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December 16, 2003
Does Quixtar work?
By QBlog in
I got an email today that very bluntly asks "Does Quixtar work?" I get such emails all the time but I thought in this case I'd ask you, dear readers, to compose an equally direct and blunt response for this inquiry.
So, what's your answer? Does Quixtar work?
Comments
Yes Virginia, Quixtar works!
The question is: for whom does it work? For the DeVos and Van Andel families? For Bill Britt and Dexter Yager? For the diamonds?
I think the answer for most, if not all of the above, is yes.
But for most people that are current or former IBOs or distributors, Quixtar, in my opinion, does not work.
No, Quixtar does not work since MLM defies business logic.
1. Virtually all systems are based on some form of pyramid marketing scheme/organization which eventually suffers from saturation.
2. For the new "business owner" expenses will out-pace income indefinately and the training programs and materials have little secondary intrinsic or academic value.
3. The time-based opportunity cost of MLM is excessive. One could do much better working a second job, taking advanced career training, advancing one's education or enjoying a good hobby.
4. The core MLM folks are scary. If they seem cultish, its because they are.
If a system works for one person, it must work for another, unless it is a scam. That's just simple logic. System's have no emotional baggage. They don't care who you are or what you believe in. If you push the right buttons and work the system the way it's supposed to be worked instead of the way you think it should be worked, it will work for you. That's why it is a system.
Quixtar is a system. It is not a scam, though some are adamant to argue otherwise. It worked for some people, it will work for you, assuming you work the system right.
The question should rather be, are you willing to work it and for how long?
MLM would work if it was used as a way for individuals and families to raise their income a modest amount.
For what MLM people seem to want of it (a pathway to get to the point where they do nothing and keep rolling in new dough), it CAN'T work. Nothing is like that; even the Walton Family and Gates work their butts off even now, when supposedly they could join the investment class and lounge around forever.
My friend owns a chain of Chinese resteraunts and he just lounges around and does nothing now. Well, besides golf. He likes golf.
Dwighty's Ambabble argument demonstrates the lack of critical thinking that Quixtar promotes in its IBO's. By ignoring system externalities and giving blind faith to the "leadership", you can't go wrong, right? What if your area is swamped with MLMers? What if you live far away from the major concentration of prospects? What if you cannot afford $5000-$6000 per year to be a core IBO? Is that your fault? According to Dwighty and his upline, it is. They do that to rationalize their sins and rid themselves of their guilt for preying on and brutilizing fellow human beings.
I found that the system cut into precious time that I could've spent on other activities I enjoy, like more time with friends and family, hobbies, etc. Anytime we got a "no" from people we showed the plan to, I always understood because I agreed that time with family is more important. If you work all day, who wants to come home to more work, ship the kids to a sitter, only to have family people like yourselves say "no". I think that is why many of the speakers share their dream of "bringing the wife home from her job" so she is with the kids during the day to make up for leaving with a sitter at night to build the "business" so that people building the "business" can relieve their own guilt, as well. If the system works, at what personal costs?
Questions, Dwighty:
(note that I'm assuming your friend is real. for all I know, you're coming up with something to just argue.)
1) How sure is he about his supply chain? His employees? The direction his company is going? His locations?
2) How old is he?
3) How many years did he have to work to make it to this level?
4) How many children (or grandchildren) does he have?
Again, I'm commenting from personal experience. Outside of a Rockefeller-sized inheretance, you will have to work to make it to the point of security. If your friend is at the point where he can relax, good for him -- he probably earned it with many years of 16+ hour days.
Does Quixtar work? YES
The real question is; Can a person willing to learn to run any business and explore all the options available as a business owner, while riding the ups and downs of our economy make it work.
The answer. 50% or more will fail. Look at the business failure rates in the US.
Quixtar is merely a supplier of products and services with a compensation plan and business guidelines. A IBO can make their Quixtar business work in the same manner a dry cleaner makes their business work.
Long hours, dedication, good service, and ethical business practices. It's no mystery.
Dwighty says, "Quixtar is a system. It is not a scam, though some are adamant to argue otherwise. It worked for some people, it will work for you, assuming you work the system right."
Quixtar is not a system. But Quixtar has reps with "systems". Big Difference.
The more important question is "Who does Quixtar work for?"
QUIXTAR:
It works for Quixtar and its owners allowing them to sell products at premium "wholesale" prices to its network of distributors (wholesale prices that no other retail distribution system would tolerate). It also allows them to shift all of the advertising costs onto the distributors. No TV or radio ads, the IBOs pay for the print ads. Man, what a deal this is for Quixtar!
THE SYSTEMS:
It works almost as well for the "motivational systems," those pushing tapes, CDs, books, videos, function tickets and other "business support materials" ("BSMs") on the downline IBOs. The systems can charge a premium for extremely low quality motivational merchandise, realizing profit margins in excess of 80% to be divided up among the system pins. The system pins themselves are also worshipped by the members of the cults of tape and function addicts they create.
RETAILING IBOs:
It might work for IBOs who are actually selling most of the products to retail customers - provided: (1) they keep expenses to a reasonable level (i.e. they stay away from the motivational systems and BSMs); (2) they actually have sales skills and desire to operate a business selling household consumable products to retail customers for some extra money; (3) they run their business like a retail sales business with a detailed product marketing plan and revenue and cost projections; and (4) there is nothing more valuable for them to do with their time (most people with sales skills could make a lot more money selling something other than Quixtar because of the company's bad name and the abnormally high wholesale prices).
SYSTEM IBOs:
Quixtar does not work for these people unless and until they obtain a share of the income from the BSM business.
Of course, grammarians out there may rephrase the question as: "Quixtar works for whom?"
