient may purchase the product blindly believing his physician. But that is exploiting the patient's confidence which is unethical.
The doctor is said to be advising his colleagues in the city to become the member of that MLM company to become rich. "What have you earned in all the years of practice. Look my income from this scheme. Please become a member," he advises his fellow-doctors in the city. But few doctors heeded his advise, and that is another thing. May be their conscience did not agree to that practice.

Amway's half truths and outright lies

The turnover of Amway India has come down to Rs. 100 crore as against the earlier year's Rs. 800 crore and it has been announced by the very CEO of Amway India in a press conference and it was widely published in all newspapers. He also said that the Amway has been changing the course of business in India and is planning open spas all over India to boost the business. It cannot be assumed that all newspapers published imaginary figures announced by the CEO of the company.
And it is not true that upline members do not receive any commission by the sales of downline people. That is the exact business model of Amway and it is the crux of the major income both to the company and the upline members.
In the case of Rajan, it has been clearly stated that through his personal group--and who formed this group other than downline members--he gets an additional wholesale markups between 6% to 21%. As per his personal sales he gets 30% commssion and nobody would believe that he would personally sell all the products going home after home and make millions since there is no shop registered under Shops and Establishments Act.And it has been agreed that out of sales from downline members he gets 4% commission. That is what has been said that the upline members receive commission from the sales of downline members and actually that is the money circulation scheme prohibited under certain laws in India. The exorbitant price is the central point and from that price only money is generated and is circulated.
Rs. 150,000 dollars is sixty millions in India mind it and it is certainly lot of money and not all members make that amount because it is virtually impossible to enroll so many members. In the multilevel marketing, at the tenth level the population of India that is one billion would be covered and there would be none to enroll.
In summary,
1) profit earned through sale of products by downline members
2) Every members who enrolls new members gets 45 points and that is the incentive.
3) Amway India sales have substantially dwindled according to Amway CEO.
4) Several Amway products were found to be misbranded, adulterated and overpriced.
It is high time the Amway wound up its operations in India and start looking for greener pastures elsewhere in the third world.

ప్రజలారా మేల్కొనండి. మోసాల బారిన పడకండి మాయాపూరిత పధకాలలో చేరటం, చేర్పించడం నేరమవుతుంది

The deceptive Amway business model

Nobody can say honest business earning is wrong. When the business model itself is wrong you cannot help but say it is a deceptive model. A business is onething through which one earns money by selling products earning some profit. It may vary from five per cent to ten per cent. But in the case of Amway, one person enrolls two more persons and in turn they have to enroll two more members each. The first person have a little role or no role in the enrolling of downline members. Of course, he may organise meetings and 'motivation' classes to encourage the downline members to enroll more members. If that is working hard, I can't help it.
To earn money one has to work hard. In the case of Amway business, what hard work other than enrolling members and coaxing the downline members to get more members enrolled is involved. And moreover, from where he is getting money. Is that by way of directly selling products to the customers or commission through enrollments? This is a very important question. Money should be generated from somewhere. By selling products at exorbitant price, the extra money apart from production cost, is going to the company and the upline members. This is how the booty is shared. And the Amway calls it hard-earned money.
The claim that Raja Naren is getting only 4 per cent commission is a hoax. From what kind of sales he is getting that commission. Is that from his personal sales or from the sales of the downline members. It is certainly from the sales of downline members and, that is called commission and that would be naturally huge. To earn that substantial amount, how much volume of the products he must have sold personally. That is why it is called easy and quick money. Here 'quick' is a relative term. Generally, it is takes decades to earn millions in any legitimate business. If it is done in less than half a decade, it is called quick and easy money.
The claim that members need not buy products compulsorily is again false. If the member did not purchase products, he has to enroll afresh by paying the fee and otherwise he is not entitled to draw commission.
In the Nutilite case, if it is manufactured locally everywhere and standards are not maintained, how can anybody say that it is wonderful product. By merely saying that quality was not maintained due to the local government requirements is the biggest hoax. No government ever says tht low quality products should be manufactured.
And finally, if it is direct sales as the Indian Direct Selling Association (IDSA) for which the Amway is the founding member, claims what is the necessity of enrolling and entrance fee and renewal fee. Let us not skip this major aspect.
That people already realised the hoax of the direct sales by the Amway is evident in the dwindling of its business in India. According to the Amway India CEO, in a recent report published in the New Indian Express, the sales have come down to Rs. 100 crore from the previous Rs. 800 crore. No wonder the Amway would be compelled to close down its fraudulent business in the country soon if the same trend continues.
Let us hope that sanity prevails over the Government of India to cancel the business license to the Amway and close down the company.

