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Encounter with a Quixtar Drone

One of the fun things about having a blog is that comments on your previous writings sort of trickle in over time. Though I write about a lot of stuff, and readers may agree or disagree variously, one of the more interesting topics lately has been my short involvement with Quixtar.

In a previous post, I described my initial reaction to the initial Quixtar presentation I'd been given. The Quixtar Blog linked it, and I get occassional hits on that topic: it seems many have had horror stories associated with this group.

Today, someone who clearly appears to be associated with Quixtar posted a comment which seemed to typify the mode of operation I've seen from this group. To see Crystal's original comment, scroll down in the original post.


Crystal,

You wrote:

I think it is so important to research anything you may decide to get involved in...But I also think think you should be careful where you go for advice and information... Where do i go to get my financial advice? To those who have financial success...

You seem to be implying the best way to "research" an organization is not to ask anyone outside of it about it. I fear for your credulity.

Crystal, Quixtar has two million active IBOs. It has, by it's own admission, less than 3,000 millionaires ("only Microsoft has more" they say, and Microsoft has about 3,000). This means less than 0.15% of Quixtar IBOs are millionaires. In the general population, 3.5% of the people are millionaires.

So people outside of Quixtar are, on average, much more financially successful than those inside. Quixtar's own stats will show you this if you just pick up a calculator.

... in ANY business you will find those who misrepresent the intended goals of the plan ...

Yes, but in this group, misrepresentation (don't show too much data, don't tell them their real chances, don't even identify the true name of the business early on ("Amway/Quixtar")) seems to be the actual desired mode of behavior.

Strikes me as unethical.

It seems that those who dedicate their live to criticizing Quixtar/Amway are in far worse shape... many "haters" in America dont like the business... reading such intense criticism makes me want to get involved even more. Obviously this business is successful and this makes people very angry.

Wow. You didn't actually read anything I'd written, did you? "Itense criticism?" I said I might actually buy some of the products.

The logic is hilarious: Many people hate this organization. Therefore, I must get involved immediately! (So are you applying for Al Qaeda membership also?)

The deception is equally hilarious: "Crystal" is clearly trained in the many lines of argument Quixtar IBOs use to deflect (though not answer) criticism. Yet then she says she's only "thinking about getting involved with the business". As if she wasn't obviously in Quixtar already and acting as an apologist!

That, Crystal, is what I call "deception." (And a pretty lame one at that.) It's not what I'd call "moral", though that's a term you have associated, in your comment, with people who do such things.

Where do i go to get my financial advice? To those who have... dreams...

Don't go to someone who has dreams for advice. Saying you have a "dream" is just shorthand for saying you don't yet have the success you desire.

Since I meet lots of people in Quixtar with "dreams", but few who are currently satisified, I suspect I'm dealing with a pretty unsuccessful group. Instead, this constantly unfulfilled "dream" seems to be a carrot, dangled in front of the mule, to keep it endlessly pulling the cart.

When I go to church, I see a group of people who have found something beyond what they'd dreamed. But it's not a dream of this world: It's something beyond that yacht or summer home. Perhaps you'd call Jesus a loser, being poor as he was. The apostle Paul likewise. Consider, then, the implications of a value system which portrays these men as losers.

I hope sometime, Crystal, you find yourself satisified. Not complacent, but with a peace and security you can't hope to gain through more money or Quixtar. There is nothing more important in life than that.

And I hope you stop deceiving people, as you obviously attempted to try to do in your posting here.

I wish you the best.

- Tim

Comments

Tim,

Welcome to the "Great Quixtar Debate." I think you're discovering what I began to discover a few months ago -- that this "debate" is much bigger and more divisive than I ever imagined. I began my blog for two primary reasons:

1. I was frustrated by the lack of current, timely, relatively unbiased and well-organized information about the mysterious company known as Quixtar.

2. I wanted a place to express my own thoughts, feelings and opinions about my wife's involvement with Quixtar.

Since that time the site has grown to the point where it has honestly begun to eclipse some of my other online endeavors. Every time I think of "quitting" and just shutting down the site I get an email or a comment from someone thanking me for my efforts. This lets me know that in some small way, my effort isn't for naught.

Anyway, what I'm saying is that my intentions were NOT to become some "Quixtar guy." That's partly why I began the site on my webraw.com site instead of giving it its own domain. I saw it as just something to do when I got bored on a Tues. night or when I needed to vent some frustrations or ask a question regarding "the business." And maybe, just maybe, you are getting "the itch" that I got a few months ago to further investigate this business and try to get at the root of why so many people feel so passionately about this particular business (either pro or con). I enjoy your perspective and appreciate you taking the time to share it with your regular readers. As they say on Saturday morning cartoons, "Knowledge is power!"

Take care,
QBlog dude

Posted by: QBlog on December 14, 2003 08:05 PM

Qblog, do not listen to Mike or Lisa. They are not very well informed, and their comments should not be taken seriousely. If you really want to check on Quixtar's status, check to see who the USA's biggest retailer of health and beauty supplies is, or look up XS Energy drinks. That should give you a pretty good idea of how this company is doing and where it's headed. Thanks, and have a great day.

Posted by: Chris on January 28, 2004 09:33 AM

I'm not sure what you people are talking about, but quixtar is the best thing that has ever happened to me. With-in the next two years I will be a DIAMOND!!!! So stop with your negitive mind set and get up and do somthing.

Posted by: Shaun on March 23, 2004 01:14 PM

Well, quite useful information there, I really hope and I'm sure it will help the people who are so tactfully lied to about becoming "free". Only if I had read it 2 years ago...anyways, God bless you Tim! and to all "positive" ppl, Tim is not being paid to do this, but diamonds are making money off you, so who would u listen, an unbiased advise or some one who makes money by selling you useless crap?

Well I read a comment by an IBO: "Millions are doing it, millions of ppl can't be stupid", well, being a huge wrestling fan myself (yeah I know its silly, but I like it...), I know millions of ppl watch wrestling. Every body know it's fake, but they watch it, with same enthusiasm even more which i saw in Quixtar's FED :) And speaking of wrestling, I find following similarities between quixtar and wrestling:

1) Its two nights every week.
2) Majority knows it's fake.
3) Participants always get hurt, owner makes a lot of money.
4) important events (Pay per view / rallies) are rediculously expensive, and are once a month, every month.
5) Majority of participants would never achieve superstar status, no matter how good or technically sound they are, unless they know how to entertain audience.
6) Mike skills are way more important than actual thing.
7) Women are at most a diva, nothing else.
8) Normal public thinks it's silly. Well, it is, despit lot of money.
9) If you challange the owner, he'll screw you real bad (bret hart, bo short)
10) Help of your manager / upline can make all the difference :)

Anyways, I feel little bad about associating WWE with such an un-ethical organization...after all, their business is ethical and legal, they do give me good entertainment every time, and no body, well, except my 12 year old brother pushes me to watch it. But Quixtar can't top this one:

In WWE, A good guy / baby face can become a champion while still being a good guy...LOL

(to be fair, a lot of heels in WWE are very very nice in real life, can't say that about ppl who are ripping ppl off)

Posted by: Imran on June 23, 2004 05:36 PM

My friend is intricately involved in this group and I sat in on a meeting. My issue isn't the concept of selling peer-to-peer, it's all the false hope. My friend really believes that everyone who works hard can replace their income, but the quixtar books say only .0075% make more than 12,500 per month. She feels that's because many people pay the start up cost of 45$ and then don't go farther in the 'business.' Meanwhile she feels she's making money because she's sent a payment of $7.50 a month when she spent over 400$. She feels like she is making money and doesn't realize how much she is spending.

Posted by: Jenn on July 7, 2004 10:48 PM

My girlfriend of five years fell into the dream world of "financial freedom" recently and broke things off with me. What seems to amaze me most, is she REALLY believes that in less than a year's time, she'll attain wealth and happiness. What I don't understand is if a person steals $.50 cents of merchandise from a store, they're a criminal, and if a billion dollar business scams thousands of people out of their money, and ruins lives like mine, they're still in business.

Posted by: CLINT on November 3, 2004 03:11 PM

I should have read over my last post. I said I was very will educated, while will should have been well (irony lol). Anyways please forgive me for those mistakes and help me out with my desicion on starting this Quixtar operation. Thank you.

