(A "true" parody based upon a note from Quixtar's Ken McDonald on the Quixtar web site)

A special message from Ronald McDonald

Hi, everybody, this is Ronald McDonald.

When we launched Quaxtar on 9/1/99, we all knew we were part of something big. What we didn't know was how big Quaxtar was going to be. In fact is, it still is no bigger than the Amway business it was to replace.

Today, we're announcing first-year sales for Quaxtar that prove what all of you already knew-that this Web-based business, powered by Quaxtar, is a resounding success.

During our first year, Quaxtar-affiliated IBOs drove sales of $518 million at Quaxtar and Quaxtar Partner Stores. This breaks out to $448 million in sales at Quaxtar, and an additional $70 million through our Partner Stores. Our sales last year for an equivalent number of distributors in Amway were probably higher but we don't need to talk about anything "negative". We also needn't talk about the 22% drop in daily Quixtar sales we saw from the time periods 100-200 days to 201-365 days as well. Quaxtar is still a resounding success, at least in my mind.

This level of first-year sales is almost unheard of among e-commerce companies. Amazon.com and eBay are the names you always hear about as leaders in e-commerce. But Amazon's first full-year sales were just $147 million, and eBay sold just $32 million its first year. No other company can match our success because they did not have 750,000 waiting customers to switch businesses like we had with the Amway folks. Frankly, I don't know how we could have done it without having all those Amway distributors switch to Quixtar.

How does this place Quaxtar among other e-commerce companies? Quite frankly, among the leaders, but of course we cheated!

In September, the National Retail Federation ranked Quaxtar the 7th top e-commerce site, and this was based on their low estimate of our sales. They also named Quaxtar the number-one site in terms of potential for repeat sales. All of this would never have been possible without the dedication and loyalty of our former Amway distributors just "buying from their own store".

But that's not all. The Retail Federation of Canada and Deloitte & Touche in Canada this month released a survey which ranked Quaxtar the second top e-commerce company in Canada and tops in the health and beauty category.

Finally, in October, Internet World magazine ranked the top 100 e-commerce companies. We weren't included because Quaxtar isn't a publicly traded company. If we had to make all our business numbers public then even more people would see Amway's poor performance in the United States over the last few years. However, if you compare Quaxtar's sales of $518 million to the top 10 companies in the listing, Quaxtar would be the 5th largest e-commerce company in the U.S. Again, all this would never have been possible without those hundreds of thousands of dedicated Amway distributors switching over to Quixtar at the drop of a hat. We made it so easy for them we still cannot figure out why the majority of the Amway Distributors in the World Wide Dream Builders organization still haven't switched over. I guess I better call Ron Puryear and Greg Duncan to find out why.

And like so many companies in the e-commerce world, the four companies ahead of us on that list are losing money. Quaxtar, on the other hand, is solid-you can be assured that we will be around in the future to power your efforts. Now, it is true that most of our distributors are losing money. It is built into the business model. The average IBO will lose money when you include the typical expenses guys like Dexter push on them. We can however proudly say we are profitable. That is what counts anyway. Those losing money IBOs will quit soon enough and be replace by a whole new group with brand new buying power to bring to Quaxtar.

Most importantly, Quaxtar-affiliated IBOs earned $143 million in bonuses and incentives during Quaxtar's first year for driving the traffic and sales. For the 400,000 IBOs involved that comes out to just 97 cents per day per IBO. Now if we count just the 41% active IBOs they are making a whopping $1.60 per day. Most people can't even cover tape of the week and a function with this money. Ain't it great! But hey, we are still making money.

Quaxtar's success has caught a lot of people by surprise. We continue to get lots of calls and questions from other companies trying to figure out what Quaxtar did to succeed while other dot-coms are struggling. We will never let on that we had 750,000 Amway distributors from which to pull and immediately switch to buying through Quaxtar. The IBOs lose all the money doing the promotion so we can make the money! Let this be our little secret and don't tell anyone.

