Can Any Amway/Quixtar’s IBO, Direct, or Diamond answer/explain the 7 fundamental questions I posed below?

 

Some background first.

I am spending my time to write this, hoping this writing will save someone from making a mistake. I am a prospective IBO. I am also an honest, straightforward, objective investor who can analyze business model. I care for my ROI (Return on Investment) – in terms of time, money, effort, and relationships. I am not any Joe blow from the street. I have several scientific and technical higher degrees and am already affluent. My net worth is in few million dollars. However, this is not enough for me. I want to create more wealth for others and myself without hurting others. I would like to invest my time and money in ANY legal and ethical business, which will have acceptable probability of success. Let’s see what are the ROI and the probability of success of it with Amway/Quextar.

I was lucky and thoughtful enough to be able to spend about 50 hours of research on Amway/Quixtar before making a decision if I want to commit myself to be a Super-Active-IBO. I am not a disgruntled former IBO who is writing this after years of bitter experiences and failures with Amway/Quixtar. I have spent only few weeks with uplins, attended few meetings, listen to lectures, cassettes, discussed the fundamentals of Amways/Quixtar’s business plan with third party impartial economist and expert investors, studied Amway/Quixtar 6-4-2, business model, read some court’s finding against Amway/Quixtar, read IRS findings against Amway IBOs aboud income tax frauds, learned that there exist five times as many disgruntled former Active-IBOs than current Active-IBOs. That made me think. I also spent several hours reading and analyzing the following web sites.

 

Web sites to read:

Go to Yahoo, search for Amway, select the following sites:

· Amway: The Untold Story - What your friendly soap peddler doesn't know or won't tell you.

· Amway Distributors Little White Lie - focuses on the business and economic aspects of a distributorship.

· Amway No-Way - one hundred percent anti-Amway.

· Amway or Scamway

Also, http://www.getfacts.com/amway/emails/index.html,

http://www.mlmsurvivor.com

 

 

 

My 7 questions to Amway/Quixtar

1. According to the Quixtar US business office, Amway/Quixtar has produced second largest number of millionaires in the US, next only to the Microsoft Co..

I asked how many?

Ans. 2200

(I couldn’t verify that. However, knowing that 99.99% of IBOs don’t make it to Diamond – a more realistic number would be few hundred millionaires are created by Amway/Quixtar over a period of 30-35 years.)

How many IBOs Quixtar has?

Ans. Over a million? (I couldn’t verify this number either)

How many Active IBOs?

Ans. Over 400,000 (Again, I couldn’t verify this number either)

Knowing, half-life of IBOs is one year. That is over 50% of the IBOs do not renew their membership the next year. I would extrapolate at least 10 - 15 million IBOs have experimented with Amway. Let’s take the smaller number in Amway’s favor. According to the Quixtar business office only 40% are Active IBOs. Therefore, there were at least 4 million Active IBOs at one time or other with Amway during 30-year period.

2,200 millionaire / 10 million IBOs = 0.022% of Amway/Quixtar IBOs has become millionaire over 30 years period 2,200 millionaire / 4 million Active-IBOs = 0.055% of Active IBOs become millionaire over 30 years of period or so. Even third world countries’ third class companies make more millionaires percentage wise than Amway/Quixtar.

In my research I found Microsoft created over 4,000 millionaires.

How many employees does Microsoft have? 32,000

If we include the small percentage of Microsoft employees who left Microsoft over the last couple of decades it would be no more than 3,000. A total of 35,000 distinct employees Microsoft ever had or has.

Therefore, 4,000 millionaire / 35,000 employee = 11.4% of Microsoft's employees became millionaires during the past couple of decades. (A monumental achievement. I salute Microsoft and other hundreds of similar companies for that.) You can take the example of any of the fortune 500 companies - they have created much larger percentage of employee-millionaires than Amway/Quixtar. Silicon Valley creates 7 millionaires every single day or over 2,500/year.

I will go so far to say that even if you exclude top 1000 most efficient companies of the US and take the average of the reaming bottom of the companies – they produced more millionaire percentage wise than Amway/Quixtar.

99.99% of total IBOs don’t make over $100,000 net profit a year. 99.9% does not even make $2,500/year in net profit. Is there any other business that has this poor probability of success? IBOs need to ask themselves – what is their ROI? They should keep in mind the time, effort, and money they are spending. If they spend that kind of time, effort, and money in any other business they will have much better success rate.

In addition, all IBOs are programmed in deception and lies. No wonder, there are law suites after lawsuits against Amway/Quixtar and many other MLM scam. No wonder, Amway/Quixtar have been fined in Canada, Wisconsin and in many foreign countries for their criminal and deceptive acts. Check out the websites I listed on this page.

 

2. Quixtar seems to be for the people with IQ less than 70 or 60. Otherwise why would the % of IBOs who are millionaire is lower than that of the entire US as a whole? One would be much better off by being just another person in the crowd of 270 million people of the US than being an IBO of Amway/Quixtar.

I briefly attended Amway/quixtar regional meeting. Over 4000 people were in Hyatt Hotel in Dallas, Texas during the month of May, 2000. All those big shots IBOs were trying to tell me that how successful people are in Amway business.

