There's an MLM structure, and restrictions on who and where you can sell to, how you can advertise, how much you can buy before you are front-loading, etc.
When you add them all up, it becomes significant.
If the system was intuitive, we wouldn't have two years worth of posts trying to iron out exactly how it supposedly works, so we can properly examine if it is even a scam or not.
There's enough work to keep about 50% from doing it.
If I purchase things I do not want, for whatever reason, I am being scammed.
If I buy a three-pack to make enough points this month, when I know a single tube of toothpaste will last months, I am not technically "inventory loading" under your definition.
In the FTC ruling, they cite a case where Amway bought back a bunch of old product to prevent inventory dumping. But they were happy to let the person make those purchases in the first place and have no way to detect such a thing.
I did. Did you know that enforcement of the ten customer rule and inventory loading is done, not by Amway, but at the sponsoring distributor level? At least, according to your much cited FTC paper.
If this has changed in the intervening decade, why has it changed?
The price on Amway's site is $12.00. Here is the link: http://www.amway.com/Shop/Product/Category.aspx/Bath-Body?viewall=BestSellers
Do you just get to make up whatever price makes your point?
Here is a lot of a half dozen of the same item selling for $23.95
http://www.ebay.com/itm/Lot-6-Tubes...525?pt=LH_DefaultDomain_0&hash=item27d66ab75d
Shall we do the math? 6 x 12 = $72.00. Compared to $23.95.
You do not seem to have any problem claiming enforcement of rules when it suits your case and denying it when it doesn't.
You are correct. I made a mistake on the size vs. quantity.
Here is the right one: Glister 6.75 oz at $5.20 retail on Amway (http://www.amway.com/Shop/Product/Product.aspx/GLISTER-Multi-action-Fluoride-Toothpaste?itemno=E9530) plus shipping equals $11.95
Here are two offers for "buy now" on ebay,
5 tubes for $13.00 http://www.ebay.com/itm/5-GLISTER-MULTI-ACTION-TOOTHPASTE-AMWAY-191g-/281157177768 plus shipping, net cost is $6.60
And a lot of 24 for $69.95 http://www.ebay.com/itm/LOT-OF-24-AMWAY-GLISTER-TOOTHPASTE-200G-TUBES-lot-1-/121175268737 with shipping, net of $3.58
Thank you for catching my error, it allowed me to look up the shipping for each method, which substantially alters the prices.
You are correct. I made a mistake on the size vs. quantity.
Here is the right one: Glister 6.75 oz at $5.20 retail on Amway (http://www.amway.com/Shop/Product/Product.aspx/GLISTER-Multi-action-Fluoride-Toothpaste?itemno=E9530) plus shipping equals $11.95
Here are two offers for "buy now" on ebay,
5 tubes for $13.00 http://www.ebay.com/itm/5-GLISTER-MULTI-ACTION-TOOTHPASTE-AMWAY-191g-/281157177768 plus shipping, net cost is $6.60
And a lot of 24 for $69.95 http://www.ebay.com/itm/LOT-OF-24-AMWAY-GLISTER-TOOTHPASTE-200G-TUBES-lot-1-/121175268737 with shipping, net of $3.58
Thank you for catching my error, it allowed me to look up the shipping for each method, which substantially alters the prices.
Out of interest, how do you know if someone's involved in Amway? Are they tattooed on the forehead or something?
Unfortunately, no. It would be much easier to avoid them that way.
I know they're involved with Amway because I manage to drag that fact out of them after they have been gibbering vaguely about business opportunities for thirty minutes.
So, you know that all Amway IBOs gibber vaguely about business opportunities because people you meet who gibber vaguely about business opportunities are Amway IBOs?
It was, of course, an Amway pitch. I was very polite and sat through the whole thing, but didn't commit to anything and eventually he let the whole thing drop. (He was eventually fired from IBM for doing this sort of thing.)
Far less than say, a franchise. Become a reseller for almost any brand and their are restrictions on use.
Buy stuff in volume (calculated monthly), earn a discount, sell in smaller volumes, pocket difference.
That's the recommended retail price. It's not the price IBOs pay.
Thanks for proving the point. Buy 6 tubes from amway.com directly as a customer, $12.00. On ebay, $23.95
IBOs can get those 6 tubes for as little as $7.55
So, you know that all Amway IBOs gibber vaguely about business opportunities because people you meet who gibber vaguely about business opportunities are Amway IBOs?
More than 50 years ago, Amway co-founders Rich DeVos and Jay Van Andel sat down with an idea – a plan to provide a better life for their growing families.
Today, that simple idea has become a global phenomenon. And the legacy continues through the leadership of the next generation. Still family owned, Amway provides entrepreneurs worldwide the possibility of pursuing their own path to success.
Now the question is, are you ready to change your life?
Kudos to IBM! That's how you deal with scam-pushers. Laugh at them or kick them to the gutter!
For the record, though, I never claimed that all Amway IBOs gibber vaguely about business opportunities, only the ones I and people I know have encountered. Also, it doesn't follow from what I said that only Amway people gibber vaguely about business opportunities.
This is the opposite of what I buy when I buy a franchise name. If I opened a McDonald's, I would very much count on the good will McDonald's has built up for their products instead of worrying about potential customers finding out I was running a McDonald's. This is a serious problem.
This is the black/white think I was referring to. When calculating what a good deal Amway products are, I am supposed to think in terms of a discounted purchase an IBO gets - the "buyer's club" model.
In effect, if I am sponsoring an IBO, and they do no appreciable business themselves (which we are told is overwhelmingly the case), I am cutting my own throat because they are now wholesale customers. And, the way to gain ground in Amway is to build a network?
The only entity that makes the same amount of money in either situation is Amway. How is this not a scam again?
Forgive e icerat, I'm totally new to this, and yes I'm probably going to ask questions that may have been answered in this mammoth thread but I want to know how this might work.
So, let's say I know 5 people, Bill, who already sells Amway, and 4 others who do not; Charles, Ted, Jane and Sue.
I'm interested in getting into Amway. First question, do I have to join through Bill, or can I just contact Amway direct?
Right. So, I get into business with Bill as my sponsor, let's say. I buy 31 tubes of toothpaste direct from Amway. Do these 31 tubes count towards Bill's sales figures as he is my sponsor?
Next, I decide to keep one tube for myself, as this is allowed as I understand it, and sell the remainder. I sell 26 of them. If the answer to the above was yes do these 26 also count towards Bill's sales figures?
Yup, just like if you bought 31 pallets of coke from a coke wholesaler, they'd count in the coke wholesalers sales figures.
I'm not sure I understand, you seem to be asking the same question twice? And there's 4 tubes missing? (still in stock?)![]()