Amway versus MonaVie in India

by Ted Nuyten on December 1, 2011

Indian Business Woman

A significant number of unhappy distributors is leaving Amway India which might make a notable dent on the revenue of the direct marketing company's operations in the country. During the first phase of the exodus, around 40,000 distributors are estimated to leave within the coming four weeks to join MonaVie, another direct marketing company specialised in health juices, and this may cause a revenue loss of Rs 200 crore ($50 million) to Amway.

The discontented lot of 15 prominent distributors across the country has decided to leave Amway and they are taking along with them a network of smaller distributors called 'downline', developed over a period of 13 years of Amway's operations in India.

Sajeev Nair, one of the pioneering distributors of Amway in the country and who earned Rs 1.5 crore last year ($375,000)  from marketing the company's products, says that over the last five years, distributors have become unhappy, because 'they were not able to achieve their dreams" – implying that the income from the sale of products didn't grow over the years. "For those who have taken it up as part-time job, there was no problem, but as a full-time job, the returns are low. Earlier, we used to get highly qualified professionals like doctors and software engineers, but recently, the quality of the distributors has gone down considerably," says Nair.

Some of the distributors were miffed at the fact that Amway was shifting its focus from the distributor network towards the showrooms. S P Bharil, based at Jaipur says, "Amway was a people-based company, but has slowly become a product-based company, but MonaVie is a people-based company and its growth rate is higher than that of Amway."

Ravi Jain, one of the major distributors of the company in Rajasthan with a turnover of Rs 97 crore, ($24 million) says, "Seventy per cent of my distributor network will be leaving Amway with me". He believes that the first phase of exodus will happen within November, and that Amway will eventually lose one lakh active distributors in the coming months.

Amway's offices in Kerala were recently searched by the state police and the distributors were unhappy about the way the company handled the issue. Sources say that the company's warehouse in Kochi may be relocated soon.

S Viswanath, head of corporate communications at Amway India, says that he has noticed an exodus of distributors to MonaVie.

Source: Times of India

 

Amway India Response for this case can be found here

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24 comments… read them below or add one

Ted Nuyten December 1, 2011 at 10:11 am
Amway's head of communications has a problem...

Abdul Shereef P December 1, 2011 at 12:16 pm
I Think so.. :/

Andrew Burong December 1, 2011 at 10:56 am
The problem with Amway nowdays is no one in Corporate had ever been a distributor. They are just empoloyees. They don't have to ability to make decisions about what is best for the distributors who bring in the revenue. When Rich & Jay started Amway they were Distributors out in the living rooms building the business. I know they are making a lot of changes in the management in Australia right now.

ibofightback December 1, 2011 at 11:25 am
No, Amway's head of communications doesn't have a problem. Amway India will almost certainly be better off without the (few) guys leaving, just like Amway US is doing so much better without Woodward and the TEAM guys who got kicked out and went to MonaVie. Amway vs MonaVie Redux Amway India letter to distributors

Daniel Aranda December 18, 2011 at 10:57 pm
Are 40,000 people FEW??????? It is time for a change in Amway if they don´t want to start falling.Experts think the problem is serious. Statements musty be objective. Regards!

Abdul Shereef P December 1, 2011 at 12:21 pm
Amway is going to set a benchmark in India in 2012

Jhon Vanderaerden December 1, 2011 at 4:38 pm
What is happening in India is more of what is happening in every country with Amway after few years of radication, high priced products, a $3.00 pv value, a fiscal year cutting grow in ibo`s, too many promises and a obsolete compensation plan, Amway still growing, but only in thirld world countries and for a few years after introduccion, what is happening in Australia, France, Uk and what is happenning in the US right now is a thru reflect of what is Amway`s future, they have to grow and change with the times or they are going to die, there is not other.

tii voglio December 1, 2011 at 4:40 pm
Amway is going to break all the sales records in 2012! 2011 is turning out to be a fantastic year - in-spite of these jokers quitting. The product sales are growing massively. The launch of the new company isn't going too well - as they hoped it would. How can you build a strong foundation on borrowed leadership? Things aren't going as nice as one would be lead to believe in Monavie according to their own notification on their website: http://www.monavieonthemove.com/india/news/monavie-compliance-launch-monavie-india-right Integrity is paramount - those companies that build on the foundation of others are nothing more than rapists!

Palah December 3, 2011 at 9:42 am
Re Things are not going nice ... that is one way to look at another more balanced take would be MonaVie like Amway values distributor conduct. ... Rapists could also be taken as smart business practice,... I.e. if people in the Video tape industry stayed when a better format CD/DVD arrived, would that be good business, no if wanted to make $$$

sampson December 1, 2011 at 6:44 pm
It is too bad that people have to leave, or in Amway case they terminate all who are real good leaders because they dont want to lose Corporate Power. Leaders are living off of old business's created when Amway was a good business. This is just a natural progression of reality for companies living outside of reality. Oh.... but I know what Amway will do... theyll probably sue everyone to SCARE People. Atleast that has been there mode to date.

Ranvind December 2, 2011 at 5:01 am
Amway distributors always move in a world of their own - a world of foolish positivity. They know pretty well that Amway is not going to give them that kinda business n earning which they crave for !!!! but still they solace themselves. No one can afford to blindfold himself and refuse to see new and fabulous opportunity like MONA VIE. People who do so , are certainly going to repent !!!!!!!!!!!!!!!!!!

