QUOTE(lurkingaround @ Aug 26 2020, 12:17 PM)
Amway, Shaklee, Cosway, Usana and other Direct-Selling(DS) companies are exploitative marketing schemes/scams selling hyped-up products at twice or more the normal retail price. The extra profits is used to be distributed to upline and downline members as an incentive for them to recruit more members and sell more over-priced products, usually to their relatives and acquaintances = victims. Often gullible young workers who just came onto the job market are targeted for recruitment as direct-sellers. Best to avoid such companies and their recruiters.
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This is roughly how the maths work in this exploitative pyramid business model; .......
Eg Vitamin supplement selling for RM50 a bottle/30 pills at Guardian/Watson, the above DS companies sell the same thing for RM100 a bottle/30 pills, eg by hyping or falsely claiming extra health ingredients/benefits and blah blah blah or brain-washing stuffs. The extra RM50 profits(= RM100 - RM50) is used to pay commissions to seller and upline recruiters/direct-sellers, up to 3 or 4 levels of recruitment and for the coffers of the DS companies.
1 top person or upline direct-seller recruits 3 Level One downline direct-sellers,
the 3 Level One downline direct-sellers in turn recruit 9 Level Two downline direct-sellers, ie 1 person recruits 3 other persons,
the 9 Level Two downline direct-sellers recruit 27 Level Three downline direct-sellers,
the 27 Level Three downline direct-sellers recruit 81 Level Four downline direct-sellers.
....... 1 begets 3, 3 beget 9, 9 beget 27, 27 beget 81 = a pyramid.
Direct-selling is a limited pyramid scheme = limited to a few levels of recruitment. Ponzi schemes and MLM scams are unlimited pyramid schemes that will eventually run out of new recruits after a few years = then the masterminds disappear with the loot of RM millions. Even if prosecuted, they just spend a couple of years in jail and come out still a millionaire in their foreign bank accounts.
- 1 Level Four downline d-s sells a bottle of the RM100 Vitamin supplement and gets about 15% commission or RM15.
- 1 of the 27 Level Three d-s who recruited the above Level Four d-s gets about 10% commission or RM10 from the above sale.
- 1 of the 9 Level Two d-s who recruited the above direct-sellers gets about 7% commission or RM7 from the above sale.
- 1 of the 3 Level One d-s gets about 5% commission or RM5 from the above sale.
- The 1 top upline d-s gets about 3% commission or RM3 from the above sale.
....... Total payout in commissions by the DS company to the top upline and Level One to Four direct-sellers is RM40(= RM15 + 10 + 7 + 5 + 3) = company pockets RM10 out of the extra RM50 profit from the above sale of the RM100 Vitamin supplement.
If all 81 of the Level Four downline direct-sellers each sold 1 bottle of the RM100 Vitamin supplement, the top upline direct-seller gets RM243 commissions/income(= 81 X RM3 from every sale) from his/her simple recruitment effort.
....... If all the 81 Level Four d-s each sold RM1k of stuffs per month, the top upline d-s gets RM2,430 commissions/income per month(= 81 X RM30 or 3% of RM1k).
....... If the 27 Level Three, 9 Level Two and 3 Level One d-s also sells RM1k of stuffs per month, the top upline d-s also gets about RM2,000 more per month. Total monthly income of the top upline d-s is often at least RM4430. That is how top upline direct-sellers can earn RM 5-figures passive income per month in good months and show off their Mercedes and bungalows to tempt new members.
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Thanks for the Calculations. My upline never mention about this, just mention how much I earn by recruiting people as there are a sign up fee of RM90 and annual renewal fee of RM60
QUOTE(blueblueoutofblue @ Aug 26 2020, 12:31 PM)
The guy I introduce Amway 16 years ago, himself and 2 brother are diamond, and EDO 🤔
I have different career path, but his persistent let him become millionaires.
They are the largest youth network in Malaysia and youngest Diamond in Malaysia, and only family in the world where all 3 brothers is Diamond
Is the family surname start from Teh?
