Amway India letter to distributors

The following email sent by Amway to all Emeralds and up in India a couple of weeks ago regarding the situation with Sajeev Nair and MonaVie

Dear Leaders,

Greetings from Amway India !!!!

As  you  are  aware  by  now,  Amway  India had its biggest sales month in September’11  when  we  had  Rs.251 crore of sales. With such excitement & momentum,  I  am not only confident of achieving our Goal of Rs 2500 cr by 2012,  but also convinced that we will attain higher GOALS in the years to come.

We  have  introduced  several  “Positive  Changes”  in  the  business from November 1st that would further fuel our growth & offer a safer future for our  ABOs.  These revisions have been accepted very well by leadership all around.

With  growth,  we  also attract attention of various entities. One of them can  be  competing organizations who claim to be ‘Just Like Amway’business opportunities.  Amway  India  &  the Direct Selling Industry is poised for huge  growth in years to come, which pulls organizations to get a share of this  growing  market.  While  we  appreciate  healthy  competition, it is unfortunate that some organizations choose improper & dishonorable methods to  grab  business  &  get  a  foothold  in the market. We have reasons to believe  that  such ‘Copycat Businesses’ with shallow income opportunities have  been  targeting  YOUR  line  of sponsorship to build THEIR business. They are really not competitors but actually “predators”.

I  wanted  to  take this opportunity to advise you on expected launch of a company  in  the  Direct  Selling  market in India and what activities are currently  taking  place  openly  &  surreptitiously,  leading  up to this launch.
INFORMATION CURRENTLY AVAILABLE

The following information is currently available to us about this company:

  • It is headquartered in USA
  • The company was founded in 2005 & has only 6 years of experience
  • Has moved on to 20 markets and has almost abandoned some of them
  • It has a declining sales pattern & is approximately 6% of Amway’s global  sales turnover
  • It has a single office in India at present
  • It has single product / category based on a Nutrition Drink
  • It is not part of the WFDSA & IDSA
  • This company operates on a binary plan
  • This company has had issues with the Governments of Australia & Korea
  • This company is expected to launch its operations in India in November  2011
  • To earn commissions from this company, one needs to purchase products  worth approximately Rs 8000/- every month
  • The joining fees for this company is Rs 800/-

SOME POSSIBLE ISSUES / CONCERNS

Some  senior  leaders  in the Amway India business have had certain issues with  Amway  India  in  the recent past, for which the company had to take deterrent  action  against them due to violations in the Rules of Conduct. As  you  know, Amway is very fair in dealing with any & all types of Rules Violations  and  did  not  hesitate  to  take the necessary action for the violations  made,  despite  the pin level & status of the leaders. Some of these senior Amway leaders have not been in active Amway business building post  these  actions  taken  against them by Amway, and it is very likely, that  owing  to their high status, they were looking at “other” avenues to make “QUICK MONEY”.

We  have  been informed, that certain ABOs holding very high pin levels in the Amway India business have been persuaded by this company to join them. We have received several complaints in the recent weeks that some of these leaders  have been enticing their LOS’s and some crossline LOS’s (possibly yours  too) join this company. We strongly believe that these senior Amway leaders have been enticed with some amount of money to shift their loyalty to  them  and  bring  in  as many ABOs from Amway as possible. These Amway Leaders  are  conducting meetings in several cities across in India trying to  promote  this  new  company by spreading several rumours against Amway like

  • Amway is changing its business model and will open retail shops – this  will kill the opportunity for ABOs
  • Amway has sold its Nutrilite farms
  • Amway Founders have sold their stake in the company
  • Amway India will close down in another two years.
  • Some senior official(s) from Amway are joining this company
  • It is OK to do the Amway business & the “other” business while promoting  the same within your LOS and in crossline organizations.

ACTIONS TAKEN TO PROTECT THE BUSINESS & ABO’s

Show Cause notices have been sent to these Senior leaders who have been  found to be enticing Amway ABOs to join this new company.  They have been declared as “Not in Good Standing with Amway”.  A full-fledged investigation is on against the activities of these  senior leaders.  The downline Platinums of these Senior leaders have been advised of  their upline activities  Silver Producer & above meetings are being conducted in all the  affected states to explain the real facts of the situation.  All discretionary benefits have been withheld for these ABO’s.   Their access to all internal systems has been blocked.