Quixtar works great for Quixtar, not for IBO's unless you're heavily into the tools profit.
We've been non active for years. I just checked my reports from quixtar.com. We have a downline silver and a downline platinum beneath the silver. The volume is steady around 7500 PV or so and there has been a total of 5 new distributors in year 2003. Quixtar has made a handsome profit on $15K of product sales every month and my upline Emerald and Diamond, etc. I'm sure have made a handsome profit on the tools that this leg purchases and on profit for seminars, rallys, and other functions the people in the group go to. So sure it works. :)
It just doesn't work for the 50-100 other people in that group that are spending 30% more on products than I do by shopping at CostCo or WalMart. And that is after I get a 25% discount for being over 7500PV. Needless to say we don't do any volume any more, especially since unless we do 50PV, we don't even get the 25% back any longer.
I could go on but I won't. I just feel sorry for the social club people. The price of admission is very high.
Whew...I'm just a busy poster tonight on the ole "Qblog" !..:o)
Daves Buddy, Had to jump in on this one.
MLM defies business logic? What is so defient about sell the product make a profit? Yes...if you teach "buy from yourself and teach others to do the same" that's a problem but selling and teaching others to sell is well...sales!
1) I agree most are set up with a pyramid type plan...and I'll argue this for years to come. MLM is comission sales and many non-MLM's are also set up on a pyramid basis. I am not going to make the same money my boss makes in bonuses from his sales force until I "Move up" and become a sales manager!!
2) I agree...folks if you are going to open a business then you better have some money to work with. You need advertising dollars, expence money and maybe even ..oh don't say it...Inventory money! Yes, you will also need to invest in yourself for continued education on your business and products. Hmm...if Iopen a Pizza Hut will they pay my way to the Las Vegas returaunt convention...I think not. But they do provide training and guess what? You the business owner have to buy most of that material to train your employees!
3) Many would do better with a second job as they will never be able to make it in MLM. Yep,I agree...some just do not have the drive or willingness to learn how to operate in a sales driven opportunity. Your personality, the way you were raised, your beliefs will keep you in a Job oportunity for ever..and there is nothing wrong with that! For those of you who want to own a business or operate as a independent rep for a business..that means you have to invest some money, you are not employeed, then yes you can do better in MLM than with a second Job. I have a boss, why would I want another one!!
That's my story and I'm sticking to it!
JBNET
oops...forgot to answer the questin to this section...Does Quixtar work?
Ummm....Nope...gotta say negative for me on this one.
Not if you stick with the "buy from yourself and teach others to do the same" stuff.
Thats a pyramid and thats just plain wrong!
Does MLM work? I give my thoughts on that through numerous postings here and on MLMblog...thank you...thank you very much.
JBNET
NO!!!
I rushed to join Quixtar when it was just about to be realeased to the public, that was several years ago.
How can anyone make money when the whole concept is pay for the privilage to buy from yourself at a 10% markup or more, and then teach others to do the same.
Think Im full of it. Go look at any product on Quixtar.com then go directly to the manufacturers site and compare the prices.
The only one making money are the people in the diamond and emerald level. How did they get there? By coning others to do the same.
Just my thoughts!
WOW guys what's the deal with this disscussion, I 've heard cd's and stuff and they mentioned that it's a 2-5 year plan? Is that false info?
I wanted to believe that Quixtar was a scam, i really, really did. Until my four of my close personal friends, two from very, very humble backgrounds, became diamonds in the business. They did work hard, no question, but now they don't work for anyone. It can work for anyone who puts in the time. And the longterm benefits far outweigh the initial work required. Two of my friends do make over a million dollars a year. The reason I didn't do it, because i didn't feel it was right for ME. And seeing my friends' success, i sometimes feel I should get in the business now. But they're talkers and confident people, who made the system work for them, as so many others do, not just the guys at the top. Check your facts. I'm not even in the business, but i'm not going to begrudge the success of others, or criticize the business because I didn't choose to do it. It wasn't for me, and i know myself, but if i had committed myself to it, success would have come, I'm sure. Anyway, I work for Morgan Stanley as a financial analyst and do quite well, and enjoy my job, and am happy with the way my life has gone. Sure I'm not making what many in Quixtar are making, but at least its a six-figure income, and my family is secure, and I'm happy!
Listen,,, i am a emerald in the quixtar organization and i too never believed that i could make any money. So i listened to cd's and read books to prove to my up line that i still could not do it but in the end i was made the fool,,, thank god i was made the fool. Yes the system works,,,how ever it is a people business and a numbers game. I learned that out of quantity comes quality. listen you can take a smart person and make them smarter but you can not take a dumb person and make them smart. I can help only those who want help. hasselbachmarketing@yahoo.com
If you adhere to the retail sales rule and 70% or more of your sales goes to outside consumers (members/clients) then yes, Quixtar can "work". It will take you a long time to build up your network, and you will have to make sure each IBO you sponser also adheres to the retail sales rules, but if you can find people willing to buy the products and some willing to distibute, then you can make money in Quixtar. Probably not the millions in 2 - 5 years professed in "the plan", but a real profit, nonetheless.
But, if you participate in a "buy from yourself and teach others to do so" model, then no, Quixtar does not work. Why? Because in this model, only the few can end up with more money in their bank account and the majority ending losing. And that's before business expenses are taken into consideration. For a more mathematical model on why this cannot work, see my "sticky" post in the forum entitled, "The Math behind..." (http://www.webraw.com/quixtar/forum/viewtopic.php?t=381) For a more matter-of-fact view, you can look at this site from the Federal Trade Commission. http://www.ftc.gov/bcp/conline/edcams/dotcon/mlm.htm
Posted by: dmm | December 16, 2003 2:14 PM