That is exactly the point my friend

That is exactly the point my friend. People in the top of the pyramid only make money. And Raja Naren is no different. After enrolling a couple of members he passed on the baton to his downline members and they continued to bring commissions to him. That is why the Chinese government banned receiving commissions and naturally Amway could not continue its operations there. The company survives solely on high prices and makes millions if not billions. The tall claims of superior quality of Amway products was proved wrong when a district consumer forum of Krishna district in Andhra Pradesh fined heavily after it was conclusively proved that Nutrilite, is an adulterated product, misbranded and high priced.
The Amway claims that it is resorting to direct sales. Any direct salespersons never collect membership fee. Direct sales means the company directly selling its products eliminating the middleman. Here is the upline members are middlemen who collect huge commission.
Referring to the Andhra Pradesh High Court's comment on vicious circle, the induced members are compelled to buy products and sell them to the downline members in an attempt to garner more commission. They try to induce more members to join the scheme. If that is not vicious circle what else is my friend. I agree that it is easy to come out but the lure of huge commissions and inducement and above all, the 'attractions' of holiday trips and others force them to hook to the scheme.
Everyone refers to the 2003 circular of Union Ministry of Consumer Affairs and conveniently ignore the rejoinder sent by the same Ministry contradicting its earlier circular.
And the Supreme Court of India clearly stated that it is the clear case of multilevel marketing and the police could continue their investigation and file the report in six months. It is another matter that the police have taken more time to file the chargesheet in Amway case. The case is pending in a Hyderabad court.And it is anyone's guess what would happen to that case keeping in view the High Court judgment in this regard.
It is rightly pointed out that the Amway has to up its game, since it is the game of deceit.
People have learnt that Amway has the dubious distinction of pioneering the most deceitful model in India and it is being followed by many such fraudulent companies like Herbalife, GoldQuest, Tianshi, V-Can Network and many more. People are now realising the fraudulent operations and slowly coming out of it.
People who garner easy and quick money never accept that it is a fraud pulled on people. And no wonder they try to justify their acts.
The easiest thing in the world is to convince oneself that one is right.

Indian judge got it right, my dear friend

It seems that my learned friend has read only the first part of the 'England's case against Amway continues'. There is the second part below and he should read that also fully before coming to conclusion.
Our friend conveniently skips the fact that the Amway products are not marketable.They are seldom sold to anyone other than the salespeople themselves. In Indian context, it is not a fair practice. And they priced far higher than comparable goods.
I would like to point out what is said in an open court by an Indian High Court judge in the State of Andhra Pradesh, India, while delivering judgement on a writ petition No. 20470 and 20471 of 2006 filed by Amway India Enterprises on July 19, 2007, that "it is 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 kmake quick/easy money."
".....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."
Criminal activity: The very scheme itself is against the law of the land in India under the provisions of the Prize Chits & Money Circulation Schemes (Banning) Act, 1978. The learned judge rightly pointed out that it is a criminal case and that too a cognisable offence. It is in the interest of the public at large, such companies should close operations not only in England but anywhere in the world. The intention is criminal only to make fast buck for the vortex of the pyramid depriving everyone of their money.
It is really heartening to note that the England government had decided to review the case obviously with the intention of throwing the company out of its shores.

England's case against Amway continues

England Government Seeks to Shut Down Amway in England as "Inherently Objectionable" (Translation: Fraud)
The case brought against Amway by the government of England is moving forward. After a judge allowed Amway to continue - under strict restrictions and changes - the government has appealed the decision and is moving to close it down. The government's actions are based on its findings that in England:

1. Amway's product are not marketable. They are priced far higher than comparable goods. They are seldom sold to anyone other than the salespeople themselves.
2. More than 99% of all Amway salespeople lose money. More than half quit the scheme within a year, after suffering financial losses. Virtually all the commissions that Amway pays wind up in the hands of a tiny group at the top.
3. The only way to make money in Amway is through "endless chain recruiting", a flawed and fraudulent system that guarantees only the top recruiters can be profitable.
4. Extreme deception is used to lure people into the scam.

The data reveals that Amway has been harming English consumers for decades, deceiving people about the "income opportunity" and siphoning money to a small group of recruiters.
See a full report below and a related article that offers background on the judge's ruling, which is now appealed.