[alpha1]

Any organization where the majority of money earned is not because of you selling product or service BUT because of you bringing in more neophyte sellers - is a sure shot hokum.

[pg83]

I don’t know about other MLM, but I have studied the concept of Amway thoroughly, if you want to succeed in Amway, you will surely have to make some changes to your lifestyle and be eager to learn. There is a support system called Britt India System which helps all the individual succeed in the business.

The Amway is sheer business, it’s an advance franchisee concept i.e. for e.g. somebody who has taken the franchisee for McDonalds is not authorised to sell the McDonalds Franchisee further, but in Amway the one who has taken the franchisee from Amway can further build the network by giving franchisee to others, after you build this franchisee network through which the products are consumed, you get commission accordingly, the slabs in which commissions are paid is from 6% to 21%, further to which there is a provision of 4% Royalty income which can be passed from generation to generations. If no products are consumed in your network you will not get anything. In the Indian scenario, you can compare Amway’s model with the LIC Model. You generate business you get commission otherwise nothing.

Amway Products comes with 100% money back guarantee, you may consume any product up to 30% and if you don’t like, you may return it and get 100% money back. Amway’s Nutrilite is the only brand in MLM business which produces everything they need to make the end product; they have their own farms to cultivate the items required. Other brands such as Herbal life sources the ingredients from the market. All the Amway products are eco-friendly, even the packing in which it comes is eco-friendly. Most of the products that Amway sells are patented products.

Now why did Amway got a bad name in the market (for some). It is because people did this business wrong way, they do not show the vision that the business have, to the people, instead what they generally say is that “when you join this business I will get rich”. Britt worldwide always encourage people to share the concept of this business with other people and let them decide if they want to do it or not, but people will do anything to make somebody sign the business. What they don’t understand is that by doing the business this way, the new person sponsored will never purchase any product or promote those products further, this result in no revenue generation and thus no income. Sooner the person who sponsored other fellow by hook or by crook will not get any income and he will start cursing Amway for this. If you show the plan professionally to your friends and family and be ready to hear NO ( which might be the case), you will at least not lose them and might become your customers who source good quality Amway products from you only.

Now the question comes how to promote business, for this Britt worldwide supports people by three methods - Books, CD’s and Seminars. Books are generally the motivational books such as Who Moved my cheese types, and then there are CD’s of the successful people who share their story and ideas on how to build the business successfully and the right way. Last there are open meetings and seminars in which you can personally meet the people who have generated the business by developing the network.
To sum up, Amway is a good opportunity for somebody to get financially free (so that one doesn’t have to work to earn money to make ends meet), but since it is a sheer business so don’t expect any free lunch.

P.S.: I am just an Amway Product user.

[noopster]

Originally Posted by pg83

The Amway is sheer business, it’s an advance franchisee concept i.e. for e.g. somebody who has taken the franchisee for McDonalds is not authorised to sell the McDonalds Franchisee further, but in Amway the one who has taken the franchisee from Amway can further build the network by giving franchisee to others, after you build this franchisee network through which the products are consumed, you get commission accordingly

That's pretty much how every pyramid scheme works, isn't it? You make more money depending on how many new people you add to the pyramid. Amway dodges allegations of being a pyramid scheme by not incentivising members to add new people per se but they still make more money thanks to increased commissions.

the slabs in which commissions are paid is from 6% to 21%, further to which there is a provision of 4% Royalty income which can be passed from generation to generations. If no products are consumed in your network you will not get anything. In the Indian scenario, you can compare Amway’s model with the LIC Model. You generate business you get commission otherwise nothing.

A 1979 FTC investigation showed that more than half of Amway members actually made no money at all and that gains were concentrated among a select few at the top. Pretty sure the numbers don't vary much even here in India.

Amway Products comes with 100% money back guarantee, you may consume any product up to 30% and if you don’t like, you may return it and get 100% money back. Amway’s Nutrilite is the only brand in MLM business which produces everything they need to make the end product; they have their own farms to cultivate the items required. Other brands such as Herbal life sources the ingredients from the market. All the Amway products are eco-friendly, even the packing in which it comes is eco-friendly. Most of the products that Amway sells are patented products.

You really seem to have swallowed the Kool Aid. It's always better to maintain an attitude of healthy skepticism when such tall claims are made. Please quote an unbiased source and these "facts" will be easier to swallow.

Now why did Amway got a bad name in the market (for some). It is because people did this business wrong way, they do not show the vision that the business have, to the people, instead what they generally say is that “when you join this business I will get rich”...

Sorry I don't buy this. Since the business *is* people, dissociating acts of the former from the latter makes no sense. Any Amway pitch starts with the statement "Do you want financial freedom?" The entire "recruitment" process harps on how much money you can make by simply agreeing to buy and sell Amway products. So I think it's hypocritical to hide behind the excuse that "some people" are responsible for the bad reputation.

