This page is a direct challenge to anyone in the business. This challenge is best taken by Platinum IBOs. However, any IBO can apply the principles outlined here. Profitability is the main theme of my web site. Isn't the whole point of being in the business is fact that you want to make a profit and help others make a profit as well? Are you really helping people to make money? This page will help you know the truth. It can help you adjust the business model that you teach so more people can be more profitable.

All traditional businesses like K-mart or Wal-Mart, as well as franchises like McDonalds and Wendys, strive to implement a business model where each store or franchise on average breaks even. Franchises are popular businesses to own since they have a proven, profitable business model already developed. The proven system gives each store a high probability of being profitable. This page gives you new tools with which to analyze your Amway/Quixtar business model.  New! - Online IBO model profitability caclulator These tools can be used at all levels; from Crown Ambassador to the brand new IBO.

Understand if you are helping your downline (franchises) to actually be profitable or if you are helping people to lose money. This page will teach you how to analyze the business structure you are teaching your downline to follow. The page allows you to understand if what you are duplicating is viable long term. Remember, if IBOs continue to spend large sums of money and do not realize a profit, they will have a bias to leave the business. A profitable IBO, will be motivated to build the business as the profits will be positive feedback. Losses will always be negative feedback, impeding growth.

"I believe that if you will make money, you will motivate the socks off of you and your wife...If you make money it would take on a whole different aspect.....A lot of times your organization sits and looks at you, and you could have a big organization but if its all in one leg and you are not making the money that you think you ought to be making. Then after a period of time they may loose the edge in running to get what you got for how long that you did it to only have that " Diamond Distributor Randy Haugen Tape: "Driving Width" SOT279

This page provides forms (below),  New! - Online group profitability analysis, and a Microsoft Excel Spreadsheet. This is a tool to help provide a relative measure of your business model's efficiency. By entering groups BV or group sales into these forms, you will calculate total gross profits generated for all bonus levels by the business activity. Next you will enter the known expenses being spent by your downline such as Amvox, SOT, function tickets, function lodging, promotional supplies, etc. Once the expense data is entered, you will compare the expenses to the gross profit your group's activity generates. Next you will enter the number of active and inactive IBOs to calculation a few averages. With this data you can decide if you are helping you and your downline IBOs make a net profit or if you are helping them lose money. Then you can set actions in place to help your downline become more profitable. These actions might include emphasizing more retailing, or encouraging people who aren't working to just become customers and stop buying tapes and going to seminars.

I believe you have an ethical and moral obligation to help those in your downline to lose the least amount of money possible. After all, you helped recruit them in one manner or another.

Many IBOs have commented on my analysis and call it "fuzzy math". The ultimate measure of any business venture is how much is returned versus what is spent to get that return. My analysis looks at the business from a macro economic basis and not the micro economic basis that most IBOs view it from. In the end, for any business to survive in a competitive market, it must make both micro and macro economic sense. From a micro economic viewpoint a lottery is very attractive to most participants, but from a macro economic viewpoint, it is mathematically certain that participants lose money on average.

The inputs to the AmQuixr business are time and money. The output of the business is hopefully profit. AmQuix is a time intensive business. In my opinion, the most important measure of the Amway Quixtar distribution system is ultimately how much the participants are compensated for the time invested. Certainly a very few will make a tremendous amount of money. But, if the productivity of the activity generates an average compensation of only a few dollars per hour, it will be hard to retain participants in the system. If you can create and teach an Amquix business model, whose productivity yields an average compensation of significantly higher than my $4/hour estimate, you will be much more successful than most other IBOs. A business with a high productivity will also have longevity in the marketplace.

Case study #1 This IBOs group averages about $11.50/hour primarily due to high retail sales.

Case study #2 This IBOs group averages about $3.22/hour, or $6.03/hour depending on how many are "active".

Print this page out and enter data in Yellow Highlighted areas.

If you know Microsoft Excel click here for a spreadsheet file.

Click here for a list of their bonuses and their percentage of BV pay outs.

Some comparative data from Wal-Mart;

Sales per employee $144,748

Net Profit before tax per employee $7,644

Net profit on Sales before tax 5.28%

Net profit per Store before tax $2,184,580

Please e-mail me the results of your calculations, and I will start a page for benchmarking purposes.

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