Wednesday 27 May 2009

Amway's business model is cheating, only cheating, nothing but cheating

Amway apologists conveniently skip many questions. When the point of money circulation scheme is raised, they talk about quality of Amway products. When it is pointed out that the Central Food Laboratory and Andhra Pradesh State Food Laboratory have already conclusively proved that the quality of Amway products is not great as exaggerated by the Amway, they brag about other things.
The major question and the only question is money circulation schemes. From which pocket the Amway is paying its IBOs the sizable amounts of commission. Its website www.amwayindia.com clearly states that an IBO who enrols 102 members under his downline would earn a monthly income of Rs. 56, 500. How do they earn so much money? Don't ask. Simply become a member and find 102 sheep (bakara) to join. Bingo you are going to be a millionaire soon.
People with less intelligence and lots of greed believe these words and become members of Amway. This monster is eating away the vitals of economies of many countries and still there are no criminal complaints. The criminal cases pending against them take several years to reach a logical conclusion. Meanwhile, companies like Amway, Herbalife, Forever Living Products, Tupperware, Hindustan Uniliver Network and others continue to exploit the gullible people of many countries.
My dear fellow humans all over world throw these crooks out of your respective countries. Tell everyone you come across that the business model of these companies is nothing but cheating.


Amway apologists follow Scientology-style 'Positive' script
Shyam
With kind the permission of its author, the following extract is taken from a confidential letter I received earlier this year. At that time, I was contacted directly by some former cult adherents in the USA. One had lost a large amount of money in a counterfeit '$600 millions Investment Scheme' (ostensibly) run by Reed Slatkin (out of California), a 'Minister' in the 'Church of Scientology.' Slatkin (the eqivalent of an 'Amway Diamond') was sent to prison, but the evidence proved that he had passed at least $150 millions to a small group of preferred persons who were all fellow, core-'Scientologists.' Indeed, one of them was 'Scientology's' own tax-attorney. However, Slatkin arbitrarily defined this money as 'investment profits.' These initial beneficiaries had then passed bundles of stolen cash to various 'Scientology' associations by arbitrarily defining it as 'donations'. Obviously, the leadership of 'Scientology' insisted that they were completely unaware that any of this money was stolen, and they 'excommunicated' Slatkin ( formerly a 'Scientology' poster boy) as a liar and a thief.
This was after he confessed in court that his actions had been controlled by his own leaders in 'Scientology.' My correspondents (one of whom was part of a lawsuit seeking multi-million dollar compensation from 'Scientology') were interested in how the mystifying labyrinths of (apparently independent) corporate structures, which comprise 'Amway' and 'Scientology,' continue to isolate the wealthy bosses of these (essentially) identical cultic frauds from criminal liability.
"Read your posts on Quixtarisacult.... Wow! You guys really hit straight and hard. You see it clearly, the same twisted strategies in Quixtar and Scientology parting the faithful from their money with addictive lies then personal information to load them with guilt and shame, but did you know that Scientologists are told to get into Quixtar? Was approached five or six times myself by friends wanting to help me. They really thought Hubbard's technology and Scientology's 8 million global reach would guarantee rapid MLM network growth. Positive thinking, disconnecting from negative friends and family, controlling prospective recruits with the positive words and body language, helping others to better themselves, all makes perfect sense to a convinced Scientologist - it's so familiar - Hubbard might have invented it."
Laughably, Shyam, your resident 'Amway' apologists will follow their 'Scientology'-style 'Positive' script, and systematically (and illogically) deny that any of this is true.


The key point is illegal money circulation scheme
Corporate Frauds Watch is open for comments. Anybody can make comments and it is published without any changes. That does not mean, these Amway apologists could dictate terms.
One silly follow asks not to write on something and in another moment advises what should be the name of the blog. What these Amway adherents are actually doing is illegal business i.e. selling products at an exorbitant price and sharing the booty in the name of multilevel marketing. What these people do not realise is that a sizable amount out of the purchases made by them is going to the Amway top brass and these people are receiving only peanuts. No problem if they are happy with the peanuts. But they are inducing others also to join the scheme and making them also paupers. That is objectionable.
The main question here is the money circulation scheme. How much amount from the price of product is going to the Amway and how much is going to the downline members. If this calculation is revealed, the thieves could be caught. But this is the closely guarded secret of Amway which would never reveal it.


