Is there a Quixtar Scam, or is it a Genuine Business Opportunity?



Posted: Monday, September 14, 2009

by
Watch for Scams

Quixtar is part of the Alticor group of companies and was founded by the DeVos and Van Andel families. In the 1950's Rich DeVos and and Jay Van Andel were sales reps for a company called Nutrilite.

They wanted a better sales and marketing plan and so created Amway. Quixtar was founded in 1999 to combine the best aspects of Amway with the power of the internet. Now Quixtar North America is becoming Amway Global.

In North America you can only join Quixtar through the referral of an already established member known as an IBO (Independent Business Owner). Quixtar operates by allowing every IBO access to selling Quixtar products through their website. As an IBO you are encouraged to purchase as many Quixtar products as you can as well as simultaneously recruiting more IBOs.

Quixtar's exclusive brands include: Nutrilite - vitamin, mineral and nutritional supplements, Artistry - skin care and color cosmetics, and More - from XS sports nutrition and eSpring water purifiers.

The system works so that your referrer gets a percentage or a commission from the products you purchase from Quixtar.

Similarly you will get a commission from the purchases by all your IBOs.

According to Quixtar, your commission percentage depends on your IBO level within the company. So, in theory, the more people you recruit the higher your level gets and the more commission you get.

Quixtar's sales method is based on one-on-one communication and word of mouth advertising. According to Quixtar, the average monthly gross income for an "active" IBO is $115 (or $1,380 annually). Out of all the distributors, only 0.82% qualifies as a direct-level distributor.

This means that 99.18% of all distributors do not qualify as a Direct-level distributor. If you are earning $70 per month you are in the top 11% of earners at Amway & Quixtar. The Direct Distributor or the sponsoring distributor will buy back any unused marketable products from a distributor whose inventory is not moving or who wishes to leave the business.

Amway enforces the buyback rule. To ensure that distributors do not attempt to secure the performance bonus solely on the basis of purchases, Amway requires that to receive a performance bonus, distributors must resell at least 70% of the products they have purchased each month. The 'ten customer rule' provides that distributors may not receive a performance bonus unless they prove a sale to each of ten different retail customers during each month.

If you read many of the postings on the internet under Quixtar Scam, you will see a lot of discussion about the recruitment meetings and that questions were not being answered at these meetings and so the feeling was they were being mislead and so it was a scam.

As you know from some of the information above, the name of the game is recruiting.

To summarize, the Quixtar scam appears to have got its name from the way some representatives go about the job of recruiting other people to form their downline. The actual business opportunity is not a scam, however it is a commission only business, so your rewards will be directly linked to your efforts.

Selling on a commission basis with no base salary is not for everyone!

Steve Nickson makes it easy to avoid being scammed. Find out how scams work, how to recognize them, and the steps to take to avoid becoming a victim by visiting Quixtar Scam
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