A

Project
Report
On
Multi Level Marketing
(Amway)

Submitted to: Submitted by:

Prof. Devang Patel 1) Bhaumik Shiroya(M00139)

2) Priya Ladani(M00120)

3) Nemish Viramgama(M00121)

4) Nehal Bhavsar(M00135)

5) Harshil Modi(M00125)

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 Table of content

Particular Page No:

1. History.......................................................................................................................03
2. Introduction..............................................................................................................03
3. ABOut
MLM................................................................................................................03
3.1. Definitions.....................................................................................................03
3.2. Example.........................................................................................................04
4. Process of MLM........................................................................................................05
5. Network Marketing Business..................................................................................07
5.1. N.M.B is different from other.......................................................................07
5.2. Draw backs of N.M.B....................................................................................08
5.3. Characteristics of N.M.B..............................................................................08
6. MLM lead generation................................................................................................09
6.1. 7 Strategies...................................................................................................09
6.2. 6 way to generate the best MLM lead.........................................................10
7. Advantages and Disadvantages.............................................................................10
8. MLM software...........................................................................................................11
9. Reason for failure in MLM.......................................................................................11
10. Pyramid scheme.......................................................................................................14
11. The real problem with network marketing.............................................................15
12. Government regulation on MLM.............................................................................16
13. Articles from news paper........................................................................................16
14. Top 25 company of MLM.........................................................................................16
15. Recommendations...................................................................................................17
16. Practical report on Amway......................................................................................18
Summary of our interviews.........................................................................29
31. References.............................................................................................................. 31

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 1. History:

It is generally accepted that the first multi-level marketing plan was introduced in 1945 by
the California Vitamin Company (shortly afterwards to become Neutralise). The plan allowed
Neutralise distributors with at least 25 regular customers to recruit new distributors and draw
a 3 percent commission from their sales. Unlike traditional direct selling, this was an ongoing
payment whenever the customer re-ordered; allowing direct sellers to build a sales
organization that could generate a residual-like income.(1)

The 1980s saw a major shift as companies began managing the stocking and distribution of
products as well as commission payments to their members. This allowed members to focus
on selling. Today, most MLM companies act as logistics companies that take orders, ship
products and calculate and pay commissions.

With the arrival of the Internet, MLM companies have started to go online. Many established
MLM companies began to use the Internet to promote their products. At the same time,
many other new MLM companies started their businesses using the Internet, a model
generally called online MLM.(2)

2. Introduction

Multi-level marketing (MLM) is a marketing strategy in which the sales force is

compensated not only for sales which are personally generated, but also for the sales of
others who are recruited, creating a down line of distributors and a hierarchy of multiple
levels of compensation. It is a kind of network or referral marketing. A company can be
termed MLM when the products or services are distributed by independent distributors. Their
compensation depends on their own sales as well as the sales of other distributors they
have included in the company. The term multilevel comes from the concept of recruiting and
training distributors as a part of the sales team within the company.(3)

Multi-level marketing is a legitimate business strategy, though it is controversial. One

problem is that pyramid schemes, which use money from new recruits to pay the people at
the top, often take advantage of people by pretending to be engaged in legitimate multi-level
marketing. Pyramid schemes can sometimes be spotted by their greater focus on
recruitment than on product sales.(4)

3. ABOut MLM:

Around the world, direct selling is a growing channel of retail distribution for 'low ticket'
consumer goods; particularly personal products, cosmetics, nutritional supplements and
household goods for which there is a strong repeat market. Traditionally, direct selling
companies offered self employed direct sellers a flexible part time earnings opportunity. The
direct sellers were usually managed by employed sales managers.(5)

3.1 Definition:

1. Multi-level marketing (MLM) is a marketing strategy in which the sales force is

compensated not only for sales they personally generate, but also for the sales of the
other salespeople that they recruit.This recruited sales force is referred to as the
participant's "down line", and can provide multiple levels of compensation.Other terms
for MLM include pyramid selling, network marketing and referral marketing.(6)

2. A strategy that some direct sales companies use to encourage their existing distributors
to recruit new distributors by paying the existing distributors a percentage of their
recruits' sales. The recruits are known as a distributor's "downline." All distributors also

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 make money through direct sales of products to customers. Amway is an example of a
well-known direct-sales company that uses multi-level marketing.(7)

3. Direct selling method in which independent-agents serve as distributors of goods and

services, and are encouraged to build and manage their own sales
force by recruiting and training other independent agents. In this method, commission is
earned on the agent's own sales revenue, as well as on the sales revenue of the sales-
force recruited by the agent and his or her recruits (called downline). Also called
multilevel marketing (MLM), cellular marketing, or by other such names, it is a multi-
billion dollar worldwide industry that distributes practically any portable item,
although restricted or banned in several countries due to its history as a vehicle
for consumer fraud. Said to have been pioneered by the now-defunct California
Vitamin Company in 1941, it is a method employed by large firms such Amway,
Melaleuca, Nikken, and Shaklee-Nagamuchi.(8)

4. “A sales system under which the salesperson receives a commission on his or her own
sales and a smaller commission on the sales from each person he or she convinces to
become a sales person.”(9)

5. Multi-level marketing businesses function by recruiting salespeople (also called

Distributors, Independent Business Owners, IBOs, Franchise Owners, Sales
Consultants, Beauty Consultants, Consultants, etc.) to sell a product and offer additional
sales commissions based on the sales of people recruited into their downline, an
organization of people that includes direct recruits, recruits' recruits, etc. This
arrangement is similar to franchise arrangements where royalties are paid from the
sales of individual franchise operations to the franchisor as well as to an area or region
manager, but in some MLM programs, there can be seven or more levels of people
receiving royalties from one person's sales.(10)

3.2 Example of MLM(11)

1. Amway is the best example of MLM, but there are many others. Cutco Knives are
marketed through Vector Marketing, both Vector and Cutco are owned by the same
parent company.
2. Aflac(borderline case, like Farmers Insurance): Aflac sells supplemental health care
insurance, including in Japan which has a vestigial and increasingly inadequate national
health care plan. It is not a full-blown MLM, but has many attributes of one.
3. Alticor parent company of Access Business Group and Quixtar and Amway. Originally,
Alticor was Amway, but changed its name and incorporated Amway outside the USA as
a wholly-owned subsidiary.
4. Farmers Insurance mostly sold through inexperienced agents recruited by district
managers. While most insurance is sold through third party firms, Farmers has a
peculiarly MLM-style of recruiting agents who have no experience whatever with
insurance.
5. Mary Kay Cosmetics (extremely well-known; recruits are supposes to show customers
how to use the products). Uses a scheme of leasing cars to sales people who make
monthly targets.
6. Nikken (Japan-based health care products, dominated by magnets)
7. Nu Skin (Japan-based health care products) product was Interior Design Nutritionals
(IDN), since renamed Pharmanex also markets.
8. One of the other example of is Arbonne which is international company offering
skincare product. The product develope in Switzerland and based on botanical
principle.(12)
9. An example of a pyramid scheme is Malaysian SwissCash.(13)

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 4. Process of MLM

Professional network marketers all have a system for bringing new distributors onto their
team. The details of the implementation are widely varied, but the basic structure is common
across all systems that I have studied, and the true professionals know where they are in the
process with each prospect.(14)

 Five steps process

1. A sales representative(a distributor) first becomes effective at selling a product or a

services to a consumer.

