« Obey The Rules | Main | TOD is now TEAM »
October 30, 2004
$748 Million
By QBlog in
InternetRetailer reports that "sales at Quixtar reached $748 million" this past year. Why is that number lower than the $1.1 billion reported by Quixtar? Because it only represents the E-commerce sales.
"E-commerce sales represent 68% of Quixtar’s total sales of $1.1 billion for the year."That's great and I think it's fabulous that Quixtar is growing and reaching such sales figures but I have one question.
If Quixtar is an E-Commerce business (or I-Commerce) then where do the other 32% of sales come from?
Comments
The other 32% are those without net access, eg phone order/mail order.
That's a guess right? Because $352 million seems like a LOT of sales for those without computers. In fact, it's more than the total bonuses paid back to IBOs.
So, name another "E-Commerce" company that receives 32% of it's revenue from something other than the "E."
Qblog. You seem pretty smart. Where do you think it comes from?
No idea. Honestly, I haven't got a clue. Maybe it comes from people without computers but that's A LOT of people without computers.
Gee I guess they are not "Powered by Quixtar" but Quixtar counts the volume to look good because it would look bad that Amway North America did 32% of that 1.1 Billion with all this fast growing tech stuff going on.
There very well may be a lot of people ordering without computers. My fiance ordered everything via phone because his adaptive software didn't jive well with the Quixtar website. My best friend doesn't have a cell phone, pager, or a computer and lives that way by choice, and there's a ton of older folks that don't trust the computer with personal information. I can very well see that much in sales resulting from the telephone.
Don't see why $352 offline sale would be hard to fanthom. Quixtar is N. America Amway post-1999. Pre-1999, Amway had $0 sales online.
BTW, yes, it's a guess.
John,
I used to order via Amway online software in 1998. Amway didn't have a site but had software you would load onto your computer and then access via modem to their ordering center.
Just an FYI
How do the millions in tapes/books/functions get tracked? Could that account for $350+ million in sales?
df,
System revenue is not part of the Alticor balance sheets. One way to think about Quixtar sales....
Considering how much is made through the comp plan from product sales...Quixtar volume is a loss leader for the kingpins. Remember the allegations that 85% of the income of the larger pins is attributed to the system.
I doubt that a $6 tape is a "loss leader"
Ditto for the functions
Ditto for the books.
Period.
WAKE UP!
QBLOG:
Here's some hot news -- the T.O.D. portion is considering a rename to just "Team"
Looks like another namechange is in order to divert (negative) public perception?
df,
Perhaps I wasn't clear.
Volume from Quixtar products and services accounts for a very small percentage of kingpin income. Quixtar doesn't market tapes, books and seminars so the system monies are not part of their published sales figures.
The kingpins only teach selling SA8 as a means to make their millions from tapes. In that way, the core products are actually the loss leader that I was referring to.
Sorry if I did not express that very clearly.
If Quixtar counts member/ibo registration dues in its annual sales figures, as well as phone/catalog orders, then this could easily explain the difference in the figures in your post.
The $748 million represents the sales that Quixtar made through the Quixtar web site. The other $352 million are sales that were made via phone fax or mail. Internet retailer only wants the ecommerce numbers for their annual surveys, whereas in terms of determining the rate of growth of Quixtar you have to look at that total sales number of $1.1 billion
Okay, then how much are the "tools" revenue?
CDs, Books, Tapes, Functions -- that has to be a substancial figure. I think a lot of people would be surprised to see those 'revenue' comparisons.
Doncha think?
I think a lot of the sales come from the North American businesses not being able to order from the web. These would include the countries of Hati, the Dominican Republic, Mexico and all the other banana republics where Amway has a North American presence. There are a few lines o sponsorship like WWDB still on standard fulfillment too.
Posted by: scott larsen | October 30, 2004 11:38 AM