To sum up, Amway is a good opportunity for somebody to get financially free...

See? You said it!

(so that one doesn’t have to work to earn money to make ends meet), but since it is a sheer business so don’t expect any free lunch.

This I agree with . But having seen so many loved ones grab the bait only to realise that they are never going to be "financially free" anywhere in the foreseeable future, I really think this should be the lead-in to any pitch!

P.S.: I am just an Amway Product user.

There is no such thing. Every network member is a "distributor", whether he chooses to peddle stuff down the line or not. So whatever you say has to be taken with a healthy helping of salt. Apologies if this sounds harsh.

My personal experience is that some Amway products are pretty good (car seat leather cleaner, after-shave moisturizer, etc. are what come to mind). But nothing that you can't get in the market, often much cheaper. I buy (very rarely) from some of my close relatives who are into it. I nearly broke off a close friendship because every time this guy called me he only tried to sell me stuff, so I started avoiding him and finally confronted him and told him off. Thankfully, after a very brief estrangement, he agreed never to do it again and we reconciled but it is still somewhat strained. One time the guy who ran my gym invited me to a coffee afterwards and tried the old "financial freedom" line with me, so I told him I was already a member, which unfortunately seems to be the only way to get these guys to stop trying.

Maybe the issues Amway has had in the US, UK, Poland, China and now India are indeed based on misunderstanding the business model as the company and its defenders staunchly claim, but I am a cautious blighter and would rather give them (and all MLMs) a wide berth.

[raksrules]

My experience with Amway member in USA when I had gone there in 2011.

Since I was new to the country and without a car there was no way to move around, I took help of a colleague to travel to office daily. This guy being an amway member called me to his home for a "presentation". While in car he would play some sort of motivational CD that he got from Amway. The CD had some guy lecturing like "Don't you want financial freedom", " Don't you want to create wealth and own a big house" and such other things.
The colleague told me he liked to listen to that CD and since I was out of any option, I had to listen to that daily. It was really pathetic of him to force feed me that Amway junk. On every chance he would defend the company and in unrelated conversations, he would bring Amway in picture.
There are some indirect ways also he adopted. Like one of my other colleague had his kids Birthday and he got them gift in form of a voucher, to buy products from their Amway website (they had created it to sell products under their own referral).
His wife would target my wife with beauty products and such but I had told my wife already that what Amway was.
Car buying became a top priority for me there due to this.

Even once i was shopping in walmart, an Indian couple started conversation with us and we exchanged numbers. Next week they call me for a "presentation" and said they had guest passes and all. I knew what it was about and declined.

From that day, I feared Indians in US more than the US people. I always started assuming that any Indian person coming to converse with me just wants to find his next target for a ponzi scheme.

They especially target people who are new to country and think they are gullible and will take the bait.

[NetfreakBombay]

Originally Posted by noopster

more than half of Amway members actually made no money at all and that gains were concentrated among a select few at the top. Pretty sure the numbers don't vary much even here in India.

I think this line sums up why Amway is just an MLM in disguise.

If it was a real business, no one would have had to build a "Pyramid".

[naveenroy]

Have any of you come across MLM/Ponzi schemes in Bangalore recently? Looks like they have dried up. The last I heard of was the gold-coin hungama.

But it is thriving in Chennai. My nephew nearly burned his hands and thankfully, I was there to help him out even before he "invested" his money. Nephew is just in his 2nd year in college and someone had already "brainwashed" him into dreaming about making some easy money. In fact, he had 2 options it seems - one for some diabetic medicine and another for some video editing software! And for each - an investment of only 25k!

Wonder what level of the pyramid he was joining into! Thankfully saved now. However, I see that there is a lot of notices being put out by the Economic Wing of the Police but still these scams run riot.

[alpha1]

Well a few years back I came across the peddlers of QNET (http://en.wikipedia.org/wiki/Qnet). Supposedly e-commerce firm with zilch product line.
All the revenue actually comes from pyramid scheme.

A lot many (Mumbai) TV media (and lower rung movie) personalities were involved in this scheme!

[RVVSatya]

Qnet is very much active in Bangalore and come across lot of guys seriously involved in this. Their network is growing day by day

[Dry Ice]

Reviving this thread as this wonderful forum saved the day once again!

My father got invited for such a meeting by one of his associates who is now mulling to leave his job to delve full time into this.

As I was aware of this thread, I knew all along what was coming, but followed along.

