This refers to "Amway co-founder's Simply Useless advice", the book review of Simply Rich: A Memoir (November 19). You are right in the observation that the direct selling industry is misunderstood. I would like to present a few facts about Amway.
Much of the confusion about the Amway business is surrounded by our direct selling business model. We want to be clear: distributors earn money only when a product is sold. The bonuses paid to distributors are based on personal and group sales volume. No commission is paid on recruiting or introducing an individual into the business.
Secondly, the Amway business offers high-quality health, beauty and home products - most manufactured right here in India. Amway products are popular not just in India but around the world. Nutrilite is the world's No 1 selling vitamin and dietary supplements brand, while Artistry is among the world's top five, largest selling, premium skincare brands.
Finally, Amway offers a money-back guarantee in order to protect consumers. This guarantee allows Amway distributors and customers to try the business or products with little to no risk at all. To extend this commitment of protection to the consumer and distributor, Amway India does not charge any entry fee and distributors are free to exit anytime. All unsold inventories will be re-purchased by the company.
The success of legitimate direct selling companies in India has been unfortunately accompanied by the rise of fraudulent activities such as pyramids or Ponzi schemes. Pyramid schemes charge unusually high entry fees and usually make money from the recruitment of individuals - rather than from the sale of goods and services. These are illegal because those at the top make money from those who buy in below, making recruitment the primary or only goal. There is often a substantial buy-in fee that is redistributed to existing participants in the scheme, and no genuine goods or services to sell.
Regardless of the challenges Amway India has endured the past few years, we remain committed to our business in India. Our goal is to offer a business opportunity that is meaningful and relevant to India.
We will not abandon the hundreds of thousands of distributors who are working to build businesses for themselves or the Amway India employees who support those distributors' efforts. Our goal has always been and will continue to be to help Indian citizens reach their potential through a business of their own.
William Pinckney
Managing Director & CEO, Amway India
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