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| Billy Florence Adopts the "Stacking" Method |
A site visitor in Billy Florence’s team (DCI – Dream
Chasers International) sent me a "custom
SA-4400" The stacking method can lead to people stacking people who do not know each other on top of each other to avoid branches in the line. Quixtar representatives have spoken at various Quixtar team functions against people sponsoring people they don’t know through the stacking method.
The custom SA4400 presents theoretically possible income scenarios, but according to the document, they are also scenarios that are not so probable. The DCI Team plan highlights $48,000 in income in two years. Of course the income highlighted is "gross" and not "net". According to the fine print "there may be significant business expenses, mostly discretionary, that may be greater in relations to income in the first years of operation." Wouldn't it be nice for Mr. Florence to highlight the possible costs associated with trying to earn this $48,000 in two years? Here is a page summarizing tax returns from a tax preparer for numerous Quixtar distributors using the stacking method. In this study the average couple had expenses of $15,752 per year. Subtract two years of expenses from Mr. Florence's $48,000 two year income and you have just $8,300 per year left over. Additionally the potential income stated includes many one-time bonuses, which comprises a majority (54%) of the income claimed above. Of the $48,000 potential highlighted, $26,000 was from the one time bonuses. (OTCA – One Time Cash Award). The sheet also stated that just one out of 915 distributors in the Quixtar team earned $48,000 (gross) or more per year. The custom SA440 also lists two one time bonuses called
"GetFAA" of $7,500 and $10,000. According to the 2005 Quixtar business incentives brochure On the same form it states "the average Leadership Bonus for Direct Fulfillment IBOs of record was $1,063 in calendar year ending December 31, 2003. 0.0956% of Leadership Bonus recipients in 2000 earned at least $12,000.". What is unclear is if the average leadership bonus of $1,063 is a monthly or annual figure. Also unclear is if thee $12,000 above is purely leadership bonuses or all bonuses combined. It would be nice if Mr. Florence would post data from Quixtar on how many people, or what percentage of distributors actually earned $48,000 in their "two year growth period" in Quixtar for this type of structure. Maybe mr. Florence could survey his downline and find out what their average expenses are as well. The two leg strategy outlined is also very risky for the distributor, since the distributor has no side volume. The majority of the income is coming from the leadership bonuses and one time bonuses. With two 25% legs. the distributor is earning little if anything with the normal Amway/Quixtar bonus schedule. No wonder Mr. Florence does not state what the "on-going bonus potential" is. Given that the model has two 25% legs, the distributor's on-going bonus potential is only the 25% bonus on his personal volume. The "potential" in this case for a 150PV distributor is around $94/month. The distributor in this case cannot benefit from bracketing since both his main legs are at 25%. So what happens when this distributor runs out of one time bonuses with a two leg structure?
Factor in the potential average of $15,750/year in business expenses and these distributors are netting only about $5,000 per year for hundreds of hours of work per year. If a couple each worked 10 hours per week on the business they would be earning only $5.00 per hour on average. |
