Network Marketing in India is getting into a revolutionary mode. At last a Government regulation seems to be on the cards. A regulatory authority in the same line as that of IRDA is the need of the hour in direct selling. As there is no authority who can differentiate good companies from fly by night operators, even now Lakhs and Lakhs of people are getting into traps.
In the meanwhile, there is another interesting discussion happening in the industry, 'whether the network one creates belong to the company or to the distributor.'. This is going to be an interesting debate and surely will pave a new path in the industry.
In the last few weeks industry is buzz with the news regarding the open war declared by distributors of Amway against the company policies. The issue is really hot as trade unions have decided to support the distributors in this fight. While some fanatic Amway distributors are criticizing this move, as they are being blinded by their up lines and company, general sentiments amongst the distributors is in favor of this move. In Kerala distributors have staged a dharna with the support of CITU against the company's move to terminate distributors without giving proper reasons and evidences. Company denied to pay bonuses to many saying that 'they are not in good standing,' a phrase defined and decided by the company. But company can never justify the denial of bonuses for the business one has done.
I have a very bad experience in this context. Amway's financial year closes on August 31. In 2010-2011, I was eligible for Diamond bonus and Diamond plus bonus and Emerald bonus, which are part of the declared business plan. I resigned from Amway on November 3, 2011. The bonuses are for the period 2010 Sept to 2011 Aug. What justification company can give for denying those bonuses? This is the case with many distributors. What security such a company offers to people?
Many distributors are being terminated in the last few months. Though affected distributors asked for evidences for their 'crime,' company ignored all such appeals. It has come to a stage where if few down-lines or uplines don't like you, they can register some fake complaints and get your distributorship terminated! Is this called security!!! I know there are many who are clapping and celebrating when some of their counterparts getting terminated....but mind you, it can happen to you also.Another million dollar question here is; where are you getting terminated from? From the network you created putting your blood, sweat and tears...the network you created by driving those miles and spending Lakhs and Lakhs of rupees? I associated as a distributor with Amway in 1998. Last fourteen years I worked hard to create the network. Company did't play any role in building the network. Lakhs and Lakhs of rupees have been spend by me to build such a network. So is the case with all the distributors. Company doesn't pay you for building the network; they pay you for the sales volume you create. If so how can company terminate one from the network he has created? In such a case company is taking over the network which you have created over a period of time by investing your money and time. Hence shouldn't the company reimburse the money you have spend on developing that network? By terminating you, company is going to get extra profit from that position. Later on that position will be sold to another distributor at a premium and company makes another profit. What is that the distributor who puts his entire life for creating that network gets? If company's argument is that the network is created for the company by a distributor, then it means that the distributor has provided a service to the company. If that is the case, company should allow distributor to invoice the company for the services provided and for which the service tax need to be collected from the company (as company is now the client for the distributor), and paid to the Government. When company is asking distributors to pay the service tax from their pocket, it clearly shows that distributor has not provided any service to the company for creating a network and hence the company doesn't have any ownership on the network.
Friends, this is not the time to celebrate 'terminations.' This is the time to think about your own future.
Today you may be an ultimately loyal distributor to the company with which you are working. Tomorrow there could be situations where you may have to think differently. Because ultimately companies are here for business....not for charity. In the case of Amway, it is even alleged by the distributors who are at strike that this termination drama is a well thought out plan of Amway to get into the retail sector. Whether it is true or not, companies have the freedom to take business decisions.
Always remember, you and me are simple distributors..... Time has come where we need to think more logical and practical.
Whatever be the outcome of this move, one thing is becoming very clear...no company can exploit their distributors in the name of loyalty. It is time for all the entrepreneurs in Direct Selling industry to wake up and think like a professional.
