Real friends always tell truth Trivedi

Shyam

A wise friend of mine (who has been following your Blog with great interest) has made a good point. She wants to know how Trivedi can continue to believe the 'Amway' Ministry of Truth, when it is obviously in the financial interests of the organization to lie him? Yet Trivedi refuses to believe us when we have no financial interest in lying to him.

This brings me back to what I have already told Trivedi:

In life, it is your real friends who continue to tell you the truth (no matter how painful this might be) whilst your enemies tell you attractive lies.

David Brear

Trivedi should ask his handlers why secrecy?

Shyam
Your free-thinking readers are now witnessing how schoolboy Trivedi still prefers the pretty 'Amway' fairytale ('Billions of Dollars of Sales via Millions of Prosperous Distributors') to the ugly reality (massive attrition/drop-out rate due to universal insolvency) lurking behind it.
Typically of a cult, the 'Amway' Misistry of Truth has made a damn good job of alienating Trivedi's from the truth and destroying his trust in all external sources of information. He remains convinced that 'Amway's figures' are authentic, and the fact that these have been widely-repeated (without any qualification) by ill-informed third parties does not help. Unfortunately for Trivedi, 'Amway's' so-called 'sales' only represent the size of the (effectively) closed-market (i.e. the amount of money which is flowing into the hands of the billionaire bosses of the 'Amway' mob from their adherents). Tellingly, the 'Amway' Ministry of Truth has steadfastly boasted 'Billion Dollar Annual Sales,' but it has deliberately never made any distinction between authentic retail sales (to persons who are not agents of the organization) and internal transactions. In the same way, the 'Amway' Ministry of Truth has steadfastly boasted 'Millions of Independent Business Owners', but it has never revealed that only a tiny minority of these people remain in 'Amway' for more than 5 years.
Fortunately, all Trivedi has to do to discover that he is being manipulated by some very evil people, is put the following questions to his 'Amway' handlers:
- Over the last several years, what percentage (by value) of 'Amway's' published 'multi-billion dollar sales' have actually been to persons who are not agents of the organization?
- Over the previous 5 year cycle, what has been the overall attrition/ drop-out rate amongst non salaried 'Amway' commission agents ?
- Why have these figures been kept secret ?
There is no way that Trivedi will get intelligible answers from 'Amway.'
David Brear

Poor lad Trivedi still lamely asks how Amway is surviving

Shyam
Dealing with Trivedi, is like dealing with a stupid schoolboy. Even now, after it has been clearly explained to him, the poor lad still lamely asks how 'Amway' survives if the company has a 100% drop out rate?
Given the quantifiable evidence, any free-thinking person can see that 'Amway' continues to survive, because each year (by the organization's own figures) around 3 millions individuals sign contracts, but of these 3 millions, only around 1.5 millions are existing contributing participants. Around 1.5 millions 'Amway' failures are vanishing each year, to be replaced by 1.5 millions more wide-eyed dreamers. The hidden attrition/ drop-out rate on a 5 year cycle (2000-2005) for the so-called 'Amway Business Opportunity' was calculated at a massive 95% by external financial auditors with full-access to 'Amway's' own internal accounts.
In simple terms, this means that for every 100 ill-informed persons (like Trivedi) who get involved with 'Amway' falsely believing it to be a viable marketing scheme, after 5 years, only 5 remain. The number who remain after 10 years, is a fraction of 1%. Thus, 'Amway' is a vast snowball which has always had an (effectively) 100% overall, rolling, attrition/drop-out rate. The few persons who are constantly depicted as shining examples of 'Amway Success,' are merely schills whose wealth does not, in fact, derive from their so-called 'Amway Businesses' at all.
The 'Amway' Ministry of Truth (exactly like its 'Scientology' equivalent) steadfastly pretends the organization to be stable and to comprise millions of happy, healthy and prosperous adherents, when, in reality, the overwhelming majority of these persons are merely transient customers, contributing participants in an economically-unviable closed-market.
As for Trivedi's continued belief that 'Amway' s' kosher wampum represents good value. How does the poor lad explain the fact that masses of it is available all the time (and untouched) on e-bay, at a fraction of its original controlled price?
David Brear

The MLM is a marketing fraud

A new essay recently posted on the False Profits Blog addresses a question many of you have raised. Why are multi-level marketing pyramids and financial ponzis able to ensnare so many people today? What is the power behind this Main Street epidemic? This question goes beyond the lack of law enforcement, the failure of the FTC and SEC, or the difficulty of grasping "exponential expansion."

The False Profit Blog ventures an answer: It is that pyramid schemes, operating as multi-level marketing, are a new form of fraud that public awareness and law enforcement have not caught up to. This new form of fraud is called "marketing fraud." Marketing fraud evolved from the earlier stages of "product frauds" and "financial frauds." It uses bogus or overpriced products and deceptive money transactions like older models of fraud do, but that is not the heart of this new fraud.

The power of this fraud is in marketing. It employs the most powerful tools of business today -- branding, positioning, community and identity -- to swindle. Like all powerful marketing, fraudulent marketing promises to fulfill basic and crucial needs, much more valuable than just money or the hyped up benefits of products. The needs that these pyramid marketing scams claim to fulfill address people's deepest longings and their greatest fears. The sophistication of the marketing program, complete with Washington DC lobbyists, trade association, "education" foundation, gifts to charity, celebrity endorsements, sports sponsorships, national conventions, and church affiliations – prevent many in the media and government from grasping the extraordinary deception or to accept the devastating financial consequences they inflict on millions of people.