Posted by: Bruce on December 12, 2004 07:03 PM

Well, if it makes any difference to you, the person I wrote about above was no longer doing Quixtar, last I checked. She said she'd thought about some of the ethical argument made, and they bothered her conscience.

The average monthly return isn't that impressive -- something like $115 per month, last I checked. And that isn't after expenses, such as the markup you'll pay on the product, much less deducting the fair cost of your time.

There are people who post here who have done well, and then regretted it. Post here long enough, and I'm sure some of them will introduce themselves to you. There are also some here who are clearly selling the system.

My take: Basicly, it's pyramid which transfers money "upline" through product purchases. You buy a lot of the product, and put in a lot of time and incur a debit. Then you try to repay that debit by putting many more people into the same position -- sort of a geometric game of "hot potato", where each time you pass the potato, it multiplies. Either you get burned or lots more do, downline. Those who get burned downline are told it's their fault. It's not -- the game is rigged against everyone who isn't at the top.

Good intentions don't make one whit of difference. It's all about math.

Try the game with 100 people. 1 signs up 6. Now there are 7. The six sign up 36. Now there are 43. The thrity-six... have no-where to go. They can each sign up about 1.8 more people, who will get burned. As will the 36, because they won't break even with only 1.8 downlines.

Effort makes a difference, but all you're doing is ensuring someone else gets burned, not you.

It's like that in the larger population, too, but harder to observe, and slower. That's the reason this collapsed the last time it was done -- under the name "Amway".

Good luck.

Posted by: Tim (Random Observations) on December 12, 2004 08:55 PM

its a simple biz if your not lazy....its not a job..the income is unlimited..but its no garentee..if you sell product you make money...if volume moves in your group you make money....if you honestly believe it takes alot of money to run your own biz backed by them your crazy...a quixtar powered biz you really can run with putting in 12 hours a week and about 70 bucks a month...if you think the products are expensive you need to do your research...they might not be the cheapest products...but per unit they are competitive...if its for you do it...if not..good luck you better find something that is for you

Posted by: kc on December 15, 2004 02:22 PM

"Regarding the redirect argument: Toys 'R US is NOT Quixtar. partner of many. "

If you will please re-read my post, you will see that I purchased the toys at a local Toys-R-Us, then returned them when they proved to be cheaper when Quixtar ran a 20% off special on all items in their holiday catalog over Thanksgiving weekend. I saved $6 on each of two Fairytopia playsets, $9 on a Sing & Dance Elmo (not from Toys-R Us, from BJ's, which is like a Price Club or Sam's. I have since seen this item at local stores for lower than the $19 I paid at Quixtar. They have lowered their prices, I assume because it is not selling well.), $6 on an Elmo Sing n' Teach Table,, and a few others.

Also, I bought a Gazelle Edge exercise machine for $190, plus $20 flat shipping. Being at the 9% bonus level, I then got $6 back the next month.. So I paid $204. A search on google shows the best price for this item to be at Walmart, for, believe ot or not, $204. (At least this was the case in October, when I bought it.) Had I been at a higher bonus level I could have gotten back as much as $16.66, making it cheaper than Walmart's by $10. The only place I've seen them cheaper is on ebay, and most of those say "refurbished." What's more, I can now use it for six months, then decide if I want to keep it. If I don't, they pay for return shipping. It's amazing. I bought my wife a sewing machine two years ago. She never tried it, I forgot about it. I called to see if I could return it when we had had it for just over eight months. Not only did they take it back, they paid for the shipping and insurance.

If Quixtar items are THAT cheap, y almost no sales to outside clients? y sales less than that of nineties?

I'm assuming it's because people don't take the time to do their research. Have you? No store is going to be the cheapest source of ALL items, but most will have some excellent deals.

But let's ignore Quixtar's prices for a minute. Look at the partner stores. E-toys, a partner store, had EVERY item that I had already purchased at Toys-R-Us, most for the exact same price, and shipping was free on all items except Dora The Exporer's house, which had a $5 charge because it's big. Even though I would have made a little back through the bonus check, I didn't bother re-buying all the toys from eToys and returning the ones I had to Toys-R-Us. Too much trouble to do all of them, so I just did the ones I considered worthwhile. Too bad I hadn't thought to check e-toys first.

How about Office Max? Are there cheaper sources for HP inkjet cartridges? There might be, but I haven't really checked. For my epson, I buy cheapy cartridges on ebay ten at a time, but I haven't really found cheap ones for my HP 11x17 printer. I usually run out of ink during a big print run and then have to run to Staples or Office Max near me. Where I live, when I order something from Office Max.com they deliver it to my house the next day, for free if the order is over $50. They also constantly have specials. I got a lot of cases of Poland Spring bottled water for 16¢ a bottle in September, the same price as BJ/s, then got a few dollars back the next month in my bonus check.

My wife and I have also been big shoppers at the disneystore.com, now disneydirect.com, over the years. They often have items that you can't get in the Mall Disney Stores, and my two little girls are big princess fans.

Also -- we own a dance studio and have subsribed to Dance Teacher Magazine for at least 5 years. Well, their "superspecial, custome only" renewal price was $24. At partner store magazineline.com, I renewed for $19.

It costs $47 to join Quixtar, and $30 to renew each year. I made that money back just through the items I returned to Toys-R-Us.

I don't buy any tapes, I don't go to rallies. I just buy what makes sense, I try the Quixtar products that intrigue me, and I use them if I like them. if not, they refund my money promptly. ( I tried soy peanut butter. The less said there the better, but a friend who is allergic to peanuts eats it.)

From the negative stuff I read on the internet, I assume many people buy some sort of kit of books and tapes and don't realize they can register with Quixtar for only $47. So it's unfortunate that so many scam artists use Quixtar in that way. But to me it is even MORE unfortunate that so many people are out there warning people away from it and calling Quixtar itself a scam. You're "saving people" from a legitimate opportunity to make some money. And every time I tell a friend and they start using Quixtar as I do, they either save a little money or make a little money, and I make a little bit more. Even though I've been involved for two years or so, I've only told a few so far , because it IS often an uncomfortable subject for me to bring up. It only took one or two eye roles when I said the word "Quixtar" to make me gunshy, and I am NOT a natural salesman. So my trip to daimond-hood is unlikely. But I AM comfortable expressing my views in anonymous forums such as this. If anyone is interested in approaching Quixtar in my fashion, e-mail me at bdtkevin@optonline.net. I'll answer any questions you have, either here or through my e-mail.
Good luck to all -- and don't believe everything you read on the internet. Check out the facts for yourself!
Kevin

Posted by: kevin on December 18, 2004 08:33 PM

Hey Tim,

I was a Quixtar rep for all of 1 month. I went to the meetings listened to the retoric and for the most part bought into it, until I acctually was authorized to get on to the web site and especially when I got my first bill. Their claim that you save 30% and you buy at wholesale prices is simply nonsense. You are charged a shipping fee on top of a picking fee, plus taxes, and all the while the products are very expensive.

Now that is just one deception, theres more. I got out before they started trying to sell me cd's, books, and other "training" material the would "help" my business grow. The IBO's are quite literally brainedwashed. The have a strange lingo, they speak as if they are already rich, i.e., "I'm a Diamond", yet they are pulling in $6.05 a month.

My friends are IBO's and won't even listen to what they call "negative" information. The fact is 99.99% of IBO's do not make nearly the money that is claimed to be possible.

Also the IBO's are taught to believe that Quixtar is not Amway. In 2003 (I believe) the Amay distributors were transfered into Quixtar (you may want to verify that, but I believe that is correct).

One more thing, the only reason why Quixtar sells so much is because the IBO's buy so much. It's not the general public buying from IBO's, it's IBO's supposedly buying from themselves (I say supposedly buying from themselves because the only one making a profit is the Alticor Corporation).

I can go on and on but I simply do not have the time at this moment. Simply put stay away from Quixtar.

David

Posted by: david on December 23, 2004 02:37 PM

Imran Said> If Quixtar items are THAT cheap, y almost no sales to outside clients? y sales less than that of nineties?

Kevin Said> I'm assuming it's because people don't take the time to do their research. Have you? No store is going to be the cheapest source of ALL items, but most will have some excellent deals.
------------------------------------------
Tim: Any thoughts about configuring a phpBB forum? Its much easy to quote and quite readable. Let me know if I can assist you.

