Jul 15, 2008 07:49 PM
7615 Views
An acquaintance at my place of work one day asked me if I am interested in making money through a business venture in my off time. He said he is working as an independent entrepreneur (businessman) with a fast expanding business and always looking for people to induct.
Naturally I expressed my interest and he invited me to his house one evening and his wife was also there. I originally expected some straightforward business proposal, like he is running some import export business and I have to take care of the accounting, or visit clients etc.
At his home he is showing me some "business plan", which appears to be well rehearsed, with standard presentation material. He is talking about Direct Marketing, i.e "did you know that supermarkets and retail shops are not the most efficient types but selling the products direct to customer from the factory is the best" and the intermediate commissions are avoided. In the plan he shows I have to sell the Amway products directly to customers and thus get a commission from each product.
Also there is another way I can increase my sales. If I is recruit people to work under me and I get a commission of everything they sell. I was somewhat under pressure to sign the application form, it costs about Rs 4000(?) but I resisted it. I looked at the Amway products in his catalogue and they look high quality, environment friendly, but expensive. There is a Amway Glister toothpaste which costs about Rs 120 or 130 and detergent which costs Rs 600 and also vitamin supplements also costing over Rs 500 which cash strapped Indians may hesistate to buy. Friends and relatives may buy once under your coaxing, but they wont buy again and again.
The way I am looking at this is, if I want to get an income of Rs 10, 000 a month from this Amway business, (assuming it is based on a 20% commission which may be on the higher side) I have to sell these overpriced goods worth Rs 50, 000 each month. I may have to do house-to-house salesman job to push these products, for which I am not cut out and will lose my existing job also. The other option - recruiting new persons to work under me - also requires some significant effort and time commitment. There are certain people who are very much suited for this job - those who have the talent to impress people and are very outgoing, and also have lot of spare time (like those holding Government jobs, or out of a job) which I am not.
But finally, I feel that the basic premise on which I was lured to listen to the Amway proposal was not true i.e. "you can make money in your spare time" . I find that to make money from Amway you need almost full time committment and work sincerely. I realize that if I show the same sincerity to my existing job, I could rise very high in my profession without the need for Amway.
Why does a person with good business skills need to go to Amway.? Because it needs almost no capital to start up. Just buy the starting kit for about Rs 4000. If a person is not subjected to this constraint, and can put up some money himself/herself need not be tied up with Amway.
