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Why Doesn't Quixtar Advertise?

Comment today (at the bottom of this post), regarding Quixtar:

Why is that if you just tell ppl to buy for themselves is it illegal? You are Redirecting where they shop, and teaching others to do so. This makes perfect sense from an manufacturers point. You dont pay advertising.
So why would that be illegal?

Taking this one bite at a time...

Quixtar Illegal?

Why is that if you just tell ppl to buy for themselves is it illegal? You are Redirecting where they shop, and teaching others to do so... So why would that be illegal?

First, I don't generally argue that's illegal. Pay attention here, ladies and gentlemen: none of my arguments are based on calling Quixtar "illegal". I instead argue Quixtar is unethical and unprofitable.

The reason IBOs say that, when no-one is actually saying Quixtar is illegal, is, I suspect, is because Quixtar programs them to give that response -- even if it's utterly irrelevant most the time. It's something the IBOs utters so she or he doesn't have to think about the actual criticism being presented.

(Generally, such techniques are called "thought stoppers", and are used, by cults and others, to protect the mind from questions and critical thoughts. Another example is the defenses Quixar instills against "negativity".)

Why Advertise?

This makes perfect sense from an manufacturers point. You dont pay advertising.

In a sense, what "AK" is saying here is true: Quixtar IBOs donate much or most of their free time to doing advertising for Quixtar's products. They give absolutely free advertising to Quixtar at work, at school, in the office, at their church, at family get-togethers, by randomly trying to start a fake-friendly conversation with a stranger at the local supermarket...

First obvious question is, well yes, that's wonderful for Quixtar. But where did you get the idea it was good for you? I mean, if Target could sell you products for a marked-up cost, and ALSO get you to do all their advertising for them, then why on earth wouldn't they?

Most consumers would notice that their time has value, and remember to tack it onto the cost of the products they're paying. Eventually, they would say: "Oh wait! I'm paying MORE for the product and donating free advertising to the company! Hey, wait a second! ..."

In Quixtar's case, people won't notice this because they have dollar-signs in their eyes. Quixtar convinces people that they're actually making themselves rich by this behavior, not going into debt.

Each one is tempted when, by his own evil desire, he is dragged away and enticed... (James 1:14)

And it's wonderful, because when it doesn't work, Quixtar -- like any liberal politician -- just says the problem is that you weren't spending or doing enough yet!

Comparison: Sony vs. Quixtar

Consider Sony. Is it true that "AK", in making this suggestion, is showing he knows much more about making money than Sony? Or Microsoft? Or Wal-Mart? And every other major company in the world? Which way would you bet?

Right: My money's with the big guys.

Consider Sony's incentive: If the Quixtar free-IBO-advertising method works so well, why doesn't Sony use it?

One reason is that many companies CAN already re-sell their products through Quixtar -- but it represents a tiny fraction of their total sales. So they're not about to neglect the "bread and butter" main methods of selling anytime soon.

(Yes, IBOs, I hear you: "Soon it will all be done this way." No...)

The next issue is that Sony -- or any other brand -- wants to build brand loyalty. They don't just want you to buy their product for a few months. They want you to buy them over your lifetime. They want you to give your granddaughter a toy labelled "My First Sony".

In contrast, Quixtar IBOs generally last about a year, and most post-Quixtar IBOs want nothing to do with that brand name. This is NOT conducive to building good long-term brand loyalty. Think: Why did "Amway" have to change it's identity to "Quixtar"? Why will another such shift happen again soon? And why do IBOs try as hard as possible to NOT reveal to prospects that they're getting them into Quixtar/Amway?

This should be a tell-tale sign: Sony wants you to know exactly what brand name you're getting into. In fact, many consumers are attracted to certain brand names, and sometimes will pay more when the only difference they can see is the "brand" on the label. Most brands are attractive to outsiders.

In contrast, most IBOs prospect by hiding their connections to Quixtar. If you ask: "Oh, that sounds like Amway. Did this have anything to do with Amway?" most IBOs will try to hide or downplay the connection. In contrast to most other brands, the Quixtar brand is repulsive to outsiders who have heard it before.