2. Recruit one person and train them how to get customer. This person would be called
your downline.

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3. Once your sales rep can get customer at will, and then train them how to recruit another
person.

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4. Ensure that your sales rep can train his new sales rep how to get customers.

5. Then, you recruit one other person and repeat steps two through four. Keep doing this
until you have reached the income you desire.(15)

5. Network marketing as business

Network Marketing has advantages and disadvantages, just like every other kind of business
model, Network marketing is also known as referral marketing, cooperative marketing, MLM
or multi-level marketing. At it's root Network Marketing business requires that you build a
distribution network, Network Marketing is not for everyone. In reality, only a small
percentage of those who pursue the industry succeed in it. The reasons are complex, and
there are no easy answers because human relationships are unique and cannot be
categorized into a set of rules and tasks to be followed.

Most successful Network Marketers are positive, extroverted people who have a large circle
of influence. In other words, they are credible and respected, and have a large number of
people who know them, like them and trust them. Successful Networkers have been
successful in other areas of life, and can translate that success into the Network Marketing
arena. Network Marketing at its root will always require good, old fashioned conversation
whether it be in person, via telephone, e-mail or instant messenger.

5.1 Network Marketing Business Different from other

Traditional businesses are based on a few business owners selling their products to many
customers. The Network Marketing business model is based upon many business owners
each selling products to a few. The traditional business strives to be unique, whereas the

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Network Marketing business strives to be duplicatable. The traditional business sells
products. The Network Marketing business sells products and offers a business opportunity.
Network Marketing business success requires that you sell products, and that you develop a
team of business partners who also sell products.

To develop a solid, six figure income in Network Marketing business, an individual really
need to have a strong sense of self direction, an unflagging optimism, and the enthusiasm
and passion to promote your product and business daily to the people around you. Network
Marketing leaders make a point to speak to five to ten NEW prospects daily to keep a
regular flow of new people into the business and also need to grow personally as well as
professionally, to confront own inner fears and limitation and to take the time to learn the
skills need to succeed in the business.

 Network Marketing in Controversies

This kind of business always comes in controversies and always un news because of some
reasons they are as follows
Market Saturation — Some people believe that the Network Marketing model itself is
flawed because an unlimited number of distributors selling products creates market
saturation. A good research project would be to compare the relative income levels of
distributors coming into a company that is mature and has more distributors, with those of
distributors entering a young company without a lot of distributors.
Unscrupulous distributors — Unfortunately Network Marketing can attract lazy people
who think they will make money off of the work of their downline without selling products
themselves. Important in Network Marketing to focus on working hard. There are also some
Network Marketers who do not think ABOut targeted advertising, and instead try to sell their
products or their business opportunity to anyone who breathes, regardless of whether they
want to hear ABOut it!
This approach can alienate friends and makes a terrible impression, thereby contributing to
the 'sleazy' image of Network Marketing. Even worse, some companies use this as the
model of how to start your business. There are Network Marketing distributors who clog up
the internet with zillions of business opportunity unsolicited e-mails, newsgroup posts and
other unscrupulous advertising.

Scams — Some scam artists use Network Marketing to distribute their products quickly and
then take the money and run, giving the entire industry a bad name, And due to this many
people lost their money. Some of the companies who involves in this kind of scams are
Speak Asia
Tulip
RCM
Swarn Laxmi Yojna.(16)

5.2 Drawbacks of network marketing business

Probably the biggest disadvantage to network marketing is that it can be difficult to embark
in your own business. Network marketing unfortunately has a kind of negative stigma to it
and most people are suspicious of network marketing thinking that it is a pyramid scheme, if
an one is not in this kind of business its hard to adjust and have to be a self starter but the
rewards can be just as great.

To avoid these disadvantages, work with people who know what they are doing and can
teach, support, and help. The worst experience in network marketing comes when someone
join a company, and fail every time.(17)

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 5.3 Characteristics of a Top Network Marketing business

 Integrity and honesty

 Full disclosure ABOut the company’s ownership, financial strength, product
development, and distributor relationships
 A mission statement along with ethics standards and values
 A simple, duplicatable marketing system that people from all orientations can follow
with a reasonable expectation of success
 Products that have been tested for reliability and marketability
 A fair compensation plan that’s easy to understand and rewards both full-time and
part-time distributors
 Support for the associates in the form of outstanding marketing materials, conference
calls, and national meetings
 An experienced management team
 Training that teaches people what to do and how to do it so that they can become
successful within a reasonable period of time
 Technology that makes it easy for distributors to recruit, train, sell products, and
manage their organizations, and for retail customers to buy products.(18)

6. MLM lead generation

MLM lead generation is critical when it comes to finding success in NetworkMarketing. Just
as any business thrives or fails based on their flow of leads, an MLM business is no
exception. Leads may seem more important when you just get started in a Network
Marketing program, but lead generation will remain a constant concern throughout your
career in the industry.

6.1 Seven Strategies

There are a number of different strategies that can be used for lead generation, but the best
results are achieved by using a combination approach with multiple strategies. Here are
seven categories of MLM lead generation approaches.

1. Warm market

Warm market is where most people start their MLM marketing. Warm market means all
of your friends, family, and coworkers- people you already know, or have known. It is the
simplest and fastest way to succeed with your MLM lead generation strategies.

Warm market is used in both the sales and direct marketing industries. In direct
marketing it is similar to using the phrase "permission marketing". In sales and direct
marketing your warm market is said to be people you know, which could be friends,
relatives and existing customers, even referrals are said to be warm."Cold market"
refers to a sales person's future or prospective customers(19)

2. local prospecting

Local prospecting for MLM lead generation is called cold market prospecting. Because
of the huge amount of rejection- the cold shoulder you can expect.

3. Traditional advertising

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 Traditional advertising avenues like radio, TV, print, direct mail, and outside advertising
like billboards and ad space on buses or cabs is not very effective for MLM lead
generation.

4. Buying Leads

Buying leads is dangerous unless you have no concerns ABOut money, because you
may find yourself wasting a bunch of it.

