Thinking About Signing up with Quixtar or Amway? Read This
November 14, 2007 By
One Wednesday afternoon I was doing some homework as is a common occurrence and my room-mate asked me if I would be interested in going to a business opportunity presentation that one of my previous roommates had bought into. I can’t say I thought our previous room-mate was a terribly bright person, and wondered what multi-level-marketing system he had bought into. It turns out it was America’s favorite modern multi-level marketing company, Quixtar.
Quixtar is a multi-level-marketing company in which people can become an independent business owner (IBO), and have the opportunity to resell Quixtar marketed products and receive a percentage of all of their gross sales. IBO’s can also recruit new IBO’s and make a percentage of the income their referrals make. Independent business owners also receive a percentage of purchases that they make through Quixtar’s website.
In theory the business idea sounds reasonable, but when we look deeper, we see some troubling information. My previous room-mate who had bought into Quixtar suddenly began buying products from Quixtar which he had never gotten before. Why would he suddenly start to buy energy drinks and nutrition supplements? He received a commission on every sale, including to himself. He now had more opportunities to buy products and unconsciously bought products that he otherwise normally would not have bought because he got a commission on them. It took him a while to realize this, but eventually it went through his head.
Quixtar IBO’s often spend a lot more money than they make on Quixtar products than they actually receive in commissions, because IBO’s have an incentive to buy stuff they normally would not. With any reasonable business proposition, you should be at least making some money, not paying them for products you don’t really need just so you get a commission.
Another major bone of contention with the company is that the market is very oversaturated. It’s nearly impossible to refer new IBO’s because everyone has already heard about it. This means more than likely either the person you want to refer is not interested because they know they won’t make any reasonable amount of money with it, or they have already been referred.
So what do you get for all of your hard work and sales? The average Quixtar IBO made $115 a month in 2005. The median income is probably much lower, since there were a few very large bonuses of nearly $1,000,000 which skew that number upward. The typical Quixtar IBO probably makes more like $75 a month.
In late 2004, Dateline reported that a lot of high level Quixtar IBO’s made the majority of their money selling promotional and motivational materials rather than actual Quixtar products. If Quixtar was such a profitable business, wouldn’t they be selling Quixtar products rather than motivational materials to sell those products?
There are just too many issues with Quixtar to make it a worthwhile business adventure. IBO’s end up working very hard and long hours and end up getting paid not very much money in the end. Starting a business with a solid business plan is definitely a great idea, but Quixtar is not the way to go.
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November 15th, 2007 at 8:24 am
It’s sad that a college student would slam a business without siting credible sources. Bad research… bad writing.
And if you’re going to use Dateline as a credible information source, check out Dateline’s honesty in reporting at this link . I particularly like the story where they rigged a GM truck with explosives to prove the point that GM trucks exploded!
So, you’re paying your school tens of thousands of dollars for an education. Are they making ANY claims about job potential? Incomes? Any alumni coming to you stating their education is directly related to their success or that they’ll help you succeed?
I spend way less in one year on training and expenses in my business than you pay for one or two classes at your school. I have guys teaching and mentoring me who have done what they teach… not a bunch of theory in a classroom.
I make thousands in my Quixtar business. It’s an awesome opportunity for people who plug in and treat it seriously.
When you go and get your 1st job, why not check out your earning potential with your new employer… verify the ethics and morality of the management. I doubt you’ll be able to take any moral high ground over what Quixtar is offering and the people involved.
November 18th, 2007 at 5:00 pm
Saturated? Last year in North America alone there were nearly 900 *new* folk qualifying at Quixtars “platinum” level or higher. Platinums average around $50K/yr from a part-time business, and that was before Quixtar doubled some of the bonuses.
You are right about the median and average incomes - however what you are missing is what the “average” IBO does … which is nothing. Only 50% of folk who register a Quixtar business ever even order a product after joining. Less than 25% ever sponsor anyone. The great majority earn very little …. for doing very little. $115/mth is pretty good for that!
November 19th, 2007 at 4:33 pm
IBO in MI,
In response to paying tens of thousands in education and claims for job potential. Absolutely, there are claims of average incomes, statistics, and facts about any particular industry or profession one is willing to seek.
If I invest in a college education to be an engineer, doctor, or lawyer, there are average hiring salaries for college graduates of a particular degree. Even down to the specific field a graduate may choose.