So Quixtar promoters behave like the people of "darkness" Jesus describes, hiding their identity, their true ultimate intent, and other relevant information until the prospect has been enticed and can correctly "visualize" all things they'll get via Quixtar:

Everyone who does evil hates the light, and will not come into the light for fear that his deeds will be exposed. But whoever lives by the truth comes into the light... (John 3:20-21)

Remember: Most IBOs don't consume Quixtar products ('cept perhaps XS energy drink) because the products are so much cheaper or better than their brand-name competitors. Rather, most IBOs choose Quixtar products because they're convinced they're "investing in themselves" or "creating a residual income" -- e.g. lots of future income without having to work, someday. That motivation works for a time, but only as long as you're under the spell.

Control

Most companies aren't content to let another group control their destiny. When you buy from Quixtar, you don't see much "brand competition" on their site. Sometimes, there's only one "chosen" supplier for a given product type. No company's going to be happy in that situation, where someone abitrarily chooses which product consumers are allowed to purchase. (And there's no reason to think Quixtar's choices will be best for the consumer, either.)

Inefficiency

Finally: Quixtar's form of advertising is very slow and inefficient. To the extent it works for Quixtar, it works because they have no real competition, and their basic offering never changes: It's: "Sign up, get your friends to sign up, and become rich/wealthier by puchasing lots of products." (Yes, that makes no sense, but I didn't present it using neural-linguistic programming techniques.)

But most product offerings change from year to year: A given breakfast cereal has 30% more sugar than it used to, or than its competitor. Or a better toy surprise in the box. (Am I dating myself here?) Or a different mascot. So it's too long to wait for everyone to get the message in the slow, painful, inefficient method Quixtar IBOs use. A single television ad will reach millions in seconds.

And there's a more nefarious reason Quixtar likes slow advertising: The real point is not to get the message out quickly. (That's why it's forbidden, my IBO friends!) The real point is to keep the IBOs in, consuming product, for as long as possible.

Consider: If Quixtar ran a normal advertising campaign, telling everyone in the whole country exactly what their proposition was, what would happen? A few people would sign up, most wouldn't. And who would those IBOs prospect to? Nobody! Because everyone else who didn't sign up presumably would have heard the message and decided that it was a dumb idea.

So how long would it take the IBO, then, to figure out this sucked, and get out? Almost no time at all. The network would be created and collapse very quickly.

So Quixtar's inefficient advertising method keeps this "explosion" from happening too quickly. It s-t-r-e-t-c-h-e-s it out as long as possible, keeping those IBOs getting "nibbles" and finding new prospects for a long time, so they keep interested, and buying product as long as possible, and keeps the reserve of potential converts from being tapped out too quickly, preventing the ultimate implosion.

And the 'implosion", "saturation" does occur, which is why, again "Amway" had to become "Quixtar", and why "Quixtar" is now hidden in favor of "Team of Destiny" or "The Team" or "Brit World-Wide" or a dozen other guises -- and why it will against someday have to mutate in order to start anew.

Summary

So, to summarize, Sony doesn't rely on Quixtar-like marketing because they want to keep you as a customer for a lifetime. Same with Target, same with Panasonic, same with Duncan-Hines. And world of mouth is only useful for simple propositions which don't change, such as "the plan" for Quixtar, or the idea that a particular brand has quality (or is junk). And Quixtar likes slow advertising because it keeps saturation from happening too quickly, and keeps the IBOs in (and buying!), and feeling like they're making real progress.

As for you, IBOs and prospective IBOs, the questions are:

(1) Why you think this is profitable to you, since you're the one donating the free advertising to the company, and cutting their costs while raising your own? (Do you factor this advertising into your costs?)

(2) Why is it ethical to use bait-'n'-switch techniques to lure people in?

The short answer is, again, that each is enticed by their own greed -- the basic mechanism that con men use -- into not correctly counting their expenses and estimating their expected return on investment. They rush in headlong, and the true picture doesn't become apparent until later.

Comments

I agree, my friend also is in this Quixtar program, he doesn't like the bars or the tapes but he likes telling others about it. One day someone will strike this pyramid scam down. All against pyramid scams say "AYE"

Posted by: on March 28, 2006 08:33 PM

I would much rather do Quixtar and have a chance at achieving my dreams...