5. Search Engine Marketing

Create a well-designed lead funnel that starts with your advertising on one of the search
engines sites and directs people to a capture site with a compelling offer that gives you
a high conversion rate and registration rate from your visitors.

6. Social Networking

Social Networking is a huge topic too. It’s all ABOut relationships and offering solutions
to those you meet.

7. Attraction Marketing

Attraction marketing is the most appealing method of online MLM lead generation.
That’s when you become such an authority figure that people seek you out rather than
the other way around.(20)

6.2 Six ways to Generate the Best MLM Leads

Generating the best MLM leads is both a skill and an art that can be learned. One of the
important factors to remember is that you are talking to real people. It’s not ABOut you. It’s
ABOut them. Find out their feelings, their goals and wants. Then provide a solution. Build a
relationship and then a partnership.
The fact is most people don’t care ABOut your company, pay plan, etc. They care ABOut
finding a solution to their problem.

1. Generate MLM leads with a personal website.

Learn to sell yourself. Why should someone join you? What makes you unique? And
what value and expertise do you bring to the partnership? Answer these questions on
your Website. Sell “you.”

2. Use an auto responder to acknowledge your MLM leads.

As leads visit your website, offer a “free report or newsletter.” This will build your
subscriber list and allow you to communicate with your prospects. Use it to provide
valuable information. Timing is everything. If the timing isn’t right today, it may be next
year. Be that person who has stayed in touch.

3. Have an MLM leads generation plan and goals.

Will need to set goals and stick to them. Be consistent and stay focused.

4. Write articles to generate MLM leads.

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 Article writing is a great avenue for building a presence online. Submit these articles to
e-zines and newsletters. Articles are powerful because you can present yourself as an
expert in your industry.

5. Create a blog for MLM leads.

Blogging is fun and it allows you to write freely to your niche. Blog posts can be various
lengths. Blog regularly and watch your traffic grow.

6. Learn to Squidoo for MLM leads.

Anyone can do it. It’s simple, fun and it allows you to monetize your marketing. I’ve
created some of my best MLM leads through Squidoo.

Conclusion: Generating Multi-Level Marketing Leads

Generating the best MLM leads is a process that won’t happen overnight. But it will
happen. Pick one or two lead generating avenues and master those. Then, when you
are ready add one more and repeat.(21)

7. Advantages and disadvantages of MLM

Advantages of MLM:

 MLM marketing holds many advantages, mostly for the business. A business that use
MLM marketing as a means to market as a product or service gains the advantage of
not having to hire full time salespeople.
 Marketing is done thought a multi tiered system of independent representatives, each
in business for him or herself.
 These are the people responsible for selling the product or service offered by the
company and for recruiting new independent salespeople into the business.
 One distinct advantage for the independent representative is low overhead.
 The affiliate does not have to keep inventory on hand.
 Most orders are taken either online or through a campaign of catalog distribution.
 With multi level marketing opportunities you can say goodbye to the daily grind and
never ending dissatisfaction of life.
 Once you have built your multi level marketing business opportunity to a certain level,
it will not take a full work schedule to keep it going smoothly.
 Having a successful multi level marketing businesses can give you the money you
have always dreamed of.

Disadvantages of MLM:

 MLM is often a very attractive business model to these looking to supplement their
current income. The major draw is the idea of getting paid someone else’s work.
 You must make sure you are joining the best, do your research.
 With a online marketing business opportunity you usually need a huge down line to
make good money.
 With a failure rate so high, getting them involved may burn some bridges later if it
doesn’t work out.
 One major disadvantage of MLM/affiliate programs is also its biggest draw for new
people, the downline.(22)

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 8. MLM software

A Xentric technology is fully dedicated to multi level marketing software development. On the
bases of their experience they develop MLM software. Their motto is to maintain good
business relationship and also utilize best industry professionals for recommendations and
also provide conference information and various other materials to help you start MLM
business.

Software for MLM companies:

"Software plays vital role in the success of MLM Organization"

They have a group of highly qualified and experienced Software Professionals and Technical
support Executives. They have already worked with many MLM companies and successfully
implemented MLM Software at the client side Our MLM Software is a product and
customized solution for handling various activities of MLM Company like Registration,
Confirmation, Product package / delivery, Genealogy- various type of tree with respect to
plan, Incentive calculation, Integrated Cheque printing, weekly report, payout report and
more.

It helps in
 Start MLM Company
 Software & Online/Web-Based Systems
 E-Brochure
 Development
 Plan Evaluation
 Marketing Strategies
 Product Line Expansion
Multiple MLM software plans like

1. Binary Plan
2. Matrix Plan
3. Australian Binary
4. Spill over Plan
5. Board Plan
6. Growth Plan
7. Step Plan
8. Generation Plan
9. Auto Filling Plan

1. MLM Binary plan

The Binary plan is an organizational plan used by multi-level marketing (MLM)

organizations wherein new organization members are introduced into a Binary Tree
structure, or a left and a right sub tree. A typical MLM binary tree structure: The individual
will receive compensation from the sales of the down line red members. Normally, one sub
tree is referred to as a Power Leg while the second sub tree is a Profit Leg.

2. MLM Matrix Plan:

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MLM Matrix Plan Development generally works by permutation of MLM binary. The company
has capable and proficient Matrix Plan Experts, who takes absolute conscientiousness for
Matrix MLM Software Development. The MLM plan is triumphant, until and, unless there are
a large number of people recruited for the matrix or force matrix process. The people
recruited work in united loom to accomplish the goals of maximum profit.

3. MLM Australian Binary:

Both Australian Binary plan and Tri-Binary plan looks similar, the only difference between
them is during the payout for pair, matching is required in Tri-Binary, whereas no matching is
required in MLM Australian Binary Plan. Many MLM plans are approved by the clients, but
the Australian binary plan has its own importance. Australian Binary Plan Development is
comparable to tri binary plan development. The difference is less but can't be negotiated.

4. MLM Spill over Plan:

MLM spill over plan is just similar to binary plan. To start a multilevel marketing business we
need to understand the working of the binary plan. At the initial level we have to join some
people to our down line. As they reach their target we need to recruit some more people to
next down line, the joining process goes on. Every upper line person gets benefit of its down
line person. Spill over means to a person spills over to its down line person. Here the profit
grows as the down line person performs.

5. MLM Board Plan:

Preeminent and foremost MLM opportunities are being offered to MLM clients in the board
plan MLM. Board plan compensation is the newest and gaining the esteem among MLM
clients. MLM Board Plan Software Experts of the company are dexterous and proficient in
understanding the client requirements regarding the building and modification of the existing
board plan in the MLM industry. After the commencement of MLM Board Plan, then every
member has to sponsor the people in 3:3 ratios. An excellent amount of reward points and
incentives can be made on the number of joining made by the parent board plan member.
Significant opportunities can be made accessible through joining into the Board Plan MLM

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Software development.