One big shot, uplink of uplink of uplink, Diamond, said to me: "Do you know that there are over 20 millionaires in this meeting of only 4,000 people?" I laughed. That proved, that IBO is an ignorant and idiot. 20 millionaire out of 4000 is only 0.5%. I told him I don’t want to associate my self in a crowd where there is only 0.5% are millionaire. I would rather go out of this meeting and join the general crowd of the US population where 4% to 6% households are millionaires.

There are 100 million households in the US. Total number of millionaire in the US is between 4 to 6 million – varies as stock market goes up or down. If Amway/Quixtar business model is so good then why so few people are successful in Amway/Quixtar.

 

3. An active IBO spent between 20 to 30 hrs./week in his business. Let’s take the lower number – 20 hours/week. It takes 400,000 IBOs to generate yearly revenue of $1.2 billion for Quixtar. That gives $2.88/hour. Make it $3.00/hour. I am ignoring the business cost each IBOs incurs. These brain dead cults can make more money by flipping burgers in Burger King

Typical fortune 500 company’s employees’ creates between $150 to $300/hr. of product or services.

.If you ever thought which is the least efficient company of the world – this is your answer. Amway/Quixtar.

What worse these brain dead cult IBOs don’t even know they are losing money, destroying their own family and will end up with the same conclusion as mine but only a few years later. Remember, half-life of IBOs is one year. That is over 50% of the IBOs do not renew their membership the next time.

Does it take a rocket scientist to figure it out that all MLM is the most inefficient way to make money? Amways/Quixtar is fundamentally flawed. If four people around a table, each with $250 start playing poker game - gambling, years after years the total wealth around the table still going to be $1,000. MLM is not only a zero sum game but it is a negative sum game when you take into account the operating expenses.

 

4. Prices at Quixtar are not cheaper but actually more expensive. That is another major problem in the business model. I myself have done the price comparison. You will have to do your own price comparison for the products that you would normally buy. Keep in mind you don’t save money buying the things that you don’t need regardless of how cheap it is.

 

5. Amway’s big shots make their good percentage of money out of selling cassette, books, and meeting etc. via Britt World Wide. This "system" cost is unbearable for IBOs. New IBOs are not told about the burden of this business operating cost. Few thousands of IBOs who think they are making over $2,500/month because they receive the check are in delusion. $2,500 is their revenue not the profit. If they subtract his business operating cost and especially if they subtract the time cost they and their spouse are spending they end up in red.

25 year veteran, a Double diamond, and many former Amway’s king pin now opposes the business model. Check out the web sites. Go to Yahoo, search for Amway.

 

6. If Amway/Quixtar IBOs are not systematically trained, brained washed, conditioned to cult type behavior to a non-thinking robot that is trained to cheat and deceive people then why there are five times more disgruntled former IBOs are out there including double diamonds than the current IBOs? Check out the web links. No other business in the world has generated that many unhappy experience. Without an exception Amway/Quixtar is the worst business, most unethical business in the world. This is my finding after a long research. If you are an IBO, get out now. It is not too late.

 

7. IBOs support Amway/Quixtar "system" or their own business operating cost from the money they earned in their full time job.If IBOs did not have a job to support a handful of top node IBOS in the 6-4-2 plan then Amway wouldn’t be able to produce $5 b revenue either. IBOs are feeding top node IBO with their hard earned money from their full time job. They are mislead to think they are making money at Quixtar. They are not.

 

Quixtar/Amway has created a lot of misery and pain in the society. It has created no net gain – contributed nothing to the society as net result. Amway has destroyed existing wealth and displaced some – It has created not net-gain but net-loss. I will not say the same thing for any traditional companies no matter what trick the CEOs plays, nor would I say the same thing for traditional sales person. No-net gain is true for all Amway like MLM business model. Even if all IBOs started telling the truth even then this business model cannot work because of fundamental flaws. How did it happen? How did they get so big? I guess, because if you try to find one fool in the world you will find ten of them.

Few IBOs who make more than $100K/year profit are also idiot but lucky. Case in point: the guy wins a multi-million dollar lotto is not necessarily a sharp person. TV evangelic Jim Baker and his associates also made millions by conning people? Amway/Quixtar IBOs behave, talk and think like cult.

Sad thing is that Amway/Quixtar MLM is legal. But again, psychic’s prediction business on TV or selling houses in the heaven also legal. Can we do something legally against Amway/Quixtar? Can we compile the digital signature/name of all the millions of former IBOs who are cheated and take our case directly to congress for change in law instead of going to the court?

The words which comes to my mind when I think of Amway/Quixtar/Britt World Wide-IBOs are: Deception, dishonesty, fraud, scam, morally corrupt, soul less, con-man, manipulative, parasites, quicksand, rote knowledge, non-thinking robots. Produce nothing contribute nothing to the society. Since Amway also intimidate, use threat tactics I should add one more word "Mafia"

 

I wonder, Bill Britt, Dexter Yager, Dan Williams, Dick Mark, Judy Victor, Ke Stewart, Paul Miller, Larry Winters, Joe M.Joe, Pratt Folley and founders of Amway/Quixtar are parasites in the society? It looks like.

 

If you are an IBO, my advice, get out now. It is not too late. Acknowledging your mistake is not bad. You will do a favor to yourself.