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March 21, 2005
Monday Reader Mail: 36
By QBlog in Reader Mail
Reader Mail this week is about Quixtar products, specifically XS Energy Drink.
name: joe
date: March 14, 2005
message: Cool site...I'm not a fan of Quixtar or any of the MLM's for that matter, but I do like drinking the XS gear stuff, but I who the hell do I order the stuff without being asked to sell it... I just want to buy it not promote it... why don't they just sell the crap in a store somewhere?
Well, I'm not sure of the rationale behind the restrictions on retailing XS drinks but I do know that rule 4.3 of the Business Reference Guide states:
Retail Stores: No IBO shall permit the Corporation's products or services to be sold or displayed in retail stores, schools, fairs, PXs, ships, or military stores; nor shall he or she permit any of these products to appear in such locations even if the products or services are not for sale. No corporate literature shall be displayed in retail establishments.
If I'm reading that rule right, IBOs are responsible for how products are sold and displayed AFTER he's sold them. So, IBO Bob could sell a case of XS to Larry. Larry then takes the XS to his Deli and says, "What the hey, I'll sell these to customers!" Larry places them in his display fridge and now IBO Bob is in violation of rule 4.3. Or maybe I'm misunderstanding the rule? That's entirely possible. It's sort of confusing.
The XS Gear site further explains that:
It is critical that the retail establishments know and follow the resale guidelines established by Quixtar rules and regulations. In short: the actual XS brand (logo) cannot be displayed and the Energy Drink must be poured out of the can and into a container (plastic cup, sport bottle, etc.) ...The XS Energy Drinks cannot be sold in the can through a retail business or in vending machines.
Thankfully, XS Gear also provides some insight into the rationale behind all the retailing restrictions:
To appreciate the reasoning behind this Rule one must keep in mind that it is designed to give people from all walks of life the ability to own their own business. Allowing our products to be sold in retail or service establishments would give those IBO's (sic) that have access to them an unfair advantage and would be contrary to the person-to-person nature of the business.
I applaud Quixtar's efforts to be fair to all IBOs and to maintain a level "playing field." Just one question, is the spirit behind that rule applied universally? Just asking.
Comments
If a diamond sells XS for $2.00 a can in a vending machine in a building that he rents for open meetings for his own team and other teams, is that a violation of this rule?
Concerning the XS energy drink I use to be a IBO and know exactly what you are talking about. I had some convient stores buying them from me but once I made them a member so I wouldn't have to deal with driving cases of the drink out to them I got told I wasn't allowed to do so. So in other words as long as you keep it a secret kinda like the whole organization when they approach you, then your alright. Good drink bad business!
im free said:
"If a diamond sells XS for $2.00 a can in a vending machine in a building that he rents for open meetings for his own team and other teams, is that a violation of this rule?"
and I say:
Sure sounds like it too me! Unless he's maybe doing a PV/BV transfer for each can that he sells to his downline?
Roger
This strengthens my argument that AQ really isn't about the product. If it were, you would want to get the word out about these "superior" products in the most efficient way. It really isn't about selling the product. It appears that keeping everyone "on the same playing field," keeping the "plugged into the system," and working their tails off while buying tapes and books telling them never to give up is the most important thing. Heaven forbid that someone actually has the true entreprenurial spirit and is willing to do business in a way that makes sense to the rest of the world.
In every business you will find individuals who run their business their own way. I sell XS at retail on my personal website that is Quixtar approved and that I direct traffic to through personal "even playing field" contacts that I make. Retail volume benefits me because I get to keep the difference between wholesale and retail. If people want to be serious private franchise owners, I'll interview them, but why would I turn away my retail profits by trying to push "job minded" people into being "business minded"?
XS drink were sold through the "superior" traditional distribution (brick-and-mortar) for quite some time.
It wasn't until Quixtar distribute the products that XS drink experienced "superior" growth.
If you define the most "efficient" way by the result, then AQ is the most efficient way since it produced the greater growth.
enlighteningmind,
You make a good point. Q was able to take a product which was marketed through one channel, and through exposure through an alternative channel (direct sales), give it additional exposure, and improve sales volume. This is a good thing for the manufacturer, and certainly for the distributors involved in selling a good product that deserves retail success.
I differ from you in one area: you say that the most "efficient way" is through Q, evidenced by the increased sales. First, I think that you may be confusing "efficient" with "effective". If you incentivize a group of people to consume a product, who make consumption choices based on self interest, then that is an effective use of that organization- but it may not be the most efficient. If the original marketer of the product had, for example, a well-established distribution method already in place, distributing other products into the (as you called it) ""superior" traditional distribution (brick-and-mortar)" channel, one could argue that may actually have been more efficient- greater growth through greater exposure to a greater number of people. My suspicion, backed by zero knowledge on my part, is that this product is manufactured by other than a main-line drink manufacturer, and had insufficient market penetration to be successful. So effective-yes. Most efficient? Maybe not.
It is every small manufacturers dream to be picked up by major distribution, whether into traditional retail OR alternative retail channels. No doubt, Q can be a tremendous opportunity for such a company, but so could, say, Wal-Mart.
