From: reb@punch.EBay.Sun.COM (Bob Brown)
Newsgroups: alt.business.multi-level
Subject: Re: Questions about Amway
Date: 19 Nov 92 12:04:26
Organization: Systar Technologies, Inc.
NNTP-Posting-Host: punch.ebay.sun.com
In-reply-to: lou@hpkslx.mayfield.HP.COM's message of Wed, 18 Nov 1992 01:53:29 GMT

>>>>> lou@hpkslx.mayfield.HP.COM (Lou Kvitek) writes:


> >> * Does Amway REQUIRE its distributors to sell products to
> >> non-enrolled customers, or can you succeed in the business just
> >> by buying product for your own use, as well as enrolling others
> >> and supplying inventory to them?

> > Amway asks that its distributors follow the law.  The FTC for various
> > reasons requires that product be sold at retail...

> Can you quote chapter and verse on this (like a Consent Decree casenumber)?
> This doesn't sound correct (since I am aware of sales-optional MLMs).

lou> Not sure, but all I have heard/read indicates that if you operate
lou> your MLM as (retail) sales optional, then you cannot be paid a
lou> bonus based on volume.  In essence you are only participating in
lou> a wholesale buying club.  (I may be wrong though - read
lou> _Promises_to_Keep_)

I seem to recall that the 10 customer rule is Amway's own rules.
However, they do it because one of the PRIMARY reasons they won the
suit that the FTC brought against them was because they were able to
present evidence that their products were NOT overpriced and that
people purchased the products because they were good products in and
of themselves without having to resort to a network. I would suggest
that it is not a law on the books but that the FTC will certainly
consider that information when dealing with the next company that
comes along and gets sued.

What's really interesting is that the manufacturer (Amway) cannot
tell us what prices to charge so we could legally find 10 customers
and sell them products at wholesale or even at a loss.

  
> This suggests that if you do the $7500BV for the first six months, you don't
> actually get to buy "direct" until the next fiscal.  Is this true, or do you
> get to go direct as soon as you have reached the sixth 7500 in an FY?

lou> Would a direct please comment - I'm not sure, but who cares?
lou> When you are at 7400PV you are not buying direct - even if you
lou> had to wait - no big deal.  I'll bet you get to buy direct as
lou> soon as you qualify direct.

Once you go direct (6 months 7500 PV), you will always buy direct,
even if your volume slips. However, you'll be paid at whatever volume
you acheive.

lou> Very complicated process to change lines of sponsorship.  A think
lou> the waiting period is 6 months, but if you have sponsored other
lou> people then those people cannot be re-sponsored by you for 2
lou> years - something like that - its documented by Amway.

You can request a transfer at anytime. However, Amway will not approve
it unless you state that you have been inactive for 6 months. In
addition, several people in both the old and new lines of sponsorship
must agree to it. Our line of sponsorship has a basic rule that NO
TRANSFERS are accepted. They do this because of the damage they
believe transfers do to the business. There have been exceptions but
not many. After two years of inactivity, you can sign up anywhere you
want.

bob


--
--Bob
Systar Technologies, Inc.		   Sun: robert.brown@EBay.Sun.COM
1712 Picasso Avenue, #B & #C            Office: reb@systar.com
Davis, California  95616		 Phone: (916) 753 - 2611
Newsgroups: alt.business.multi-level