6. MLM Growth Plan:

The MLM growth plan is best multi level marketing software. It provides good relation
between vendor and owner. It provides more money in less time. Xentric Technologies
provides many MLM Software plans but the one of the more efficient plan is MLM growth
plan. In the network marketing we sell the product and business ideas to our client and take
money. Any software can be success if it gives satisfaction on both client and owner side.

7. MLM Step Plan:

This is a simple, straightforward compensation plan. It allows for a distributor to have a first
level of unlimited width. The levels the company pays commission on generally range from 3
to 9 levels deep. The more volume generated by any one and organization, the more a
person can earn. A disadvantage to this plan is that building wide means the distributor may
give less help to his personal enrolees.

8. MLM Generation Plan:

This is the most common of all the compensation plans. It is where most of the really big
money is made in MLM. This big money, however, is made by a very small percentage of
people. Breakaway plans are geared for full-time effort. Attrition is the highest with
breakaway plans and it generally will cost more to build your business. This is a work
program. It takes persistence, salesmanship, and requires the ability for you to train your
recruits. Companies which use breakaway plans tend to pay higher commissions. However,
the plan may be extremely difficult for most people to duplicate.

9. MLM Auto Filling Plan:

MLM Auto filling Plan is a non referral plan, which aims to gratify specific product promotion
in the MLM industry. An online solution for the Auto filling MLM Software Development is
being offered by the company. The Auto filling MLM Plan progresses
in the multiple of 2, 3, and 4.

Salient Features of MLM Software

 Unique way to provide online solution

 MLM Software is user Friendly
 MLM Software is Simple, reliable and easy to operate
 MLM Software has Fully Organized member and administration section
 MLM Incentive calculations / Statement generation within few minutes.(23)

9. Reasons for failure in MLM

1. The most important reason of a failure on our opinion is a lack of desire.

2. The second reason we would like to mention is a lack of action.
3. The third reason for people to fail in network marketing industry is a lack of focus.(24)
4. The distributor not talking to people.
5. The distributor Not talking to enough people
6. The distributor not talking to the right people
7. Distributor not talking right to people.(25)
8. Lack of Training/No Self Growth

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9. No Goals Set
10. Fear.
11. Lack of Leadership(26)

10. Pyramid scheme

 Introduction of Pyramid Scheme:

A pyramid scheme is a non-sustainable business model that involves promising participants

payment or services, primarily for enrolling other people into the scheme, rather than
supplying any real investment or sale of products or services to the public

A pyramid scheme is a fraud based on recruiting an increasing number of investors.

E.g. new recruits pay a sum of money to join the "program" and become a distributor of a
product or service, and are told that they'll make money based on the number of new
recruits they in turn bring in. The basic idea is that the higher up on the pyramid you are, the
more money you'll make.(27)

 Protect Yourself from Pyramid Schemes:

E.g. when you're investigating a potential business opportunity, you'll want to gather all the
information you can ABOut the multi level marketing company's products and operations.

Get (and read) written copies of the company's sales literature, business plan and/or
marketing plan. Talk to other people who have experience with the multi level marketing
company and the products, to determine whether the products are actually being sold and if
they are of high quality. Check with the Better Business Bureau to see if there have been
any complaints ABOut the company. Understand when you're at that multi level marketing
recruitment meeting. Inflated claims for the amazing amounts of money you're going to make
should set your alarm bells ringing.

Being part of a successful multi level marketing company can be both profitable and fun, but
unfortunately, some purported multi level marketing opportunities are actually pyramid
schemes designed to flatten both your wallet and your dream of running a business.(28)

11. The Real Problem with Network Marketing and Multi-Level Marketing (MLM)

The real problems happen owing to pyramid structure but you can't really take issue with the
tiered compensation structure because almost every large sales organization in the world
has that. Salespeople get commission, and sales managers get overrides or bonuses on top
of that, and sales directors on top of that, and VPs on top of that.

Now certainly, there are illegal pyramid, or "Ponzi", schemes. This is where the money is all
being made off of signing up other people, with little or no real product ever being delivered.
But in spite of whatever perceptions people may have, the fact is that Amway, Excel,
Meleleuca, PrePaid Legal, USANA, and many others have sold millions upon millions of
dollars of products to happy customers, many of whom are NOT also reps. So, there may be
a perception problem here, but if so, the perception is out of line with the reality.

The real problem with MLM is not MLM itself, but some of the people it attracts. Network
marketing is just a business model, and it really amounts to "micro-franchising". Its upside is

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that it has a very low cost of entry, with the potential for exceptional revenue, and there are
those who achieve that.

But those same things that make it attractive make it attractive to many who are NOT really
qualified or prepared to become business owners. The salient characteristics of MLM make
it attractive to people who:

 have not done well in their business or profession and have little money saved up to
invest
 have no previous experience owning or running a business
 have no previous experience in sales
 have little or no experience developing business relationships other than that of
employer/employee/co-worker
 are not satisfied with their current level of income
 have unrealistic expectations of the amount of work involved compared to the revenue
realized

Solution:

There's a first time opportunity for people to who is working in MLM. Their points are this—
recognize it for what it is, it's a business, and you are a business owner. If you are not aware
ABOut the how to do sell and all that things so, you need to learn ABOut how to do so, not
just from the network marketing/MLM experts, but from established experts in those fields.

Network marketers who are serious ABOut building a business should be reading and
learning ABOut business fundamentals, the latest sales and marketing techniques,
strategies for networking and business development, etc., not just swapping tips at your
team's weekly or monthly meeting. Act like a small business owner, and people will treat you
like one.(29)

12. Government regulation on MLM

Government is aware of a number of multi-level marketing companies operating in the

country are disguised as those selling products but they are inherently operating money
circulation scheme. Some complaints have been received, in the light of which, the
Government, in Department of Financial Services, has constituted an Inter- Ministerial Group
consisting of representatives from Department of Financial Services, Ministry of Corporate
Affairs, Reserve Bank of India, Securities Exchange Board of India, Department of
Consumers Affairs, CIEB (Department of Revenue) and SFIO to –

 Draft Model Rules on the Multi Level Marketing Companies and on the prohibited
schemeunder the prize Chits and Money Circulation Schemes (Banning) Act, 1978.
 Frame clarificatory guidelines on how to distinguish between genuine direct sales
from disguised money circulation scheme.

