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July 27, 2004
The Fundamental Flaw of MLM*
By QBlog in
When you strip away all the rhetoric, hyperbole, compensation plans, leadership strategies, etc. what you are left with is the fundamental reason that MLM* exists in our world today.
At the very core of MLM is one promise, one hope that ignores the history of abuses and problems while attracting people like moths to a flame. What is it?
What's truly amazing is that this flaw exists in spite of efforts to eliminate it from the business. Lowering income expectations and proclaiming that "this is hard work" is ultimately meaningless because of the Multiple Levels that define MLM. The mere existence of those levels result in a structure that embraces (whether stated or implied, intentional or not) "Easy Money."
The philosophy behind a "network producing residual income" (see Robert Kiyosaki's teachings) is the same philosophy that fueled the Gold Rush of 1849, the creation of the Diet Industry and the recent scramble for technology stocks around the turn of the century. It's the philosophy of shortcuts, the belief in Easy Money.
Like the tiger that cannot change its stripes, the MLM cannot change its nature.
The other aspect of this flaw is the low cost of entry (not merely monetary). While this seems well intentioned, it results in systemic problems that cannot be remedied in a free market.
- No education? No problem.
- No money? No problem.
- No credit? No problem.
- No mentors? No problem.
- No experience? No problem.
The MLM business takes care of all that. Again, we're left with the fundamental flaw of Easy Money. MLM appears to allow participants to circumvent the traditional (and difficult) steps to business success — things like school, saving, experience, establishing good credit and nurturing relationships with objective and impartial sages. However, appearances can be deceiving. The reality is that MLM is not exempt from the forces that rule the business world and to believe otherwise is folly.
Of course, you'll hear some objections to this fundamental flaw but the majority of those objections will come from those actually working IN an MLM and not those peering at it objectively from the outside.
*MLM here refers to male-dominated MLM businesses.
Comments
I personally prefer the objective view from the insider view, the reason being that the outsider isn't being directly affected by the immediate circumstance. Even though the outsider view can be affected and skewed, the insider viewpoint is DEFINITELY affected and skewed.
And I think that Qblog's analysis is correct. Remember, we're talking about multiplying what you earn by what everyone below you earns. Even with a setup that has you earning more than you can when you bring in ONE person into the group, there must always be the ability to earn more from TEN or more people having been brought into the group. It's that additional earnings from people selling underneath you (and that you get money from) that draws people.
It was that way when I was introduced to Amway back in 1982. And it's still that way, even when it's not highlighted.
Amway, which is my only MLM experience is about making HUGE $$$$$$$. For the most part, if you just want to make a few bucks, you'll be considered as someone who doesn't have a big enough dream.
It's almost as if you're not allowed to not want to "Flush that stinkin' job"
I think that when something is made available to anybody, without at least an entry level benchmark to achieve, there will be contamination in a negative way.
This is simply a deal where you try and sign up as many people as you possibly can, whether they would be able to make this work for them or not, and get these same people buying the tools.
IT'S ALL ABOUT THE TOOLS
It's available to anybody and everybody, and they use pride and emotion to recruit, not a sound business opportunity.
For all the hype about the lifestyle of luxury, the $1400.00/year figure is average case scenario. Since Quixtar provides that for a yearly average income, I think it's safe to say that this is the best they could come up with.
Pretty sad. You can make more cutting grass. I did more than that a year when I was 14 years old, and I didn't work more than 10 hours a week.
I should start making tapes motivating people to go mow lawns.
But that's just me :)
I was never promised eazy money. I even sometimes wonder If I am in the same business 'Quixtar' that you guys mention. I replaced my job income and I am still in my twenties.
Seems to me that you all were expose to individuals or small groups that rubbed you the wrong way(don't feel bad;happens in many industries.
#1 The products have a buy back policy.
Q. Does your local store?
#2. You do not get paid simply for signing people up(head hunting fees). You get paid for creating volume and helping a team of people do the same.
Q. Does your company pay you for producing results? Or do you expect to get a "Trying Bouns"
Mr. Don sit back and think. I was a cell phone dealer and above me there was a master dealer that dealt directly with AT&T. This mean't they made a percentage from my efforts as well as all the other sub dealers they added to their group. They supplied us with training, displays and various different aids so that we made more money as they did too.
