Unlike the previous reviews here, I wish to portray the real picture of amway, . So I think there will be a bit of explanation as to why I dont hate amway or its people, and thats exactly what I am going to do in this article.
Please note that I am not a amway distributor. At best for lack of any better word, I call myself an amway "sympathiser", knowing fully well that they dont need my sympathies!
I do use a lot of their products too.
Network marketing mantra
Network marketing is a deeply stigmatised field of work throughout the world. More so in a country like India where we see all business as an enterprise to con the poor con-sumers.:) And since amway embodies this concept big time, it is no doubt the most hated in the league, the other worthies that I know being Oriflame and Herbalife. Part of the problem is the very glib and smooth talking folks who very aggressively market their stuff.
Another trouble is the perceived "pyramid" structure that network marketing folks embody. But then, is not every organisation based on a pyramid structure? just draw the organisation chart in any corporate and see if it looks like a pyramid or not. So just because there is this pyramid structure, it does not mean it is all fraud. No offense to the great pyramids of Egypt!
It is a fashion even in well respected circles to poke fun of the Amway phenomenon. And when that comes from a trusted magazine like outlook money, people really take it a given that Amway is "fraud business". Just to prove the point, please go to the outlook money website https://outlookmoney.com and search for amway. You will find an article named "The great web of deceit" dated 8 sep 1999. The article ends something like this - "In the meanwhile, let us continue to make money the good old way - work hard for it!". The article is no doubt written by a very prejudiced person who has not bothered much to look into the phenomenon. no wonder, they are called journalists.
The article seemed to imply that amway just promises riches! And there is no need to work hard for it. If work avoidance or easy money is the goal, Amway is the last place to go to.
Amway does not promise anyone riches as soon as you join. Just like any other job, you need to work very hard to move up the distribution ladder. At every stage, folks at the higher levels will give you all the tips and advises and prod you on to move forward. IN that sense there is not much competition. the upper legs in the business stand to gain from the efforts as they get a little share of your efforts! So no one in the top would prevent you from growing!
Once you reach levels like Diamond, double diamond etc, you start to get royalty income. Thats when things start becoming really really nice. you dont have to work and money keeps coming. Even your next generation can get the royalty if you make them your nominee after your death! Which corporate offers these kind of rewards? Only thing is to reach these levels may require some really really hard work. For the members in the higher legs, there are tours to foreign countries completely sponsored by amway. You dont need to carry a single dollar in cash or card.
It is this royalty concept that amway wishes to spread, and which perhaps makes people think there is money without work!
Amway Business
Amway is basically people business.
It was found by two entrepreneurs in Michigan USA in the 1950s. The credentials of this company is impeccable - not a single cheque issued by them have bounced in all these years. They have the highest cash billionaires in the world - no stocks, no stock options, none of that paper crap. Just solid greens!:)
THey have built their foundations in a country where these days business mal-practices are being shot down by the US government. Examples are Martha Stewart who went to jail for 6 months and the WorldCom chief, who is now serving his 25 year sentence in jail.
*The folks
*Amway is run by what is known as "distributors". They are the heart and soul of amway. They sell the products and reap the benefits. Customers stand to gain from the very high level of service and quality of their products.
Do you know that they will give a full refund for their products if you dont like it. Which other manufacturer here in India does that? Of course, it is not applicable for clothing and such, I guess.
If you think it is a web of deceit, think again! Money and rewards follow after real hard work. These folks read tonnes of inspirational books, listen to tapes and such of motivational speakers/ their own senior distributors to keep their motivation levels very high. Most of the folks I know work 3-4 hours a day extra after their 12 hour work schedules to make it big. So it is not an easy game and is definitely not for the impatient.
Things I dont like about Amway:
Now that I have been praising them left and right, I need to put the whole thing in perspective too. These folks are too positive - almost with an insistence on not seeing the real world. They follow their leaders with almost a cult level of devotion and keep singing their praises at the drop of a hat. They would gladly show you the lifestyles of their diamond level and above folks, with BMW 7 Series in the car porch, swimming pool, diamonds giving BMWs as gifts to their kids and all that drama.
Also, if they call you for a meeting, as most distributors do when they meet you first time, you end up paying for the meeting. typically 50-100 rs for a seat. It is almost like paying for the privilege of listening to their drone. I hate this way of business, but many network marketing folks, including Herbalife, has this mode of functioning.
Another thing I dont like is they sell old products in India - I am not talking about products launched earlier. Here I am talking about selling units that are manufactured many months ago. I once got a car wash that was 2.5 years old! Sometimes even the Glister toothpaste I get is 6-9 months old. Of course, if you point out, they will replace it for free, but this is a serious annoying factors for me. **They seriously need to revamp their supply chain.
Products:
*I will write about their products some other time. I have already written a review of their SA8 washing liquid.
My feeling is that most of the hygiene related products are not suited for Indian use. They are far too mild to get the dirt off our houses/ kitchen/ clothes et al. So dont get fooled by their talk of diluting and such - it does not work much.
*Margins and Incentives:
*Typically a distributor makes 20% of margin on the product he sells on the listed price. Margins vary from product to product also. They also get points for each product they sell and that determines their success. So if they sell more, they make more points. Also, more expensive products make more points.
Of course, you need to consider the fact that the distributor brings the product to your house. he calls you up to confirm, drives to your place. the 20% or whatever margin is the price for these. And I think it is very fair.
Comments from Amway haters and lovers eagerly awaited!