Abdul Shereef P December 2, 2011 at 6:03 am
I am an Amway IBO from Kochi. We couldn't see any mass movement from Amway. ppls believe in Amway fundamentals. Only a few pplz left Amway to other companies. but we can see a flow of ppls to Amway from other companies because of the new policy changes. We are growing tremendously

Jeremy December 2, 2011 at 7:50 am
Ted this does not suprise me. I think however due to the mass exodus we are having of Monavie leaders. I do not think this is good for the average distibutors. I am sure the big leaders are getting big paychecks to move. Just like the team boyus did.

David Steadson December 3, 2011 at 1:29 am
Jhon Vanderaerden, This will probably have no influence on your opinion but Amway has publicly confirmed strong sales growth in both the UK and US markets and from what I've heard is also growing in Australia and France.PV/BV ratio is also (a) ultimately irrelevant and (b) only in the US anyway! What's more, Amway around the world, and in particular in the US, UK, and France has made numerous significant changes over the past 5 years. So all in all it appears your conclusions on Amway are based on wildly false information.

Joe Beaver December 9, 2011 at 2:32 pm
I have been in the industry for over 20 years and there is no way Amway is going to lose a large number of Distributors to MonaVie. I live in the U.S and am familiar with both companies. I also represent a company doing business in the U.S and India, so I know both markets well. The people of India will not spend an outrageous amount of money on an expensive fruit juice that shows no benefits to the consumer. The only products I see being successful in India are replacement spending products, such as those offered by Amway, Forever Living, Unicity, Herballife and others. Save this comment and come back and read it in five years. At that time Amway will still be a HUGE company and MonaVie won't even be in business in India.

Nimesh Shah December 18, 2011 at 11:00 pm
Have a look at my website, that will blow you away. You can never make money with product based companies.

Mike Collins December 19, 2011 at 1:36 am
Even though I hate Amways compensation plan, with a 1 in 25 break even ratio it is still a better ratio than Monavies. (I am not in Amway) Monavie has an absolutely horrendous 1 in 31 ratio. That is: For every 1 person making $150 a month on a recurring basis there are 30 who aren’t. Amway distributors in India would do well to study what has happened to MV in the U.S. as it has literally imploded. Why? Because their binary model is unsustainable. A few people will make some money for a short period of time then the inevitable will happen. All of you folks in India need to study this “opportunity” and study it well before you go moving your teams over there. Here are the rank advancements for last week according to monavie: 1 Hawaiian Blue diamond NOT in the U.S. 2 Blue Diamonds NOT in the U.S. 2 Diamonds NOT in the U.S. 5 Emeralds NOT in the U.S. 9 Rubies NOT in the U.S. 59 Golds with ONLY 5 in the U.S. 53 Silvers with ONLY 3 in the U.S. and 109 Bronzes with ONLY 3 in the U.S. That’s 94.5% of the growth in MV happening outside of the U.S. It was here and now it’s GONE. Don’t think it won’t happen in India. And beware of exorbitant income claims. They are more than likely false. Ask to see that persons Bonus Report/Income History in their back office as this is hard to forge. Here is the link for the rank advancements: http://monaviemediacenter.com/recognition/rank-advancement What’s interesting is that I put up a post on Troy Dooly’s FB page http://www.facebook.com/#!/troydooly on Fri @ 5:04 Listing these same statistics from the MV on the move website. It appears that they have taken down the latest ranks. The ranks they took down actually had the countries listed under them. It is interesting because MV had stopped listing the respective countries under the ranks probably because people can see that there is virtually no growth in MV in the US. (All one has to do is read the names and you can tell they are not in the US so I don’t know what they are really trying to hide) All this does is remind one of the new IDS (income disclosure statement) they recently released. The new IDS has an entire column removed without which makes the new IDS impossible to analyze. The data is meaningless without that column. Meaningless unless of course all you want to do is point to the incomes the ranks “allegedly” make. Do your homework India! I can be reached at michaelseancollins@gmail.com

hitendra solanki December 22, 2011 at 5:21 am
hey mike, that's some really good and helpful information. thank you!!

Senthil December 26, 2011 at 9:07 pm
Hey Mike This is very nice. I am going to put your information in my blog with your permission in www.amwayproducts4u.com

Bidya Sagar Sah February 6, 2012 at 1:38 pm
Still Amway is Rocking.. a value company never die.

Tapeshwar March 14, 2012 at 10:16 pm
Visit To See Amway India Facts:-----------------http://amwayindiafacts.blogspot.in/

Amit gwalior April 14, 2012 at 2:34 pm
Amway is a global company in the world. But monavie business higher than growth. Than monavie has create a 100 millionars in the world only 5 years.. Why.. This product is very nice. top earner in direct selling fastest LITA AND BRIG HART......monavie...lita and brig hart was amway distributor in double diamond in dexter yagar group......

Kartik Patel April 17, 2012 at 12:17 pm
when amway is started. it is a People company but now a days it is a product company. amway do product advertise on television. but why it is not advertise sucessfull profile??????????

Amway Malaysia April 22, 2012 at 12:30 am
See five year later ,no more monavie