Amway is an American company whereas Vestige and Modicare are Indian companies.
The aim of this post is to provide a detailed and unbiased comparison of Vestige, Modicare and Anyway. There are millions of distributors who indulge in these companies and always have debates to prove their MLM company superior.
So here we are to make things easier for you.
Vestige Vs Modicare Vs Amway
This Vestige Vs Modicare Vs Amway comparison is as per Indian consumers and distributors who want to use their products and want to become part of them.
Amway India was established in 1995 and started its commercial option in 1998. Amway was actually founded in 1959 by Richard M DeVos and Jay Van Andel in Michigan, USA.
|Founder||Gautam Bali, Kanwar Bir Singh, Deepak Sood||Samir Modi||Richard M DeVos and Jay Van Andel|
|Year Started||2004||1996||1995 (India: 1998)|
Modicare calls itself as first direct selling company in India started by Samir Modi in 1996. Samir Modi is the son of business tycoon KK Modi and the brother of IPL (Indian Premier League) founder Lalit Modi.
Vestige was started in 2004 by Gautam Bali, Kanwar Bir Singh and Deepak Sood.
Three of the companies share a common range of products i.e. personal care, FMCG and other daily needs products.
Three of the company started operations in India within an 8 year period and have a common product range, which makes the comparison more interesting.
Parameter of Comparison
A comparison without proper parameters is meaningless. So, here we will use the following parameters to compare these three MLM companies.
- Starting Cost
- Compensation Plan
- Market Saturation
- Training & Support
Before Direct Selling Guidelines comes into existence in India, many companies were taking joining fees.
Vestige, Modicare and Amway don’t take any joining fees. But to become their distributor, individuals have to make some minimum purchase.
Three of the company have different initial purchase amounts.
In Amway, you have to purchase products of around 100$ means 7,000 INR to become an active Amway IBO (Independent Business Owner).
In vestige, one has to do 30 BV personal purchases i.e. around 1500 Rs.
And last, the Modicare consultant is required to make 25 BV product purchases which is just 100 Rs.
BV (Business Volume) are some points on products that are decided by MLM companies. BVs are used to calculate different incomes of distributors.
Here Modicare is the winner. Extremely high initial purchase cost is a major drawback of Amway.
Note that, we have only considered the very first purchase amount. MLM companies have different purchase requirements to maintain distributor ranks. So whenever you are examining an MLM company, with starting cost also understand the further repurchase requirements to maintain ranks and earnings.
Products are the backbone of every direct selling company. Compared to most other MLM companies, Amway, Vestige and Modicare have done remarkable work with their products.
The major things to notice about MLM companies’ products:
- Quality: Products should be effective and made of good ingredients. The company should not be selling snake oil.
- Demand: If products are of daily use and have regular demand then distributors can find customers quicker.
- Product Range: A large product range offers several options to distributors and customers to make purchases.
- Reasonable Pricing: MLM companies should have reliable products which justify their price.
Personal Care, FMCG, Appliances and Agriculture products are common in three of the companies.
You can check out their complete product price list by visiting the following links.
To make this product comparison easier, we are taking the example of Toothpaste and comparing it with a retail market product Colgate.
|Product Name||Dentassure Toothpaste||Fresh Moments Toothpaste||Glister™ Multi Action Toothpaste||Colgate Strong Teeth Toothpaste|
|MRP (Pack Size)||75rs (100gm)||48rs (100gm)||270rs (190gm)||75rs (150gm)|
|Cost per 100gm||75rs||48rs||142rs||50rs|
Vestige’s Dentassure Toothpaste and Modicare’s Fresh Moments Toothpaste cost 75rs and 48rs for 100 gm respectively.
Amway’s Glister Toothpaste cost 270 Rs for 190 gm, whereas Colgate’s most popular toothpaste Strong Teeth cost around 50rs for 100gm.
Compare to the retail market Modicare has competitive product pricing, Vestige’s products are slightly costly and Amway’s product is extremely overpriced.
Not limited to toothpaste example, but the same scenario goes with most products and verdict is.
- Amway’s products are extremely overpriced
- Vestige and Modicare customers have to pay slightly extra for every product compared to the retail market.
Many distributors argue that Amway is expensive cause the quality of its products is the best.