Too deep for you? OK lets go again... I am sure you heard of real estate brokers. They have independent agents in their offices selling homes. Do you think an office with more agents in the feild does better than one with less.
Here is what I found...
*You own your own business
*You get a 1099 (not W2)
*You get paid on personal use as well as sales from you and your team
*You set your own hours and detemine your pace.
*You have new stores coming on board to market through Quixtar(despite this site) e.g Barnes & Noble and Circuit city.
* You decide if you want to buy boooks and tapes to educate yourself about building the businss you are a part of.
*You don't have to process the cards, stock the shelves, manage the website, have clients only in your location.
This is what attracted someone like me to the business as well as the Huge Dollars. The company has various ways and levels of income well into the millions. They also state the ways in which to qualify for those bonuses and trips.
*I went platinum and got the platinum bonus, a trip to Alticor and photo in the mag.
* I went founders Platinum Through Sapphire and receive pins plus $30,000 plus in extra bonues.
* I got a trip to an elite resort all expenses paid.(Achievers trip)
When I got the third leg over 7500pv, I received the depth bonus and I am making more money than some of the people above me. These are some of the reasons people are attracted to the business. After comparing the rewards to their JOBs(just over broke). The decision isn't that hard.
OHH and by the way Amway and Quixtar are owned by Alticor and are seperate companies. Principles and success strategies has not changed. Accessabilty, Partner stores, Bonuses are some of the great enhancements.
I got proffessors, lawyers, doctors and even diplomats in my network whom I train. Despite making great incomes, they enjoy what quixtar has to offer. They didn't get to their various careers by being dumb either. So find someone who know what they are doing and probably you can have the similar results like me.Unless of course you are exploring other avenues.
Scott, you probably should cut grass for a living. Since $1400 a year is generous in this context, if you read everything.NBC didn't think it best to read details on the air either. The Average monthly income for "Active" IBOs was $115. ACTIVE for this survey was
a) AN IBO who attempted to make a retail sale
B) Presented the Independent Business Ownership PLan
C) Received bonus money
D) Or Attended A company meeting
The litrature never stated how much hours the average "Active IBO' worked either. What are you Comparing 10hrs too???
Probably I retired my jobs and I am living off my Quixtar income because I cared about helping people,only sold them tools after letting them use freely of my own until they were ready to invest in their business education, helped them make money and I UNDERSTOOD HOW THE BUSINESS WORKED.
Now go attempt to cut a client's grass, attend a training one time on cutting grass, present other people with a brilliant plan about cutting grass or attend a meeting with the grass cutters association and tell me what your average yearly income would be.Also give away the tapes on mowing lawns for free too.
You ended it well........It is just you!
Here's a couple of questions for you, PJ. First, how much of your PV/BV do you retail? Or, to put it another way, how much comes from you, how much comes from your downline, and how much comes from member/client purchases? And what about your downline? How much retailing are they doing? Did you know that if less then 70% come from members/clients, you are violating Quixtar's own rules, and that if less then 50% is coming from members/clients, you are running an illegal product pyramid scheme as defined by several court cases with the FTC?
Here's some more. You say you are making money. Well, I can say I'm the Queen of England, but with no proof, my words hold just as much weight as your words. Prove it. How much profit did you show on your schedule C last year? What about the year before? And before you berate me that this is your personal information, the truth is this is not your personal information, but your business information, and I'm just asking a businessman to back up his claims with the appropriate paperwork. In the real business world, this is very common, and it is not difficult to black out or cover your personal information.
OK PJ Sorry in advance for the lengthy post
a) AN IBO who attempted to make a retail sale
Most people attempting to recruit advise prospects that they don't have to sell anything. Attempt is a perfect desciptor. Retail prices are so high, Amway is non competetive AT BEST. File that argument under G.