This information was given by Minister of State for Corporate Affairs Shri R.P.N. Singh in
reply to a written question in the Rajya Sabha today.(30)

13. Articles from news paper

 87 companies under scanner for multi level marketing schemes.(31)

 Government ask states to ban multi-level marketing schemes.(32)

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  Government finalising rules for multi-level marketing companies, stop corporate
fraud.(33)
 Man arrested in multi-level marketing fraud case(34)
 Government must build a direct selling framework(35)
 Draft regulation soon for multi-level marketing firms(36)

14. Top 25 company of MLM(37)

Company Time In Business

1. Amway 1959 - 53 Years
2. Melaleuca 1985 - 27 Years
3. USANA 1992 - 20 Years
4. Nu Skin 1984 - 28 Years
5. Isagenix 2002 - 10 Years
6. Forever Living 1978 - 34 Years
7. Legal Shield 1972 - 40 Years
8. ACN 1993 - 19 Years
9. Herbalife 1980 - 32 Years
10. 4Life 1998 - 14 Years
11. Advocare 1993 - 19 Years
12. 5LINX 2001 - 11 Years
13. Synergy WorldWide 1999 - 13 Years
14. Arbonne 1980 - 32 Years
15. Xango 2002 - 10 Years
16. Nature's Sunshine 1972 - 40 Years
17. Morinda 1994 - 18 Years
18. Mannatech 1994 - 18 Years
19. Shaklee 1956 - 56 Years
20. Nikken 1975 - 37 Years
21. Sunrider 1982 - 30 Years
22. Freelife 1995 - 17 Years
23. Neways 1992 - 20 Years
24. Juice Plus (NSA) 1970 - 42 Years
25. GNLD 1958 - 54 Years

15. Recommendations

 Consumers would be wise to avoid health-related multilevel products altogether. Those

that have nutritional value (such as vitamins and low-cholesterol foods) are invariably
overpriced and may be unnecessary as well. Those promoted as remedies are either
unproven, bogus, or intended for conditions that are unsuitable for self-medication.

 Government agencies should police the multilevel marketplace aggressively, using

undercover investigators and filing criminal charges when wrongdoing is detected.
People who feel they have been defrauded by MLM companies should file complaints
with their state attorney general and with local FDA and FTC offices. A letter detailing
the events may be sufficient to trigger an investigation; and the more complaints
received, the more likely that corrective action will be taken.(38)

17
 16.Practical Report on

Type of business : Private.

Industry : Direct selling.
Founded : 1959
Founder(s) : Rich DeVos,
Jay Van Andel
Headquarters : Ada, Michigan, United states
Area served : Worldwide
Key people : Steve Van Andel (chairman)
Doug DeVos(President)

18
 Al Koop(Chief Executive)
Russell Evan(CFO)
Revenue : USD 11.3 billion (2012)
Employees : 20,000(39)

16.1 Introduction:

Amway is the largest direct selling company and manufacturer in the world that uses network
marketing to sell a variety of products, primarily in the health, beauty, and home care
markets. Amway was founded in 1959 by Jay Van Andel and Richard DeVos. Based in Ada,
Michigan, the company and family of companies underAlticor reported sales of USD$11.3
billion for the year ended December 31, 2012 - the seventh consecutive year of growth for
the company. Its product lines include home care products, personal care products, jewelry,
electronics, Nutrilitedietary supplements, water purifiers, air purifiers, insurance and
cosmetics. Amway conducts business through a number of affiliated companies in more than
a hundred countries and territories around the world. Amway was ranked No.114 among the
largest global retailers by Deloitte in 2006, and No.25 among the largest private companies
in the U.S. by Forbes in 2012.(40)

17. Meaning and history of Amway

“Amway” means Amway India Enterprises Pvt. Ltd. a company registered under the
companies Act,1956 having its registered office at Amway India Enterprises Pvt. Ltd., First
floor, Elegance Tower, plot No.8, Non Hierarchical Commercial Centre, jasola, New Delhi –
110 025.

What does the word Amway mean? Amway is an abbreviation for "American Way" and was
coined in 1959 by company founders, Jay Van Andel and Richard DeVos. Short, unique and
easy to remember, Amway has been registered as a corporate name and trademark ever
since.
In the following decades, Amway Corporation successfully established itself as a leading
multilevel marketing business, built on strong values and founding principles that continue to
sustain our company today. The business is built on the simple integrity of helping people
lead better lives.

Today, Amway is a multibillion-dollar international business representing freedom and

opportunity to millions of people in more than 88 countries and territories around the world.
Amway generates US $ 9.2 billion (January - December '09) in sales at estimated retail
through this global product distribution network. We offer over 3 million Business Owners the
inspiration to grow those businesses, and we work hard to provide new and better ways for
them to achieve their life goals.(41)

17.1 International expansion

Amway expanded overseas to Australia in 1971, to Europe in 1973, to parts of Asia in 1974,
to Japan in 1979, to Latin America in 1985, to China in 1995, to Africa in 1997, to India and
Scandinavia in 1998, to Russia in 2005, and to Vietnam in 2008.(42)

18. Business model

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Amway combines direct selling with a multi-level marketing strategy. "Independent Business
Owners" (IBOs) may market products directly to potential customers and may also recruit
(sponsor) and train other people to become IBOs. IBOs may earn income both from the retail
markup on any products they sell personally, plus a performance bonus based on the sales
volume they and their downline (IBOs they have sponsored) have generated. People may
also register as IBOs to buy products at discounted prices. Amway provides training to the
IBOs on products and business skills through the sale of "business support materials", for
example, DVDs, CDs, books, websites, seminars, and business conventions.(42)

19. Vision and Mission of Amway

Inspiring people to live better lives.

To provide the best business opportunity. To deliver exceptional quality products to urban
and semi urban homes in the areas of Nutrition and Wellness, Beauty, Personal care, Home
care, Home tech and Insurance.(43)
20. Amway India Factsheet
20.1 Country’s no 1 direct selling company

 Amway India is the country’s leading direct selling FMCG-company which manufactures
and sells world-class consumer products. All its products are covered by a 100 per cent
Money Back Guarantee. If not completely satisfied with the product, the consumer can
return it for a 100% refund.
 There is no joining fee for the Amway business – any adult can enrol as an Amway
distributor, without any payment.

20.2 Corporate credentials

 Amway India is a wholly owned subsidiary of US $ 10.9 billion Amway Corporation, Ada,
Michigan, USA. Amway Corporation is one of the largest Direct Selling companies in the
world. It has a presence in 80 countries & territories.
 Established in 1995, Amway India commenced commercial operations in May 1998 and
has emerged as the largest Direct Selling FMCG Company. The Company has its
headquarters in the National Capital Region of India - New Delhi.