Everybody seems to think there's some special software or hardware they can buy to be like Quaxtar. But as we all know, the high-tech, high-touch advantage of Quaxtar just can't be duplicated. We have the largest and oldest pyramid buying scheme in the world. You, the former Amway distributors are the power behind Quaxtar-the reason Quaxtar is a rising star in e-commerce and the point of difference that makes your Web-based business not just a dot-com, but a dot-community.

Now just a reminder. If you heard Doug DeVos' Amvox the other day about our new parent company, you heard some pretty big news. The new parent company was formed by the DeVos and Van Andel families and is named Alticor. We have to bury the Amway name somehow. We are slowly doing it with Quaxtar and now Alticor.

Quaxtar is a subsidiary of Alticor, and if you want to learn more about our new parent company, you can visit the Alticor website at www.alticor.com

But once again-from all of us here at Quaxtar Inc.-congratulations on the magnificent achievement of $518 million in our first year! It would have never been done without you Amway guys switching over to Quaxtar. The new economy is your economy with this Web-based business, and we thank you for all you have done to make Quaxtar's first year one for the record books.

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Original Message

A special message from Ken McDonald

i, everybody, this is Ken McDonald.

When we launched Quixtar on 9/1/99, we all knew we were part of something big. What we didn't know was how big Quixtar was going to be.

Today, we're announcing first-year sales for Quixtar that prove what all of you already knew-that this Web-based business, powered by Quixtar, is a resounding success.

During our first year, Quixtar-affiliated IBOs drove sales of $518 million at Quixtar and Quixtar Partner Stores. This breaks out to $448 million in sales at Quixtar, and an additional $70 million through our Partner Stores.

This level of first-year sales is almost unheard of among e-commerce companies. Amazon.com and eBay are the names you always hear about as leaders in e-commerce. But Amazon's first full-year sales were just $147 million, and eBay sold just $32 million its first year.

How does this place Quixtar among other e-commerce companies? Quite frankly, among the leaders.

In September, the National Retail Federation ranked Quixtar the 7th top e-commerce site, and this was based on their low estimate of our sales. They also named Quixtar the number-one site in terms of potential for repeat sales.

But that's not all. The Retail Federation of Canada and Deloitte & Touche in Canada this month released a survey which ranked Quixtar the second top e-commerce company in Canada and tops in the health and beauty category.

Finally, in October, Internet World magazine ranked the top 100 e-commerce companies. We weren't included because Quixtar isn't a publicly traded company. However, if you compare Quixtar's sales of $518 million to the top 10 companies in the listing, Quixtar would be the 5th largest e-commerce company in the U.S.

And like so many companies in the e-commerce world, the four companies ahead of us on that list are losing money. Quixtar, on the other hand, is solid-you can be assured that we will be around in the future to power your efforts.

Most importantly, Quixtar-affiliated IBOs earned $143 million in bonuses and incentives during Quixtar's first year for driving the traffic and sales.

Quixtar's success has caught a lot of people by surprise. We continue to get lots of calls and questions from other companies trying to figure out what Quixtar did to succeed while other dot-coms are struggling.

Everybody seems to think there's some special software or hardware they can buy to be like Quixtar. But as we all know, the high-tech, high-touch advantage of Quixtar just can't be duplicated. You are the power behind Quixtar-the reason Quixtar is a rising star in e-commerce and the point of difference that makes your Web-based business not just a dot-com, but a dot-community.

Now just a reminder. If you heard Doug DeVos' Amvox the other day about our new parent company, you heard some pretty big news. The new parent company was formed by the DeVos and Van Andel families and is named Alticor.

Quixtar is a subsidiary of Alticor, and if you want to learn more about our new parent company, you can visit the Alticor website at www.alticor.com

But once again-from all of us here at Quixtar Inc.-congratulations on the magnificent achievement of $518 million in our first year! The new economy is your economy with this Web-based business, and we thank you for all you have done to make Quixtar's first year one for the record books.

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