I see ads now on Fox News just talking about the millions of people who are "independent business owners" as a part of Quixtar.
Quixtar is a manufacturer of health and beauty products. These are then sold to individual IBOs like John and Suzzie, at a discount. Theoretically, John or Suzzie would then sell these items at full price to other people and make the difference in margin. Selling Price - Cost - Other Expenses = Profit. Very simple!
Except, unfortunately, this isn't how Quixtar works for the vast majority of participants. In most cases, you have a friend of a friend who approaches you about a "business opportunity." You are told that you won't need to sell anything, and you can fire your boss in 2-5 years if you work hard.
The Quixtar way actually promotes consuming items (buying more granola bars, soap, makeup for yourself) and then finding others to buy and consume their own items. How does this make anyone money, you ask? For every individual your recruit, you get a fraction of their sales, and a fraction of the sales they make. The more people you recruit, and the more your recruits recruit, the higher your income bracket.
To make matters worse, to keep you hooked in, you'll have weekly or semi-monthly meeting to encourage you to stick with it. You may need to drive 30 miles or more to get to these meeting. Once there, you'll be pressed to buy "positive thinking" CDs to keep sticking with the business. Often times the cost of gas, time and these tapes suck any profits you might otherwise make from your recruits below you.
So if this doesn't sound particularly appealing, it's because it isn't. You don't need to take my word for it: Quixtar Income Link
IBO STATISTICS
- The average bonus and cash payments earned by a Diamond IBO in 2005 were $146,995.*
- The average bonus and cash payments earned by an Emerald in 2005 were $72,241.*
- The average bonus and cash payments earned by a Q12 Platinum, an IBO who qualifies at the Platinum level all 12 months of the year, were $47,472.*
The Average Monthly Gross Income for “Active” IBOs was $115.
*The following are approximate percentages of Direct Fulfillment IBOs of record in North America who achieved the illustrated levels of success in the calendar year ending August 31, 2005: Diamond .0120%; Emerald .0320%; Q-12 Platinum .1683%.
In other words, people do not make money with Quixtar unless you're one of the king pins at the top. The average person makes less than $1380 a year. You could get a part time job and earn that much in a month or two waiting tables!
Stay away!
Posts
2 comments:
Dude, Matt. They just pounced on you...haha!
Good post Matt. The average IBO may not have to do much to be considered active, but still, if there is one millionaire in quixtar/amway, then there are over 8000 IBOs making ZERO to hit that average of $115 a month.
While there are IBOs who don't do much, there are IBOs who do a lot of work for that $115 average.
In reality, most IBO's don't make $115 a month. Most IBOs who actually do something wil get back $8 for moving 100 PV. The amway quixtar millionaires pull the miserable average up.
ibofightback is delusional thinking that someone who attempts to sell something once in a year will make a red cent.
Most people would be better off taking a walk looking for loose change on the ground or flipping burgers part time.
Post a Comment