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TUESDAY, NOVEMBER 24, 2009
William S Pinckney | Pitch perfect
Selling Amway in India required this veteran to do a complete rethink of his strategies
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Nice Plug for Amway.The US Supreme Court may feel its not a Pyramid scheme but that does not make Amway an ethical FMCG organization.Its more akin to a cult where people are constantly bombarded with 'motivational speeches' (BTW this side-industry of providing motivation speeches & material for Amway schmucks is alone worth over $135 Mn!) to go out and sell more.And surprise surprise ! Over 80% of Amway's products end up with employees themselves.After all which sane person would pay 250 rupees for a tube of Toothpaste ?!Their modus operandi is simple : They hold these meetings at 3-star hotels where the Amway employees have to cough up 300 per head just to attend.What follows is some 'Diamond' salesman will take the stage in order to jack up the sales force by talking about how rich s/he has become through Amway.Next is a PPT which is nothing more than an obscene display of wealth - Gaadi Bangal - the works.Along is present the spouse - the wife will be bedecked with every possible piece of gaudy jewelery.The basic idea is to pump into the heads of the underlings as to how Amway can make your dreams come true.Reality hits hard later on when the poor sods are left with four-fifths of the inventory and end up consuming it themselves.Amway occupies the gray area between a questionable business & a full-blown scam.
FT
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