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 Amway has invested in excess of Rs. 200 crore in India of this; Rs. 22 crore is in the
form of direct foreign investment.
 Amway India has 500 full time employees and has generated indirect employment
for 2000 persons at all the contract manufacturer locations.
 The Company has provided income-generating opportunities to over 550,000 active
independent Amway Business Owners.
 Amway India provides free and unlimited training to all its distributors to help them grow
their business. Amway India conducts over 20,000 training sessions during an average
12-month period with an attendance of over 1.5 million Amway Business Owners and
prospects.
 Amway India recorded a sales turnover of over Rs. 2130 crore in 2011, up from Rs.1790
crores in 2010.
 Amway India is a member of the Confederation of Indian Industries (CII) and Federation
of Indian Chambers of Commerce (FICCI).
 The World Blind Union presented an award and citation to Amway India in 2003, for its
peerless work for the blind child.

20.3 National presence

In thirteen years of commercial operation, Amway India has established a nation-wide

presence of over 135 offices and 55 city warehouses and four regional mother
warehouses. The distribution and home delivery network set up with the support of
independent logistics partners is spread across over 5500 locations.

20.4 Manufacturing

Almost all Amway India products are manufactured in the country through seven third party
contract manufacturers. To bring the identified contract manufacturers’ production facilities
and skills to international standard, Amway has invested in transfer of state-of-the-art, world-
class technology to the contract manufacturers free of cost.

20.5 Products

 At present, Amway India offers over 130 products in five categories. They are Personal
care category, Home Care category, Nutrition & Wellness category, Cosmetics and
Great Value Products.
 With the exception of Cosmetics range (Artistry*) and some products in Nutrition and
Wellness category, all Amway India products and bottles are manufactured in India.
 The products match Amway’s global quality standards. They carry a tamper-proof seal
and a ‘100 per cent Money Back Guarantee'. Amway products are environment friendly,
and are not tested on animals. Amway encourages the return of its used product bottles
for re-cycling and to prevent their misuse.(44)

21. Competitors of Amway

21.1 Direct competitors:

 AVON

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 MARY KEY
 SURIDER

21.2 Indirect competitors:

 Local Indian companies.

 Changing Political & Economic Environment.
 Focus shifted from selling products to recruiting.

22. Some products of Amway

 NUTRILITE is the world’s No.1 selling Vitamins and dietary supplements brand.

 ARTISTRY is one of the world’s top five largest-selling Premium Skincare brands.

 Attitude, the new range of skincare products from Amway. Vitamin A,C,E.

 Dynamite's range of male grooming products.

 Glister Toothpaste is a revolutionary Multi-Action Toothpaste with Sylodent that offers

seven benefits.

 Satinique Advanced Range with unique Ceramide Infusion System uses nature's
own renewing technology to rejuvenate, strengthen and protect hair.

 SA8 Gelzyme is India's only 3-in-1 laundry detergent which pretreats, cleans and
softens. (45)

 G&H Range enriched with the goodness of Glycerine and Honey, deeply nourishes
and hydrates the skin for a healthy glow.(45)

23. Amway training models (46)

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Level 1- Basic product related trainings.
Level 2- Effective product presentation and selling skills workshops.
Level 3- Core line retailing workshops and certificate courses.
Level 4- Experiential trainings and events and leadership empowerment programs.

Level 4

Level 3

Level 2

Level 1

24. Sales and Marketing Plan

The Amway Sales and Marketing Plan is a low risk, business opportunity that is open to
everyone. It allows you to build your business through retailing products and sponsoring
other people who, in turn, can retail products and offer the business opportunity to others. By
passing your sales and marketing knowledge to your developing team, you not only build
your own business network but also enable others to build one of their own.

The Amway Sales and Marketing Plan has been operating for over 51 years and is available
in over 80 countries and territories around the globe.

The core of the Amway Sales and Marketing Plan's income opportunity is the sale of quality
AMWAY products to retail customers. As your Amway business grows, the rewards you earn
grow in proportion. The Amway Sales and Marketing Plan does not compensate anybody for
simply recruiting others as Amway Business Owners.(47)
25. Know this ABOut Amway

 Research and development

1. 65 R&D &QA labs worldwide.

2. 20,000 m2 of global lab space.
3. 700 scientists, engineers & technicians globally.
4. 240 technical consultants.
5. 200 published papers.
6. 75 university association membership.
7. 85 trade association membership.
8. 1000 granted patents worldwide.
9. 900 patents pending worldwide.
10. 100 advanced degree & 45 phDs.
11. 450 products focused on health, wellness & beauty.
12. Analytical services / quality assurance -10,000 + Scientific experiments per year, 7,441
raw material managed, 746 supplies in 44 countries.
13. $3.5 billion in bonuses and incentives.(48)

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 26. Top 10 Rules of Amway

1. No selling through retail stores

2. Truthful and accurate
3. Written sales receipts
4. Non Amway selling activities
5. Enticement to change lines of sponsorship
6. Manipulation of as mp / anti stacking rule
7. Retail effort
8. One distributorship rule
9. Plan presentation
10. There is no obligation to buy more products or business support materials than
needed(49)

27. Requirements to become distributer:

Without limiting Amway’s rights, the following are requirements for becoming a distributor or
renewing an Amway distributorship:

 A distributor must be at least 18 years of age;

 He must not be unable to manage his business due to mental or legal reasons;
 He must not have been suspended from his current profession or business by any
professional association, society, or institute;
 He must not be in jail and / or confined to any correctional institution of any kind.

28. Article

 By John McCain

John Sidney McCain III (born August 29, 1936) is the senior United States Senator from
Arizona. He was the Republican presidential nominee in the 2008 United States election.

McCain’s Economic Solution: Everybody an Amway Distributor

Even the Chinese will benefit from McCain's global economic solution! (Flickr: sinosplice)
Challenged to move away from generalities and bromides and provide specifics ABOut fixing
America’s troubled economic situation, Sen. John McCain, the Republican presidential
nominee, has at last responded. He presented a sweeping new idea so startling that not
even top economists and leading banking regulation authorities would answer phone calls
seeking comment.

“Every American should buy an Amway distributorship, sit back and watch the cash pour in,”
the Arizona senator declared. “I’ve studied almost every page of the Amway pamphlet.
Everybody will get rich. My economic advisers tell me this would have a very fundamental
effect on fundamental things — like jobs.”

McCain further predicted that Amway’s vast line of household products, spurred by huge
new demand after franchisees start beating the bushes to sell Amway distributorships to
others, who will sell distributorships to still others, who will sell distributorships to the yet
others, one of whom will actually have to buy Amway products to sell,

This will also create a “tsunami” in the manufacturing and raw materials sectors as suppliers
of alkali, palm oil, ammonia and other staples scramble to produce enough soap, sponges,

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stain-remover and other key commodities to stock distributors’ basements and garages
nationwide.

“This is my very own idea,” the Vietnam War hero and 26-year Capitol Hill veteran
emphasized. “Cindy [McCain's wife] thought everybody should buy a beer distributorship
instead,” he disclosed, “but not in Arizona.