Ok Kevin, first I love your way of doing Quixtar, product based, giving ppl cheaper deals. But I disagree that ppl don't do research for cheaper deals. It's all they do, else flea market near my home won't be full all the time. Yes no store will be cheaper all the time, but ppl will go for value. Value = quality, price, east to shop, delivery, accessibility, marketing, shopping experience etc. Instead of blaming ppl, a business men should adopt to ppl. It won't be very intellegent if I open a shop and start whining ppl don't understand etc. I have to be the one to adopt to customer. No?
------------------------------------

Kevin said>From the negative stuff I read on the internet, I assume many people buy some sort of kit of books and tapes and don't realize they can register with Quixtar for only $47. So it's unfortunate that so many scam artists use Quixtar in that way. But to me it is even MORE unfortunate that so many people are out there warning people away from it and calling Quixtar itself a scam. You're "saving people" from a legitimate opportunity to make some money. And every time I tell a friend and they start using Quixtar as I do, they either save a little money or make a little money, and I make a little bit more. Even though I've been involved for two years or so, I've only told a few so far , because it IS often an uncomfortable subject for me to bring up. It only took one or two eye roles when I said the word "Quixtar" to make me gunshy, and I am NOT a natural salesman. So my trip to daimond-hood is unlikely. But I AM comfortable expressing my views in anonymous forums such as this. If anyone is interested in approaching Quixtar in my fashion, e-mail me at bdtkevin@optonline.net. I'll answer any questions you have, either here or through my e-mail.

Imran Said> Well we are just posting our view, you are yours. Freedom of speech. And you are objecting against it? I'm just trying to understand it. Look I do consulting business. I don't mind criticism about it. I'd welcome it. If there is some thing to it, I'll improve it. If no, it won't matter at all. why Quixtar IBOs are so sensitive about negativity? If Quixtar has some value, ppl will join it like crazy. Every one could use a couple of bucks. If they don't, don't blame critics. Think about it and work on it.

Here is an IBO you'd like:
http://daveontheroad.blogspot.com/

And they have an invite only forum, making the run. Ask dave. You might get some help from them.

Good luck!

Posted by: Imran Aziz on January 1, 2005 09:14 PM

Hi, I'm Rob,
I was nearly turned off to the idea of continuing to offer other poeple the opportunity to check out BWW/Quixtar for themselves about a year ago, but some things hit me pretty hard that fortunately stopped me short of remaining ignorant.

I used to resent sites like this because they made me uncomfortable, I think I had been taking the criticism offered personally. I was also scared that these things would undermine my efforts (I have found, thankfully, that those who truly wish to be informed don't hide under the table everytime someone challenges what they believe- otherwise everyone who saw Farenheit 911 would have run immediately to vote for John Kerry without gaining any further insight.) (That was politically neutral criticism of a stupid propoganda flick that left me scratching my head the first time i saw it- check out the claims behind that thing if you really want to wonder about a lot of voters who cited it as pivotal in making their decision.)

I have since come to realize that all worthy undertakings come with some adversity, AND A LOT OF PEOPLE IN THE WORLD ARE STILL WILLING TO DEAL WITH IT! (And they are not ALL suckers for those who like to claim that :) I think the biggest problem of all (as relevant to this discussion) is that most people aren't very brave to begin with, including me. Most people are just plain afraid of a lot of things. I think that being teased (at all) is an option that most people wouldn't choose (some people tease you if you check out Quixtar you know ;) I also think that most people are afraid of being wrong, afraid to make mistakes, afraid of failure, afraid of rumors and afraid to take risks. I don't blame anyone who feels that way, I DO! Most successful people get laughed at and fail and make mistakes at some point, though.

Long story short(er) Still kinda long ;)

First off, I have learned A LOT because a stranger was brave enough to ask me a question. ("Are you keeping your eyes open when it comes to making money?" I was.)

Secondly, I have been a Christian all of my life and I take the Bible completely seriously. Most of my most difficult issues regarding money in general were due to a misunderstanding on my part of what is written in there. (this would make for a very long- but very interesting discussion, the Bible has A LOT to say about money). "So-called" ethical reasons brought up on a site like this are what almost made me quit. They were powerful and important considerations- but they were wrapped in fear. I was AFRAID that they MIGHT BE TRUE! They were. Did you catch that? IF I CHOSE TO TAKE ADVANTAGE OF PEOPLE IN AS A MEANS TO AN END THEY WOULD HAVE BEEN!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! The site left out the option to ACTUALLY HAVE INTEGRITY in my business though. I see that now. I bet I could blow somebody out of Quixtar in a second if I wanted to- I have a pretty good imagination! I could make up a scenario where you are left penniless, friendless, wifeless and under God's wrath just for considering Quixtar if I wanted (try me ;)
But I know that I would be leaving out some very important sides of the TRUTH!

Because of my experience with Quixtar:

-I am now able to EDUCATE myself efficiently regarding money because of the advise available to me through the incredible people who I work with.

-I also have a wonderful business vehicle through which to refine by experience a few of the most difficult and sometimes painful characteristics a person can gain: People skills, a guage of my own integrity and honesty, a guage of my belief system, courage, patience, love and concern for others, the ability to listen to others, humility, self respect, perseverance, servitude, true leadership skills and OPEN-MINDEDNESS!

-I treasure these things much more than money.

On the subject of money:

-Most people worship it or fear it in my opinion.
-Most people don't learn to manage it or how to have it work for them.
-Accounting isn't easy, but it is important to take control of money.
-Understanding what an asset is is important.
-Goals are important.
-Faith that is acted upon is needed first in order to accomplish anything -example, none of us learned to tie our shoes until we believed that we one day could- then the practice began!
Making money is the same.

One very difficult lesson for me to learn was this: Great wealth requires work done outside of a single person. Those who desire great wealth must admit this. Your boss is fine with the idea. King Solomon didn't work for the majority of his fortune. Bill gates didn't either. Neither, unfortunately, did Al Capone.
Some people take advantage of many people to become wealthy, some help many people in order to become wealthy. The only way, however, to make money through the hard work of other people voluntarily (without forcing it out of them) is to offer them in return something that they desire. This might be products or services or knowledge or attention or nice-sounding lies (in the case of many governments, scams, and some people in Quixtar) or painful truth or a challenge, and usually financial benefit of some kind. If you offer someone a job or a partnership or a business opportunity, you make money by helping them make money. If you don't they can always QUIT! If you make money through lies, poeple eventually FIND OUT! In my experience I have seen the very best of these things coming from the people I work with in BWW. I have heard horror stories also come out of Quixtar that illustrate the worst of these things (I suspect dishonest and fearful people as the culprits- I doubt that most of them are REALLY as bad as they are made out to be, though).

I am currently making money by teaching other people what I know and giving them the option to do as I do, but I NEVER TELL THEM THAT IT WILL BE EASY. I honestly don't expect most people to be willing to do what I do. There are 9 core steps in the Britt system that are recommended to minimize risk of failure. (Actually showing the plan to other actual poeple is one of them, forms of self-education make up more than half of them and having INTEGRITY is a step!) Most people don't come close to doing them. That's fine, I guess. Some of them want their upline to build their whole business for them, which is sometimes done. Most people try their own way first and fail. The smart ones don't quit there. If someone tells you how to do something they did, and you don't do it how they say, don't expect the same result as them unless you don't mind if you get different results. I do more work than anyone in my business, but that is why I am more successful than they are right now. Make sence? I look for people WHO WANT TO WORK WITH ME! They have to decide that for themselves. No one HAS to be my friend, my friends choose to be my friends- but I am still responsible to be someone that others want to be friends with if I want friends! My wife didn't have to marry me! She chose to- but I first had to be (which meant I had to become) the man that she wanted to marry! If I would like to have a happy wife I need to CONTINUE TO BE THE MAN SHE WANTS TO BE MARRIED TO!!!!!! (Big hint if you are experiencing relationship issues- I am not about to elaborate on that though! :)

All the people who posted so far seem like good people. Anyone can ask me whatever they want, but give me time to respond, I almost never do chat rooms (takes too much time- not enough substantive info to be worth it to me). I may or may not check this site again. E-mail me though if you want.

God bless you all, have fun LEARNING!

Rob

e-mail: rxm7909@sru.edu

P.S. If you want to discuss numbers and income and statistics with me, be ready to provide your own info and credentials. My financial situation looks pretty ugly right now to be perfectly honest. I paid well over $100,000 for my education! (That's college and grad school by the way- not Quixtar- got ya ;)

P.S.II I wasted WAY too much time on this, I'm saving it :)

Posted by: rob on March 11, 2005 12:43 PM

Rob,

I want to congratulate you on what is probably one of the best pro-Quixtar posts we've had here. You explained your position, you didn't insist on calling everyone else a "loser", and you (mostly) avoided the same old tired lines most IBOs employ.

