$200 in Purchases is 100PV
Summary
"Now you're talking about doing 100 points...p..o..i..n..t..s.., that is equal to $200."
Diamond Distributor - one time head of the ADA Ethics Committee - Billy Florence - Tape: "Building Your Network With Posture" DBR434"But we are going to round these numbers off. If you shop in this mall(Quixtar and partner stores) and you spend $200/month and you get 100 points, the corporation will send you a check for $6. That is not a lot of money but that is the profit on $200."
Platinum Distributor - Jo Prowell - Open meeting Charleston, SC 01/04/011Most presentations of the 2-5 year plan show how spending $200 will get you 100 points (PV). This gives the IBO a $6 bonus check (3% of $200). An IBO may relate (based on their own 100PV purchases) with the inconsistency between the numbers presented in the 2-5 year plan and their own expenditures. 100PV, depending on purchases can vary from anywhere between $250 (purchasing only the highest $/PV ratio products from the SA13 catalog) and $1000 (purchasing solely from Quixtar partner stores). Typical purchasing patterns seem to indicate most IBOs spend between $250 and $512 for 100PV of product. Here is actual data of purchases from site visitors. Please send me your data.
Using the numbers reported from Quixtar, the average IBO falls terribly short of the 100PV/month plan. By two different calculations the average IBO only does between 42 and 54 PV/month in business. These low actual sales essentially doubles the number of people required, to make the money shown in the plan.
If IBOs wanted to be really honest and have integrity they would show the plan with at least 100PV=$250, and 1PV=2.25BV. Each IBO would be shown with 50PV instead of 100PV. It is very easy to question the honesty and integrity of the highest level IBOs if they continue to teach the plan with misleading and unrealistic numbers.
"...One of the things my 'sponsor' emphatically told me, "for every 2 dollars spent, you get one PV." This was a big selling point to me and my fiancée. As I was looking through the "catalogue" trying to get my PV up to the first 100, ready to place my first order... I realized that their 2-1 ratio was seriously off base. Simply, I was out and out lied to."
New IBO Site Visitor
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All the details about $200 equals 100PV
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"The Private Franchising Review and IBO Plan are a little misleading with the $200 BV = 100 PV. However, it is prefaced by a disclaimer"
WWDB IBO Site Visitor"The guy had setup the automatic / per month over 12 months auto-delivery. He has a wife and a kid. Some months the amount of purchase was 296$ and other months 350$. His highest PV was 86."
Prospect
100 PV is 250BV
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The Britt Worldwide Sales and Marketing plan uses this table to the left numerous times. It shows how 100PV is approximately 250BV or 2.5BV per PV point. An analysis of the four major Amway/Quixtar catalogs reveals the graph below by product counts in the catalog. This 2.5BV/PV claim is no doubt misleading and makes the business look 25% more profitable than it really is. The excel spreadsheet containing the data is on my downloads page.
Almost every product in the Office, personal shopper and spring and summer catalog had a 2:1 BV/PV ratio. The average of the SA-13 catalog was 2.25/1. It appears that only about 17% of Amway catalog products carry a 2.5 ratio or better. |
Additionally many IBOs are misinformed about what the typical IBO actually has in sales in PV/month. Most plan presentations show IBOs doing 100PV. Other lines of sponsorship claim to have very high average sales/IBO.
"Most in the business do much more than 300pv, but that is a start. Most do around 500pv a month"
WWDB distributor site visitor.A triple Diamond from the same organization contradicts this.
"Guess what the Directs going back to Ada, MI at the new direct distributors seminar... guess what their average PV per distributor is today?.. Guess what it is today? About 65 PV."
Triple Diamond Ron Puryear WWDB Tape: Basics of the business RP681A quick analysis of the Quixtar year end 2000 numbers confirms Mr Puryear's numbers are more on target but probably still high.
Just assuming 500PV per month/IBO, Quixtar would have had about $4.8 billion in sales. Quixtar reported sales of $518 of which $70 million came from partner stores.
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(400,000IBOs * 500PV/IBO/Month * $2 BV/PV * 12months = $4.8 billion) |
All plan presentations I have seen use 100PV per IBO per month. It would be interesting to know what the real average sales/IBO are. A simple calculation can be made using the reported Quixtar sales. Average PV from this is about 54PV/month. For active IBOs it 131PV/month
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Quixtar reported $518M in sales and 400,000 IBOs ($158M / 400,000 IBOs = $1295/IBO/year, $1295/12 = $108/month if $2=1 PV Average PV/month = 54 Active IBOs comprise 41% of IBOs. 54PV / .41 = 131 PV |
Another simple calculation uses the amount of bonuses paid as reported by Quixtar. It shows average PV/month to be about 42PV and 102PV for an active IBO at 2.25BV/PV and 47 using 2.0BV/PV.
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$143 M / (.25 +.065) = 453M BV 453M BV / 2.25 = 201M PV 201M PV / 400,000 = 504PV/year 42PV/month *12 = 504 PV/year Quixtar reported paying $143 Million in bonuses for fiscal year 2000. Bonuses at the direct level are 25% of BV. There are bonuses of about 6.5% of BV above direct. The average SA-13 catalog BV/PV ratio was 2.25 |
"Our Emerald quoted Ron Puryear regarding the 65 PV, as did our Silver Direct during a group meeting and we all got a real tongue lashing. We were accused of not being serious about getting free, handing our money over to the competition, and not been committed to our business. "A family of four (we have 6) should be doing a minimum of 500PV personal use and retail" we were very emphatically told. I think that's what the leaders do: they say everybody's doing it (500PV) in the hope that a few will actually believe them. You gotta feel sorry for Bob and Betty-Jo Dreamer who hock and refinance everything because "they believe" and they try to keep this 500PV ($1500/month) mandate.....then their little Quixtar world caves in.....sad."
WWDB IBO
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