Make Money in Quixtar   - NOT!
After a long search I finally found a high level pin in the Quixtar business willing to talk hard facts about his group's financials.    I have always been on the look-out for a high level pin (Emerald or above) who would be willing to tell me his group's BV and what his group was spending on tools through his system.  Well folks the data is not too far off from what I have been hearing from Quixtar distributors for years now.   Here's the data.

For an Emerald group of active 700 distributorships, there was total LOS tools sales of $2,100,000, or an average cost of $3,000 per IBO.  This includes costs of books, CDs, Website, and Function Tickets. This does not include travel expenses, baby sitters, or meals.   Looking at these numbers, it is no wonder when I asked Jody Victor if he had ever surveyed his group for profitability that he never responded back. 

For the Non-platinum distributors there was a total of just $84,000 in bonuses distributed.  This amounts to an average gross income of just $10/month per distributorship.   The typical active system IBO is losing about $2,800/year on system expenses alone. 

Assuming the business qualified at Emerald every month, the annual group BV would be about 720,000 BV.  Assuming platinum bonuses of 25%, and other bonuses above Platinum to be another 7% of BV, the group earned $230,400 in Quixtar bonuses.  Since the non-plaintum distributors earned $84,000 those above platinum earned about $146,400 for the year.   Quixtar paid out about 30% of sales, so gross Quixtar product sales would amount to about  $768,000 per year.

There are some interesting derivations from the data:

  • These Quixtar distributors are spending at least $2,100,000 per year to market products worth $768,000.  In other words Quixtar distributors are spending at least $1.73 of their own money to market products for Alticor for every dollar of Quixtar product sold.  
  • Rich DeVos in directly speaking that 20% of BV (or 62% of Amway/Quixtar payouts) was a reasonable(?) amount to spend on motivation.   This group is way off Rich's maximum of 20%.  This group is spending 291% of BV on the system!
  • The non-platinum Quixtar distributors are spending at least 25 times more than they earn.

If you got in the business to help people make money then you have to ask, which people you are choosing to help.  No doubt when you recruit people to the business that someone will make money.  Most likely the one who will make the money will not be you or those you recruit. 

If you are Emerald or above and want to share similar data with me, I'd love to have it.  Just write me.

 

 

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