Monday, March 22, 2010

What is Network 21 Australia

If you share my experience, no doubt you've just come home from an uncomfortable "business opportunity" presentation, where you were bombarded with creepy marketing to become an Amway based independent business owner. So you decided to find out is Network 21 a scam. What is their relationship with Amway, how much money do people make in the scheme, and how do they do it?

What is Network Twentyone? They are a support group for Amway, a multilevel marketing company that produces consumer products, including Nutrilite and Artistry. If you join you will likely be selling dish washing liquid and water filters to your friends and family, or perhaps more likely desperately attempting in vain to offload such material, and recruiting others to do likewise.

How do they make money? N21 tries to sell you motivational tools, books and CDs that are supposed to help you sell more, so they can profit and take advantage from your effort to become a good salesperson. Amway also profits from your sales by charging a premium on all their products.
The products are mostly every day products such as vitamins, makeup, softdrink, soaps or energy drinks such as XS. They make claims of high quality of their line, however comparable items you will find in a supermarket are often better known for quality, well known brands, and can even be substantially cheaper than the items you would be trying to sell to your friends. This does not make for easy sales.

What do you have to do to be successful in this multi level marketing scheme? Some might say, sell your soul. Under Australian law, it is currently not an illegal pyramid scam, although it does raise many concerns.

The standard practice I've come to experience is that friends the recruiters deceive you into attending their rallies under false pretences. They typically leave out much of the details of the business, and act overly nice in order to soften you up.
Some people have said it is a scam, a cult that brainwashes you. I have studied business and marketing psychology, and hypnotism, I got the distinct impression these leaders running the night were attempting to use such tactics to earn a sale at my expense.

A quick search on the internet, apart from the assortment of official propaganda from Amway media blogs and other official pages, you will find there is not much positive talk at all.

If you are considering joining Amway or Quixtar to earn extra income, ask yourself, do you know anyone who speaks positively about these companies that is not already a member, and stands to earn money from such comments. You may have trouble finding a positive review, except by those with ties to the businesses.

If you have recently attended a recruiting meeting in Melbourne, Sydney, Brisbane, Adelaide or anywhere else, please leave us a comment on your feelings on the presentation in your local town.

7 comments:

Anonymous said...

hey im just your ordinary bloke who's looking for a way out i got no flash education im 42 yrs old at a labouring job, yes i could say im only helping old mate above me get rich but for him to get rich i have to get rich and with out his support and education i will not succeed. i went to the goldcoast seminar last weekend ,you maybe rich '' Mr Millionaire '' but you attitude is cheap

Mr Million said...

Think smarter before you criticise intelligent opinions and facts over misleading hype and scams, they are out to take your money, I am not.

The thing is you will not get rich from Amway, nor will your friend.

Their own official statistics available (which had to legally be made available after being taken to court by the Federal Trade Commission for Pyramid scam claims) confirm how bad an "investment" this type of "business" is.

A independent study by the Consumer Awareness Institute showed most MLM companies lose money, and of all the companies studied, Amway participants lose the most amount of the time, at 99.99%!

With those facts in mind, it would actually be a good investment for me to bet that you will lose money in Amway.

No education is necessary to see how bad this business is for you. Not to mention all the time you will waste, to make no money.

Anonymous said...

I went to one of the seminars. And fair enough you might have something to say about it. But the people who are already doing, they had to start somewhere, and they obviously have to be getting somewhere.

It's common sense to quit if you're making substantial losses. Why are they still there?!

They offer a 90 day money back guarantee. I'd say you have nothing to lose, you're not signing you're life away. It's just a business concept.

What other business let's you look from the inside and let you walk away from it?

Churches would probably have more dirt in their operations than Amway.

Smells like a Today Tonight expose on nothing.

Anonymous said...

I went to a presentation last night in Brisbane. Not really sure why I did, usually avoid things like this like the plague. Anyway, I thought the presentation was over the top and creepy. I hated having to listen to 50 people get up on the stage and rave about how good it is, including one women who started crying WTF??? The guy who invited me along seems nice but his boss who talked to me afterwards came across about as trustworthy as a thief. She told me not to google the organisation, hello so of course I googled it - hence finding this site. And she told me not to tell my husband anything about it and to "play the dumb blonde" to him until she could talk to him. That set off enough warning bells for me.

Anonymous said...

My friend signed me up to the Amway scam and now I no longer speak to her. I don't know how to get out of it now and Network21 keep charging for the "motivational crap" which gets thrown into the bin before it even makes the front door. Any idea how to get out of it?

Anonymous said...

I was just at a seminar in Mansfield held by this group in a dingy little tavern (not the signs of a successful business to me) any who i was invited to this by a work associate within the construction business under false pretences, my partner and i have investment properties and were lead to believe that this was about the property market.

However this was not the case and it was a lecture of success stories with no credibility of the business itself or how it is that people came to make this money (apart from the fact you have to pay a $99 joining fee)

The group does not go into depth about how exactly the business operates and are cunning with their marketing ploy to lure people in.

The reps there are way over the top, one guy in the front row would not stop laughing and hanging off every word one of the speakers said even though he has probably heard the same speech a thousand times.

After all that was down, the person who invited us changed tune from being warm and inviting to all of a sudden trying to hard sell the product and then introduce myself and my partner to their mentor "Luke" who also tries to put the hard sell on.

And after all this we again get pulled away to be shown some tree diagrams with "you" on it and how i supposibly fit into this picture, along with a can of XS and some cd's which i certainly won’t be listening too.

thankfully my partner and i are not nieve enough to fall for this crap and just laughed about it on the way home, i just wish we didn’t waste our evening going to this and i hope others out there are not gulable enough to fall for this

Anonymous said...

Some years ago a work colleague rang me with the scripted business opportunity spiel. She came to our house with her mentor and explained the opportunity. My partner at the time was unemployed and got really enthusiastic about it. He started buying motivational tapes and paying money to attend meetings. At the same time he was making phone calls to all my friends and family trying to sign them up. I don't think anyone else was silly enough to get sucked in. After a few months I googled the company and found pages and pages of bad comments. The structure and rewards system seemed to be identical to Amway and there was even more negative stuff about Amway on the net. My partner got very upset and defensive when I told him and didn't want to know. So I printed out about 100 pages of negative stuff people had posted and left it lying around. About a week later he quit the organization. But not before he'd spent several hundred dollars. The lady that had got him into the scheme told ne about a year later that she had also quit. I hate to think how much money she parted with for absolutely no return. Its a scam.