QUOTE(sweet_pez @ Aug 26 2020, 10:46 AM)
Well, MLM is also a mode of business. There are pros and cons to it but of course, through their tactics, MLM has made a bad name for itself in many ways.
Amway's products are fine if you ask me. They have a variety of offerings; in a way it's like, something for everyone - from toothpaste to household products, skincare etc.
If you wish to do this, there's no problem. #1, you've got nothing to lose. May want to give yourself a couple of months to try out and see if it works for you. End of it, if you realize this is not your cup of tea, there's basically little monetary 'loss' or investment involved.
But if you're going into it, just remember that Amway is so widespread that everyone knows about it and easily 1 in every 10, has been approached by an agent. What are the chances of you getting new business? I'm sure there are potential customers/ people out there but you'll have to work twice, triple as hard, to get people in. Another reason is that people are increasingly aware of their surroundings and often grew more skeptical when old classmate or friend suddenly contact them out of the blue. Also, don't be surprised if some people condemn or decided not to associate with you for reasons of such.
Story:
Several years back, a good friend whom i had known for many years (and kept in touch occasionally), asked me out for lunch out of the blue. I thought it was a catch up session but ended up, he was busy talking about buying properties and repeatedly asked me about it. Well, it's his new job in real estate. Although it was annoying but nevertheless, he's an old friend, naturally i let it slide.
2nd time he called me out about 2-3 months down the road and the same pattern repeated. I couldn't even finish my lunch because I was so disheartened. After the lunch, he texted to ask if i'm alright because i appeared quiet during the session. So me simply told him what I felt and that I didn't appreciate him turning a catch up session into a selling pitch that I didn't ask for. It was insincere; a lunch with ulterior motive.
Thus i asked him not to contact me anymore unless it's a pure catch up session which I want nothing to do with him trying to sell me something. It was blunt and direct. Out of embarrassment, he apologized and said he didn't know he appeared pushy about it. We lost touch for a bit since then but I was willing to lose this friendship when I threw the dagger at him.
Why would I want to remain friends with someone who isn't upfront with me about his intention?
After roughly 1 year of the episode, he texted me again and said he's no longer with the job and apologized again for what he did in the past.
--> Just remember you'll potentially need to put up with something like this, or worse.
My upline told me to start with strangers. Saying we are not selling them product, but are Giving people a chance, many are looking for chance to get another source of income, thats why according to him, he said we are selling ppl dreams and hopes
But i never fully believe him la, just 50%, because i am not sure i can do that or not. Seems more like brainwashing
QUOTE(Hobbez @ Aug 26 2020, 11:12 AM)
I'm surprised Amway still around in Msia although not surprised that the former Diamond earners are not earning as much as they used to. Downlines drying up is what I would expect....
The environment has changed a lot compared to before. Before no internet. Now internet, ppl can buy anything they want online before someone sells a direct selling product to them. Why would they buy the more expensive MLM products in the first place?
MLM relies on human-human interaction so I guess it will always be around, but it can ruin many relationships if you are not careful.
The best is avoid selling MLM to friends and only sell to strangers. But strangers are supposed to be much harder right?
So it comes down to your sales skills. How good you are as a salesman....and even if you are good, it's very hard. Need to drive here and there and everywhere (costs a lot of money) and expand lots of energy.
If you think you are a good salesman in one-to-one situations, you can try MLM. Otherwise, you are wasting your time like the 100000s of people out there who tried and failed at MLM. This is what they won't tell you at their seminars. Not everyone is cut out to be a good salesman.
TBH, i already enter. BUT already 3-4 months, i never show my commitment to it or any effort shown coz i am still 50 50, unsure to believe it
My upline told me to start from strangers if i don want to hurt my friendship with my friends
QUOTE(UrbanGraduate @ Aug 26 2020, 11:21 AM)
If true, you think ppl wont join in droves?
In reality its actually hurts your career progression unless if you dabble in sales la
Yesterday one of them told me she get first class degree but still earn 3k, she quit her full time job and join here, earning 7-8k monthly, she feel that degree is useless
Aug 26 2020, 10:13 AM
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