I agree with you strongly on some of the points you've posted, such as people being driven, frequently, by fear of being wrong, etc. I'm glad you've gotten over that are trying to be as honest as you can.

So I have a few questions for you:


1. Since you are a Christian, you surely believe in the "do unto others" rule, right? That is, that we should treat others as we'd want to be treated -- am I correct about this?

2. When you want to buy some product, after you know all the features, what's the most important thing people want to know? The cost, right? And when people are applying for a job, what's the most important thing in their mind? The salary, right? The thing everyone wants to know is how much something will cost them, or how much they can reasonably expect to earn, right?

With me so far?

3. Yet Quixtar doesn't generally divulge this to people, even though the numbers are readily available!

For example, the average active IBO earns only $155/month. At 10hrs/wk, this means the average active Quixar IBO earns less than one third of minimum wage!

Yet when I was getting started, this was one of the first things I wanted to know. Yet no IBO would tell me this, even though the information is out there, even when I asked them point blank, and they knew I needed the information to make a good decision!

So, when someone asks you what the average IBO makes, will you be honest with them, and answer their questions, just as you would want if you were in their shoes? Or will you violate Jesus's teachings and hide this fact from them, even though you know it's important to them?

Let me give you another example: My sponsor's upline liked telling me how many millionaires there were in Quixtar. She thus implied Quixtar was a good way for many people to become rich.

Yet, when I finally found the data, I discovered that your odds of earning even $95,000 per year (what the average Founder's Emerald earned in are less than 1 in 5000 -- about 0.02%! Yet in the general population, more than 6% are millionaires -- meaning that it's about 300 times more likely you'll be a millionaire OUTSIDE Quixtar than it is that you'll make even $95,000 per year (before expenses!) within it!

Now that you know this: If someone asked you how likely it was to become a millionaire, would you answer them honestly with the information you have, and tell them it's much less likely through Quixtar?

Or will you hide something from them which might be crucial to their decision-making, and thus disobey Jesus's teachings?


Another thing: I was told that the goal was to become "platinum". This takes a huge amount of effort -- yet I was never told that a Platinum only makes -- on average -- about $15,000/year! Yet, assuming you work 24 hours per week, and only spend $3,000 in expenses, that's only $9.60 per hour! And only about 1 in 236 active have made it to that level?!?!

Will you tell them that honestly too? Can you honestly say to yourself most people wouldn't want to know that? Give that, how can you hide this information from them should they ask, since you know it now?

I don't see how you can say you're doing this business ethically if you withhold that kind of HUGELY IMPORTANT, crucial, information from people. That's like knowing the car needs the transmission replaced, and not telling the buyer when he asks point-blank if you know if it needs any major repairs!


For example, I'm a businessperson. I also attempt to be a Christian. When I demo some product I'm selling, and the person asks about costs or disadvantages, I tell them, as I would want to be told. I don't hide important buying decisions from them. I don't hem and haw, and find a better way to put things. I don't string them along, not telling them the cost until they're committed already. I just tell what I know up front when they ask, because if I were in their place, asking the same questions, I'd be wanting the information just as much as they do.

And I can't do this with a product, I don't want to be involved with it.


Finally, do you understand that this "business" only works by causing failures?

Consider a chain letter where you send $50 to the top person on the list, remove the top name, and add yourself below. Now you are $50 in debt.

In order to make up this debt, must now supposedly pass this on to five friends. If you do so, you will make $200 ($250 minus the $50 you sent) -- but you will have multiplied the amount of debt by 5 times! Now there are FIVE people who will be "screwed" unless they find five more.

And so on and on it goes, each time, more and more people are at risk of being hurt... each iteration there are five times as many victims. Finally, it collapses. On average, only 20% of the people will have made the $200 dollars. But 80% of the people will have been ripped off!

Observe: No wealth was created. When you go to work a factory, the world is a bit "richer" as you create each new object. But in this case, the same amount of "wealth" existed -- it just got moved around. So each person who got "rich" only did so by creating many more victims.

Quixtar is exactly like this, except: (a) the "upline" payment happens through your product purchases, instead of being sent directly, and (b) more money and time is lost in the process, and less is sent upline (for example, it's harder to find a new Quixtar recruit than send a chain letter) -- therefore the debt "multiplies" even faster, and (c) a far tinier percentage come out ahead, and far more are hurt by losing so much money, time, and effort, and often deeply in debt when they finally realize how it works.

Should a Christian make himself rich by making many others a lot poorer? No, that's unethical. So is this "system", as it focuses on selling "the plan" rather than products.

Notice this is the same whether you know you're doing it or not: at no point do I talk about your intentions, here. There are many people doing this, I suspect, who do not realize they are hurting people.

A doctor will kill people if he hands out poison by mistake, even if he thinks he handing out medicine. His good intentions don't change it. That's why it's important to figure out NOT how you FEEL about something, or how honest you FEEL you are being, or will be, but what the real effects of your actions are likely to be.

It looks to me like you will lose huge amount of money and time, and your only hope of recovering it is to harm many more people.

But now you have been presented with this evidence, so you can no longer claim ignorance. If ANY of the points I am making here are true, this is an unethical business which violate's Jesus plain teachings. But worse, ALL these points, as best as I can see, are true, and there are many, many more not even mentioned here.

I hope you'll give this serious, honest consideration, as you have said you do.

Best to you, brother.

Posted by: Tim (Random Observations) on March 12, 2005 02:09 AM

Disney,Levis,Panasonic,IBM,Microsoft,officemax, to name a few legit business we work with.I get legal tax write offs from guess who the goverment what a concept but you guys all figured it out and they missed it. Just because the majority of people in any business are scaming a holes doesn't mean the company is.
nuff said and no you can't e-mail me because I was taught that to get people through third partys is wrong and spaming make you and the company look weak. sorry about spelling and grammer did this quick so as not to waste time

Posted by: shane on March 16, 2005 03:53 AM

Disney,Levis,Panasonic,IBM,Microsoft,officemax, to name a few legit business we work with.

Can I tell you a secret?

Most of these companies will sell their products to ANY one. And Quixtar is just an affiliate with those companies and quixtar sell their products. It's not a partnership. Naming those companies to justify legitness is pathetic.

If a shop, start selling these products, does that shop become legitimate just because of those products? No!!!

And no, you do not WORK with those companies. You are an associate of Quixtar and buy these products via quixtar.com. And at rare occasion, sell some of those.

http://www.webraw.com/quixtar/archives/2005/03/monday_reader_mail_34.php

I get legal tax write offs from guess who the goverment what a concept but you guys all figured it out and they missed it.

Are you sure it's legal? I'm not saying it's illegal but I won't say it 100% legal either. I don't know how much retail u do but if u r not selling 50PV, u r not entitled for a bonus cheque. Neither tax writeoff. But as I was told, tranfer 50 personal PV toward retail and bam! you got ur bonus cheque and entitled for a writeoff. Glad I quite in a year and last month, did a lot of retail as well.

Besides, if u don't turn good profit in 2 years, Quixtar business will be considered as a hobby business. No write offs than.

Just because the majority of people in any business are scaming a holes doesn't mean the company is.

LOL! this is hillarious. What is company doing about those who are scamming? Nothing. So?

http://www.merchantsofdeception.com

nuff said and no you can't e-mail me because I was taught that to get people through third partys is wrong and spaming make you and the company look weak.

you expect ppl to email you based on what you wrote? Seriously?

sorry about spelling and grammer did this quick so as not to waste time

I love spelling mistakes. I really do. I do that all the time. It's fun.

Posted by: Imran Aziz on March 16, 2005 08:01 PM

Imran said: "And no, you do not WORK with those companies. You are an associate of Quixtar and buy these products via quixtar.com. And at rare occasion, sell some of those."

So true! Why do IBOs so easily confuse "purchasing" and "partnering"? It's because they don't realize they are simply consumers.

Shane, please listen. Imran has direct, extensive personal experience in this area, and you should not take his advice lightly. He is not writing to you for his own profit, but is selflessly attempting to save you some pain to yourself by sharing what he has learned.


