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Get Rich Quixtar

Recently, my brother's friend called him up and asked to meet with him about a business opportunity. I told him to run if the meeting involved the words "IBO" and "Quixtar." Sure enough it did. Why my aversion to Quixtar? I've looked into the company before and I believe it's a scam.

Here's the problems I have with Quixtar.

Practical:

Being a Quixtar IBO ("independent business owner") means selling primarily Quixtar's line of products. From the look of it, they appear to be overpriced name brand knock-offs. Take for example their toothpaste, Glister. A 6.75 oz tube costs $4.70. A comparable Colgate product will run you about $3.00. Is Glister ADA approved? I doubt it. To be fair, it's true that the Quixtar website carries name brand products, but I've yet to see any great deals.

Ethical:
My real problem with Quixtar is a that it is a pyramid scheme. Now it doesn't exactly meet the FTC criteria for pyramids, businesses that "generally ignore the marketing and selling of products and services, and concentrate on the commissions you could earn just for recruiting new distributors," because they do have products that they sell to outside, non-members. However, spend any amount of time around an IBO and you'll realize where the real money-making comes from: recruiting. Quixtar (having been started by the founders of Amway) is a multi-level marketing company. In other words, as a recruiting IBO, you get commission on what those you recruit sell, and on your recruit's recruits, and so on. The way to succeed is to get people under you who then recruit people under them. That way you get commission on everything the IBO's beneath you spend. And spend they will. I don't have the research on this to back it up, but I suspect that the large percentage of Quixtar's revenue comes from money spent by recruits rather than outside customers, making it more and more like a pyramid scheme where revenue is generated within the company.

But there's another aspect in which Quixtar is even more pyramid-ish. It appears that for the top-earning distributors make their millions not from product sales, but from motivational materials sold within the company. IBO's are told they need these CDs, seminars, and books to succeed, and the limited experience I've had with IBO's seems to suggest they're buying in to it. Company insiders revealed this fact in a Dateline investigation.

Just for fun, here's my favorite part of the recruitment literature that my brother received. The caption reads, "Today, even a high paying job can leave you with little time, and no security. True lifestyle comes from having both time and money, with the security of knowing that you control your own destiny." I was previously unaware that "true lifestyle" existed. The graph shows what "true lifestyle" looks like. success A bar graph to measure time, $, and security, complete with lines to show the numeric value of each of these bars. Except that there are no numeric values listed on the Y axis. It seems a pretty desperate attempt to make it look "scientific" or legitimate.

Now I'm not saying that you can't make money in Quixtar. You can. (Although according to the fine print of the recruitment literature, the average active IBO makes only $115 dollars. And that average is limited only to the 66% of IBO's who are trying to succeed, hence "active.") I'm just saying that Quixtar isn't a legitimate business in my opinion.

Labels:

I have issues with the pyramid scheme. I don't think it is inherently flawed, but the way everyone approaches it is very problematic. I've been to Mary Kay parties, Candle parties, Stamp It Up parties, etc., and the problem is that you're always trying to sell these things to your *friends.* It's not like I feel like we won't be friends if I don't buy anything, but I do kind of feel obligated to buy something. It's just poor taste somehow...

Anne, as I write this, I can think of 4 Mary Kay products and two Tupperware containers I bought out of pure guilt and "sense of obligation." I maintain that no true friend would allow her other friends to be sucked into such a morass of business iniquity.

Andrew, I've actually been approached by another friend who fell prey to the schemes of Quixtar and while I said "No, I'm happy being poor enough to qualify for food stamps, I don't need anymore money," and thanks to you, I now have a better argument against it. I'll just refer them here, complete with the colorful graph.

Wow, that lifestyle graph is quite possitively the most useful thing I've ever seen before. Now I can finally balance my time, money, and security. No values on the Y-axis? Why is that relevant? Any good IBO can tell you that in order to retire from work completely in 2 to 5 years ("flush that stinkin' job"), you will need to accumulate precisely 17 units of time, money, and security in order to live the lifestyle you desire and retire. Once you have 17 units of each of these, you have achieved the "true lifestyle". By the way, you'll be pleased to know that the true lifestyle includes yachts and ferraris like they show in the videos at the conferences.

i think the way quixtar is trying to tie into christianity sort of makes me sick. watch the dateline investigation and you will see for yourself. i think the video is a lot more interesting than the article. you can see the cult-like devotion for yourself. here is a link to a very low quality video download of the dateline story. its at the very bottom of this page under the heading "June 13, 2004".

http://www.webraw.com/quixtar/resources/quixtarresponse.php

With a little searching, I found a working link to the Dateline video.
http://cpserverp4.com/bo/dateline_quixtar.wmv

I didn't see any mention that Quixtar is just Amway on the net. Thought you like to know, if you've heard of Amway.

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So they make money selling products and dreams and you *plan* to eventually make money from the notoriety you've received from badmouthing them.

Personally, I think their way is vastly superior to yours.

Furthermore, you're patently dishonest with both calling their business a "pyramid scheme" and allowing others to do it in your forum without correcting them. Oh, but with subterfuge your have hidden a "disclaimer" in the body of your verbiage when you *know* beyond the shadow of a doubt that not only are they *not* a pyramid scheme, but you could be very legitimately sued for libel (and very possibly lose your case, though your obscure "disclaimer" *might* save you in such an instance).

If anyone is confused about my point, meditate on my first paragraph and see the motive and hidden agenda for running down a legitimate business that has brought hope, encouragement, and success to many people.

My disclaimer: I am not a distributor for *any* MLM company, but I have enough sense to not only see their legitimacy but also the success they've brought to many people who were focused and disciplined and didn't get sidetracked by the love of money... and worthless critics.

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