Stacking in Quixtar

The hottest strategy in the Quixtar business is a process called "stacking". Many groups such at Team 5000, Team ANS, Team DCI, and Interbiz are adopting the practice. The stacking strategy, otherwise known as driving excessive depth, was employed in the Amway business in the 1980's but died out due to its lack of profitability. Stacking is the team concept of building the business and is being touted as the most successful way to build a Quixtar business today. Individualism is out and the "group" is in.

Instead of an IBO personally sponsoring more IBOs to achieve "width", the trend is to drive depth. IBOs that might be personally sponsored are put under the lowest IBO in the line, or "tap root". IBOs are intentionally lined up one below the other to create a long one legged instead of creating branches as was the case in the Amway/Quixtar 6-4-2 plan.

Stacking is nothing more than intentionally building the line of sponsorship in one long line instead of having individual IBOs sponsor their own contacts. In the stacking  concept, any contact is placed directly under the last person in the line. According to Quixtar rules you are supposed to sponsor only those you introduce to the business. That rule of course is not followed when stacking occurs.

The diagrams to the left show two potential structures for a Quixtar business. The structure on the right is formed by the network of association among the participants and shows some "width". It is basically "who introduced whom" to the business. Width is formed when a person sponsors more than just one other person.

The structure on the left side is formed by stacking, and shows "depth". The original network of association between individuals is lost. The people are placed in the line in chronological order and not by an order of association.

The Psychology of Stacking
The motivation behind the stacked structure, or "stacking", is largely psychological. In the stacked group, 1 person has a downline of 14 people, the next person has a downline of 13 people, the next person has a downline of 12 people, etc, etc. In the stacked group there are 9 people who can claim a downline of 5 or more people.

In the non-stacked group on the other hand, one person claims a downline of 14 people. The next person can only claim a downline of 5 people. The next largest group is just 4 people and the next group has just 2 people. In this group only two people can claim a downline of 5 or more people.

The new person, not knowing how the Quixtar bonus structure works, can now brag about how large his downline is, and that he didn't do any work to get so many people under him. New people were placed below him that were quite possibly introduced to the business by people above him. The new IBO thinks he is getting something for nothing as the downline magically gets built below him without him really doing any work. All the new IBO must do is give his upline a names-list, and the upline will chronologically stack everyone interested in the line. This IBO, seeing the magic of the "system", might tend to spend more time and money learning how the "system" is supposed to work rather than worrying about moving Quixtar product.

The IBO might come to the conclusion that somebody else can buy the products and he will concentrate on recruiting more people. Data from three separate stacked groups show average IBO sales in the stacked groups to be 2.5 PV, 7 PV and 28 PV/month. A PV point is about $2.50 in sales. These groups might have monthly Quixtar sales of just to $6.50, $17.50, and $70 per IBO. Quixtar reported the average IBO to have 38.5 PV or almost $100/month. Contrast this to the fact the average cost of some of the line of sponsorship "systems" is more than $150/month, and you might determine the real money is in selling the "system".

With the addition of each new person in a stacked line, each and every IBO in the line gets a "rush of excitement". The addition of a new IBO in a non-stacked line gives only a limited number of people a "rush of excitement" since fewer people see or feel the effect. The psychological benefit from stacking creates more excitement and hopefully more momentum for the group.

The Psychology of New Pins
Stacking has the benefit of accelerating an IBO's climb in the Quixtar bonus schedule (breaking pins faster), while at the same time reducing the average bonus paid in a bonus level. Here is how.

The Quixtar business awards lapel "pins" for various levels of product moved. The Quixtar business awards points for each product sold and these are known as "PV" points. For more on how the plan works, read "Quixtar basics". A "pin" is nothing more than recognition for a certain level of points in the business.

The stacked business example here has an "average pin" of 800 PV. The unstacked business has an "average pin" of 333 PV. Both examples have the same total volume and total pay-outs, yet the stacked structure has the psychological advantage from a naive IBOs point of view since there are more pin winners.

The stacked business:
1 - 1500 pin
5 - 1000 pins
4 - 600 pins
3 - 300 pins
2 - 100 pins
The unstacked business:
1 - 1500 pin
0 - 1000 pins
1 - 600 pin
3 - 300 pins
10 -100 pins

Stacking has no effect on the total bonuses paid out. Stacking redistributes the bonus money in a communal fashion. Those individuals doing the work and really recruiting new people are sharing their bonus with those just sitting in line. Stacking is a socialistic method of building the business, rewarding those not doing any work with a higher and higher bonus level. The stacking method of building might allow everyone to achieve more pins, but it cannot increase the average profitability of IBOs. I would suspect that those groups stacking actually have lower on average sales and profitability per IBO.

Another effect of stacking is to periodically push IBOs, who are doing nothing, into a new bonus bracket. They will see a temporary jump in their income called bracketiung. For those not knowledgeable of how the Quixtar bonus plan works, they might think their income will continue to rise without any real effort. In the diagram below one can see those IBOs at the bottom of a pin level make more than their upline! In the example, those dots with the same colors are all in the same bonus level.

The stacked business:
1 - IBO earning $143
1 - IBO earning $98
1 - IBO earning $60
5 - IBOs earning $30
3 - IBOs earning $23
2 - IBOs earning $15
2 - IBOs earning $8
Average Earnings: $37.50
The unstacked has:
1 - IBOs earning $308
1 - IBO earning $68
2 - IBOs earning $38
1 - IBO earning $30
1 - IBO earning $15
9 - IBOs earning $8

Average Earnings: $37.50

An interesting phenomenon occurs as people enter a new bonus bracket. This can be seen in the example above. IBO #6 (1000PV ) makes $98, while his four upline 1000 PV IBOs (IBOs #2,3,4 and5) make just $30. As soon as a brand new 100 PV IBO gets added to the bottom the IBO number five's income will also drop to $30. The IBO below him, number 7, will see his income rise from $23 to $98/month. This income "rush" is only temporary, and only occurs when an IBO jumps bonus brackets.
In the example above, IBOs # 1, 6, 10, and 13 are "bracketed". That means they are making more money since their downline is in a lower bonus percentage bracket. The more "width" an IBO has in IBOs and retail customers, the more money the IBO will make due to the difference in the bonus brackets. In order for an IBO to avoid losing his bracket and the extra profitability the bracket affords, the IBO must grow his own with at least as fast as those below him are growing. If an IBO lets his downline catch up to him so that the downline has the same bonus percentage, the IBO will only earn a bonus on his personal volume. Having the downline only allows him to qualify for a higher bonus level but that bonus level cannot be leveraged to make him more money.

For those people new to the business, the difference between depth and width does not seem that great. It would seem the psychological benefits of quickly making "empty pins" would out weight the profitability issues. After all when you go direct, or a direct breaks below you, you will make more money.... right? See stacking at the Platinum level

Dependency Created by Stacking

The infamous Amway internal "Postma Memo" mentions the dependency and loyalty created by such stacked structures, when over 50% of a directs volume comes from just one leg.

"In addition, it is taught in the line of sponsorship, that when a new Direct Distributor
breaks, over 50% of his volume should be in one leg. It is patterned for a new distributor
to be assured that his upline will help him to become a Direct Distributor. Technique
used allows for upline direct Distributors to work in one leg of this individual's group.
They are consistently edifying the distributor whose organization they are building,
however, relationships are being developed with the upline Directs. This is done to
assure loyalty within the organization. Should a Direct Distributor break, and decide
to do his own thing, relationships which have been developed upline
would preclude any independence."

A comparison of the 6-4-2 model to a 1-50, 1-25 model

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