For Indian consumers pricing is primary and quality is secondary. Most Indians belong to the middle or lower-middle class, hence it is not possible for them to use these expensive products for some organic or quality tag.
Considering the market, Modicare and Vestige are ahead of Amway due to better pricing whereas the quality of the product should be examined individually to understand better.
Comparing MLM compensation plans is not a feasible thing. Actually, every MLM company has different numbers and types of income, which can divide into retail commission (personal product sales) and residual commission (downline product sales).
If a company offers a high retail sales commission then the residual commission can be low and vice versa.
Retail Sales Commission in Vestige, Modicare and Amway is upto 20% on product MRP.
Comparing income plans is not feasible. Because some MLM Company facilitates more income on direct sales and some on sales by the downline.
Market Saturation is a less-discussed term in the MLM industry while it plays a major role in further growth.
Market Saturation arises when the maximized requirement of the market is fulfilled and further growth is not possible.
Amway is operating for more than 25 years in India and also advertised its products on national TV.
The larger number of our country’s population is already familiar with “Amway” company and knows it as an MLM company with expensive products.
So new people are not interested to become part of a company which has such a reputation.
Vestige is also going to hit market saturation, as it has j-curve growth in recent times. Vestige is the current largest direct selling company in India and with time, Vestige’s growth will stick like Amway, if they don’t do something innovative to maintain growth.
Almost all existing direct sellers never want to become part of any old direct selling company. This stereotype is extremely strong against all three Vestige, Modicare and Amway.
Modicare has a slight advantage as it is not popular as the other two and has a decent reputation, this is discussed more ahead.
Support & Training
Earning is always behind learning. For a new network marketer, training and proper guidelines to work in an MLM company are required first.
At present, very few MLM companies provide that training and support. Fortunately, three of the companies are doing great on this parameter.
These companies organize seminars and training sessions for their distributors. Sadly instead of teaching, many MLM seminars are cheap motivation centers where fake cheques and lavish lifestyles are shown to brainwash young people.
You can find their training session on official websites and mobile applications of Vestige, Modicare and Amway.
Moreover, Vestige, Modicare and Amway all release their products catalogue regularly. Products catalogue are a vital marketing tool for every direct seller.
You can check their catalogue by clicking the below link.
Network Marketing is the business of people and it is important for companies to maintain a positive reputation, therefore people can trust them and can become happy customers or distributors.
After operating for 2 decades, Amway India has devastated its reputation. Several warrants are released to arrest Amway India’s CEO till now.
In recent times, Vestige’s reputation has also been ruined after its skyrocketed growth. The obvious reason is misleading earning claims made by their distributors. You can find various internet memes where Vestige is trolled for extraordinary income claims their distributors made.
Modicare is on the safer side in this parameter. As they haven’t gone wild with their promotion tactics and distributors promote products to real customers.
Conserving the above parameters, the ranking of these companies is Modicare > Vestige > Amway.
Amway has overpriced products, a bad reputation and saturated market, making it the worst option among the three.
But Amway India has set a template for most Indian direct selling companies and they achieved growth following Amway’s footprint. Unfortunately, Amway’s customer and distributor base is shrinking not only in India but in the USA as well.
Vestige has made it to the top 30 direct selling companies in the world as per revenue and it is the very first Indian company to do so. But deceptive business tactics, false earning claims by leaders and misguiding youth has become now common practice in vestige.
But for products, Vestige and Modicare are far better compared to most other MLM companies. Vestige has suppressed many MLM companies in India including the oldest one Modicare.
There are endless, pros and cons of all MLM companies. I know it’s hurt when someone comments on your organization, but facts can’t be ignored.
Hope you make a wise choice for yourself.
I hope you like our post on this hot topic “Vestige vs Modicare vs Amway”. I tried to provide all the required information and help you to choose the best MLM company.
Vestige, Modicare and Amway all of them have their own pros and cons. Many network marketers have a very wrong mindset, where they demote other MLM companies to promote their MLM without any logical points.
Lastly, don’t ignore the MLM success rate driven by Jon M. Taylor which is 0.4%. Only 4 out of 1000 network marketers gets success who are at the top of the pyramid.
So, if you are a highly skilled marketing person, understand MLM and have large contact, then probably MLM is for you. Otherwise, there are several easy and better ways to earn money in Life. This is the harsh reality that your loveable MLM Leaders never tell you.