AMWAY’S REBUTTAL
Multi Level Marketing is not network selling, pyramid selling, a chain of letter of a lottery ticket. Multi Level Marketing companies sell products through independent distributors as an alternative to the traditional approach of hiring staff, advertising etc. distributors in turn train new distributors to expand the marketing network, offering personal service and demonstrating products to consumers on an individual basis. Amway has been endorsed by US Federal Trade Commission. It has been acknowledged by govts. across the world as a role model of Multi Level Marketing. The hallmarks of a Multi Level business like Amway are: Equal opportunity, irrespective of when you join; distributorship are not for sale; product training provided by the company; no need to maintain inventories; low start-up costs; pay only on product sales in direct proportion to effort; buy back both stock & sales kits; success earned by repeatedly retailing products to consumers, sponsoring others to do the same; Offer international quality products; Follow World Federation of Direct Selling Associations (WFDSA) Code of Conduct. In sharp contrast, pyramid schemes: Offer unequal opportunity; Sell distributorship; require large inventory purchases; involve high initial costs; pay for recruiting; don’t buy back stock or sales kits; solicit people to buy success by buying inventories/titles; offer questionable products; will collapse when no more people can be lured.
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