An important criticism raised against Amway is about the pyramid shceme or typical MLM scheme. There were multiple defenses provided my LOS up lines when I was an IBO. Let us look back at them. There was CD from one of my LOS up line outline what is illegal, pyramid scheme and how Amway is different and legitimate business opportunity. In the CD it was trying to defend Amway saying that, you can make more money than up line.
He tried to educate us, the down lines as follows, in his style of explanation. Let us say, if Mr. A offers a coin to Mr. B for a sum of USD100. Furthermore, if Mr B can get two more people, say X and Y also paying USD100 each Mr B is entitled to get, let us say, USD125. That’s USD25 profit for doing literally nothing. But it is a money laundry scheme and is illegal. So how do they make it legal? Replace the coin by a washing machine. So there is a commodity and hence technically it becomes legal but only upline can make money and because of the binary legs requirement. The famous Japanese bed or SpeakAsia had come and gone. They generally have products which cannot be consumed and hence chain breaks and income stops. Typical MLM companies will have high joining costs and bundled products (which Amway had in India previously and tweaked it later to avoid closure) and no money back guarantee.
But what about Amway? You can put as many people as possible in whichever the way you want (generally new IBOs end doing as per up line’s wishes). You get 30 day product return and money back guarantee and joining cost is minimum (earlier Rs995 and later tweaked to free but asked to buy 50pv products). What kinds of products Amway deals in? All of FMCG products, all the products are patented with a scientific research of over five decades. They have all been tried and tested, the company is listed in Forbes with presence in more than 80 countries. You are called an independent business owner, that is, IBO. So you are given freedom to do what you want through this business and also offered mentorship by up line and the system.
So this is how he ended the talk about how to answer MLM questions. But my problem is something else. Dealing with negative is one aspect but putting a different picture of the whole scheme is another. The affiliated systems are the bread and butter for Amway. They teach through cultism as to how to deceive people systematically. Irony is that, most of the IBOs do not even know that they’re deceived and teaching/practicing deception.