Shane said: "I was taught that to get people through third partys is wrong and spaming make you and the company look weak."

No, there's a more insidious reason for this.

If Quixtar's products really could compete in the market they would sell directly, and advertise, themselves. The fact they do not should tell you something.

Think: Advertising is a very effective technique which makes marketing efforts more efficient. A few thousand dollars gets an ad before a lot of peoples' eyes. Those companies you are so proud to "partner" with -- IBM, OfficeMax, Disney etc. -- weren't built by word-by-mouth or "plan showing" -- they never would exist in the first place without advertising.

Likewise, a third party could extend any IBOs' reach and help them be more efficient.

Who cares what it "looks" like? Does Disney "look weak" because it advertises??? Of course not. And OfficeMax's investors would declare it "weak" if it didn't advertise.

So really, since it works, why not do it?

Because it's not profitable for Quixtar.

Allow me to explain: Imagine that you could make every single Quixtar IBO do their marketing work ten times more efficiently. If a particular IBO could show the plan 6 times a week before, now he can show the plan 60 times per week.

What would happen?

Quixtar would lose a lot of money, that's what would happen!

Please realize that most IBOs drop out after about a year or two. I've heard current dropout rate is something close to 50% per year. (Imran undoubtedly has his finger on these stats better than I do.) Only a tiny fraction will ever make even Platinum, which is currently averaging only $15,000 per year before expenses.

If you could make an IBO prospect ten times faster, he (or she) would also realize they're out of leads ten times faster. Instead of taking 20 months to drop out, a particular IBO would take only 2. That means Quixtar loses 18 months of sales to that IBO.

Imagine if that happened across the board! Quixtar would lose 90% of it's profits. And the same could be said for the "tools" as well.

Again, take note: Quixtar makes its money selling product to IBOs while they prospect. That means the sales process needs to be as slow as possible to keep IBOs interested, moving forward, gaining people to replace those dropping out, but at a nice, slow, measured, steady rate. You want to string each IBO along as long as possible.

And that, in a nutshell, is why you do not advertise. Not because advertising is obsolete -- it is not. But because word of mouth is slow, and therefore very, very profitable.

And, by the way, this also explains the various social aspects of Quixtar, which act like a "glue" to help keep the IBO attached and going as long as possible.

And dittos with the "dream visualizing" exercises, which are a powerful form of mental manipulation to cause the IBO to mentally link their hopes only to Quixtar.

Posted by: Tim (Random Observations) on March 17, 2005 03:01 AM

Its not 50pv for a bonus cheque its 100.
You need 50pv ever 2nd month to legitimize YOUR business with (Canadian)government.
you have two years to write off money spent in a small or home based business.I talk to to chartered accountants who are in the business and my own personal about this.
Large corperation do not associate with just any merchant especially levis and disney they are very picky about who they associate with. (look into that one more please)
Look is it perfect no like all companys and jobs it has its problems.Is it easy no you need to work at it like a job or sports or any thing you want to be good at. Im not saying your opions aren't valid but, Like mine they can be twisted and turned inside out thank for the input but im satying in because we are moveing ahead


Thx shane

Posted by: shane on March 22, 2005 09:15 PM

sorry about part of the last mess. i was on my way out and people were hounding me.
should say: The business isn't perfect... like all companys and jobs
and staying

Posted by: shane on March 24, 2005 02:08 AM

Cool I found this again! (I tried to remember something I wrote before to make the search more specific, but it took a couple tries ;)

Wow! Lot's of questions!
I think for me, the whole matter is a perspective issue. I'll do my best to make sense! (I'm currently taking a 1 AM study break during finals and I didn't sleep last night so no guarantees :)

Let's see, here's the first three questions:

1. Since you are a Christian, you surely believe in the "do unto others" rule, right? That is, that we should treat others as we'd want to be treated -- am I correct about this?

yes :) That verse is in Luke chapter 6 (verse 31?)I believe. Goes along with Love your nieghbor as yourself as Jesus said in Matthew and Mark... Jesus listed Loving your nieghbor as yourself as #2 of two greatest commandments. (Loving the Lord your God with all of your heart, mind, strength #1) He said that all of the Laws and the Prophets follow from these. This is really a verse to live by, not just agree with. Can't be a very obedient Christian without doing this. I like this as a start :)

2. When you want to buy some product, after you know all the features, what's the most important thing people want to know? The cost, right? And when people are applying for a job, what's the most important thing in their mind? The salary, right? The thing everyone wants to know is how much something will cost them, or how much they can reasonably expect to earn, right?

With me so far?

With ya :)

3. Yet Quixtar doesn't generally divulge this to people, even though the numbers are readily available!

Ok. I haven't read through the FYI's on the QUIXTAR site in a while but I always found them to be informative.

Most initial info gets to a new person through the IBO who contacted them. I always give people a 6-4-2 sheet and a CD (sorry, I lend them! I loose a lot of them because of that attitude ;) People can request more info if they want to. We have starter packs (they are pretty informative). I don't use them very much, but they are available. I should probably use them more now that you bring that up! :)

Prices for products are on the site itself. I actually have the oposite opinion about prices. I didn't buy certain products initially because they looked really expensive (I come from a family of ten- you learn to be cheap!). Most are really concentrated. I finally broke down and tried the shampoo a couple months ago for example (I thought it was just really fancy or something). Apparently it is very concentrated and I don't need to use much. I would imagine that the cost per use is at least competitive with the Walmart stuff I used, plus I earn PV/BV. I really like the dish soap, that stuff kicks butt. My wife and I still haven't gone through a large bottle in two years! Quality is very good. Products not as expensive per use as they look. I would compare most prices to Walmart per use. In that ball park. I'm not really big on promoting savings unless people shop at the mall a lot.

Income potential is a biggy. I'm not sure if my answer will really be satisfactory to you. (I might have a different point of view than many of you on the matter- I'm fairly conservative). Here goes anyhow. First of all, for the guy who wants to know about my finances, I have a state electrician's license for the state of Ohio and I contract jobs independently from time to time during school. (When customers don't rip me off I charge and make $35 an hour + materials). I'm working on a clinical doctorate. My wife is a long-term sub for a 7th grade Math teacher currently. Our monthly income outside of Quixtar money and school loans is around 2000 a month. We have currently budgeted about 600 dollars a month toward business. Between 300 and 400 for products- which is perhaps 150 dollars more than I would usually spend because I give away a lot of samples and because I would normally shop at Aldi and Salvo and get free stuff from my parents since people still donate a lot of food to them- 8 kids like I said. We try to make a point to be pretty self-sufficient on our own products. About 100 bucks a month goes toward books and tapes (standing order is around $50, but I often buy extra when I find CD's that are especially useful- like the new Powerwave CD- very informative for new people.) Functions, and any additional travel expenses (I'm really good at being cheap here) are around $100 or so a month on average. Communication tools and cell-phone and internet are about 100 more, but only about $20 dollars a month of this is more than normal for school and electrical work. Do the math and our monthly business investment is in the neighborhood of 400-500 dollars on top of our normal monthly budget. I consider myself to be one of the rare IBOs who actually treats my business like a business. My short term goal is to BREAK EVEN! WOO HOO! If a lot of you are shaking your heads that's fine. The whole point to all of this is that I am actually doing the work needed to run my business as a business. Realistically speaking, and I tell everyone this, you are just a glorified customer of yourself until you start to turn a profit of some kind. I make more immediate income doing electrical work, but I have to deal with a brand-new customer, another old-disguesting attic, and all new problems to troubleshoot everytime in order to get payed again! I am building a Quixtar business for the residual income. Like I said, short term goal is 400-500 a month. After that, 2000, which covers all of our monthly expenses. (According to some, residual income equal to expenses = financial independence, assuming my business structure is stable)

Because I am currently the primary plan shower in my business, our monthly volume reflects how much work I put in. New people tend to do more and buy more the more I help them. That said, we have a small growing business of 4 legs with 1 layer of depth in one leg. I am currently working with about a dozen more people who are taking a look and I am increasing the number of plans I am showing. We have had two legs do over 100 points out of the four. We don't have any consistent legs yet. (By legs I mean businesses we are working with for those who aren't familiar with that terminology). My wife and I have hit 1000 points before ($300 bucks income), but a lot of that was a couple of water treatment system sales. When I have showed the plan less than 5 times in a month, the next month tends to yield about 200-350 PV. ($20-$40 bucks) The months when I showed more than 10 plans got us up around 600 points in the next month or two (around $100). Momentum is very big in this business. A lot of the people I am working with are getting re-energized right now, and I am no longer the only one showing the plan. Basic message here, showing the plan more = more income. My goal is to consistently show the plan 15+ times per month for a whole year. Everyone I know who has done that has a huge business. It's not a big secret to figure out who is showing the plan in this business! Anyway, I was pretty honest here. You can look at my business and call me a failure if you want to, but I have learned a set of skills that I can apply in order to create massive residual income. I don't beg people to join my business. I offer them my time! I know that I will be the one doing most of the work for a while because MOST PEOPLE DON'T SHOW THE PLAN!!!!

