In Britain, Amway, the massive MLM company, is being hauled over the coals for by “selling a dream” of unachievable wealth.
The full report is here, but I've added some of the statistics pulled from the court, below.
39,000 agents work for Amway
27,000 (71%) had no income
11,410 (30%) earned 'something'
7,492 (of the 11,410) received an average of £13.53 per year
101 agents received 75 per cent of bonuses
£116K was paid to top earner Trevor Lowe
Mr Lowe was an agent for 26 years!
Ian: Amazing, just amazing!
4 comments:
hi ian
what about the goji juice network marketing ploy? is goji going to go the same way?
I'm glad all network marketing isn't like this one. I can't make a comment on the Goji thing except to say that Goji is even in supermarkets now!
Some products certainly need MLM.
These are products where dedicated people are able to spend the time in eductaing others - a process that is essential for some products and that will never happen in a store.
ION WAYS, (www.ionways.com/tashi1)
our own network marketing system in the US sells special versions of the Jupiter Science water alkalizers and it is very, very successful in spreading the Alkalarian word to thousands of people, simply because members of ION WAYS believe in alkalizing and want to share their experience.
My problem with Amway was that it was trying to replace the local supermarket, so its prices were always over the top and easily comparable to what we see in our local supermart.
When you look at those Amway stats more closely an interesting picture arises. Only 10% were making any money, but apparently only 6% were actually putting in any kind of serious effort.
So the problem is too many people join and never do anything. So it comes down to asking why? And is Amway or Amway IBOs somehow to be held "responsible" for this?
Regarding the pricing issue, I agree with the supermarket comment to a point, but disagree with the conclusion. If you understand the products then you find they're not over-priced at all, as this post covers. The problem is that few new IBOs bother to work that out and then do the work of explaining it to potential clients/business partners. Again, who is responsible? The individual business owner, or Amway and/or their upline for not training them better?
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