Since Quixtar pays the average active IBO only $115 per month (for 40 hours work, that's a pathetic $2.86 per hour!) -- BEFORE expenses, mind you -- you'd have a much better chance of doing well at a minimum wage job.

So why are you discouraging people from getting a higher-paying job than Quixtar -- say, McDonald's. Don't you want them to "achieve their dreams"? So why are you trying to make them poor?


So, what do you have to say about all those people who have become diamonds...

I'd say that if you look closely, there have been very few new diamonds for a long, long time. If you want to become rich stay out of Quixtar:

According to Money magazine, 3.4% of households in the US are millionaires! Yet the odds of making over $70k in Quixtar are less 1/2,380 or 0.04%. Yes, that's right, comparing percentages, there are over 80 times more millionaire households outside Quixtar than there are IBOs making only $70k, before expenses!


yes in the beginning it seems as if your operating at a lost...

That's because you are operating at a loss. And the only way to get rid of that loss is to multiply it by making even more people experience that loss. That's plainly unethical.

But most IBO never even break even, from what I can see. I have a friend who's been an active IBO for more than 5 years, and has signed up hundreds of downlines! How's she doing? Oh, still living in her parents' basement, working full time, and borrowing money from her friends -- who were smart enough to stay away from Quackstar.


No job is easy, and that includes being an IBO...

True, but most jobs pay you money, not suck it away from you. Duh!


If you want to stay poor...

... sign up for Quixtar immediately!


But I've got some big dreams...

Well, good for you. Are they the kind God wants you to have? Is your heart set on material things down below here, or something longer term? It's not my business: just challenging you with a rhetorical question.

Even if you're going to be greedy, hey, try to find something thay pays okay?

Posted by: Tim (Random Observations) on March 29, 2006 08:27 PM

Michelle and other IBOs out there,

Did you address any of the issues Tim raised? No. All you did was spout some more tapespeak, which is full of falsehoods and false dichotomies.

I too was a pro-Quixtar IBO (BWW) until I providentially saw online that I was being told lie after lie and that money was being taken from me indiscriminately. I was being scammed. Everything came together and I had to admit to myself that this was an unethical, destructive business, at least when operated the way the systems teach.

Why don't you guys try to read and digest what is written and figure things out for yourselves rather than relying on the words of people, most of whom you didn't know from Adam before you joined the business, and many of whom have a vested financial interest in keeping you bound to the system? (Talk about a conflict of interest.)

Are you scared of the truth? If what you are doing is right, it will withstand scrutiny. As Tim quoted:

Everyone who does evil hates the light, and will not come into the light for fear that his deeds will be exposed. But whoever lives by the truth comes into the light... (John 3:20-21)

Don't run away. Come to the light and let your works be examined. If you are doing the right thing, that will be made evident. Look at both sides, and then make a decision. Please do this or you may be harming yourself and others you bring into this business, much to your later regret.

rara,
A recently-liberated IBO

Posted by: rara on April 4, 2006 03:01 PM

>>All against pyramid scams say "AYE"

AYE!!!!!!!!!!

Posted by: rara on April 4, 2006 03:02 PM

Wow Oscar!

Pretty good, but I hate to tell you: that's NOTHING compared to me. I make $42 MILLION dollars each year recycling aluminum cans, responding to cereal box offers, and buying real estate with no money down. I now have a private jet, a house in the Carribean, a villa in Tuscany, an apartment in Manhattan overlooking Central Park, and a collection of nine Ferrarris.

AND I'm only 17 and a half years old!

And unlike you, I can actually SPELL, which accounts for my even more stunning financial success.


* * * *


Okay, now, let's be serious. It could be that Oscar is telling the entire truth. Incredibly unlikely, but possible. Just as hard to verify, or disprove as the wild claims I responded with.

But even if he was telling the truth, so what?

Nobody denies that there are a few high-level IBOs who make a reasonable income. The question isn't whether somebody will profit. The questions are simply:

(1) What are your odds of doing that well, and
(2) Is this "business" ethical?

Your odds of making that kind of money are VERY low. According to Quixtar's own numbers, the average Emerald did not make $130K annually. No, Emeralds made, on average, only $74K. Before expenses. If there weren't any expenses (such as buying Quixtar products, travel, "tools", etc.) that wouldn't be a bad income, but it's also not particularly stunning. Especially once you consider...

