Unjust enrichment Amway style

So far, the so-called apologists of Amway failed to justify many a point and it could be ascertained giving a glance at the earlier articles and their meek responses.
Let us move further to find out how the Amway is lining its pocket in easy and quick way.
A person who wants to join as a distributor or independent business owner (IBO) for Amway has to pay a subscription fee of Rs 4,400 out of which Rs. 1,800 is directly credited to the account of Amway company. Amway in the Writ Petition Nos.20470 & 20471 of 2006 filed by it in the Andhra Pradesh High Court categorically stated that they have enrolled 4,50,000 distributors all over India. Even taking this as true, a sum of Rs. 81 crore was appropriated by the company at the time of enrollment of the members. Isn't it easy and quick money got by Amway from the called distributors/members without offering any service.
Let us move on further, a distributor has to maintain a minimum business level of 50 personal volume (PV) to qualify for getting higher commission and that is sufficient inducement for the members to strive relentlessly for maintaining the PV level at or above the said minimum level. To ensure that he would not lose the opportunity of receiving performance commission @ 15% and above every month (with effect from September 1, 2007), @ 21% and above every month between September 1, and August 31, 2007)each IBO has to distribute/purcahse/sell Amway products worth Rs.2,250 every month lest he becomes ineligible to get commission at higher rate. Thus each member is forced/induced/lured to purcahse Amway products worth Rs. 2,250 every month to keep his chance of getting substantial commssion alive. Thus Amway would automatically get a business quantum of Rs. 1,215 crore per annum without offering any service to the distributors/members, getting an an astronomical amount without any effort on its part, which can be stated as windfall. Isn't it easy and quick money.Amway conveniently refers this as turnover by sale of products irrespective of whether its IBOs sell the productrs or not.
We shall explore more avenues of Amway exploitation in the coming episodes.

నా బ్లాగ్ లోని అంశాలు అన్నింటిని ఏమి అభ్యంతరం లేకుండా వాడుకోవచ్చు. ఇది అందరికోసం ఇంకా ఏమన్నా సహాయం కావాలంటే కూడా చేస్తాను

Silence again: Did it hurt my Amway friend

It seems that our friend is hurt with my latest piece. Because truth is bitter and hard to swallow. Before moving forward with more bitter truth, let us wait for some more time for a comment or two. People who line their pockets with other's hard work never take it light when they are shown the hard reality. Shall we wait for some more time for our Amway friend to respond. Or he may be busy collecting data from Amway India Enterprise regarding the payment of tax to the Andhra Pradesh State Government on the ex-factory price of Amway products. Anyway let us give the 'IBOs' some more time to respond.

వరంగల్ లో ఇబిజ్ డాట్ కాం మోసం వెనుక ఉన్న కంపెనీ ని మూసే వేయాలి కంపెనీ బాధ్యులని అరెస్ట్ చేయాలి

Owning up downline IBOs business Amway style

The easiest thing in the world is to convince yourself that you are right. The Amway apologists do the same thing. The IBO who did personal sales worth Rs. 4,500 and enrolled his downline members cannot claim that all the sales did by those members as his own. Then the downline members have nothing to claim as their own sales. If they claim again that amounts double jeopardy.
My fight is against all types of these fraudsters whether they are Indian crooks or from abroad.
Let us move forward ignoring these comments. For the personal sales of Rs. 4,500 at Stage-1, each IBO would make Rs. 56,925 per month and the Stage-2 IBO would make Rs. 9,540 and the Stage-3 IBO would make Rs. 1980 and the Stage-4 IBo would make only Rs. 1035 per month.
Moreover, if an IBO fails in any month to make such purchase, he will be denied the applicable bonuses and commissions for that month on the downline volume which will then most unfairly pass on to the next eligible upline IBO who satisfied this requirement of personal purchase in that month.
The provisions of the Indian Contract Act prohibits unlawful enrichment of one at the cost of many. Being the promoters, the initial members or uplines to the majority members into the scheme get easy and quick money without any effort. Thus they are unlawfully enriching themselves at the cost of innocent distributors downline.
Therefore, a substantial part of the income which the first sponsor member of the group gets indubitably depends upon the event or contingency relative of the enrollment of members into the scheme downline. This can only be stated to be easy and quick earned by its distributors.

Amway's 6-4-3 principle racket

Amway repeatedly uses the Sales and Marketing Plan of 6-4-3 principle in its publicity (it is available at http://www.amwayindia.com/images/SalesMarketPlan.jpg). According to the plan, initially a person (stage-1) sponsors six members (stage-2) and these six members in turn enroll/sponsor four persons each totalling to 24 members and these 24 members in turn enroll/sponsor three members each totalling to 72 members (stage-4) thus making a total of 103 members known as one leg of the sponsor at stage-1. In this illustrative example, as per the calculation done and shown by Amway itself, the IBO at Stage 1 earns Rs. 56,925 per month for enrolling/sponsoring 102 members his donwline though his monthly business is only worth Rs. 4,500. In conventional distributional channels, it is not possible to get Rs. 56,925 for selling products worth Rs. 4,500.
IBOs never register with local authorities for selling products. Some top level IBOs may be incorporated their entitites but all other IBOs remain mere independent business owners without registration. Simply claiming it is false, it cannot escape its liability.
Glister toothpaste or for that matter for all its products, the Amway India pays sales tax to the Andhra Pradesh Government as per the cost of ex-factory price of its products. IT is easy to find with Amway India to find how much ex-factory price it is fixing for its products and how much tax it is paying. In fact, it is paying sales tax for the Glister toothpaste claiming its ex-factory price as Rs. 16 only.
It can be checked with the Indian subsidiary of Amway.

Profits, heck of a lot to the Amway intermediaries

When one's point is weak, their voice becomes louder. Instead of making their own point, what is point in hurling epithets. It only shows the arrogance of presenting one's case forcibly.
Let us come to the point. According to the tax paid by the Amway to the Indian government, the ex-factory price of Glister toothpaste is Rs. 17. But it is sold to the end-customer at a whopping price of Rs. 120. Now who is sharing the difference of price. This is only an example.
The direct selling is age-old. The milkman who directly brings milk to your home and the farmer who brings to you vegetables directly from his farm. The direct selling indulged in by the racketeers may be hundred year old but it would not make it legitimate. It was formulated by the fraudsters when there was no law of the land anywhere in the land. That would never make it legitimate. It is a fraud pulled on people for decades and it is high time we put an end to it. They always look for new gullible people to fall prey to the smooth talk and 'good business' oppoeruniry.
About the philosophy of sharing, it is not my philosophy but that of Amway. The Amway while applying for the company registration stated that its philosophy is to allow the consumer of saving additional costs. Instead of saving, he is being shaved while buying a Rs. 17 worth toothpaste for Rs. 120.
Moreover, these intermediaries never got registered as a trader or shopkeeper or a business house though they 'buy' in huge quantities. They never pay any tax to local authorities for running business.
The truth is bitter.