B) Presented the Independent Business Ownership PLan
Yes, 10-15 times a month. Hmmm, most meetings take more than an hour. You're supposed to invest 10-15 hrs/week into this when you get the pitch, in order to be free. Once the prospect is in, treat it like a real business. Recruiting practices are deceptive at best. This is what makes people mad. File this one under "BS"
C) Received bonus money
Very Very Very few do actually get money back, and any that do either put it back into tapes, books, seminars. (Which is where you make most of your $$ if any of what you say is true) Also, paying more for something than you needed to, then getting a refund is a dumb-ass way of claiming you've made a profit. File this under "W"(for whatever)
D) Or Attended A company meeting
Again this is where you make the money, by people being "plugged in" not off the products. And just what is a company meeting anyway? One put on by Amway/Quixtar/Alticor? Or one put on by individuals who profit from those meetings? I would consider it a company meeting only when distribution of products, ways to make it more efficient and competitive is discussed, not dreams.
You want to compare your business with "real" businesses, yet I'm sure that any big Company which you so proudly associate your company with, does not have CEO's sitting around watching videos of nice cars and houses during a board meeting. They discuss profitability, because FACTS DO COUNT.
At least there's no slight of hand when you're mowing lawns. You don't have to justify why its important, and you don't have to hide information from people to do it.
People get mad because there is a lot of dishonesty in Amway. To most people, not saying something that is pertinent is dishonesty. ie. Diamond X makes LOADS of money because people like you travel so far for Dream weekend, not because you buy shampoo form Amway"
Hope you had a great trip! Don't forget all the people who can't go on a trip like that because they blow all their money on stuff that got you that trip (it's their fault too, I know)
But that's just me :)
PJ:
If you are doing so great, why don't you like your email and/or website to your post?
Show yourself !!!!
Or, are you embarrassed by the fact that you weren't all that well off before, nor after, you became a Quixbot ?!?!
Oh yeah, PJ
Why don't you and your AMQUIX dudes spend your millions and millions of dollars to buy NBC?
I'm pretty sure the only report that any Amway people would find acceptable would be one where your canned responses are conveyed.
You know, it would have been nice to hear about a leader saying something like, "You know what, they did have a few points in there that should be addressed".
Nope, gotta create a diversion with fake interviews and trying to shoot down the actual people who were anti Quixtar, not their points.
Again, not exactly lies, but not really the truth either.
Likely because the truth wouldn't be very profitable.
But that's just me:)
I have no doubt that PJ is making the money he says he is. That’s how pyramid schemes work, and that’s why they are still around – enough people make enough money in them to keep the idea alive.
Now, ‘enough’ people does not equate in any way to ‘most’ people. ‘Enough’ doesn’t even imply a decent shot at making ‘any’ money. But, I have to admit, if you stick with the system and build your pyramid big enough (oh, I mean sell your products and help others in your team sell their products – right) you will see some money. Just like the system says you will.
The rewards? You get other people’s money! And why shouldn’t you? Plus, you get to placate yourself as you empty their wallets and take their time away from their families because it is for their own good in the long run. Feely a little confused and sleazy? Pop in a tape for that instant refresher. Get really good at being a sleaze? Go on one of those all expense paid trips – paid once again by the people you are helping by making them give you money (oh, I mean the corporate profits realized through the miracle of efficiency and superior products, Amway – wait, Quixtar/Disney/IBM/FBI/Cancer research institutes…) where you can put a suit on, pretend you are a business tycoon, and hang with all the other sleazes who made it that far:
“Hey, Biff, wonder what the poor people are doing today?”
“Well, PJ, I bet they’re out recruiting, listening to tapes, going to meetings and prostituting their relatives for contacts and PV – just like the system says.”
“Biff, it’s good to be the king.”
Remember, you own your own business. Quixtar is not Amway. Apparently it’s Disney.
Gee PJ even a blind hog can find a acorn evey now and then.I just haven't been able to find a blind hog that would get into A/Q.Why not be in a business were you don't leave such a massacure behind as you go to "Success".You can't tell us how much of your money is from "The System" can you?I asked my Saphire how much a Emerald in his group was making and he said $130,000 and I asked how much came from "The System".He said he would get back with me.Well its been 10 weeks now and I haven't heard a word.I guess thats why I moved on because of people like that !