It  is  with  great  pride  that  we share that 99% of the leadership have re-iterated  their  belief,  faith  &  loyalty  in  Amway,  its  values  & principles.  I  would  like  to  clarify  that all rumours spread by these
Senior  Leaders  about  the  future about Amway are false & misleading and made  with  the  intent  to entice more ABOs to join the new company, from where,  we  believe, they have a lot to gain in monetary terms for getting more  people  to  join  the company. Amway has never in it’s rich 52 years history  changed  it’s  operating  model  nor will ever do so in future. I would  also  like  to  re-iterate  that  Amway  will  not hesitate to take appropriate  action on any ABO found enticing another Amway ABO(s) to join this  company,  which may include immediate suspension & withdrawal of all discretionary  benefits,  because they will no longer be “In Good Standing with Amway”

WHAT WE EXPECT YOU TO DO IN THIS SITUATION

  • Brief the leaders in your teams about the situation.
  • Ensure that ABOs in your LOS are not distracted by news about this new  company
  • Even if there has been no enticement in your LOS, you may alert the  leadership to insulate their downlines from possible enticement
  • No ABO should be over-whelmed by the stature of the Amway leaders who are telling Amway ABOs to shift to this new company
  • Report any enticement or any other activity related to this new company to your Business Development Manager

I  wish  to re-iterate that Amway, its Founders, the management in India & U.S..  stands  fully  & strongly behinds our Founding principles, values & ethics. We will deal fairly with all ABOs, irrespective of their pin level and  provide  a  level  playing field to all ABOs and protect the business interests  of all ABOs, now & in the future. We have faced such challenges in  the  past  & emerged “STRONGER” on each occasion; at this time also we stand  strongly  behind  our  plan,  our products and YOU, people who make Amway the best business opportunity in the world.

To  strengthen  our  position  in the Direct Selling Industry in India, on Monday, Nov 7th,  Amway will commence a National Advertisement campaign to highlight,  in  a  positive  way,  the changes implemented on Nov 1st, pan India.  The advertisement is simple, yet impactful and will run across the country on both the 7th and 14th of Nov

Our  business  in  2011  is expected to close 20% higher than the previous year. 2012 has the strongest ‘new’ product launch schedule ever……..and this is backed up by a powerful promotional program, a robust and expanded Amway    /    Nutrilite    &   Beauty   Brand   Building   /   Advertising campaign…….plus  serious  expansion of our infrastructure and physical presence  across India.  Not to mention the 3rd year of the GIP, Melbourne Mega  Leadership  seminar,  Diamond  Invitational  trip  to London in May, Family  ALS  trip  announcement  in  August  2012 etc.  So……..a LOT of exciting things happening right now and planned for next year!

I  strongly  urge  you to stay focused on building your Amway business and changing  your  life  & that of many others……because WE ARE AMWAY…..we are NOT JUST LIKE AMWAY.

Regards,

Rajneesh Chopra
Senior Vice-President (Distributor Relations & Training

26 thoughts on “Amway India letter to distributors”

  1. Amway is not the problem. The motivational arm is the problem. They make their money selling motivational tapes, seminars, and rallies. As long as you keep paying them for motivation, they have no interest in whether you are building a successful Amway business or not. No matter how obvious it is that you are not capable of building a business, they will keep selling you motivation. They are relentless, and will drive your family and friends away with a very cult-like intensity in order to keep you paying them.

    1. Denise, there are many, many companies that supply BSM (business support materials – including motivaiton) to Amway IBOs. I’m wondering how much experience you have with them to make such broad claims about them all? I ask because your comments don’t match my experience. Also, your claim that “as long as you keep paying them for motivation, they have no interest in whether you are building a successful Amway business or not” doesn’t make sense. Doesn’t their growth as a business (ie getting more customers) depend on there being more Amway IBOs, ie that your Amway business grows?

  2. Dear exalted “leaders” of nothing, but flooding lies!

    Please, calm down and get a life, if any.

    First, Amway and zillion mickey-mouse offices alike don’t have real retail customers except “distributors” what means they a but illegal money schemes (FTC v. Amway’1979).

