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Article #62

Regulations concerning Amway in Ontario

#62
From: Beastor the Mad
Date: Wed, 30 Sep 1992 20:18
32 lines
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There seems to be alot of interest in the Regulations surronding Amway.  Amway
is not a pyramid scheme!  A pyramid is a scheme whereby an individual pays for
the right to recruit additional persons into the scheme who in turn, receive
the same right to recruit others.

Three common elements of a pyramid scheme have been identified as: (1) a large
required initial investment or purchase of inventory; (2) direct payment for
the recruitment of additional persons in the scheme; and (3) heavy emphasis
on the recruitment of additional persons with little or no emphasis on the
sale of the product.

The Amway Sales and Marketing Plan contains none of the above described 
elements.  Distributors of AMWAY products earn monies by selling products
to their retail customers and other distributors in their sales organization,
not from the introduction of additional persons into the business.  AMWAY
distributors who require large initial investments in sales kits or inventory
and do not properly emphasis retail sales of AMWAY products may invite
scrutiny under various provincal pyramid laws.

In summary, it is mandatory that distributors of AMWAY products present the
AMWAY sales and Marketing Plan in accordance with AMWAY literature and sales
aids, properly emphasize retail selling, and only require purchase of the
literature portion of the Amway Sales Kit to enter the business.  IT is 
important to realize that simple and innocent changes made by well-meaning
distributors could violate these laws.

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As you may note... I did not present the Marketing Plan to anyone as of yet...
and I certainly have not said that getting people is how you make money up
front.  YOu make money by selling products through your distributors and
by selling them yourself.  It is fairly large difference there.
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From: bjpocock@undergrad.math.waterloo.edu (Beastor the Mad)
Subject: Regulations concerning Amway in Ontario
Message-ID: <BvEr3B.Hp9@undergrad.math.waterloo.edu>
Organization: University of Waterloo
Distribution: kw
Date: Wed, 30 Sep 1992 20:18:45 GMT
Lines: 33