All Amway adherents brag like that only
Shyam
One has to laugh at the outrageous claims made by deluded 'Amway' core-adherents. However, as you know, in the end it's not funny. The poor Indian woman whom you have encountered and who was living in a shack, but behaving as though she would soon become a millionaire, doesn't surprise me in the least.
Perhaps the most bizarre 'Amway' adherent I have personally encountered was a former 'Emerald Distributor.' He had been continually presented (along with his wife) in reality-inverting 'Amway' propaganda in the UK as a shining example of 'MLM Prosperity, Freedom and Happiness.' Typically, once all his related 'Amway' expenses were deducted, he had never even managed to make his living out of 'Amway.' He apparently financed his financially-suicidal activity by borrowing. It took him almost 9 years to escape. However, despite the fact that this former 'Successful Emerald' now accepted that 'Amway' was a fraud, he tried to convince me that he had recently discovered a 'fool-proof investment strategy' to make millions out of 'financial derivatives.'
He wanted to know if I had any spare capital I wanted to invest, or if I knew wealthy people who might be interested? This was about 12 months before the Bernie Madoff scandal hit the headlines. Typically, when I challenged his latest narcissistic delusion, the former 'Emerald' resorted to 'Amway' tactics and he posed as an innocent victim. He told me that I would always be poor, because I had a 'problem with my personality.' He accused me of being a 'negative person' who wouldn't listen to what 'positive people' had to say.
Sadly, there have been many similar examples of 'Amway' victims who have lost everything in pursuit of 'Total Financial Freedom' and who have then clung to equally crazy beliefs. Indeed, it is quite common for vulnerable former adherents of cults to fall into the clutches of other charlatans bearing gifts. This perhaps explains why so many 'Scientologists' have become involved with 'Amway' and vice versa.


Masked Man's ignorance is astounding
Shyam
You will have observed that the 'Amway' Lord Haw Haw, Mr. Steadson, has managed to raise another feeble squawk. This time, his ignorance of the object of his unquestioning affection, 'Amway,' is astounding. He pretends that I can't know what I'm talking about, because the first 'Amway' product was called 'LOC (Liquid Organic Cleaner)' and was not a soap powder.
Unfortunately, for your resident masked 'Amway' propagandist, the first product peddled by Messrs. DeVos and Van Andel (using their 'Ja-Ri Corporation' and 'American Way Association' ) was originally called 'Frisk', which they later rebranded and described as an 'Exclusive Concentrated Biodegradeable Liquid Detergent'. However, at this time 'Frisk' was manufactured by the (failing) Eckle Company of Detroit Michigan. 'Frisk' was, in fact, sold by Eckle in a variety of forms including a liquid cleaner and a soap powder. In November 1959, DeVos and Van Andel bought the Eckle Company (using the 'Ja-Ri Corp.') and moved its manufacturing equipment across Michigan to the town of Ada where they rebranded it 'The Amway Manufacturing Company'. De Vos and Van Andel then dropped all varieties of 'Frisk' except the liquid cleaner which they rebranded, 'LOC'. They began to introduce a whole host of mystifying pseudo-scientific complexities around what was once a very average, simple and reasonably-priced formula, as the false justification for exorbitant price rises. Soon, 'LOC's' new presentation in 'Concentrated' form rendered exact price comparisons with traditional products almost impossible to make without complex calculations. This set the style for many of 'Amway's' (effectively) unsaleable products.
Some of the pseudo-scientific claims which De Vos and Van Andel's first followers were trained to make about 'LOC' were as ridiculous as those which the followers of Carl F. Rehnborg had been trained to make about 'Nutrilite XX.' In keeping with this absurd tradition, according to Steadson, in producing 'LOC,' DeVos and Van Andel were motivated by the altruistic desire to save the planet. How all this 'early green altruism' ties in with their perpetrating the largest tax fraud in Canadian history (estimated to have cost Canadian citizens more than C$100 millions in total), the 'Amway' Lord Haw Haw does not attempt to explain.


Amway products overpriced? OK. But IBOs earn wads of money
Amway apologists always claim that Amway products are of high quality. They know well that all these products, whether it is Nutrilite or other 100 and odd products, are sold at an exorbitant price. Still, they support the Amway India because it is offering 'total financial freedom in 2-5 years'. They are confident that they are going to enrol more members and become rich soon.
These people never disclose what exactly their income is even after several years. For instance, Trivedi did not disclose what is the income of his mother who has been into the Amway India's 'good business opportunity' for the last several years. To be precise, Trivedi also did not disclose how much he is earning and how much he is investing every month for purchasing products. If he discloses we can know how much he is losing every month and how long he will stay put.
That is the case with a sizable number of Amway IBOs. Moreover, they stoop to any level to enrol new members and to sell the overpriced products to them. A woman who approached me said that their monthly earnings crossed Rs. 68,000. But funnily, they live in a two-room shanty with all that money in hand.
That woman also told me that she is going on holiday to Caribbean Islands next summer. She is confident that she is going to enrol enough members to earn that holiday. Now these apologists deny that Amway organises holidays to their members who enrolled a large number of members.

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