A few of the Amway - Quixtar Myths
|Quixtar is not Amway. They are sister companies
Truth: According to Quixtar's corporate registration in the State of Virginia, the company's previous name was Amway USA Inc.
Quixtar has cut out the middle man in the
Do the work once and get paid for life.
1) IBO non-renewal rate of first year IBOs, as reported by Quixtar, is an astonishing 66%. Amway reported that just a little under 50% of all IBOs each year do not renew. A lot of work must be done to recruit new people to replace those that quit. If one does not actively work to keep the business propped up with new people, those "residuals" will be quickly reduced to nothing.
2) Due to the nature of the Quixtar bonus system, upline IBOs are always in a race with their downline. As soon as downline distributors have enough volume to be in the same bonus bracket as their upline, the incremental income from that leg to the upline can fall to virtually nothing. Therefore an IBO must always strive to build width in his own business to be able to collect the extra profits from "bracketing" of the various bonus levels.
3) Quixtar has a "servicing agreement" rule. The Quixtar rules also state that IBOs are responsible for training and motivating their downline IBO. An IBO wishing to sit back and enjoy his residual income, and not spend time building and training his team, will most likely be forced to sign a servicing agreement with his upline. The servicing agreement will require the IBO to pay his upline for taking over the "servicing" of his downline.
Those IBOs who have "retired" to the business have done nothing more than change jobs to one of self employment. Check their schedules and see how many hours they are working the business. Most of the "retired" people are working the business harder and longer than they had been working their previous jobs. in order to save face, most do not want to admit that they are worse off with time than before the business. Thus the lies about time freedom continue. Check out all the top level IBOs no longer in the business. If it were "residual" and "effortless" why did they all leave? IBOs can be fired too.
Change your buying habits and save money shopping with
|Save money with Quixtar|
|A Quixtar biz has
low overhead costs
|There is no risk with a
|We don't make
make money until you do
|You will always make more on your business than anyone else|
|Your employer is making
a killing on you
|95% of all people retiring
|The window cleaner is only
9.8 cents for 30oz.
|The overhead costs of a Quixtar
business are low when compared to other businesses.
Truth: The total dollar amount of expenses is very low, but as a percentage of sales and generated gross profits, the systems costs are very high. A 100 PV plan would generate about $250/month in sales. The typical system costs can run between $175 - $250/month for singles and couples. The total bonus paid out by Quixtar on 100PV in sales is around $80. IBOs are being taught to reproduce 100 PV business, which generates only about $80/month in gross profit, yet these businesses have operating costs that far exceed this. With this ridiculous plan only by recruiting more money losing IBOs will one be able to make a profit.
business has very little risk.
Your upline doesn't make any money of you until you make
Your will always make more money on your business than your upline will.
The platinum distributor, the head of this group, is in the 25% bonus bracket. The Platinum nets 13% bonus (25%-12%) on all sales in the 9-4-2 model. The 13% exceeds the bonus percentage of all his 117-person downline. It seems in this case the new business owner earns very little of the profit his sales generated, 3% compared to approximately 31% for all those above him. Those that recruited him earn the majority of the gross profits. This is just the opposite of what is claimed.
64% of the people earn less than 1/4th of what the platinum earns off their work. Another 31% earn less than 1/2 of what the platinum makes off their work. Still for the last nine, they only take home less than half the profit their sales generated at the platinum level.
Your employer is making more from work than you do.
GE 's 1997 sales were $90.84 Billion, had after tax profits of $8.2 billion and had 276,000 employees. Sales-per-employee was an amazing $329,120/employee. This is outstanding, considering that the average (38.5PV/month) self-consuming, non-retailing Amway distributors has personal sales of just $1,155/year. Most other companies come in below $200,000/employee. The after tax profit per General Electric employee is $29,721/employee. Even if the worst paid employee were to get $11/hr plus 30% benefits, the total compensation package is $28,600/year. It seems here even with the best numbers that employees still gets at least half of what they earn for the company. This is not a very small percentage, as Quixtar distributors claim. GE also has invested equity of $8.23 billion or about $125,000/employee. Given the capital employed and the after tax profits, GE's return on equity is 23%. In less efficient companies, the employees will get much more than 50% of what they earn for the company.
According to the American Bankers association 95% of all people
retiring at 65 are either dead are broke.
The source of the "American Bankers" statement above had alluded me. This topic came up on the QuixtarNow Blog with a link to a January 30, 1935 article from the Senate Finance Committee where the actual basis for this claim can now be found. Interesting is that the statement was made even before the Social Security Act was signed into law in August of 1935. It seems unethical to me that these Amway organizations would continue to quote an 80+ year old survey in light of the fact that many things have changed to improve the incomes of retirees. Since the article was written in 1935 such things as Social Security, corporate pensions, 401K plans, IRA's, Roth IRA's and annuities have improved retirees' incomes significantly.
Data from the IRS suggest that this common myth of Amway and Quixtar distributors is very untrue 80+ years later. The data show that 50% of all retires have incomes greater than $20,000, and 20% have incomes greater than $40,000. About 5% had incomes over $100,000/per year. If any income under $100,000/year classifies you as "broke", then the distributors' claims are true.
Losses in the Quixtar business are tax deductible
The Misty window cleaner dilutes down to a cost of 9.8 cents
for 32 oz.
Wal-Mart never gives me a rebate.
Amway / Quixtar has created more millionaires than any
The A.C. Nielson Company says I will save money
Quixtar's computer "melted" due to
all the traffic they got when Quixtar went online!