As a sidenote, the math has always worked out according to the business plan when we get checks. I know exactly how much is coming in based upon my monthly PV/BV and that of my down-line.

A lot of people like me exist who really enjoy this. I don't mind if the people posting here don't like QUIXTAR. If everything I just told you sounds hard and unethical, than by all means, don't do it! I'm looking for crazy people like me to work with :)

As far as my own expectations for earning are concerned. I expect to show at least ten plans this month and sponsor 2 more people at the minimum. I expect to sponsor 5 times faster than people quit. I like to offer people the opportunity to quit and to get there money back if they don't do anything. At the point when I have sponsored 20 people personally, which is an additional 16 people, I expect our group momentum to drive us to platinum as I have seen happen many times. I don't expect all 20 to do what I do! I expect that 3 or 4 of them will be serious about this!

For those of you who are curious, those 3 or 4 are the only ones in any danger of significant financial risk out of the 20. I will be working with them and helping them the MOST! That's pretty much how it goes.

I do have a few questions for Imran:
How long were you involved? Did you show the plan? Does what I'm saying reflect your experience? Can you be specific about the facts involved with your experience?

Thanks guys, I know you asked a lot more questions, some of them were pretty fun ones. I might hop on again in a week or so to catch some of them. I was pretty long winded about our currently messy finances, but hey, that's reality!

Last thing. When I sponsor someone, I GIVE THEM MY TIME AND LOVE! I hope that my life experience is worth the 40 bucks it costs them to sign up!

Rob

Posted by: Rob on May 2, 2005 03:19 AM

I really need to study but I couldn't resist!
Imran asked about the other 7 ways of making money. I think this is a fun topic. We always say there are like 30 ways. Little stuff like credit card offers money back, stuff like that. Major stuff: I believe that at the Q-12 level or maybe emerald level tapes and CDs only cost 5 bucks or 5.50 before tax. Anyway, the rest is profit. I would argue that at that point you have earned it! Speakers at Rallies and Functions are paid. That is another big one for emeralds and above. 4% bonus is another one. Emerald bonus, Diamond bonus, growth bonuses are others. Way number 31 is my favorite. A buddy of mine took charge of ordering pizzas for about 30 people in our group at a function last year. He had everyone pitch in 4 bucks. When the pizzas came he was standing there with a handful of extra money that he was trying to hand back out. Our upline platinum, who always cracks me up yelled over to him, HEY! Keep it! That must be the 31st way to make money in this business!

Anyway, I don't know them all, but those are a few. I personally don't have a problem with my upline making money from tapes and speaking engagements. I gladly pay for those things because they are valuable to me, someone deserves to profit from them or why would they bother doing it anymore? Just a thought.

P.S. I like the idea of getting paid for speaking engagements :) My mom is a singer and most of her performances are free. In my opinion she is worth paying to hear, and I can't necessarily learn to earn more money back after listening to her ;)

Have a good night you guys :)

Posted by: Rob on May 2, 2005 03:38 AM

Rats, everytime I try to leave I see something else! Millionaire question from Tim I think. One in 52 people in US is a millionaire I believe? Anyway, Quixtar income is often supplementary income. I was earning 13 dollars an hour as an employee electrician during summers before I saw this business. I learned principles since then that made self- employment doable. That resulted in tripling my per/hour rate. Another example: My immediate upline was already a business owner before he enrolled with Quixtar and made between 80-100,000 a year with his two companies, combine the two incomes with some savings and you have a millionaire. QUIXTAR can't take credit for the difference outside of QUIXTAR money when making those claims. Additionally, many people who quit probably learn enough about business while around the BWW team that they are more likely to become a millionaire at something else that comes more naturally to them. I know that if I was forced to quit for some reason I have a MUCH better financial education now than I did before. I'm not an idiot either. I graduated 4th in my class in High School and I qualified for Mensa with my GRE scores. Though I turned down the program, my MCAT scores were high enough to get into a PA medical school. I only bring that up to say that I learned very little about finances throughout my formal schooling, even though I was a good student.

Ok, I'm actually leaving this time! ;)
Good night! :)


Posted by: Rob on May 2, 2005 03:52 AM

Tim,

I fully agree with you and want to thank you for posting the original post. I have currently read about 50% of the replies, and find it interesting.

I was an "IBO" with quixtar for about 7 months, and it was one of my biggest regrets. Fortunately I did not present it to the people closest to me, but I did lose some friends over it.

Being a recent college graduate in June 2002, I had a career starter loan for about $10,000. Upon moving to the city with my engineering degree my job fell through (before I started) and so I took a part time waitering job. During this same period I was introduced and involved with Quixtar - perhaps my good fate in life, so I thought. The waitering did not cover rent and loan payments, and I continued to look for a suitable job when I had time. By December I had a wake up call... my upline asked why I had no contacts and I told him frankly "I feel like I have one hand tied behind my back here. I need to get a decent paying job in order to cover rent and business costs. The job I got chosen for is frozen, and I'm not sure when it will open back up. I need to put the business aside for a week or two while I straighten this out, but I assure you I will at least still go to the meetings, etc." He replied, "Matt, I love you like a brother but you're doing the wrong thing. You shouldn't stop charging hard on this. In fact, this should be your reason to work harder."

In short, I got the job, and when my first paycheck came in my bank account had only $50 left in it. I alread had made contigency plans to live with a friend a few states over, which fortunately I was able to ditch. I stayed with Quixtar half-ass for a few months, then left.

The entire time I was in 'the business' I just couldn't ignore the numbers. It took 1,000 people or so to 'make' a diamond. When they'd ask at a function "why aren't you all diamonds?" I thought the guy was completely stupid and wanted to shout "only 1 in 1,000 of us could be!"

Anyone still in quixtar or some other ridiculous pyramid should leave. It does not teach you any sound business advice, moral way of life, nor does it make you rich. It leaves you deprived and regretful.

-Matt

Posted by: Matt on May 27, 2005 08:41 AM

As a Uk IBO there are amny points raised in this discussion that I don't understand, because of differences in the way it is organised. However I would like to highlight the many ways of making money through the "quixtar" business. I haven't paid for any seminar tickets or motivational material. All I paid was my start up costs, I am a university student so can't afford to just buy from myself, this said I am still managing to make money from te little work I put in. All I have done is redirect the money I spend. I would usualy go to a supermarket or a high street store for the things I can now buy through my online business. Many friends and people I know have been interested in where i do my shopping, especially as e-commerce is now so big, this has meant that my core line products as well as those form "partner stores" have been selling to all kinds of people thanks to my referral by others.
The result is that yes companies are benefiting from my spending, but that was always going to happen, its just that now I am buying htings I always did, at a similar/cheaper price and getting money back on my purchases. I really can't understand what all the fuss and negativitey is about. People will have bad experiences in meany lines of work, immorality or whatever you want to call it, but these industires still run effectively. SOme people bad experiences should not be used as a way of deterring other people from finding things out for themselves.

Posted by: Laura on July 4, 2005 05:06 AM

Matt,

I think you are a prime example of why Quixtar/Amway has such a bad rap. There are a lot of greedy "get-rich-quick" people attracted to MLMs and they tend to view their downline like they owe it to them to perform more and more. And obviously he felt this way. What did he think you were going to eat or live on waiting for the profits from your business? I think your upline was very poor coach and gave you poor advice.

As for the 1 in 1000 comment... everyone in that room has the ability to be a diamond. Whether they do or not depends on many factors mostly determination and their personal skill set but because it takes a lot of work, a few years. obviously a few have done it.