That all being said, the tools business still sucks.
Just a few questions:
Through what "brick and mortar" company was the xs drink marketed before becoming a quixtar product? Also, how much XS is purchased by people who are not in the business? If it didn't do well while on the "regular" market, why not?
And,
Lisa, are private franchise owners the same as IBO's? Just curious and wanted to get my terms straight.
Hey, check out this website with reviews of XS.... a bunch of IBOs post their site info and their passwords! Kinda defeats the "personal touch" that you are supposed to give each person who comes to oyur site... the REASON Q requires a password in the first place.
Also a couple of the claims are funny... "sole distributor" indeed.
http://www.bandddesigns.com/energy/arch/001368.html
There are other reviews there..not just XS. Kind of a real indepentednt review site.
not like the IBO flooded reviews at http://tinyurl.com/4on6e
Joe,
Send me an e-mail, You can buy directly from the site, no selling. Just drinking. It's easy to do, I can explain it to you in two steps.
rickyelrod@gmail.com
Why can't you explain it right here, to everyone? Why is it a secret?
QBlog, it is not a secret... Mr. Elrod is doing exactly what the IBO is supposed to do.
Through direct personal contact, he will give Joe the necessary information for Joe to buy XS from the Quixtar site as a customer of his. What a concept, an IBO that follows the rules. We should commend Mr. Elrod for his professionalism. And condemn those that "broadcast" their info against Quixtar's rules.
Mr. Elrod is taking advantage of an opportunity to service a willing customer.
Well done I must say.
Roger
XS was sold in one part of the country and did well.They went to Quixtar to get it nationwide because it was going to cost millions to get it marketed nationwide.Doing well but would have done better in Bentonville than Ada.
WWDB started the personalized website last month. The visitor can buy from that website without ever having to talk to an IBO because the IBO # is automatically passed to Quixtar website.
The policy, don't know how well communicated/enforced by WWDB, is that you must first personally contact the personal to give him the website url with the password to access your site (done with business card).
He doesn't make this info public because he would then have to make the site password public.
If you want to just buy, contact Quixtar, ask for the nearest IBO. Then contact the IBO for his IBO# & sign up for yourself. Or, you can wait until a WWDB IBO contact you and give you his biz card. The standard card will have his IBO # on it.
And "personally contact" doesn't include post on blog. Personal contact is contact by voice (in person or through phone. Recorded voice doesn't count). Written contact (letter, flyer, blog comments, redirecting website, spam email, etc) are not considered personal contact, they're considered advertisement.
Curious, Mr Passport Ray, how well did XS do and why didn't they go to Bentonville.
It makes clear sense to me that the sales of XS would increase due to its association with AQ. Everyone who gets seriously plugged into the system will undoubtably believe that drinking XS daily will practically make them invinciable. I honestly don't know if XS is a superior product. I've drank it before, liked it, and yes, I did feel energized. I had never had an energy drink before, other than coffee, so I really had no point of reference. I did happen to try "lighnin' no carb energy drink," a beverage found in my local area. 16 OZ $1.49, and loved it, and I can order it through the place where I buy it at cost.
Anyway, I digress. My point is, EVERYTHING through AQ is superior according to IBO's, and I don't believe that's true. Consequently, when a truly superior product comes along, it's hard to tell if it truly is better or not. I'm beginning to not trust anything an IBO tells me about AQ products.
Hey Jen,
can't one still buy from the website and let some random IBO get credit?
I thought that was the case discovered a few months ago?
Roger
AAMOF, a follow up... from the Quixtar website for "Register with Quixtar"
--------------------------------
Not referred by an IBO? No problem! As all sales at Quixtar.com are generated through IBOs, you may choose to:
(a) Register with an IBO you know, or
(b) Register now, and we will link you with a local IBO who can provide the service you desire, or
(c) Register now, but choose not to have a servicing IBO
With any of these options, your purchases will still be credited, as appropriate, to an IBO.
-----------------------
I believe option "C" is the one you want if you want to buy, not care who gets the credit, and do not want to be harassed by some local IBO who calls you up and tries to convert you from a willing customer to becoming an IBO. Not that something like tht would EVER happen.
Roger
I can legally market XS Energy drink over-the-counter as long as 1) XS logo is not displayed anywhere (Have a Blast is used instead) & 2) all drinks are poured into another container (eg cup).
In spite of this handicap, my store and other stores that I supplied (restaurant & health club) outsell Red Bull 5 to 1.
Would XS be even bigger if it had gotten onto the shelves of WalMart? Dunno, don't care. The CEO of XS chose a route and that's all that really matter to me. And the route he chose married himself to MLM distribution. So we'll never know how well XS will do in a traditional distribution because it's now a moot point. XS will not be distributed over the traditional channel.
As for trust, don't trust. Use your own experience. All Quixtar products come with a money-back gaurantee. Use it. Don't like. Return it. Why even bother with trusting other. Just trust your own experience.
