TEX SAYS...Now, back to our regularly scheduled programming....Here's an interesting letter from the Amway India business. Looking forward to similar rules coming to the U.S.
http://www.thetruthaboutamway.com/index.php/component/option,com_fireboard/Itemid,91/func,view/id,10747/catid,30/
Here's the letter as well, in the event it "disappears" from Insider's site:
AMWAY INDIA B.S.M. DISCUSSION PAPER & RECOMMENDATIONS
NOVEMBER, 2007
Foreword:
The following B.S.M. discussion paper and subsequent recommendations ‘that flow from it’ are the final result of a comprehensive review that began in May 2007. That review included detailed discussion with B.S.M / System Owners, International Diamonds, all in-Country Diamonds, presentations to most Platinums in India and finally input from a global B.S.M. Meeting convened in Grand Rapids in early October, 2007.
It reflects the unique and at times difficult regulatory environment in India, the concerns that have been raised as a result of the AP matter and of course the ‘learnings’ from other markets around the world, not the least of which is the U.K.
Where appropriate, commentary / explanation preceeds the different recommendations and readers of this document should view the recommendations as proposed “additions” to the current rule……not as a replacement for it.
The recommendations presented have not been framed as rules within this paper and will be integrated into the current B.S.M. rule, with appropriate language and detail once all feedback has been received and final decisions taken. That will be no later than December, 15th, 2007.
General Philosophy:
B.S.M’s and meetings , their content, pricing, frequency and Brand presentation should compliment and enhance the Amway Business and never intentionally or unintentionally interfere with or disrupt it. Good education should be made available to the maximum number of ABO’s at the best possible price. Risk should be eliminated from this aspect of the business.
1. Branding:
RECOMMENDATIONS:
• All Major meetings and BBS’s must display prominent Amway branding. Sub branding is allowed. For example:
AMWAY MEETING
Proudly Sponsored by Sanjay Diamond
• Amway branding on all B.S.M.’s will be required, with the exception of books that are generally found in the public domain. “Amway Approved B.S.M.” will be required to be printed on all tapes, CDs, DVDs or printed material, with the exception , of books, as previously mentioned.
2. Content & Quantity:
There is a need to standardize the content of all Amway related Meetings & BSMs to ensure correct and more consistent messaging is achieved. Income examples untilised in Plans and Opens must be ‘real’ and products / customers must be promoted with equal emphasis as to recruiting more ABO’s. There must be ‘balance’ in all teaching, whether from the stage, on a B.S.M.’s, or in a face to face counseling situation.
Amway believes it is appropriate to limit the number of B.S.M. SKU’s that can be sold by any one individual, group or System. Currently the number of B.S.M.’s available is disproportionate to the Core business offering. Amway would prefer not to make this a rule and will look towards productive discussions and agreements with System Owners to address this issue with a view to significantly reducing the number of B.S.M.’s on offer, so that it is at parity with the overall Amway business.
RECOMMENDATIONS:
The Plan:
• Concepts and Income Examples will be per Company direction and format. They must be used.
• Customers must be shown
• 15 minutes live product demo or playing of a 15 minute product demo CD is mandatory
• Money back guarantees must be clearly explained on both products and the business opportunity
• Prospects must be told that income is generated from the sale of products
• Prospects must be told that B.S.M.’s are optional and not mandatory.
• A ‘leave behind brochure’ (currently being developed by the Company) will be mandatory and must be given to all who see the plan.
Meetings (Major & B.B.S.):
• A balanced content in all meetings of approximately 30% motivation, 30% product information and 30% teaching & recognition will be mandatory.
• Speaker guildelines developed by Amway must be given to every speaker well in advance of their presentation and must be adhered to.
B.S.M.’s (Tapes, CDs, DVDs, Printed Material):
• All B.S.M.’s will have to be approved by Amway prior to distribution and must carry an “Amway approved B.S.M.” sticker on them.
• All product related B.S.M.’s will only be produced and distributed by Amway.
• All A.S.M.P. related B.S.M.’s will only be produced and distributed by Amway.
3. Costs:
For the new ABO will remain the same per the current B.S.M. rule. Please note that Amway will be reducing the cost of the Starter Kit substantially in early 2008 and hence the value of B.S.M.’s that can be sold to a ‘new’ Business Owner will reduce proportionally and as per the current rule. Amway will advise the new kit pricing criteria and the subsequent amount of BSM’s / meeting tickets a ‘new’ ABO can purchase in the first 30 days, in due course.
RECOMMENDATION:
• Prices as currently stated in the B.S.M. Policy will be maintained and not increased.
4. Transparency:
New ABOs joining the Amway Business who are promoted B.S.M.’s and Meetings not produced by Amway, need to understand that these recommendations are linked to a separate business………. that generates profit to its promoters.
RECOMMENDATION:
• Written disclosure to prospects who become ‘new’ ABOs will be mandatory, relative to informing them that the promotion and sale of non Amway B.S.M.’s and / or Meeting tickets, is a business and that profits are made from same.
Concluding Comments:
The aforementioned recommendations for inclusion into the B.S.M. Rule, we believe substantially reduces the risk to the Amway business in India, whilst allowing education / motivation by independent Third Party Vendors, to continue.
Whilst Amway appreciates that costs are going up in India and that some Leaders encouraged us to increase B.S.M. and Meeting prices to counter that…..in the current regulatory environment, and considering the recent strong growth currently being experienced in India, AIE does want to do anything to change the status quo relevant to pricing and hence does not feel B.S.M. or meeting price increases would be prudent at this time. We will continue to review this on an annual basis.
The Company has taken the decision to become much more pro-active in providing B.S.M.’s and Meetings in the future and will shortly publish a schedule of events across the country. All LOS’s will be invited to attend, as will speakers from the various organizations. This initiative will not be a profit center for Amway and therefore prices will reflect that.
Whilst Amway will encourage all to attend and participate in our events , we of course respect that ABO’s have a ‘choice’ and it is up to them to decide whatever they do or do not want to participate in…..or what B.S.M.’s they do or don’t want to buy. However, it should be noted that Rule 5.5 expressly states that a “Sponsor must use his best efforts to encourage his personally sponsored distributors to attend Amway meetings and other functions” …and in this regard, if any ABO is found to dispromote, intimidate or try to prevent his downline from participating in Amway events or from buying Amway B.S.M.’s…………… Amway India, observing a zero tolerance policy would terminate that ABO immediately.
As with all rules, it is the ‘spirit’ and not the ‘letter’ of the actual rule that makes it effective. Amway India looks forward to the future and to working with all stakeholders who have a vested interest in providing excellent education / motivation, to the most number of ABO’s , at the best possible price and without risk.
Regards,
AMWAY INDIA ENTERPRISES
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