Saying that education is not directly related to success is bogus and misleading. No one is going to hire you as a lawyer, doctor, engineer, pharmacist, etc. if you do not have the degree in such a profession. Granted, I believe business itself operates differently and one does not need a business degree per se to start a small business, or enter the financial markets.
However, it is disingenuous to point out that one cannot make claims about the labor market in the U.S. For example, we know there is a shortage for nurses and what the average salary for a nurse starts in certain regions.
How ethical is it to sponsor potential IBOs by appealing to one’s greed and narcissism? IBO’s make the assumption that there are enough fools out there to join their quest of building dreams while neglecting that most people don’t fall for this idiocy. I’m sure you can pick up a few prospects, and even they will realize what this business is all about.
You ignore Economics 101 and try to peddle your overpriced products that cannot compete in normal market conditions. So you go create your own market where IBO’s buy from themselves in hopes of accumulating points. You ignore market saturation and competition.
How many IBO’s do you know have achieved Diamonds? What is there incomes? Are they financially free if they are still working as IBO’s?
It’s one thing to have dreams - we all have dreams - but its sad when one tends to ignore logic and reason.
November 19th, 2007 at 5:45 pm
Quixtar and the rest are scams. Thanks for submitting this to the Carnival of the Capitalists. Hopefully others will link to you too and get this ranking for Quixtar, Amway, IBO and the rest of this junk.
November 20th, 2007 at 11:20 am
The problem with multilevel marketing is not the business, it’s the unqualified people that get involved. People who are not “people persons” join the business thinking they will get rich, then fail because they are not the right type of personality, or not willing to do what they’re upline suggests they do.
Multi level marketing is valid.
November 25th, 2007 at 12:29 pm
Again, bad research… bad conclusions. Your statements are pure opinion… not based on any facts.
The point I was trying to make is there are no more guarantees in college than in a Q business. You’ve got to believe in the opportunity and put in effort. Those who put in the effort will succeed.
No one succeeds in Q? IBOfightback stated it right… 900 NEW Platinums earning $50K last year. Not many college grads can do that!
Overpriced products? You clearly know NOTHING about Nutrilite, Artistry, etc. Do you understand quality, value, market position, etc. We’re not selling crap. I tell people up front not to overspend… that we’ve got high quality products… many of them are affordable and a great buy. Some products may not fit their budget now. But as they make more money in their biz, then they can afford them.
Finally, not everyone strives to be a Diamond. The ones I know are doing very well… live lifestyles WAY above any well off people I know. And they do it without leveraging with loans and credit cards like most people.
December 5th, 2007 at 11:13 pm
business home mlm online opportunity…
Maybe it can get a little complicated if used in a different way….
December 13th, 2007 at 7:49 pm
ibofightback said: “Platinums average around $50K/yr from a part-time business, and that was before Quixtar doubled some of the bonuses.”
This is untrue.
The company has never released figures stating how much the “average Platinum” earns.
Most qualified Platinums do not qualify 12 months of the year, which would account for ibofb’s figure.
Also, a Platinum may qualify one month with a very small volume on the side if there is a downline Platinum in the group.
This SEVERELY cuts into the profitability of the Platinum. And if the Platinum only qualifies only six months of the year, it cuts down the income even more.
Someone may qualify for Platinum in such an example and earn only hundreds dollars per month, much less than the $50k per year in ibofb’s example.
Also, Quixtar has stated this year that the “doubling” bonuses paid to Platinums, are not being paid to all qualified ibos because they are “discretionary” and not part of the official marketing plan.
Check out this site: http://qreilly.blogspot.com
February 28th, 2008 at 7:16 pm
Dateline not credible? What was untrue about it? What about the 60 minutes expose on Amway? 60 minutes saidthe same thing that Dateline did.
Quixtar is saturated. 900 new platinums? Big deal, how many platinums from the previous year did not qualify for platinum? 1000? Why do diamonds quit and/or resign?
“however what you are missing is what the “average” IBO does …” (Ibosightback)
That’s misleading because the average income is for “active” IBO’s. If an IBO did nothing, they are not active. In fact, most IBO’s get $6 or $7. The big shots drive up the average.
“900 NEW Platinums earning $50K last year. Not many college grads can do that!”
(IBO in Michigan)
That’s BS, who said platinums earn 50K? From what I read, many platinums only earn around 30 - 40K and that’s before taxes and expenses. I bet after taxes and expenses, they earn less than 20K, if even that.