    Second, here, in Russia (ex-USSR), NONE of so-called “diamonds” and other weird luxury “status” names–in ALL mlm agitators I’ve met–couldn’t provide their tax statement regarding the “profits” from the fraud making business–mlm. In other words, Over a million of “prosuments” just smile stupidly back and shy off, what means:
    a) they have no real “decent” profits; and/or
    b) they are frauds trying to duck out of paying taxes.

    So, “self-buying sellers”, how come you don’t know any “businessman” who could prove his/her statements? Think again.

    1. Kim, I haven’t even been building an Amway business and I have these retail customers you claim don’t exist (people know I’m an Amway member – they ask me if they can buy some stuff, I say yes. Quite a few Russians as a matter of fact). Heck, as a non-building registered Amway business member, *I* am effectively one of these retail customers you say don’t exist. Does it feel at all silly to be telling me I don’t exist? Forgive me if I don’t believe you.

      As for profit, I’m guessing the issue isn’t that Diamonds *can’t* provide you with their tax statements – it’s probably that they quite sensibly have determined that you don’t want the information for honorable reasons, so they’re just not giving it to you. I wouldn’t give you my tax statements either.

  3. “No company born earlier like Amway, no company curently exist like Amway and no company will born like Amway in FUTURE” …..so dont be in fools paradise……give little honest efforts and becom FREE in Life and generations to Come…..God Bless

  4. amway is worlds top most direct selling company nobody can stand before it.
    because
    “WE ARE AMWAY ”
    BUT
    “WE ARE NOT JUST LIKE AMWAY “

    1. This is incorrect. First you have the retail markup of somewhere around 20-30%, then you have the volume rebates of around 26%. Amway of course doesn’t “keep” what is left, they have all the expenses of manufacturing and logistics. None of these percentages are especially different from competitors in the same categories.

  5. Dear Friends,
    Amway is still a great company. In this Amway Business there is need of very neat and clean people. Dishonest person cannot survive in this business. If you are doing Amway Business then you need to focus only in Amway not in here and there.

    I wish all Amway distributor to focus on Amway Business.

    God bless you.

    Deepak Kumar Roy

  6. @SP75 – I appreciate your robust defense of the Amway business with solid figures and you would do well to rephrase this statement – “One doesn’t need to be Einstein to understand that MV distributors have NO retail customers” – because MV distributors do have lots of retail and preferred customers. Indeed, the problem with MonaVie in Asia is that there is an overwhelming ratio of actual customers to distributors that many MV distributors have resorted to retailing through retail SHOPS and websites to cope with the high demand. Regards, Rykel

  7. wow,amazing information..amway keep his own ethics and values.some stupid leaders have move a new money chain company,their is no other way this stupid leaders because this leaders already terminated in Amway……now again i love amway more and more…..

  8. I suppose , it’s a time for wholistic thinking and actions! why not to offer both binary plan and other possible options also! ABO CAN CHOOSE THIER MOST SUITABLE ! same is for inclusion of products also which are not at present in current portfolio….

  9. Amway is a trusted company, its products are of quality and affordable, i have used it before. i knew it that many got benefited by joining the company for sales and have earned a lot, there is no fraud in any way.

  10. Amway is a good company with good products but not a good opportunity in information and internet era..plan dynamics in amway is very old that is the reason people are not making money as per the energy and efforts…the real investment of any networker/distributor is there time, energy,and skills but compare to that returns r very less or slow..the binary plan dynamics r such that money can be earned fast,In generation plan your upline will advise ,give mentorship but you will never see his single sponsor in your downline,…understand the plan dynamics now Amway cannot change it it is their weakness..That is one of the reason the co with binary plans grows much faster than Amway..As an enterprenuer check your returns on investment..that is our time efforts and skill..

    1. “plan dynamics in amway is very old that is the reason people are not making money as per the energy and efforts…”

      …says who? Holly Chen & Barry Chi? Foo Howe Kean? Kaoru Nakajima? :-)

      Lets sum up the facts: Amway has one of the highest productivity per IBO among direct selling companies. According to (http://www.directsellingnews.com/index.php/site/entries_archive_display/dsn_global_100_1_50#002), Amway achieved 9.2 billion USD in sales with approx. 3 million distributors. That’s 3,066 USD per IBO. Now, take Monavie. After 6 years in the business you can see a dip of 185 million (from 785 million in 2009 to 600 million USD in 2010). And you call that a DYNAMIC business?