Glad everyone could chip in. Ray's upline Sapphire goes against one or the criteria for a pyramid scheme, and that is that his upline Sapphire has a Emerald(bigger pin) downline. I ended up a bigger pin than my upline. Of course it isn't that I built a wider structure, it has to be because they didn't read the exploiting rules properly. You start to make tool money at platinum and I look forward to getting paid for speaking engagements in the future. If my upline wouldn't tell me how much money someone else in his group made...I propably wouldn't quit.
I have found the information useful because I was able to use IT.Hey and if reading positive books make you... well more positive I believe they were around before even Amway.
There are direct sales and Indirect sales but both pay the same.
Direct sales: Physically sell the product(traditional)
Indirect sales: Refer them to the site or the catalog
Now dmm is the lawyer in the bunch. I have numerous clients and using their own ID's to order monthly I satisfy the member client rule. I build a team, and here is a twist, instead of throwing away their money to see me go on a trip.....They buy the stuff they want and its amazing the way they develop cleints too. Your words do have weight even if you are the Queen of England. I didn't come here to prove I am
doing good in business, my team knows that. When you go silver Quixtar sends you a letter reminding you of the 70/30 rule in case you missed it on the site and in the compendium and from your upline, but thanks for the reminder.
But I forgot you probably never went silver or gold because you only practice quixtar law.
Scott I did not get angry about the NBC program...in fact I got two new IBOs which were curious people who called the Corp. and was refered to me(happens when you are platinum dmm). However I do know it was bias, and felt that after interviewing those IBOs they should have shown PIN recognition with all the IBO's crossing stage at different levels(the ones that would never make it).
Again Scott relax, you don't to be dishonest to make money with Quixtar.My upline diamond had more than $350,000 in quixtar income(checks on his refrigerator reflecting founders diamond) but he also has more than one diamond legs. Also his videos makes sense enough to motivate me since I don't expect him to take me to the ATM and show me his bank Account.I explain the plan without hyping the figures to more than whats shown and I still have growing business. You could have done the same too.
PORKY i would imagine that you are an OLD MAN so let a young buck educate you. If you did 15,000 p.v from sales and didn't sponsor anyone then you still make money. The only way to make any real money in a pyramid scheme is to bring in more people. There is a product and or a service here.....and I believe that IBM, K.B Toys, Circuit City, Office Max may have their legal advisors check out who they become affiliated with. If iI refered my friends to a place that pays me a fee from the profits(I would be a doctor..just kidding) Would you call that other peoples money? if so next time you invest money(providing you have some) just water it and it will grow into interest.Actually Amway is Nutilite in disguise since thats where it all started but Disney is as good a guess I would expect from you.
So hartman well off is relative isn't it. I make more income now than before if thats what you are asking. I guess I am a Quixbot 'identity revealed' however I am being programmed by a diamondquixbot rather than a coworkerbot or a realbutt. When I get back tomorrow I'll catch your comments but to you all, don't make this your career and If not quixtar I hope you find something you enjoy like I do this business.
Hey Scott, I almost forgot to mention...the trip is at the end of the year in the Walt Disney Swan and Dolphin resort.....probably your boss might be there on vacation that week with his family....which of course have nothing to do with your efforts.
I'm no lawyer, but I can read and understand things. And when the person doing the meeting I was at told me all I had to do was change my buying habits, i.e. "buy from yourself and teach others to do so" and I can become incredibly wealthy, I decided to do my due diligence. And guess what, I found out that you need members and clients.
So, I will ask again, PJ, how much of your PV/BV comes from you own purchases, your downline, and from members/clients. Again, words are words, and if you did any research and found out I'm a man with no British heritage, you will realize just how silly my claim to be the Queen of England is. All I'm asking is for a little proof, and again, what was your bottom line on your schedule C last year?