“I told her that wouldn’t be fair to the fine folks, the Arizonans, or Arizonians, or whatever,”
McCain continued, “and, after all, my fundamental principle is fundamentally fairness to all, I
believe. But, by then, I realized Cindy had gone shopping.”

Bruce McCall, a humorist, is a regular contributor to The New Yorker and Vanity Fair. He is
the author of “All Meat Looks Like South America: The World of Bruce McCall” and “Zany
Afternoons.”(50)

29. Sales data of Amway

Year Wholesale Sales (INR)

1999 99 Cr
2000 248 Cr
2001 553 Cr
2002 626 Cr
2003 579 Cr
2004 636 Cr
2005 633 Cr
2006 768 Cr
2007 799 Cr
2008 1128 Cr
2009 1407 Cr
2010 1791 Cr
2011 2130 Cr
2012 2288 Cr (51)
30. The truth ABOut Amway

 Amway – 50 Facts

1. Amway is a global leader in the $102-billion direct selling industry. More than three million
Amway Business Owners operate independent businesses in more than 80 countries and
territories around the world.

2. Amway and its subsidiaries employ more than 13,000 people worldwide.

3. Amway and its subsidiaries reported record sales of more than $7.1 billion for the year
ending December 31, 2007.

4. Amway operates 65 Research and Development lABOratories worldwide, staffed by more

than 500 scientists, engineers, and technical professionals.

25
5. Amway Research and Development professionals have been awarded more than 500
patents and have had more than 400 papers published in top industry journals.

6. Amway is a leader in the U.S. Direct Selling Association, the World Federation of Direct
Selling Associations, the National Association of Manufacturers, and the U.S. Chamber of
Commerce.

7. Amway was ranked 43 on the Forbes Magazine 2007 list of “America’s Largest Private
Companies.”

8. Our eco-friendly home care products help maintain a cleaner environment and a cleaner
home.

Our Subsidiaries

9. Amway owns the Amway Grand Plaza Hotel and the JW Marriott Hotel in downtown
Grand Rapids, Michigan, as well as Peter Island Resort in the British Virgin Islands.

10. Amway owns the Laura Mercier line of cosmetics, which is sold in fine boutiques and
department stores.

11. Amway manufacturing facilities are located in Ada, Michigan, USA; Dongnai Province,
Vietnam.

12. Each year, 75 million units of soap, detergents, and cleansers; 150 million units of
cosmetics; and 6 billion vitamin and mineral tablets are produced by Amway.

13. Amway operates six distribution centers across North America, totaling more than 1.5
million square feet of warehouse space.

Nutrilite Products

14. Nutrilite is the world’s leading brand of vitamin, mineral, and dietary supplements,
according to 2007 sales figures.

15. In 2008, sales of Nutrilite products worldwide reached a record $3 billion.

16. More than 75 years ago, Nutrilite founder Carl Rehnborg created the first Multivitamin /
multimineral supplement sold in North America.

17. Nutrilite is the only global vitamin and mineral brand to grow, harvest, and process
plants on its own certified organic farms.

18. Nutrilite operates 6,400 acres of farmland in the U.S., Mexico, and Brazil, where plants
are grown and harvested in accordance with nature using sustainable, chemical-free
methods.

19. Nutrilite scientists are at the forefront of a new scientific discipline called nutrigenomics,
the study of how our genes interact with nutrients.

20. The Nutrilite Health Institute Scientific Advisory Board, a worldwide group of leading
nutrition, health, and genetics scientists, helps guide the future of the Nutrilite brand.

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21. The Nutrilite Health Institute Center for Optimal Health is a world-class teaching and
training facility offering visitors a personal, interactive path to optimal health.

Artistry Products

22. Since its 1968 launch, the Artistry brand has become the only direct sell brand in the
prestige skin care and cosmetics category with more than $1 billion in annual sales.

23. The Artistry brand is one of the world’s top five largest-selling prestige brands of facial
skin care and colour cosmetics.

24. More than 250 Artistry products are sold in more than 50 markets worldwide.

25. In 2007, the Artistry Scientific Advisory Board was established to lead Artistry
researchers and scientists in the study of skin and skin care.

26. Artistry Creme L/X is the most luxurious, technologically-advanced product ever
developed by Artistry scientists.

27. The Artistry Beauty Institute in Grand Rapids, Michigan, USA, is an in-depth,
comprehensive training destination for Business Owners.

Durable Products

28. iCook Cookware offers the most advanced technology in stainless steel cookware,
enabling busy families to eat healthier meals at home.

29. The eSpring Water Purifier was the first point-of-use system to combine carbon filtration
with UV light technology, removing 99.99% of bacteria and viruses.

30. In Europe, Amway sells more point-of-use water filtration systems—our eSpring Water
Purifier—than any other competitor, according to a study by the business research and
consulting firm Frost & Sullivan.

31. The Atmosphere Air Purifier removes 99.99% of indoor airborne pollutants that pass
through the system.

32. It would take 16 of the leading competitor’s air purifiers to do the job of one Atmosphere
Air Purifier.

Corporate Citizenship

33. Since its 2003 launch, the Amway One by One Campaign for Children has given more
than $52 million to make a difference in the lives of children around the world.

34. Since 2003, Amway employees and Business Owners have volunteered a combined
606,000 hours in support of One by One Campaign for Children projects.

Environmental Leadership

35. The first product launched by Amway in 1959 was L.O.C. Liquid Organic Cleaner- one of
the first-ever biodegradable cleaning products.

36. Amway recycles up to 95% of recyclable waste produced at our manufacturing facility in

27
Ada, Michigan, USA.

37. Amway was an early innovator in the use of biodegradable surfactants in its SA8
Laundry Detergents and its cleaning products.

38. No synthetic chemical pesticides, herbicides, or fertilizers are used on the organic
acreage where the plants used in Nutrilite™ concentrates are grown.

Endorsements and Sponsorships

39. Volleyball champion Gabrielle Reese and championship runner Sanya Richards are
spokespeople
for Nutrilite products

40. International soccer star Ronaldinho (born Ronaldo de Assís Moreira), a two-time
Fédération Internationale de Football Association (FIFA) World Player of the Year, is a
celebrity spokesperson for the Nutrilite brand.

41. International celebrity chef Jason Roberts serves as the Global Ambassador and
Culinary Expert for iCook cookware.

42. The Artistry™ brand is the official skin care and cosmetics sponsor of Skate Canada
events, and the Skate Canada national team.

Amway Business Owners

43. Globally, Amway has paid its Business Owners more in performance-driven bonuses
than any other direct selling company in history.

44. The top health and beauty brand in China is Amway.

45. Amway Business Owners follow Rules of Conduct and a Code of Ethics designed to
protect themselves, their customers, and the Company.

