Quixtar/Alticor Results 2004

Both Alticor and Quixtar reported increased sales for 2004 over 2003. Alticor set record sales due to huge increases in China. Alticor's 2003 North American MLM sales at Quixtar were $1.1 billion, increasing 6% from 2003. Quixtar's North American sales are still below Amway's North American sales in 1999. Quixtar's sales from Partner Stores are still below their debut peak in 2000.

IBO's pay-out increased slightly to 31.9% of sales, up from 27.4% in 2000. The pay-out margin increase was due to the Diamond and Emerald Growth Promotions as well as a the new emphasis on moving Amway core line products that have higher profit margins.

Quixtar reported gross pay outs of $373 million but did not report the number of IBOs who shared in the pay outs. Despite record pay-outs, Quixtar still reports that the typical IBO earned $115/month; the same as for the previous four years. Quixtar did not report how many IBOs shared in the 2003 $343 million pay-out as well. In the 1979 Amway FTC case it was reported that, 360,000 distributor earned $60 million from Amway ($166/distributor) in 1976. Despite today's expanded product line, catalog products, ditto delivery and partner stores, the inflation adjusted 2002 gross pay-out per Quixtar IBO in 2002 was 16% lower than that of Amway distributors in 1976.

Quixtar reported in 2003 that of their $1.035 Billion in sales, that $683 million was from web based orders. Thirty four percent of sales still come from the traditional Amway distribution method.

After 5 years, WWDB's Brad Duncan's and Ron Puryear's prediction that Quixtar will be a $100 billion company in 5 years is still far from view. Despite completely cannibalizing the sales from the North American Amway business opportunity, Quixtar just surpassed 1% of that prediction and has not yet surpassed Amway's 1997 North American sales peak.

Quixtar Q12 Business Statistics reported in August 2004 and October 2002

What are all these statistics of low average IBO sales, and high turnover really saying? It says to me that the typical consumer can't find enough deals or superior value through Quixtar to shift their buying habits from where they currently shop.

Look at the sales trend and IBO profitability in your market and understand what the market is saying about the "opportunity". Study the growth in the number of new top distributors (Emeralds and Diamonds) in your market to see if IBOs are getting more successful. Other than the data above, Alticor releases very little data that could be used to help further evaluate the actual success of the opportunity.