Last, of course partner store lawyers do their research on behalf on their clients. And do you know what they find? They find a way for their client, the partner store, to open up a market of dedicated web shoppers and all the partner store has to do is create a mirror site, which doesn't cost much more then the extra bandwidth. Of course, in turn, the partner has to give up a slice of their profit margin to Quixtar and the IBO pyramid, but the partner still has the opportunity to make money. In addition, the partner gets a copy of Quixtar's own rules that include the 70% retail rule, which satisfies the lawyers. Simply put, it is not up to the partner store to enforce Quixtar's rules, and if the FTC ever investigates again and finds that many IBO's ignore the 70% rule and Quixtar does little to enforce it, the partner stores will not be held responsible.
The sleaze has gone from oozing to spurting.
There is nothing in the definition of a pyramid scheme that says you can’t make more money than the person above you. It is still a pyramid scheme – example, a chain letter: I send out 10 letters asking for 5 bucks (building my business). I get one sucker who sends me the fiver (pure profit, baby – minus the postage/envelope/ink). That sucker sends out his 10 letters and does a much better return – five of his friends are dumb enough to give him 5 bucks. 25 bucks for him. He sends me my cut (say 20%). So far, he has made $20 and I have made $10. Due to my superb mentorship, he has taken off. He made more than I did, but it is still a chain letter/pyramid scheme. Simplified example, but right on the money, so to speak.
This ‘I make more than my upline so it can’t be a pyramid scheme’ is one of the many not-so-little lies that may help you sleep at night, but you are wrong. You are merely rationalizing immoral and probably illegal activity. And don’t give me ‘the FTC approved this business’ junk – that’s a lie, too.
That you can enjoy your vacation, think yourself savvy and hob-knob with the other ‘non-pyramid pyramiders’ says a lot about character. All this from a business that supposedly has honesty and integrity as one of its core values says a lot about that business, too.
PJ, PJ, PJ
What exactly was it about the Dateline show that you didn't feel was fair? Did NBC lie?
You say you know it was bias. Bias towards what, the truth? Showing pin crossongs would prove what? That people buy a pin?
I don't need to relax, I'm not riled up. I just speak clearly. I do feel you need to be dishonest, but I also believe that people are taught to be dishonest without knowing it.
No, you shouldn't be asking to see his bank account at an ATM, since that proves NOTHING. If you folks are saying you're making all this $$$$, just qualify it. Show your profit & loss statements like any other company which is trying to attract new shareholders or entrepreneurs. Duh. Its a real business, right?
Actually a co-worker of mine went to Walt Disney Swan and Dolphin resort last year. My wife and I went to Cuba instead. Oh, the co-worker that went? He & I earn exactly the same. My boss is the Canadian public, so I guess I have no answer for you there PJ.
Except for the fact that I do pay cash for my trips, my bills remain paid before and after I go, and I go when and where I choose to go. I don't have an upline or a corporation deciding for me when & where. But you're the one with all the freedom, right?
Where are you going next year? Or is that to be announced after you "qualify"
Hmmm. I qualify myself every year.
But that's just me:)
PJ,
Please be sure to keep us posted on your progress and success.
I am curious though, how would you sell 15,000 BV each month?
I just had an idea. Quixtar could be a great way for some South American drug cartel to launder money. Sign up as a Quixtar IBO, buy pantloads of XX (for high PV), qualify as Platinum, and so on.
Oh crap! Quixtar is not available in South America. I forgot. Nevermind.
PJ....
Great to see you responding. Too bad you're only blowing hot air. Let's see a website or an email address.
Better yet, just post your accountant's telephone #, so we can audit your records.
The truth is out there PJ, and you're miles from it.....
I feel for the people in Quixtar who are still beating their heads on the wall trying to build a business that is so proven to fail.Look at your uplines.Divorces are everywhere,Pins are fading.My upline Triple Diamond's first wife committed suicide,then a couple of years ago his son did too!I don't know if you call that being in a proven system but I don't.Maybe family needs to be number one!I would rather be broke and have my family!
Hello everyone. I am new to the site and was hoping to find here some amount of objectivity regarding all this MLM stuff. Suffice it to say that I've found VERY LITTLE. It sounds like many of you would have been the people laughing at the Wright brothers about wanting to create a flying contraption or at Henry Ford for thinking that everyone will be able to afford an automobile one day. I don't know if you have all been involved in A/Q before, if your loved ones have, or if you are altogether just upset that there are MANY more ways in this day and age to make money than you think should be allowed.