Overall Brand—Creating Change With a Caring Touch

46. Through Amway’s One by One Campaign for Children, we’re creating change with a
caring touch by volunteering in communities where we live and work.

47. The Amway business opportunity enables people all over the globe to create meaningful
change in their lives and to leave something of value to their children.

48. We care ABOut our Business Owners’ success, so we equip them with well-made
products, proven sales tools and a strong support system.

49. At Amway, we infuse a caring touch into everything, from our innovative products, to our
business opportunity to our eco-friendly farming practices.

50. This year, Amway celebrates 50 years of creating change through leadership,
Innovation, caring and vision.(52)

30. Summary of our Interview

 Questioners for interviews:

28
 1. Why you join Amway?
2. Is it profitable?
3. Do you like to work in MLM? Why?
4. It is your part time business or full time business?
5. What do you think ABOut the MLM?
6. Which are the scopes of MLM?
7. Why you follow MLM model and not store selling?
8. Why Amway’s products are costly as compare to other company’s product?
9. It is easy to work in MLM?
10. What is different between direct selling and store selling?

Name ABO* No: Self phone no:

Alpesh Karena 7387373 9978701888

Chirag Shah - 9426570553

Dharmendra bhai - 9825608370

Aanandbhai - 9879578111

Hetal bhai - 9099022898

Jay Datta - 9712130004

Vinod bhai - 9662519459

*ABO: Amway business/distributer owner

 Darmendra bhai

Amway started in 1959. First headquarter establish in 10*10 garage by Jan van Andel and
his friend Rich Devos. It was started with one product and only one country.
It’s a registered company and many other company is in India which is not a registered still it
will continued in India because of Indian people. Legal company now apply new strategy like
they have removed the joining fees. Whereas illegal company have a joining fess. Multilevel
marketing have a different way to different company. Product will sell Customer to customer.
Customer will make itself a consumer+ proprietor so that less chance to cheat. Multilevel
marketing is help to those people have big dream but they have no enough money as well
as willing to do work. For those people have wonderful opportunity to earning more and
more money for fulfil their dream. If you have full strength to work in MLM so you gain that
much of money (profit) because in MLM no investment. These benefits you can’t get form
other market. Generations to generations you can get royalty. Currently working with the
Amway and his experience is too good and he was joined with the Amway since 2003. When
he joined at that time his motto was only purchase the product and use it but after 2008 he
try to understand the opportunity of Amway and he come with the one statement like “no
other good opportunity to me camper to Amway’s opportunity In all over the world.” Those
who have 200 to 500 cr. Property still they are working in this business and not only
business they are growing also. And those who have no good cloth to wear they are also
working and growing in this business because here all have a equal opportunity to grow.
Whereas in other business they are give the status according to his background and power.
All people start the business at the same level and with the help of hard work they are got
status.
Today, Amway completed 54year& today’s headquarter spared in huge land and it is 62
square kilometre.

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1. Last year turn over $11.3 billion. (62000 cr.)
2. More than 1000 pattern and more than 1000 scientists working in the Amway.
3. Today Amway is working in 108 countries also.
4. Amway is a franchise but in different model like some time before only company to
company give franchises but here give person to person franchises.
5. Every person has a customer of the Amway.
6. Those people are working with this company the all are proprietor (prosumer) it means
they are selling and consume it.

 Ms. Ekta:

1. Yes it is trustable company.

2. Each year they are making billion profits.
3. ABO= Amway business owners.
4. It’s providing the world class product Nutrilite.

 Mr. Jay datta:

In other business you have to leave the job but here if u wants to do part time than it will be
possible. Amway’s product is too good and we do not fear to create need our product itself is
a creator. He has been joining with Amway since 1.5 year. Our product is costly because our
product is consulted. Example like our product use includes water whereas other product
likes Harpic it is only liquid firm. Other example like our suppose Colgate and pepsodent are
produce a toothpaste and now pepsodent launch a new product in market of Rs.40 so
Colgate suppose to think launch a new product to compete pepsodent’s product but they
think first price of his product and then think on which increments will include whereas
Amway think first increments which they want to include and after that they will decide price.
In every field working level is not easy to work even it is business, job, etc.

 Mr. Chirag Shah

1. MLM are in 90 countries and I growing day by day.

2. Yes it is fully profitable
3. I like to work in this model because there is less change in scheme everything is well
managed.
4. Part time.
5. It is good and profitable all firms are using MLM but in different way.
6. MLM is very good model and it is growing day by day.
7. MLM reduce mediators so company and consumer get profit.
8. No Amway products are not costly they are providing quality.
EX. Amway Toothpaste is much durable then any other toothpaste.
9. Yes it is very easy and good job you have to mouth advertising and sell products.
10. As per I said it reduce mediators reduce cost.

 Mr. Anand Parekh

1. To earn some extra money with different experience.

2. Yes it is profitable.
3. I love to work in this kind of model because what I am getting, I am able to give to others
also and in his manner we both can earn money.
4. It is my part time business.
5. It is different from any other kind of business which not only gives money but also gives
relations.

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6. Because to reduce mediators and other levels, also to give equal chance to everyone.
7. Scope in this kind of business is that anyone can do at any level.
8. Products are little costly but the quality provided by us are good as compare to other
products.
9. If you have experience and power to do business then Amway is good model.
10. We do not believe in store selling because we want to give equal opportunity to
everyone by this model.

 Vinod bhai

1. It’s a opportunity to start your business without investment.

2. In this business invest your time not money.
3. MLM is a system base market.
4. Many persons working together base on that team spirit will be create and mass volume
will be generated.
5. All team members working towards the aim.

31. References

1. http://en.wikipedia.org/wiki/Multi-level_marketing
2. http://wiki.answers.com/Q/What_is_multi_level_marketing
3. http://www.xentrictechnologies.com/multi_level.html
4. http://www.investopedia.com/terms/m/multi-level-marketing.asp
5. http://www.leadallinv.com/en/MLMbusiness.htm
6. http://en.wikipedia.org/wiki/Multi-level_marketing
7. http://www.investopedia.com/terms/m/multi-level-marketing.asp
8. http://www.businessdictionary.com/definition/network-marketing.html
9. http://www.investorwords.com/3154/Multi_Level_Marketing.html
10. http://wiki.answers.com/Q/What_is_multi_level_marketing
11. http://www.jamesrmaclean.com/mw/index.php/Multi_Level_Marketing
12. http://www.consumerfraudreporting.org/MLMexample.php
13. http://www.diffen.com/difference/MLM_vs_Pyramid_Scheme
14. http://www.davidahanson.com/MLM-recruiting-system/
15. http://firstclassMLM.com/2007/12/05/how-MLM-works/
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