Then you mentioned "It does not teach you any sound business advice, moral way of life, nor does it make you rich." - Have you ever been to one of their major functions? I'm sure this depends upon the group you are a part of but I have been they didn't talk about the business much. The first day was spent on leadership. The second was integrity. They had some pretty heavy hitting speakers including a Congressman who gave a very informative seminar on Free-Enterprise in America and it’s impact on democracy in the world.

In summary the major problem I see with MLM and since we are talking about Quixtar, it in particular, is that the experiences of different IBOs can vary so much. As it is with all of life you really need to pick your friends wisely.

Posted by: Paul on July 6, 2005 11:32 AM

With somewhere around 6,452,241,764 people on the planet (296,547,203 in the U.S.) I wouldn't think finding 1000 to be that big of a problem. :) In the end it's all about numbers; but isn't all business about the numbers?


Functions are funny! Why do I need to travel this far? Put a recording online for 1/1000th of cost (of whole group). Here is the reason:


In a dark and cold hall, sitting tired after 1000 miles journey, sleep deprived, perfect for hypnotizing dream. Think about it. Why do they need you there to teach you when you can be taught by an online video if not text?

You weren't the first to think this I know they are already putting alot of videos online. This is managed though by the different groups so I can't comment on the quality or availability of the online seminars.

I hardly think that sleep deprivation is the intent. We were staying in some very nice rooms ($440 per night normally $89 for us) and spent alot of the time in the hot tub. :)

It's not about content. I completely agree with you in that you can recieve that information online or in a book. Like I said earlier there really wasn't too much Quixtar specific content at our conference. The major functions are more about talking to other IBOs face-to-face. figuring out what works, and what doesn't.

And for those that are wondering no one showed up in a million dollar motor coach that I'm aware of, and there weren't pictures of lear jets or fancy houses anywhere. In fact I've seen more bling at a software engineers conference than I did at the Quixtar conference. No hype - just a good time.

Posted by: Paul on July 6, 2005 02:31 PM

Imran,

Are u sure that products are indeed cheaper? I seriously doubt that.

You questioned Laura about products being cheaper. For the average Joe on the street there isn't a huge incentive to purchase their products; some may be cheaper per use but the average customer is going to go for the cheapest product or brand name first.

IBOs/Members and clients get discounts. IBOs can receive a rebate of up to 25% their total purchase on top of partner stores discounts. So I can easily see how she would save money. Not to mention their products really do last longer than most name brands. I'm thinking consumables here. There is a greater upfront cost but if you shop like I do, using the little yellow tags on their shelves at Wal-Mart, and compare per unit costs; they do have an advantage.

Posted by: Paul on July 6, 2005 02:42 PM

Paul,

As for the 1 in 1000 comment... everyone in that room has the ability to be a diamond. Whether they do or not depends on many factors mostly determination and their personal skill set but because it takes a lot of work, a few years. obviously a few have done it.

Quixtar Diamonds aren't "mined", they're manufactured -- in order for one Diamond to get rich, many, many downlines must incur significant debt, as their wealth is transferred "upward" to create the Diamond. Many small debts are accrued, and passed on, in order to make one "profitable" Diamond.

If we took everyone in that room and put them on an island, and told them to do Quixtar, not all would be a diamond -- a few would "win", but most would come out far behind. Effort has very little to do with that equation: if they all tried harder (or worked less), the exact same thing would still be true. See here.

It's the nature of the beast itself, and simple wishful thinking (or unintentional ignorance) doesn't change it. As you have indeed said, it's all about the numbers.


No hype - just a good time.

I'd agree there are some beneficial aspects to Quixtar. For example, if, as a result, you read one good book which helps you improve yourself, then that's indeed a benefit. And of course, perhaps the Quixtar functions are some people's idea of a "good time".

But these arguments distract from the core point: People don't generally get into Quixtar as a self-help group. Or as a means of having a good time. If that was what it was about, then it should just admit that, and stop saying it's primarily a business.

But otherwise, we admit Quixtar markets itself as a profitable, ethical way to make some extra income, and judge it primarily based on that -- not some other features which a potential IBO might or might not also care about.

And, as a business, Quixtar isn't generally profitable, and "the plan" is never ethical. (See link above, and note the average IBO collects $115 per month, before profits.) Again, that's not determined by your feelings -- as you said, it's all about the numbers.

Posted by: Tim (Random Observations) on July 6, 2005 02:54 PM

Tim

I read the link to Tracy's story and the poor Qtonians with a population of 100 trying to float a MLM company. Or even it's sister city Realburg.

Lessons learned:


  • Early successes are easier; later is harder

  • Effort only makes a difference among IBOs of the same "generation", marketing the plan at the same time -- you're competing against them

  • Increasing effort is always required; each person you sign up will have it harder, on average, than you will

  • It is in the best financial interest of those "at the top" to do things to keep people encouraged and "in" as long as possible

I assume the negative slant on "Early successes are easier" applies to Google, Microsoft, Ford, etc too .... right? I mean let's be fair, Although I disagree that it applies here. Of course the early ones get early rewards. Welcome to capitalism. But the way you said it implies that there are no new diamonds, and there are.

The point of the "plan" is residual income. So effort for a season is the objective. "Effort only makes a difference among IBOs..." Obviously you haven't studied the "plan". I have done the foot work and will sign someone up below me (generations below me). Everyone in between benefits. That is part of it. It's a team effort. If it is in the best intrest of those at the top to keep people why would they want to build something that is going to saturate. I think it is obvious they are banking on everyone NOT getting on board. Some has to clean the bathrooms and make the products.

Do you really think that Quixtar is growing faster than the U.S. population?

Franchises compete against each other. It is my understanding that I can put a Subway anywhere. Even in competition with another one! Not a wise move but I could. If I'm wrong, someone correct me.

The point is the cornerstone of a free economy is that everyone isn't on the same island. Maybe another 4.7 billion dollar MLM company would help Quixtar, compitition and an open forum never hurt.


Six man years of part-time effort (3 years, 2 people)
Now earning $18,000 per year per person
Deduct probably $3-10K expense per year over three years (about $10-30,000)...

I used to own a consulting company. We would broker software engineers out to various projects. All telecommuting work to keep costs as low as possible. I poured everything into that company including my marriage; and nearly lost it all in the end. Eventually I threw in the towel and entered back into corporate America.

I thought about opening a resturant once as well. After doing some looking I found a location that looked great. A couple of resturants had been in this location before and had done pretty well but I felt I knew where they could have been more profitable. I did all the homework; food costs, insurance, taxes, etc. In the end I'd need about 130K to open and even then it'd be close to make ends meet. I had determined I could live in the basement in a modest apt (with no windows) until it showed a profit. All estiments showed that I'd have to wait at least 1.5 years before I'd be in the black. And I'd hold the mortage on the place for the next 15 years! Someone reading this knows that 130K to open a resturant including the building is a steal. I knew it was a good deal.

In the end, due some personal issues with my family I turned it over to a friend who bought and opened it. I'm glad he did and not me. He worked on average 60hrs aweek 6 days a week and made maybe 50k; if business was good.

Should I blame free enterprise for my failures? Absolutley not. So if an IBO pours a couple thousand dollars into Quixtar or any other franchise opportunity and loses it, I hope they don't blame anyone for thier lose but themselves. My family has owned several companies and have lost here and there. If we blamed them for our loss we'd never success. We would always be looking to them to provide our succcess. Quixtar won't make you rich. You make yourself rich. Some just use Quixtar to get there.

I don't want to come across as being defensive (I haven't proof read this and it will probably show) So I hope I haven't angered too many people. This is just my opinion.

Posted by: Paul on July 6, 2005 04:22 PM

Paul,

First of all, good for you for actually reading something (unlike so many who comment here), whether you agreed or not. Kudos!


I assume the negative slant on "Early successes are easier" applies to Google, Microsoft, Ford, etc too .... right? I mean let's be fair, Although I disagree that it applies here. Of course the early ones get early rewards. Welcome to capitalism.

Quixtar IBOs will say: "Anyone can succeed at this if they just try." But that's not true in the slightest: In a "system" which spreads that way, effort is FAR less important than entry-time, and what IBOs say is utterly false. If I'm the last one in, multiplying my effort by a million won't make the slightest difference.

In contrast, in the cases you cite, the exact opposite is true. If the first car company doesn't expend much effort, then new car company with a better product -- say, Toyota -- can usurp existing market share, even if it enters the market much later. That's not even slightly true for a new Quixtar IBO.

Are you not able to see the huge difference between these two different situations?


The point of the "plan" is residual income.

