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Quixtar: Multilevel Marketing (MLM) Program Review
PROS AND CONS: I don't know if many people will know right off the bat who or what Quixtar is, but when you say Amway, in most cases, light bulbs will go off. There will be a sign of recognition in the face facing you. That is because, the modern day MLM is probably here because of Amway. Even though most people think that Quixtar and Amway are one and the same, they are not. They are sister companies, and subsidiaries of Alticor Inc., a global enterprise doing business in manufacturing, marketing, logistics, and product and business development.
Quixtar is a Multi-level Marketing company (MLM), founded in 1999. It operates in the US, Canada and the Caribbean. The products sold by Quixtar are: Skin Care and Cosmetics, Nutritional Supplements, Weight Loss Products, Air Purifiers and Genetics Tests
The business involves recruiting others to be Independent Business Owners (IBOs), and/or Customers. There are thousands of MLM companies doing business throughout the world. This one caught my eye because of all the controversies surrounding it. It is my personal view that Quixtar was created so that Amway could continue doing business without the baggage and negative publicity surrounding it.
For the skeptics out there, the first thing that comes to mind when one mentions MLMs is Scam, but what is a SCAM really? The dictionary describes a scam as "a fraudulent deal intended to defraud or embezzle. Quixtar then, on the surface, does not fit this description as it offers legitimate products that people do buy, and therefore if one joins them as a representative to refer customers and other reps, then they are NOT being fraudulent. I think the part that is deceptive is where they lure unsuspecting people into thinking that they will make huge unsubstantiated amounts of money in a 2-5 year period. In their website, they indicated that the IBOs (Independent Business Owners collectively earned $345 million in bonuses and incentives in fiscal 2005, and more than $1.7 billion since 1999.
I cannot dispute that without facts, but what they don't tell you is HOW MANY people shared that huge sum. What really matters is the mean income for the average business owner. How much do you actually make per month after your operating costs? Do the majority of IBOs really attain the financial freedom they promise?
I went on the web on a "manhunt" for people who are really happy with the decision they made in becoming a Quxitar Business Owner. I found some, but their motive was apparent. It was a marketing ploy. What else could they say if the objective is to enroll you as part of their downline? 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.
Are all MLM opportunities a scam? Absolutely not. The world's richest man, Warren Buffet recently acquired a Network Marketing Company called Pampered Chef. Would he jeopardize his reputation on a scam? Why? He doesn't need your money that bad. Some of the most respected Fortune 500 companies use this method of marketing these days. Companies like Cingular Wireless, MCI, AT&T, even some banks use this system of marketing, so my response to that question is NO. MLMs are not all scams, but they can, in an effort to get you involved with them, inflate their projected/potential earningsquite a bit, and this is the part that I feel could be construed as fraudulent.
There is a legitimate business offer here, but one must be weary of the inflated potential earnings. The market for the products offered by Quixtar is saturated, making marketing tough, but that could be said of any commodity market.The negative publicity that has dogged Quixtar/Amway over the years is real bad publicity, making the pool of believers rather small here in the US. Now, there aren't too many left in America and Canada that aren't aware of the troubles surrounding this company. A new IBOs best bet is to drum up business abroad in hopes that the bad publicity hasn't reached there.
Recommended? If you have faith in your marketing abilities for this kind of business, then try it. Start small, and determine if it is going well for you before expanding.