Don't get me wrong, I don't agree with the AQMOs at all. I feel that no one should be pressured into buying all that crap! In fact, I've been involved in another MLM in the past and we learned everything on a one-on-one over-the-phone basis. My younger brother introduced it to my a short time ago and in the course of his first year in the business (This is NOT Quixtar, so calm down to some of you...) he has made WELL over $50,000 and has helped one of his Frat brothers in his downline make a whole lot more. Understand though, that none of this was easy money (as some of you have been saying). It took a lot of guts, time, determination, and eagerness to learn and take the advice of those who are trying to help you succeed. I know all this because, like I said, he is my brother and I saw him work to get to that level of income. I've made some money in it (nowhere near what he has made), but I understand that, for me, it really is just a learning experience.
I know that you are asking, "What the hell can one learn from MLM?" Well, I can't speak for most, but for me:
1. Running a successful business is completely different from having a job. Most people want to "Be their own boss", but don't realize that they must become more strict on their own habits in order to be successful. So, after days, weeks, or months of trying to become rich by trying to cut corners (for example, in A/Q - Not retailing, but just relying on personal consumption), the find that it's not easy, money doesn't grow on trees, and the quit... PISSED OFF!
2. You often see a lot more potential in people than they are willing or able to see in themselves.
3. You do not have to be a sleazy, used car salesman in order to sell effectively.
4. On that note, there is nothing wrong with being a salesman. The personal development and communication skills acquired in learning this skill are second to none in nearly all avenues of life.
5. You can achieve what you set out to achieve if you are willing to take other people's opinions with a grain of salt. Most people really are average, which means that in order to be anything more than average, you just might have to disagree with at least 50% of them, even though they are your friends, families, or people you don't even know, but live to give out their free "objective" information, day in, day out, 24 hours a day over the web.
These are just my take on the subject.
Also, I feel that, for the most part the majority of people who left A/Q after loosing everything seriously had something wrong with their thought processes anyways. No true, business-minded individual would ever hop into something without exploring it first. (Market analysis, speak with others, educate one's self on general business aspects, and learn to manage finances, WRITE A BUSINESS PLAN). If those looking at A/Q would have used their heads, then they would not just be sheep being led to the slaughter, listening to everything that some rotten apple in a corporation tells them to do... "neglect your family and come to this or that weekend's rally", "mortgage your house and empty your bank account to buy books and tapes", "don't worry about being at your daughter's recital or son's game because when you're rich in a few years", "you can spend all your time with them then", etc., etc. Use your heads. This is the information age and, as you all know, abundant information is everywhere. Why haven't some of the true IBOs come out and created a FREE training website for all of their members? After all, my brother has been VERY successful (only 22 y.o. and recent graduate with 2 B.S. degrees) in his MLM (again, NOT A/Q) business without ever purchasing one book or tape, except those he wanted to read at Barnes and Nobles. In fact, the custom suits and his last 2 semester of college were paid for by his MLM business!
I have been looking at the A/Q business and I do have my concerns, which lie primarily in the AQMOs and the way that the business is portrayed (by many IBOs) as simply changing your buying habits and (by BLOGers like you) as a bunch of crock! I feel that it, like any business, has its flaws, which lies primarily in a few bad apples. Just because there are some bad apples does not mean that the entire thing is crap (Or have you all forgotten about Enron).
If I decide to get in, I would sit down and take a long, hard look at its weakness (cost of motivational tools, for example) and create a personal business plan to overcome these weaknesses, while still maximizing the strengths (for example, a FREE training site for all downline, free conference calls to minimize long meetings away from families, true SALES training, etc.). I know that this will definitely weed out the masses who want the EASY MONEY, but I feel that these are the same people who have given the industry a bad name.
Before any of you start questioning my intelligence, or my brother's.... I've already told you that my brother (22 y.o.) received dual degrees this year in Electronic Business and Entrepreneurial Management. I (26 y.o.) have a B.S. in Materials Engineering and am currently in my last year of study for my Ph.D. in Biomedical Engineering. For us, business has always been something we enjoy to dabble in and do on the side as a means of bringing in some extra income and learning new things. Please reply if you really have a true, honest opinion about how I might be able to truly help out people really wanting to succeed in these low cost endeavors. Please do not just post a reply to bad mouth. That would be very immature.