Even many of the victims cannot believe they were defrauded by an organization of such benevolent outward appearance. Many choose instead to take on personal blame for their misfortune rather than face this reality. Powerful marketing, whether in the employ of legitimate business or pyramid frauds, has the ability to transcend verifiable reality and hard cold facts with its own fictional narrative. The blunt instrument used by marketing frauds to carry out their theft is the "endless chain" or "closed market" a.k.a. pyramid scheme.

This is a classic swindle but is now carried out within a marketing program so powerful it leads the victims not only to fall into the financial trap but to to support the perpetrators against exposure and to enroll their closest friends and relatives into the scam as well.

I will appreciate your comments and thoughts on the Blog.
Robert L. FitzPatrick

Clueless Tex still sticks to tool scam argument

Shyam
Again, it must be interesting for your free-thinking readers to observe how the inflexible, castrated minds of 'Amway' cult-apologists function.
Your resident (insolvent) economic wizard, Mr. Scott 'Tex' Johnson, does not seek to refute that (effectively) 100% of all the tens of millions of people who have signed a contract with 'Amway' during the previous 50+ years (including himself) have failed to make an overall profit from the operation of a so-called 'Amway Business'. He also apparently now accepts that around 7.5 milions are being secretly churned through the 'Amway' closed-market every 5 years. Similarly, Mr. Johnson does not seek to refute that, by 'Amway's' own figures, the hidden attrition/drop-out rate for the so-called 'Amway Business Opportunity', on an actual five year cycle in the USA (2000- 2005) was a massive 95%.
Now, given these irrefutable facts, any free-thinking person can immediately deduce that 'Amway' has to be one of the biggest frauds in history, and that the sanctimonious little gang of charlatans who run it, are public enemies disguised as 'philanthropists' who should have been stripped of all their stolen wealth and locked up decades ago. Instead, Johnson steadfastly pretends that the underlying reason for the (effectively) 100% loss-rate in the so-called 'Amway Business Opportunity' is the 'Tool Scam', and that the underlying reason for the 100% overall attrition/ drop-out rate is 'death.'
Johnson puts me in mind of the tiny minority of deeply-brainwashed Japanese soldiers who refused to surrender in 1945, and who (decades later) were found hiding in the jungle on remote Pacific islands still bowing to their Emperor as an 'Infallible God.'
David Brear

Amway never revealed evidence on drop-out rate, Trivedi

Shyam
One of the universal identifying characteristics of any sustainable, closed-market swindle camouflaged by (effectively) unsaleable products, is the huge (hidden) overall attrition/drop-out rate amongst its insolvent participant/recruiters. Just as in any Ponzi scheme, the 'Amway' fraud has had to find a constant supply of fresh money in order to maintain the outward appearance of econonomic viability and authenticity. Had the (effectively) 100% overall attrition/ drop-out rate been fully-disclosed, then the supply of temporary, insolvent participant/ recruiters would have dried-up years ago.
Young Trivedi cannot refute the simple fact that, for 50 years, the billionaire bosses of the 'Amway' mob have never voluntarily made any accurate, verifiable documentary evidence available to the public about the overall attrition/ drop-out rate in their so-called 'Business Opportunity'. Indeed, they have attempted to gag whistle-blowers, like Eric Scheibeler, who have disclosed the truth.
I wonder what Trivedi would say to a prospective 'Amway' recruit if he/she asked him if he could prove what the overall attrition/ drop-out rate of the so-called 'Amway Business Opportunity' has actually been all these years?
David Brear

Insolvent Tex continues to give more comic relief

Shyam
More comic relief from Mr. Scott 'Tex' Johnson and more denial of reality from young Trivedi.
Despite what your resident (insolvent) economic wizard, Mr. Johnson, claims, the overall percentage of non-salaried 'Amway' commission agents whom the 'Amway' organization accept fail to renew their contracts annually, has always been around 50% (some years a little more, some years a little less). For reasons best known to himself, Mr. Johnson confuses this overall figure with the percentage of new non-salaried 'Amway' commission agents who fail to renew their first annual contract.
By extrapolation, this means that, since the 'Amway' Ministry of Truth has been boasting '3 millions Independent Business Owners' for several years now, currently around 1.5 millions are secretly being churned annually through the 'Amway' closed-market. According to 'Amway's' own internal 2005 audit from the USA, the percentage of non-salaried 'Amway' commission agents who renewed more than 5 annual contracts, was less than 5%. Despite what Trivedi prefers to believe, this figure is not based on assumption, but taken from internal 'Amway' documentation compiled using a standard statistical sample of several thousands non-salaried commission agents. Indeed, this highly incriminating documentation was not intended to be seen by the public. Thus (on a 5 year cycle) the hidden attrition/drop-out rate in the so-called 'Amway Business Opportunity' in the USA has been recently proved to be a massive 95%. However, most of these persons eventually drop-out themselves. Currently, about 7.5 millions are being churned through the 'Amway' closed-market every 5 years.
In the adult world of quantifiable reality, 'Amway' comprises about 150 000 deluded core-adherents who (like Mr. Johnson) remain de facto slave recruiters for periods in excess of 5 years.
Tellingly, the 'Scientology' organization uses essentially the same manipulation of statistics to create the impression of a large and stable 'religious/ self-betterment movement.' Accordingly, the bosses of 'Scientology' claim '8 million believers world-wide.' However, the best available estimates from democratically- accountable European government agencies reveal that there are actually less than fifty thousands medium to long-term core-adherents of the 'Scientology' myth at any given time, many of whom act as de facto slave recruiters. All other so-called 'Scientologists' are merely transient customers.
David Brear