What are the odds of becoming an Emerald? Again, according to Quixtar's own numbers, less than 1 in 2,800, or about 0.034% of active IBOs. Are those good odds? Not when you consider that about 6% of US households are millionaires! That's right: the average US household is 172 times more likely to be a millionaire than the average IBO is to make just $74K per year -- before expenses.

Pathetic!

Lastly, would it be ethical? Even assuming Oscar is telling the 100% truth (which looks incredibly unlikely, from Quixtar's own stats!), is his proposition ethical?

Well, consider that the average active IBO makes $115 a month. At ten hours a week (or even eight!) hat's a tiny fraction of minimum wage! Again, that's before expenses!

So how does a Diamond make money? By convincing a LOT of people to put lots of time and effort into a job which will pay them, on average FAR less than minimum wage, and will probably leave many of them in debt. In short, by convincing a huge number of people to harm themselves and their families. Great way to get rich, eh?

Quixtar: Certainly not profitable for the average IBO, and not ethical, period.

Now go read about a much better scam (oops, sorry "system"): Timxtar

Posted by: Tim (Random Observations) on April 28, 2006 12:46 AM

Look man i admire what you got your succesfull in what you do but im not trying to compare i know people who have more money than you can imagine but thats not the point the point is that QUIXTAR does pay and its not that hard to do 100% of the people who put their mind into it can do it the only people who dont make it are quiters who dont want to do what the uplines tell them to do. Another thing is QUIXTAR has a great motivation system called LEGACY BUSINESS GROUP it talks about values and prinsiples it does not matter how much money you have if you dont have values and are poor on the inside, what good is money if your a shallow person, thats something that most business dont have and thats what i like about this corporation the most.

Posted by: Oscar Gamboa on May 1, 2006 12:15 PM

I dont think of it like that because i put the work into it also so i deserve it and my downlines i have been working one on one with them so its not like their working for me but thieir working for themselfs.

Posted by: Oscar on May 11, 2006 01:11 AM

No I dont think of it like that like i said but if thats how you want to look at it everything or every job is like that their is a boss who littery does nothing and the workers bust thier buts and at the end who ends up making the big bucks? at least here people know that yea they will put in the work but they will also get the big bucks in the not so distant future think abouth it do you and every body else want to keep making the owners of big stores millioners?

Posted by: Oscar Gamboa on May 14, 2006 06:15 AM

If you want to look at it that way but here nobody is forcing them to do anything un like in a real job were you have to take orders from a boss, also here you are given the oportunity to one day get the money your uplines get but in a real job your boss does not want you making money and once you start asking for a raise you get fired.

Posted by: Oscar Gamboa on May 28, 2006 01:50 PM

This organization Legacy (Quixtar), reminds me so much of a previous (not MLM, cough cough) called Equinox, and partly of Melaluca. Since I felt, as others have said, very uncomfortable forcing family members into buying, I tried retailing....boy, very very difficult. Since the products were priced too high, very few people would buy them (although, I myself, did buy quite a lot of the products...not knocking them, they were excellent products).

As long as the prices (which I have not seen as of yet) for products are comparable, I have no problem buying through a member, but have absolutely no interest in building the pyramid.

What really peevs me however, is that going to the website, I could gather absolutely no information about the company, or how to purchase items....which I think speaks volumes. As I learned from Equinox/Melaluca, you don't make much buying/selling products, you make $$ by buying and selling the company, and building a downline, to profit off many small %'s from their sales.

Again, not knocking the products (since I haven't even seen the products they offer yet), just understand that for every dollar you spend, pieces of it go to each of the uplines.

So, the basis of the company is that they eliminate the middleman to give you a better price? But what are the uplines? are they not middlemen or women? I would call them that since they each get a piece of your pie.

If that doesn't bother you, which it shouldn't realistically, since every time you buy anything in any store, that occurs. That's just normal business, the only difference is that the MLM method trys to tell you it isn't happening.

It was pitched to me as, "we buy everything from this catalog, and we get money back too..how great is that", then why isn't the money back applied on the front end? why get it back? just a thought.

George

George

Posted by: George on September 23, 2006 12:20 AM

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