Who Wants a Quixtar downline . . . in China?

amway_jack.jpg (53050 bytes)Every now and then I get mail from Amway distributors overseas.  I've had a couple of site visitors from China asking if I could sponsor them into the "business".  After a few of these questions and asking the last one why they did not get a Chinese sponsor, I think I have stumbled onto the reason why they want to be a registered as a Quixtar distributor yet live in China.

According to "Paul", who was asking me if I could hook him up with a diamond to sponsor him in Quixtar, the USA bonus system on products is much more profitable than the Chinese bonus system.  Unbelievably it seems there is a "Grey market" for Amway products, especially vitamins in China from the USA. 

"Paul" was an Amway distributor until 2005 and gave it up because "it was really hard to do the Amway business in China." 

 

I still could not believe that one could make money buying Amway products in the USA, paying for shipping to their upline in the States, then paying for shipping them to China, possibly paying import duties, and then getting it all sold in China.  So I asked "Paul" to explain how this was all supposed to work.  He told me about people already doing this and making good money at it.  It seems "Paul's" friends have some uplines in the US that might be breaking the Quixtar rules, especially rule 4.16 dealing with exporitng of the corporation's products. 

4.16. Exporting the Corporation’s Products: No IBO may export or import, or knowingly sell to others who import or export, the Corporation’s products from the United States or its possessions or territories, or from any other country in which it has established operations, into any country regardless of whether or not the Corporation is doing business in that country.

Here is what Paul wrote about how the system would work:

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Hi Scott

I have been a sales representative of Amway (China). However, I gave it up in 2005.   (China banned the Amway type pyramided compensation scheme in November 2005.)  It is really hard to do the business of Amway in China. However, I later found out that the products of Quixtar/Amway from U.S. are profitable.

If possible, I hope you can recommend an IBO in U.S. for me. S/he could help me to develop my business in China.

Thanks a lot.

                                                                                               Paul

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Hi Scott,

We can join the Quixtar as an IBO. Some Chinese have achieved through their upline in America.

SA8 in China is RMB 60 yuan, which is 80% discount of that original price. Both consumers and sales representatives could buy the product. What they need are a Amway (China) card.

The price of the Amway product in China is very high. And the reward system is not the same as that of America. I hope I can find a diamond in America to recommend me as an IBO through by using the "International Recommendation" way.

I know a person who is dealing the business of Quixtar in China. She has a team and their upline in America helps them to ship the product from America to Beijng or other places in China. The upline will help them get the IBO status, tax card. They will buy the product through the visa credit card. It is of great convenience.

Oh, if you can arrange all the things as their upline in America does, you can be my upline. If you cannot, please help me find and diamond. That' s really a hospitality of you. Thanks a lot.

Best regards,

                                                                                             Paul

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Hi Scott,

People who are selling the Quixtar products in China just get the retail profit since within one fiscal year or two, Quixtar will check those "international IBOs" who are not really Americans, which means that some small fish will be kicked out of the Quixtar unless their uplines protect them and for their own profit. Therefore, the upline should be a responsible person. It seems like that the upline in America has no profit. However in fact s/he really has.

In China, for example, a bottle of Vitamin C will be sold at RMB 192 yuan, 25 U.S. dollars in equivelance.  If I reached the highest level of this month, whicn means that I have bought RMB 70,000 yuan, I will get 21% plus 3% bonus as my profit. I will get, theoretically, RMB 16,800 yuan. However, Amway China will keep 20% of my profit as guarantee capital and will give it back to me next month. I should also have to hand in income tax.

If I cannot buy RMB 70,000 yuan this month, I cannot get RMB 16,800 yuan as my profit. Different level will get different profit: 21%, 18%, 15%, 12%, 9%, 6% and 3%. In fact, the lowest ratio is 3% plus 3% bonus and another 3% for encouragement in China. That is 9% which means the sales representative should buy RMB 4,200 yuan in this month or s/he will not get the profit. If the sellers do not want to sell the products anymore, they could return the products to Amway within 7 days after they purchase the products from Amway. The sales representative should obey the disciplines of Amway China: the lowest price must be 80% discount. (192 is the 80% price of Vitamin C.); sales reps. in China cannot sell the products from Quixtar. Why does Amway China forbid the sales reps. to sell Quixtar products? The price! The quality! 

If I have an upline in America to help me, s/he will have the Chinese market. Can you imagine how huge this market is? We just want to have a piece of cake. The upline in American will sponsor me into Quixtar as an IBO. S/he will help me get the tax card for hand in the Ameircan income tax and ship the products to China. In return, s/he could share the cake of Chinese huge market. At present, I am a small fish. However, I can be a big fish if s/he really helps me to grow up.

I cannot achieve the 25% level of Quixtar because I've just got my bachelor's degree in July. If the diamond really wants to help me and get profit from Chinese market, s/he has to help me to achieve the 25% at the beginning. I will use my Visa card to pay for the products that I bought. I will try my best to achieve that 25%. At the end of the month, if I still cannot achieve that, s/he will help me to get it. Then I will pay to get the products from the upline. S/he will have get 3% of the profit directly, leadership bonus and the future diamond in China.

If I chose my Chinese friend as my sponsor into Quixtar, I will not get the products from America directly. She will get some profit from mine and the price of my products is not competitive. Can you understand that?

S/he will help me to calculate detail costs since I need to grow up and organize a group of people who have passport under the upline's system.  If I successed, s/he successes too. 

Too much detail that need to be talked. If I call you or him/her, it is very expensive to do that in China. If possible, please ask the diamond call me to help me to grow up. Then, S/he also achieves the Chinese cake.

Thanks a lot.

                                                                                                 Paul

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Dear Scott,

I really hope you can help me to find a diamond who really wants to get the Chinese market.

At present, there are many Quixtar products in China. I am now get the Quixtar products from a Chinese person. He has an aunt in America. She is also now an diamond. She buy the products in American and ship them to China personally. According to Chinese Law, package under 5 kilograms between privete person, generally, will not be checked by Custom.

By the way, the Chinese person told me that an IBO card can not buy more than $1000 per month. Is that true?

The diamond will also help me to ship the product to China. S/he would better live in California since this would be better and convenient for shipment. They are operating Quixtar products in this way.

You cannot imagine how huge the Chinese market is. We just sell Nutrilite and Artistry. They are light and cheap for shipment.

The reason that why I need a diamond is that s/he would help me to achieve the diamond level. For the moment, I am not "big" enough to achieve 25% award. However, I can achieve this in half a year. S/he will give me the products at the price without retail profit, which means that s/he would directly give me the products at the lowest price(I should pay the tax of America). This would help me a lot to quickly be a diamond.

I cannot show him/her immediately since I need time to make me "big". However, I can be "big" under his/her guidance.

Thanks again.

                                                                                              Yours,

                                                                                                Paul