Meeting happened in a CCD. The associate was a new guy so waited for the seniors to turn up. 2 came. Both govt. doctors (no cards exchanged so can't verify the claim). They insisted on mobiles being away, not just on silent! Next was explanation about Qnet and how it is a big company. Then it was about the products, including a water purifier which can apparently get water out of thin air (literally!). With the build up complete, now it was time for the final act. The money. Some mumbo jumbo about 1 UV 1 TC (company terminology), and the final result is you can earn upwards of 9 lakhs a week.

Upfront payment required in 1.5 lakhs min. You need to get two people onboard and you get 6k for each member or sale (or some such).

Anyway, the lady doctor even claimed they used to sell spectrum to BSNL (!!). They ventured into e-commerce with Microsoft in 1998 (!!). They are hung on e-commerce now as they feel it might be the latest in-thing.

At the end they asked for my name, DOB, mobile, PAN#, bank name etc. I just gave them my name and the landline number. Thanked them for their time, free coffee and walked out.

[naveenroy]

And a new one! Something called Click Intensity. My friend travelled all the way from my hometown - some 600 kms to view a "presentation" and install the software and get to know how it works. When he said that the person who contacted him had been making lakhs in months, it rang some alarm bells in my head. Knowing me, this other person didn't even try to sell the idea to me.

Friend is hooked though - thoughts of easy money has been burnt into his head. Need to help him out somehow. Anywhere I can complain to?

[F1amit]

Originally Posted by raksrules

My experience with Amway member in USA when I had gone there in 2011.

....

Even once i was shopping in walmart, an Indian couple started conversation with us and we exchanged numbers. Next week they call me for a "presentation" and said they had guest passes and all. I knew what it was about and declined.

From that day, I feared Indians in US more than the US people. I always started assuming that any Indian person coming to converse with me just wants to find his next target for a ponzi scheme.

They especially target people who are new to country and think they are gullible and will take the bait.

Same thing happened with me in US not in wall-mart but in Indian store. An Indian couple approached me and my wife and were sounding very friendly. Being new in states, we were definitely looking at socializing ourselves and thus We exchanged numbers in first meeting itself.

After two weeks, both me and my wife were approached separately by that couple indicating they have planned some exhibition at their home and would like to give us (and some other friends whom they have invited) information about some side business. Immediately me and my wife realized this seems to be some chain marketing (or MLM). We did not joined them as we had some different things to take care on that same day.

Next day I got a call from them again and they briefed me about this MLM scheme and how it would help me in enhancing my income. I politely declined his scheme as well as invitation. In fact we have stopped receiving their calls from that day.

As many have mentioned in past, MLM would definitely spoil your relationship with friends.

[prasadee]

Originally Posted by raksrules

My experience with Amway member in USA when I had gone there in 2011.

I had to go through such a bitter instance back in 1999. Ever since, I am suspicious about desi couples smiling at me at grocery stores.

Last year I happened to see a cute little child talk to its parents in Kannada. I started talking to the child and I tried to strike a conversation with the dad at the checkout line. (which is very much out of my comfort zone, I never do that) The dad refused to make eye contact and turned away. Several months later, I saw the same person at a friend's house and he confessed to me that he did not talk to me thinking I was an Amway peddler. We both had a good laugh about it.

There certainly is a huge social cost to getting into these MLM schemes.

[Samurai]

John Oliver finally addresses MLM.

https://www.youtube.com/watch?v=s6MwGeOm8iI

[nowwhat?]

Originally Posted by Samurai

John Oliver finally addresses MLM.

Towards the end of the episode, John Oliver shows a promotional video from Herbalife India.

India seems to be fertile ground for MLM, hope the government takes action.

For those who couldn't watch this episode, the MLM companies mentioned by John Oliver are Mary Kay, Rodan+Fields, Nu Skin, Amway and Herbalife.

Sometime back, a distant relative harangued me to buy some expensive nutrition products from Sami Direct. A few alarm bells went off in my head as it smacked of MLM.

[naveenroy]

Originally Posted by nowwhat?

Towards the end of the episode, John Oliver shows a promotional video from Herbalife India.

India seems to be fertile ground for MLM, hope the government takes action.

For those who couldn't watch this episode, the MLM companies mentioned by John Oliver are Mary Kay, Rodan+Fields, Nu Skin, Amway and Herbalife.

Sometime back, a distant relative harangued me to buy some expensive nutrition products from Sami Direct. A few alarm bells went off in my head as it smacked of MLM.

But that is the problem here too - lobbying. If such MLMs can easily lobby politicians in the USA where there are strict laws against such schemes/scams, it is way more easier to get someone to turn a blind eye here. There are countless MLM schemes that have flourished in the past few years. But how many arrests? and what has the government done to educate the general public?

Well, the government must educate - because that is money that THEY are actually losing.