I apologize for the long post, but I feel it was necessary to give my views on the subject.
Take care...
Hi PJ, hope you are still reding this...I have questions/concerns/comments about your posts.
Why when one talks about "upline" it gets twisted to mean an individual? You have an upline diamond, and at one point you had an upline direct, platinum, gold, silver, whatever.... these people did not equate a direct line from you to your diamond....who will remain your diamond until you become one...or he becomes a higher diamond, or someone between you and he goes diamond. but, your upline, also includes all the people who joined in a direct line between you and your diamond that did not grow or simply quit. That is a selling point often glassed over in meetings. It was you have to break six legs to go diamond, but those six legs don't have to have directs as the first level below you. Your leg may go direct below you at any level, that makes the direct below you (at whatever level) higher than those above him....or does it? when you go direct, so does the person above you right? cause their volume is your volume? But, above direct when you get to the various pins between direct and Diamond....those above you don't reap what you sow in PV, just % in bonus right?
I mean, if I sponsor 6 people, and down the line at 5, 10, 7, 3, 15, and 45 levels below those six people respectively, I get a person to go direct, then I'm a diamond???? and all those people between me and those directs are directs, right?
And if maybe say the 25th person down in my sixth leg decides to get 6 legs to go direct then he's a diamond, and all the people above him and below me are still direct, Right?? and the 45th person down my 6th leg (the one that "broke" that leg for me and got em diamond) never sponsors another leg he stays a direct and he has a new diamond above him. Wouldn't that "new diamond" break the pyramid by making more than the directs above him? No, it doesn't, just cause the direct that sponsored the diamond is not getting a portion of that diamond's money, doesn't mean its not going to the upline....the upline diamond gets it. and that is the way Quixtar works....
I know Quixtar is a legal pyramid structure, the scheme is purpotrated by the various LOS that do not sell their products (BSM) to the public, feed off only the money of their downline, and this is fraud when they say they'll get rich from the "quixtar business". Quixtar is at fault for being complacent in allowing the abuses of the various LOS simply to continue to get their part of the profit.
Now specifically, you address sales. Quixtar is not configured that a person would be rich, wealthy, well-off, independently funded, or any other euphamism you deisre by just selling to the public. The compnay itself outlines and focuses on getting more people under you for you to get more monet, specifically bonuses. That is a backwards way of head-hunting.
If you sponsored no one, and focused only on retail sales, you would go broke. Who's gonna buy??? you can't set up a store front, you can't open up a sales website of your own, you can't even hold a booth at a flea market without prior approval. Where is the independent part of IBO? Not to mention that you don't have true price control as Quixtar contends. And the prices do not compete with the open market. The rules say you can sell anything at any price you set, but you can't control prices on the quixtar website, and can only offer discounts if you buy it yourseld at "your cost" and then resell it directly. Kinda takes the ease out of internet shopping for your customers.
As for the NBC special:
I crossed the stage as a 1000PV pin once, my wife and I bought the pin so we could go to the Christmas dinner for 1000's and up out Diamond was having. still have the water filter system but damn those replacement filters are expensive.
Quixtar had opportunity to comment with whatever they wanted, and all declined. Then had the nerve to put up a site that shows "people that weren't interviewed".
As to the money, you berate tone person becuae they asked what their upline made, when what they asked was how much of the $130,000 they claimed to have made was made from Quixtar and what was BSM..... then you brag your Diamond has $350K in checks taped to his fridge from Quixtar....how much additional money did that diamond make that year that was BSM?? I know our Diamond was routinely called a "millionaire from this business"...but since then Quixtar has said you can't talk specific amounts at opens and such.... now they claim to make "lots of money" or be "financially free in 2-5 years" where they used to say "be Diamond in 2-5 years".
People hyping the quixtar business aren't really. I mean Quixtar is rich from the manufacturing of products, the problem is the various LOS that followed Dexter's lead and formed their own business off that business, and use Quixtar as a shell for their income.
