Amway India Response To MonaVie Case

The following email sent by Amway to all Emeralds and up in India a couple of weeks ago regarding the situation with Sajeev Nair and MonaVie

Dear Leaders,

Greetings from Amway India !!!!

As  you  are  aware  by  now,  Amway  India had its biggest sales month in September’11  when  we  had  Rs.251 crore of sales. With such excitement & momentum,  I  am not only confident of achieving our Goal of Rs 2500 cr by 2012,  but also convinced that we will attain higher GOALS in the years to come.

We  have  introduced  several  “Positive  Changes”  in  the  business from November 1st that would further fuel our growth & offer a safer future for our  ABOs.  These revisions have been accepted very well by leadership all around.

With  growth,  we  also attract attention of various entities. One of them can  be  competing organizations who claim to be ‘Just Like Amway’business opportunities.  Amway  India  &  the Direct Selling Industry is poised for huge  growth in years to come, which pulls organizations to get a share of this  growing  market.  While  we  appreciate  healthy  competition, it is unfortunate that some organizations choose improper & dishonorable methods to  grab  business  &  get  a  foothold  in the market. We have reasons to believe  that  such ‘Copycat Businesses’ with shallow income opportunities have  been  targeting  YOUR  line  of sponsorship to build THEIR business. They are really not competitors but actually “predators”.

I  wanted  to  take this opportunity to advise you on expected launch of a company  in  the  Direct  Selling  market in India and what activities are currently  taking  place  openly  &  surreptitiously,  leading  up to this launch.
INFORMATION CURRENTLY AVAILABLE

The following information is currently available to us about this company:

• It is headquartered in USA
• The company was founded in 2005 & has only 6 years of experience
• Has moved on to 20 markets and has almost abandoned some of them
• It has a declining sales pattern & is approximately 6% of Amway’s global  sales turnover
• It has a single office in India at present
• It has single product / category based on a Nutrition Drink
• It is not part of the WFDSA & IDSA
• This company operates on a binary plan
• This company has had issues with the Governments of Australia & Korea
• This company is expected to launch its operations in India in November  2011
• To earn commissions from this company, one needs to purchase products  worth approximately Rs 8000/- every month
• The joining fees for this company is Rs 800/-

SOME POSSIBLE ISSUES / CONCERNS

Some  senior  leaders  in the Amway India business have had certain issues with  Amway  India  in  the recent past, for which the company had to take deterrent  action  against them due to violations in the Rules of Conduct. As  you  know, Amway is very fair in dealing with any & all types of Rules Violations  and  did  not  hesitate  to  take the necessary action for the violations  made,  despite  the pin level & status of the leaders. Some of these senior Amway leaders have not been in active Amway business building post  these  actions  taken  against them by Amway, and it is very likely, that  owing  to their high status, they were looking at “other” avenues to make “QUICK MONEY”.

We  have  been informed, that certain ABOs holding very high pin levels in the Amway India business have been persuaded by this company to join them. We have received several complaints in the recent weeks that some of these leaders  have been enticing their LOS’s and some crossline LOS’s (possibly yours  too) join this company. We strongly believe that these senior Amway leaders have been enticed with some amount of money to shift their loyalty to  them  and  bring  in  as many ABOs from Amway as possible. These Amway Leaders  are  conducting meetings in several cities across in India trying to  promote  this  new  company by spreading several rumours against Amway like

• Amway is changing its business model and will open retail shops – this  will kill the opportunity for ABOs
• Amway has sold its Nutrilite farms
• Amway Founders have sold their stake in the company
• Amway India will close down in another two years.
• Some senior official(s) from Amway are joining this company
• It is OK to do the Amway business & the “other” business while promoting  the same within your LOS and in crossline organizations.

ACTIONS TAKEN TO PROTECT THE BUSINESS & ABO’s

Show Cause notices have been sent to these Senior leaders who have been  found to be enticing Amway ABOs to join this new company.  They have been declared as “Not in Good Standing with Amway”.  A full-fledged investigation is on against the activities of these  senior leaders.  The downline Platinums of these Senior leaders have been advised of  their upline activities  Silver Producer & above meetings are being conducted in all the  affected states to explain the real facts of the situation.  All discretionary benefits have been withheld for these ABO’s.   Their access to all internal systems has been blocked.

It  is  with  great  pride  that  we share that 99% of the leadership have re-iterated  their  belief,  faith  &  loyalty  in  Amway,  its  values  & principles.  I  would  like  to  clarify  that all rumours spread by these
Senior  Leaders  about  the  future about Amway are false & misleading and made  with  the  intent  to entice more ABOs to join the new company, from where,  we  believe, they have a lot to gain in monetary terms for getting more  people  to  join  the company. Amway has never in it’s rich 52 years history  changed  it’s  operating  model  nor will ever do so in future. I would  also  like  to  re-iterate  that  Amway  will  not hesitate to take appropriate  action on any ABO found enticing another Amway ABO(s) to join this  company,  which may include immediate suspension & withdrawal of all discretionary  benefits,  because they will no longer be “In Good Standing with Amway”

WHAT WE EXPECT YOU TO DO IN THIS SITUATION

• Brief the leaders in your teams about the situation.
• Ensure that ABOs in your LOS are not distracted by news about this new  company
• Even if there has been no enticement in your LOS, you may alert the  leadership to insulate their downlines from possible enticement
• No ABO should be over-whelmed by the stature of the Amway leaders who are telling Amway ABOs to shift to this new company
• Report any enticement or any other activity related to this new company to your Business Development Manager

I  wish  to re-iterate that Amway, its Founders, the management in India & U.S..  stands  fully  & strongly behinds our Founding principles, values & ethics. We will deal fairly with all ABOs, irrespective of their pin level and  provide  a  level  playing field to all ABOs and protect the business interests  of all ABOs, now & in the future. We have faced such challenges in  the  past  & emerged “STRONGER” on each occasion; at this time also we stand  strongly  behind  our  plan,  our products and YOU, people who make Amway the best business opportunity in the world.

To  strengthen  our  position  in the Direct Selling Industry in India, on Monday, Nov 7th,  Amway will commence a National Advertisement campaign to highlight,  in  a  positive  way,  the changes implemented on Nov 1st, pan India.  The advertisement is simple, yet impactful and will run across the country on both the 7th and 14th of Nov

Our  business  in  2011  is expected to close 20% higher than the previous year. 2012 has the strongest ‘new’ product launch schedule ever……..and this is backed up by a powerful promotional program, a robust and expanded Amway    /    Nutrilite    &   Beauty   Brand   Building   /   Advertising campaign…….plus  serious  expansion of our infrastructure and physical presence  across India.  Not to mention the 3rd year of the GIP, Melbourne Mega  Leadership  seminar,  Diamond  Invitational  trip  to London in May, Family  ALS  trip  announcement  in  August  2012 etc.  So……..a LOT of exciting things happening right now and planned for next year!

I  strongly  urge  you to stay focused on building your Amway business and changing  your  life  & that of many others……because WE ARE AMWAY…..we are NOT JUST LIKE AMWAY.

Regards,

Rajneesh Chopra
Senior Vice-President (Distributor Relations & Training

Source: http://www.thetruthaboutamway.com/amway-india-letter-to-distributors/