I consider the Amway/Quixtar business to be just a training ground, not an economically viable business opportunity. Many site visitors admit they experienced personal growth due to their involvement. While trying to overcome the terrible inefficiencies of their business model, the time intensive personal promotion, and not having money to get to a function they ended up learning many new interpersonal, time, and money management skills. It is similar to an adult version of the former Junior Achievement high school company system, "learn while doing". In AmQuix, you will be thrown in to many different situations. You will learn from each of them.
"While VERY few ever get their relatives to join, and the upline sponsors know this, it is still encouraged to contact all your friends and family first. Why? To get you used to the word, "NO". After you have burned your bridges with your family and friends, you have by then developed a "tough exterior" and are ready for cold-contacting." Former Distributor - Site Visitor
Once you run out of friends and relatives, on whom to practice contacting, you will have to move up to cold contacting of strangers. Strangers are needed to get a wide and profitable personal downline.
"...I was approached while I was at my local Barnes and Noble. I was looking at sales and marketing books when I was approached. After some small talk, he started telling me about the e-commerce business that he owned. He asked for my phone number so we could get together and talk. After he walked away, I noticed him going up to other people and striking up the same conversation."Site Visitor
Once you can effortlessly cold contact strangers, like above, you have most likely overcome any fear of rejection. At this point your confidence and self-esteem have improved greatly. Once you have learned how to motivate yourself and your downline to cold contact, you will have inadvertently learned new leadership skills. This will make you more effective in all areas of life, especially your job.
Robert Kiyosaki put it well in his book "Rich Dad Poor Dad":
"Often I recommend joining a network marketing company, also called multilevel marketing, if they want to learn sales skills. Some of these companies have excellent training programs that help people get over their fear of failure and rejection, which are the main reasons people are unsuccessful."
AQMOs do not teach so much product related selling as evidenced by the poor average sales per distributor. They teach interpersonal, time management, and priority setting skills. In his book, Mr. Kiyosaki did not mention MLM as anything more than a training ground. Mr. Kiyosaki points out three management skills for business success in his book. The first skill is "the management of cash flow". The AQMO business model of 100PV self-consumption violates this first rule, precisely because it does not cash flow on average for the lowest franchise run with AQMO expenses.
Think of how it would sound for McDonalds to be in business only to sell hamburgers to its own employees, and to other McDonalds. This is the same business model sold to prospects. A franchise system like McDonalds could not grow to the size it is today if the lowest level in the franchise chain did not cash flow. The AQMO's business model will produce net losses on average until selling is a priority. A McDonalds franchise, with its high entry cost, using the AQMO business model could never be sold to business savvy investors. They will not buy into a franchise business model that does not cash flow for the lowest franchiser. The smart, successful business people getting into AmQuix see the huge profit potential in the tapes and seminars. Their goal is to sell tapes and sponsor functions, not to move products. They are no dummies.
The poor AmQuix business model can be sold to inexperienced business people precisely because the entry costs are so low. Many new business people think it is ok to spend $100 to get a tax write off resulting in only $28 of reduced taxes. Many are trying to use AmQuix to dig them selves out of credit card debt only to end up digging a deeper hole by spending thousands on the AQMO systems. They quit later, when they realize the business is a lot more work and a lot less compensation than they were lead to believe.
"We accumulated 30 to 40 thousand dollars worth of consumer debt in 5 years. We never missed meetings, we stayed in the proper hotels, we bought all the right tools and books, etc."
"I have not found the "dream" to be achievable with the ease I was shown"
"...MLMs are a fertile haven for scams, partly because they appeal to folks with little or no business experience."Site Visitors
Amway is the "Penny Stock" of business opportunities. It is a cheap, inexpensive way to have "a business". Many new potential business owners do not have the financial literacy to evaluate various opportunities. Inexperienced businessmen will invest $80,000- $150,000 to buy themselves a seven day/week $35,000/year job. These people, like new people to AmQuix, do not analyze business opportunities by the numbers. They do not make realistic business plans, with a cash flow analysis. Uplines will call this "detailitis". Most uplines teach that blind hope, faith and pure determination "showing the plan 10-15 times/month" will make it work for anyone.
"...They are really great people but none were business oriented before the business and only know what they learn from the system"Site Visitor
They down play strategic analysis of sales growth, relative competitive advantages, and product reputation as factors in the probability of being successful. The odds of being successful are much better if the market likes the product and it is evidenced with strong sales growth, not sales declines. With Herculean effort, IBOs try to defy the mathematically poor odds of profitability with the 100PV-business model and simultaneously declining sales. Some will defy the odds in a shrinking market. These will be the ones held up as role models for everyone else. Smart business people choose opportunities where the probabilities on their side, where the sales are growing, rather than where the sales are falling. The 100PV model, with AQMO system costs, is mathematically assured of losing money for everyone on average. It does not matter how many times you show the plan or how big the group gets. More people could make money sooner if they sold product and the market embraced their products with growing sales.
The whole Amway/Quixtar game is like a confidence scheme or pyramid. As long as people believe they can become financially independent, and can get many others to believe in it, it can work for a few at the top. It need not have economic fundamentals as long as enough people believe it will work.
"Do you think it will work? Would you like if it would?"Interactive Distribution Manual DA1 page 31
If you are looking to make money in any business, use Peter Lynch's common sense investment principles. Take some time and try the products and services first, then look at the financials to decide if the business is worthy of your "investment". Decide for yourself if the business is built upon good, common sense business fundamentals or if it is built only on the pyramiding mentality and the image of the lifestyles of the very small fraction making money from the business support systems.
"..have you ever met anyone at a major function, talked to these people in person? Visited their outrageous homes (ie. 26,000 sq. ft.)?"New IBO - Site Visitor
"The way he explained the program was very vague. He spent the most time showing me pictures of expensive cars that were owned by people in the program."Site Visitor
"...a friend of mine said she was into jeeps. They actually went out and drove a new jeep to my friends house for a test drive and said it could be hers in a matter of months. They actually drove a jeep over to get someone to sign up...The worst part is it actually worked!!"Site Visitor
Whether you get serious now or in four months probably will not matter. You will be much better informed with much lower financial risk if you take a cautious, skeptical approach now.
Proceed to next section on "Self Improvement"
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