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Article #62Regulations concerning Amway in Ontario
From: Beastor the Mad
Date: Wed, 30 Sep 1992 20:18
Date: Wed, 30 Sep 1992 20:18
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2382 bytes
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. ------------------------------------------------------------------------------- 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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Newsgroups: kw.general,uw.general Path: arc1-ca.pugleaf.net!sparky!uunet!uunet.ca!xenitec!watmath!undergrad.math.waterloo.edu!bjpocock 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