      One doesn’t need to be Einstein to understand that MV distributors have NO retail customers (no surprise, just look at the prices). At 600 USD per distributor, they have ONE OF THE LOWEST productivity among all direct selling companies.

      You think MV grows faster than Amway? Maybe, just maybe MV has better retention rate, but that is all it can have. You can have 1 million people and 100% retention rate (just remove renewal fees and you will have it), but if only 10% of people buy products, then all you have is 100,000 distributors.

      In 6 years (2005-2010) Monavie grew from zero to 785, oops, sorry… 600 million USD. Amway grew from 0 in 1959 to 38 million in 1965 USD with no sign of slowing down. And remember that these dollars were 1960’s dollars. Adjust them to the inflation and you will get 263 million in 2010 which corresponds to about 200 million in wholesale prices. Amway achieved this number with only 2 (TWO) markets (US and Canada) opened and with less than 100,000 distributors. Monavie needed 12 markets including one of the top direct selling Asian markets like Japan, and 10 times more distributors to achieve 785 million in sales and experience their first downturn of 23.5% after only 6 years in the business. Having 10 times more distributors than Amway had in 1965, shouldn’t they (MV)have 2 billion in sales? Now they need to open other hit-markets like Korea and Taiwan to offset the downturn in the “old” markets. Congratulation! A very dynamic business… :-)

      Here is the summary of Monavie 2010 worldwide sales listed from largest to smallest:

      52 week avg. Last 4 Week avg. Change

      US $ 9,759,373 $ 7,085,100 -27.4%
      JP $ 1,167,971 $ 1,495,816 28.1%
      CA $ 979,415 $ 944,195 – 3.6%
      AU $ 287,164 $ 223,989 -22.0%
      SG $ 223,692 $ 164,528 -26.4%
      MX $ 145,551 $ 125,850 -13.5%
      PL $ 98,068 $ 98,310 0.2%
      BR $ 56,114 $ 83,680 49.1%
      IL $ 41,526 $ 71,165 71.4%
      UK $ 67,034 $ 64,812 – 3.3%
      FR $ 20,797 $ 32,540 56.5%
      NZ $ 34,118 $ 19,394 -43.2%
      HK $ 8,367 $ 8,367 0.0%

      TOTAL $12,757,845 $10,413,560 -18.4%

      So, forgive me for not joining Monavie and staying with Amway, which BTW did more in growth in 2010 than MV did in whole revenue… :-D

      For those who do not understand the strategy of binary plans: the only reason why binaries may seem to have higher growth rate is because they always open many markets almost at once instead of one by one. If they opened markets one by one, you would see a debacle. You need to have a good product to survive in the long run. Binaries always offer overpriced products of poor quality, so it is necessary for them to open 10, 20 and sometimes even 50 markets at the startup. Once the first wave is gone, they disappear.

      Next time, before you make such a ridiculous statement (a dynamic business), look at the numbers first. :-)

  11. Just two little corrections:

    “They are really not competitors but actually “predators”.”

    No, they are not predators, they are parasites. I think fleas would be an adequate word – it describes both their size and their actions.

    And those so-called “leaders” are not leaders anymore. I would rather call them MLM-tourists.

    1. My wife is so beautiful for ever, I cant change this statement as “MY WIFE WAS SO BEAUTIFUL LAST YEAR”

      THAT IS THE DIFFERENCE BETWEEN ANIMAL AND REAL HUMAN BEING”

      1. You are perfectly right. That is why I wrote “the so-called “leaders””. :-)
        A person is a leader when he leads others. As soon as he loose his followers he becomes a man on the walk, i.e. he is not a leader any more.
        Leader (as we mean it in the Amway business) leads his downline to success. People, who switch between MLMs according to where its easier to rip-off their downlines surely won’t lead these downlines to success.
        Of course, there are other types of “leaders” – in a negative sense. We all know one name from WWII. Would you call him a leader? Maybe you would, maybe you wouldn’t, but if this is the type of a leader we are talking about, God save their downlines.
        Anyway, I am sure that you’ll agree with me that MLM-tourist is a better description, won’t you?

  12. Just two little corrections:

    >> They are really not competitors but actually “predators”. <> leaders << are not leaders anymore. I would rather call them MLM-tourists.

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