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January 19, 2008
Couldn't do any worse
By Truth in Quixtar
Over on the Ada-tudes blog there was an article by Todd Krause which seemed to address some comments made on an earlier article he wrote about Quixtar sales. Anyway I found it a bit funny that he was addressing those who made statements to the effect that the corporation does not have the credibility to tell IBOs how to sell or build Quixtar/Amway businesses. Todd Krause agreed with the statements saying it was not their intention to go around IBO leaders.
Well in my opinion the corporation is doing more to teach IBOs how to sell a product then IBO leaders are. IBO leaders are concentrating on teaching IBOs how to sell a "system". One look at the numbers that only 3.4% of all Quixtar sales were sold to actual customers tells you how good the IBO leaders have been at teaching selling techniques. So I don't think the IBOs should concern themselves so much with where the teaching is coming from, 3.4% isn't exactly a high bar that has been set.
Comments
They ALL figured it out, both Ibo Leaders AND the Corp; the ONLY person going to buy 100pv per month ($280-300 for core-line and $350-650 for non-coreline and $750-1000 for Partner Stores) of "consumables" is someone with a "Dream", hence the reason to sell the 'System'; it must just be a coincidence that they make money on the 'System' too.
And if you visited the "Consumer Expenditure Survey" , at the Bureau of Labor Statistics (bls.gov) you would see that they expect you to spend sometimes DOUBLE what the average consumer spends on 'consumables'.
There will NEVER be the kind of 'retailing' needed to make their exaggerated projections; just 'Wholesale Dreambuilding'.
Many system IBO's tend to bite the hand that feeds them. I'm sure Amway has an enormous budget invested in R&D for new products. I'm sure they have an enormous budget for advertising products through their catalogs and websites. I'm sure they have an enormous budget for consumer trials and staying ahead of the competition. Amway understands their customers buying and purchasing habits better than any Diamond IBO. The mistake Amway made was investing all that time and money into IBO's who only wanted to get rich quick from a Tools business.
I would love for a system IBO to show me a profitable retailing system developed by their upline. Show me a set of steps that I can follow to the letter that will guarantee I can sell the products to non-system customers. I don't think any Motivational Organizations have figured out how to retail products, the 3.4% sales record proves that. Tell me why I should trust their desire to diminish Amway's credibility in retail when their own credibility is in question?
Critic, there must be a typo in your comment because it almost seems as if you're blaming the IBOs for Amway's 3.4% sales figure. How do you expect IBOs to retail $950 hepa filters!? How do you expect average people to retail $85 vitamins!? Remember, Amway markets their opportunity as an opportunity for everyone. Amway should've released some marketable products, and the IBOs would have responded and garnered more retail customers. But because the prices were so jacked up, IBOs were forced to focus on recruiting.
Amway sells more than just Hepa Filters and DoubleX. Artistry is competitively priced and marketable. XS is priced in line with competition. The SA8 price comparison sheets make a case for the cleaners. IBO's focused on recruiting because they didn't want to have to try and sell. The "buy from yourself" business model was born out of that fear and laziness. No matter where ex-IBO's turn for their new MLM, they will always be selling products at a premium cost, and they will always be SELLING.
Why do IBO's pay for recruiting systems when they claim they want to be profitable from retail? I think it's because no one really wants to retail.
The few people who are really interested in retailing are selling product, with or without the systems. Amway is in the best position to teach people how to retail due to the enormous investment Amway has put into product research. System IBO's sell dreams, Amway sells products.
People aren't interested in selling product because the prices are too out of line.
Some may be close, but they just aren't worth the trouble when you could have a more reasonably priced product in an instant.
Amway's got some catching up to do.
Critic - you are dead right. Amway has ALWAYS provided ample product information, and if an IBO needed to know more, they could always call the folks at Corporate. There was more than enough information to explain why a price was higher than what a customer would pay at a retail store.
The AMOs exist to perpetuate themselves.
Deb
Try being affialted with World wide and having your ownd RETAIL maina!!
I agree, the corporation has zero credibility to teach IBOs how to retail products. For over 20 years, the corporation has left it up to the IBOs to move product, and the corporation knew exactly how those products were being moved (recruitment, emphasis on the money making side of the business, and internal consumption), and they didn't care because they were making money. Now, they're trying to re-write history and make it look like they've been interested in retailing products all along. Give me a break, Amway. The Ostrich Defense doesn't work in the 21st century. Maybe in the 90s, but not today. Amway can't play stupid anymore and blame other people. They're at fault and they're too gutless to admit it.
Posted by: Steve | January 19, 2008 4:13 PM