That residual income only happens as long as the people under you stay signed up. In theory, this probably won't happen, as in any closed market (and each town is closed to those who don't want to travel -- and most won't), the people on the bottom won't tend to stay in, as it gets harder and harder to locate those last downlines.

When this happens, they will be disappointed in their expectation -- which you have just helpfullly confirmed is still how it is sold -- of making the most profit from residual income. When they quit, the IBO above them must find more people to replace them.

And in real life, Quixtar's IBO turnover is indeed huge, confirming this.


Do you really think that Quixtar is growing faster than the U.S. population?

Of course: How many children will you have this year? How many IBOs do you expect to sponsor this year? So you can easily see which is happening faster.

The US population growth rate is 1 new person per hundred per year, or put another way 1/100th of a person per year for each one person. Unless the average active IBO expects to sign up fewer people than that, then the rate at which Quixtar MUST grow for it to be profitable to you is much higher than the population growth rate. If you only must sign up 6 new IBOs per year, that means you must grow at 600 times the growth rate.

If you argue only some are qualified to be IBOs (some IBOs take this tact), then it gets even worse, since only a fraction of the "new" people turning 18 will now be part of your market. If you say 1 in 10 make a good IBO, then it means 6/year is 6,000 times the market growth rate.

Conversely, if you don't see Quixtar expanding at that rate, when it must for the lowest-level IBOs to be profitable, then it tells you a lot of low-level IBOs are being screwed, and given false expectations.

Looking at the average active IBO income, $115 per month, I'd have to say that's probably exactly what's happening.


The point is the cornerstone of a free economy is that everyone isn't on the same island.

Oh, but they are. Most people aren't going to leave their country to make their first profit. And even if they did, you're just making a bigger "island" (earth).

Again, making more people doesn't change it. The question is whether the pool of people is open or closed. A bigger size, just creates more spectacular profits for those at the very top, a longer time to collapse or saturation, and more victims. The rich get richer, and more get stiffed.


Should I blame free enterprise for my failures?

Of course not. But by just "squinting" (mentally) and looking at Quixtar versus real-business and saying: "Well, they're alike in that people win and lose, succeed and fail" you're ignoring the tremendous differences between them.

The Quixtar "plan" is NOT free enterprise. It is utterly unlike normal businesses in that it (a) generates no wealth, and (b) is not a win/win game. (It's not even a zero-sum game, in fact, as the exact opposite of most economic activity, it is a negative-sum game.)

It is, fundamentally, a wealth-redistribution system, disguised as a retailer. The retailing part, I have no issue with. But IBOs -- again, as you have vividly testified yourself -- end up expecting significant "residual income" by doing "the plan". That's just an upline wealth-transfer mechanism.

Do you consider a chain letter, even if it were legal, a form of free enterprise? A beneficial economic activity? How about playing high-stakes poker? Or playing the lottery? Quixtar is in the same class, but slightly worse since at least those participating in gambling understand the true nature of what their doing, and can arguably view it as a legitimate recreational activity, purchased in exchange for their losses.

Regardless of what you consider it to be, the question you need to ask is: (a) is it expected to be profitable, and (b) is it ethical? It sounds like this whole issue about "blame", as I've never raised it myself, is a non-sequitur you are using to distract yourself from these important questions.


I don't want to come across as being defensive (I haven't proof read this and it will probably show) So I hope I haven't angered too many people. This is just my opinion.

I'm not offended in the slightest, Paul. You're opinion is welcomed here, as long as you adhere to the rules for comments.

Posted by: Tim (Random Observations) on July 6, 2005 06:27 PM

I'm not sure I understand how you see Quixtar out growing the population. I guess when it does get to the point when everyone in the U.S. is an IBO then there may have to be a shift in plans but we as a country have protections against such monoploies. I think that is really streaching things to assume that it will reach that point. Most anything maxiumized to infinity looks bad.

Right now, the last stat I heard was that Quixtar IBOs stood for about .002% of the population. If I were to throw a dart at a map of my city looking for a place to open a Subway. I probably have to rethrow it a few times so I didn't land next to one that already existed. But if I were to open the local phone book and point to a name I'd have a pretty good chance they weren't an IBO. So I really think the saturation issue is mute. Not even to mention it's international. The thought 670 billion people makes my head spin. IBOs are a drop in the bucket compared to that.

Failure Rate?
66% percent of all IBO's are active. Conversly 33% aren't. Active just means they purchased something. Sounds bad until you realize that
85% of small businesses fail thier first year. Failure is a vague term and this article explains it quite nicely. The experience of an IBO isn't much different. No one is out there telling people not to open thier own business because of that. Well I'm sure there are some out there but there will always be a critic.

Quixtar moves products. That is it's purpose. 4.7 billion dollars worth of products. I'm not sure how you determined that it generates no wealth. I know you have a link but it is back to yourself. To reference yourself is circular reasoning and generally frowned upon in a discertation. :) It does generate wealth and has recently. There are some people in the middle of good 'ol USA that have gotten in the past couple of years and have gone diamond. And in the same geographic area helped others go diamond. That you have to get in early to make money just isn't holding up. Amyway has been around since 1959; and did I mention .002% of the population? It's sold $4.7 billion and it's net worth is billions beyond that and it still hasn't made a dent in the population. You can't argue the numbers.

But IBOs -- again, as you have vividly testified yourself -- end up expecting significant "residual income" by doing "the plan". That's just an upline wealth-transfer mechanism.

How is that different from me opening any other business? It's a wealth-transfer mechanism just like Wal-Mart. I buy something a percentage goes all parties involved including those who own that branch. Percentages of wealth being divided up and spread to everyone involved. I invest some time, money and usually large quantities of each for a return. And either IBOs make money (6 figures) or my friends are lying to me about their source of income.

Do IBOs make money by signing people up?
Nope, not a cent. Most people, for some odd reason, sign up and never buy a thing. They don't benefit the IBO in any way. There are no rewards for the "number" of sponsored IBOs. Only product movement. Just like Wal-Mart; walking in doesn't help them in the least. You have to buy something. I didn't know that chain letters moved products, or generated tax revenue. I can buy a DVD player through Quixtar get my 25% discount plus Circut City's sale price choose to have it delivered to me or drive down to the local Circuit City outlet and pick it up. Sounds like a "normal" business to me. I paid cash and recieved a product.

So to directly answer the questions you asked:


  • Is it profitable? - It is, even for those just getting in or there would be no new diamonds. And there is still a lot of room for growth. Stats show I have a better chance of making atleast $115 as an IBO than with somthing legitamite like a Subway.

  • Is it ethical? - That is a personal question that I can't answer for you no more than you can answer for me. Based upon the pervious statistics I have to say yes. There is still oil in the ground so to speak.

Keep it coming Tim. :) Thanks for staying level headed. And I've got to keep these responses smaller. We are missing each other on some critical points.

Posted by: Paul on July 6, 2005 10:24 PM

Let me throw some negativity here.

85% failure rate is a stupid myth. Many small businesses sell their business or move their venue, and they are counted as "Business who used to be there, not any more". Your article explains it very well. Uh but IBOs who relocate are still counted as active if they're active right?

Quixtar plan I saw used the same number, didn't explain it like ur article did, twist it and use it as a scare tactic to promote Quixtar as only way left to survive.

66% percent of all IBO's are active. Conversely 33% aren't.

That's at any given time. Inactive ones usually don't renew.

More than 50% ppl also Quit every year.

Amway has been around since 1959; and did I mention .002% of the population? It's sold $4.7 billion and it's net worth is billions beyond that and it still hasn't made a dent in the population. You can't argue the numbers.

Yes you can't! Amway numbers are same, shouldn't it have grown?

Zero Population growth

And 50% ppl quitting every year since decades, many might have spend some money on it. Lets count from 1979 as per that link, 35 years, 170K ppl quitting every year = 59 M. If every one of them have wasted only $100 in Amway, we are talking Billions!!

Active just means they purchased something. Sounds bad until you realize that 85% of small businesses fail their first year. The experience of an IBO isn't much different.

IBO not pursuing it anymore is different than a business which is sold at profit or relocated or merged.

No one is out there telling people not to open their own business because of that. Well I'm sure there are some out there but there will always be a critic.
There is plenty of help for small business owners?

And find me some Avon critic (an MLM) or Sears’s critic or bay critic. Critics of their model, not some bad customer experience.

There are some people in the middle of good