Amway Quixtar Business - Profitability Calculations

You don't need to be Einstein or a Rocket Scientist to do these simple calculations!

"Today we have working theories to explain what we see in our everyday lives"

Paul Zane Pilzer, Economist, Amway Speaker

"Today we have a working theory to explain why most Amway/Quixtar distributors lose money when using the AQMO business model" - Scott Larsen author - Amway Quixtar Business Myths

Fun with math! A revealing calculation showing how US Amway/Quixtar distributors as a whole are most likely spending more to run their businesses and promote Amway products than they receive in rebates, bonuses from Amway/Quixtar plus their own retail customer markup! See why distributors would earn much less per hour than Wal-Mart associates even if Amway/Quixtar Distributorships had no overhead costs!

The 6-4-2 Business Profitability Plan! Amway/Quixtar gives you the "sales and marketing plan" which only covers gross profit, not net profit. Your Amway/Quixtar business however needs a "Business Plan." This page details the 6-4-2 Business Plan with normal and customary Amway/Quixtar AQMO overhead expenses. Understand the profitability issues before you start an Amway/Quixtar business.

Amway/Quixtar a Negative Sum Game? A calculation which shows that when all distributors follow the plan, duplicating "just buying for yourself", while spending money on AQMO tools, are guaranteed to lose money as a group. Even if only 41% are active and spend money on the typical AQMO suggested overhead costs, they still lose money as a group. See how each distributor needs to have a minimum of four times his overhead cost in personal sales to make it a zero sum game. 

Take the IBO Profitability Challenge Understand if your group is profitable.

Quixtar Income Statistics from Amway, the IBOA, and Britt Worldwide

Amway/Quixtar Profitability Analysis: Since the 1980's when Amway introduced catalog items, and now with Quixtar, the typical non-Amway product profitability is dropping.

 Amway/Quixtar: a Pyramid Scheme? A critical comparison of the Direct Marketing Education Association's definition of an "illegal Pyramid scheme", and the observable characteristics of Amway/Quixtar and its Motivational Organizations (AQMO's).

Executive Diamond Income Statement: A publicly available income statement from an Executive Diamond in the INA organization. Think that an Executive Diamond has a million dollar per year income? Think again.

Tax court Cases of Amway Distributors: If your upline won't show you his Schedule C, look at theses! See how much distributors lose on their Amway Businesses from Tax Court records.

A Discussion on Taxes and Amway

 

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