Monday, May 18, 2009

Quixtar Business Analysis - a look at the Amway Quixtar business opportunity

At first my internet searching was casual yet in depth.  The more I see about the effect that Amway has had on so many people the more I am astounded that they get away with it.  Even more astounding is the fact that people still buy into it given the information that is so easily available.  Obviously Due Diligence is a forgot practice.

Quoted from

Quixtar Business Analysis - a look at the Amway Quixtar business opportunity

Unfortunately the 2-5 year plan is nothing more than an elusive dream and most participants will lose time with their families, and thousands of dollars a year. For many, the Amway dream turns into a personal financial nightmare as distributors spend thousands of dollars on their upline's optional but necessary support system of motivational conferences and tapes.

The general public does not take time to understand the poor overall economics of Quixtar's "buy from your self" product merchandising plan. Federal Trade Commission pyramiding regulations require companies like Amway/Quixtar and their Lines of Affiliation to sell a majority of their volume to non-distributors to avoid being an illegal pyramid scheme. In reality most distributors have no customers besides themselves. An active Quixtar distributor could spend a couple of thousand dollars and hundreds of hours per year to promote a business model that has just a few thousand dollars of sales, with most sales to the distributor himself. When you add up the actual cost of time used to promote this scheme and compare it to the volume of product sold, it is has to be the world's least efficient product marketing method. Distributors are taught "If the dream is big enough, the facts don't count". The facts make little difference to most distributors since they are taught to believe their dream is possible for anyone willing to just work hard enough and recruit enough people to the pyramid.

No comments:

Post a Comment