Don't give me the spin of a car dealership sells cars and then makes money on the service dept for the car. I can have my car serviced anywhere, at any dealer (kinda like going cross-line) or non-dealer, and if it's warranty it doesn't cost me anything more than what I paid for in the car in the first place.
I was in a similar business opportunity for almost 3 years (SFI, not Quixtar/Amway). In the end, I had 5 signups, and was making a profit of $167 or so a month. I only bought one $14 item and a $65 packet of tools(brochures, tapes, which were optional) from my sponsor. It took me 4 months to get the first signup(on the internet w/free ads). I think I did very good considering I spent less than $80 the first year, and the one under me sponsored the other four from England.
The big problem is that I spent so much time on the computer every day that I was neglecting myself and my kids, became like a hermit trying to get people to sign up(advertise - free). My brother's suicide woke me up (he was under so much stress from taking care of my affairs while I tried to run my business) and I turned off the computer, and let the business go. I'm sure that the sole dedicated person that I sponsored has success in that business, given he had 4 people under him. $106 a month is a VERY GOOD income for MLM with NO monetary output( except at least one purchase a year, and I picked a $15-$20 item I could use), and one sponsored. However, in my case, time was the thing I was spending. In a minimum wage part-time job(like pizza delivery, for ex), I would've made much more. Yes, I was able to spend more time with my family, but I actually wasn't WITH my family. I was there, but wasn't. I wanted to be my own boss. And I was. I made my own decisions. I decided when and where I wanted to work. It would've worked, too. MLM can work for some people with very little or no monetary output, I beleive that. The thing you absolutely MUST have is time to spend, usually more time than a regular job. If you have 5 small children, a husband that works 15 hrs a day, and you're living paycheck to paycheck, I WOULD NOT recommend this kind of business. But if you are single, or fresh out of school, or have at least a small income left over after paying bills with no other dependents, this kind of business is ideal, as you probably have more time to kill, and are responsible for no one but yourself. Now I've read about Quixtar/Amway. This is something that I wouldn't try. It requires not only time, but money. I wash at least 15 loads of clothes a week. I use off-market brands on everything. I would not be able to afford the Alticor products, so I suppose I would not be able to make the minimum 100 PV required to receive any of the PV that any downline of mine would receive. At best, I would get my discount on the products I buy, which would not even be a "savings" in my situation. I would be buying, at best, premium laundry detergent, but I would have to give up, say, fabric softener, each month until I was "making" money. Can't do it. I may not be getting a "discount" on off-market brands right now, but I sure get more of what my family needs with the money we have.
All I can say is, read carefully. If you're lucky enough to have many affluent friends and family who can afford premium(i.e, very expensive) products, you can make a killing. If not, you will run whatever you do have into the ground. The Quixtar that I was informed about does not let you find your downline on the net, you have to find them in your family, friends or other people you know. At least the business I was in allowed me to work on the net for my downline, which is why I even had a downline. In Quixtar, you "job" is to buy from them, and teach others to buy from them. If you don't buy, you don't earn, and if your downline doesn't buy, you don't earn. It can work, especially if your job is to buy a specific lawnmower, and you only could earn by teaching others to buy that specific lawnmower, providing you find people who can afford and use that specific lawnmower, AND can teach others to buy that specific lawnmower. It may not be so hard to do on the net, but imagine trying to do it in your own little circle of family and friends. Of course, they each have their own little circle, which is what Quixtar pushes. In my case, time is more important than money right now, and I just don't have the time needed for MLM.
"Of course, you'll hear some objections to this fundamental flaw but the majority of those objections will come from those actually working IN an MLM and not those peering at it objectively from the outside."
You do understand that an objective view can be as incorrect as a persons view from the inside, don't you?
That last paragraph seems to be an attempt to protect your theory from legitimate and well thought out criticism.
Seriously, who do you think would be challenging your theory? People that have an understanding of MLM or people that don't?
"Easy Money" is nothing more than a generalization of an industry.
Posted by: MLMBlog | July 27, 2004 2:27 PM