Some people like the products. Some people don't. For me to make money, it's up to me to be most efficient in finding those who like the products. I really don't care if it's superior/inferior/average. I just need to find those who like the products. It's my judgement on how much to invest to find those customers.
oops. I didn't realize "Jen" ws "Jennifer7Lee"... I thought we had a new participant.
Nevermind my questions... they won't get answered. nice to have you back!
Roger
That's Jenbot to the rest of us. If you turn her around you can see (so you don't see her label - lol) you can see the Ambot wind-up key sticking out of her back!
I must have the older model Ambot doll. You pull the string out of its back and it says, "Fired Up Fired Up"
if you like the xs drinks and dont want to become an IBO email me. $20 a case and no strings attached. i sell like this to plenty of people and it is working out great. they get a no-carb low calorie energy blast without being pressured to "join a clan" im located in southern california and the health nuts out here dont fall far from the tree. i am dristributing to a few health clubs in san diego and they are selling xs for $5 a can without becoming an IBO.
If a diamond chooses to sell the product in their own vending machine that they rent or use while giving a meeting that is perfectly legal. Where is becomes not legal is when the diamond retails it to a customer, client and that customer or client wants to turn around and resell it for a higher price. That customer can turn around and sell it but only at the cost that they paid for it otherwise it must be poured into a cup or mixed to make a different type of drink such as a slushy or fruit drink.
We're not saying the products themselves are superior. But what Walmart will pay you to buy and promote their products?
Just so everyone knows... XS was sold through Costco nationwide, but where they didn't have someone constantly doing taste tests, the product didn't move because of no advertising. Quixtar has thousands of folks willing to do that. This is why XS is now #2 behind Red Bull.
If anyone want to purchase XS Energy Drinks without having to sell it themselfs, join as a Client. It's free and only takes about two minutes to create your profile.
www.e-mart.wwdb.biz
Hello to all the XS ENERGY DRINKS OUT THERE HERE IS A WEB SITE FOR YOU TO GO TO AND GET YOUR XS ENERGY DRINKS AND BUY ALL YOU WANT AND WE WILL NOT CALL YOU AT ALL OUR IBO NUMBER IS THERE FOR YOU TO USE AND HERE IS THE WEB SITE.
www.newupnergerydrink.com. thank you for you time and suport with the XS ENERGY DRNIK PRODUCTS.
Edmonton dominated the Carolina Hurricanes on Saturday night and the 4-0 margin in Game 6 makes it hard to imagine the Oilers not hoisting hockey's Holy Grail above their heads in less than 48 hours. And it would not come as any shock to see defenseman Chris Pronger, who had another 31-minute night, take the honors for the Conn Smythe Trophy as the playoff MVP.
For all the energy drinkers out there, please visit my website www.jclenterprise.net. There you will find a large selection of energy drinks for you ordering as well as health & wellness products.
I will not call you to solicite you for business. I welcome your business and may provide some discounts for you.
As always, I welcome the opportunity to serve. JCL
Wasn't it clear that 'posting' in a blog and 'advertising' your website was not in accordance with Q rules? It seemed pretty clear to me.
Anyway, I have a question for those of you who did. Has anyone gone to your site from here and purchased anything? Have you noticed any random people coming to your site and buying products from you that you hadn't already spoken with at some point?
My guess would be that that hasn't happened. If so, rarely. That just shows the power of a personal recommendation over an advertisement.
For XS to be the number two energy drink in the US and the largest manufactured in the US only by word of mouth, I think that makes a statement of it's own.
Yes, there was a prexisting chain of distribution that XS plugged into. That was smart. That's the idea, isn't it...for effeciency, effectiveness and there profitability? And XS shares their profits with all the business owners that made it happen! That's just cool!
To have access to a healthy formulated energy drink that tastes great and I can earn money with is a good idea.
It is irrelevant whether or not that the critics understand the way this business works. It is irrelevant if they like or don't like how they are given access to the products. If a customer likes the drink, they will buy it through my website or from me personally. If they don't, they can walk away. I'm not going to chase them down and try talking them into liking it. It's like them telling me they don't like the color orange. It's simply ok.
So, if whoever is trying to change how a multi-Billion dollor company does business doesn't like what's going one here...just go have a Coke and a smile. I don't understand what difference any of this makes to you.
By the way, Coke is giving away Nascar stuff to their customers.
I'd rather have the cash from XS and not have to drink all the sugar I would have to drink in the Coke products in hopes of a pair of Nascar gloves or even a hood from their car.
Thank you for sharing your profits with me XS!!!
Simply stated,there are many XS Energy
Drink Reps who grew very tired of all
the unnecessary restrictions tied to
their Quixtar Biz.They have found a new
home w/way more Flexibility and Fairness.Feel free to dial my 24/7
hotline at 1.888.297.4481 and see why those ex-xs reps are far happier.
Thanks for your time!!
Joe, buy XS from Quixtar.com directly? Drink it all you want.
Drink, don't sell. Sell, don't advertise. Advertise, don't use brain. WTF
Posted by: Imran Aziz | March 21, 2005 3:45 PM