The average Amway business owner, known as an IBO (Independent Business Owner) makes $1400.00 per year in gross income!
You would have to look no further than the Amway printed business material for this shocking statistic.
So what about all the promises of making millions of dollars as a Amway IBO? What does it take to get to Diamond and Emerald levels in a network marketing business that has a mixed reputation? Is Amway, formerly known as Quixtar a scam or is it a legitimate business?
I took a look at the Quixtar business model three years after I decided that it was not for me and I found some very shocking evidence that there might actually be a Quixtar scam…some of which I already knew.
My Experience with Quixtar
In 2004, I signed up with Quixtar after my old man introduced me to a lady who was an IBO. Wanting to supplement my paycheck to paycheck income as a goverment worker, I sacrificed and paid the EC$595.00 that it cost to become an IBO.
I thought it would be easy, being my first time doing network marketing. I soon found out it wasn’t.
I attended the meetings figuring I’d get better at it. I borrowed my uplines books because she bought them and didn’t mind sharing. The books were great. I learned a lot from those.
I tried to sell the products but people always complained that they were too expensive although I managed to sell a few things to some of my friends. Others promised they would buy but it always seemed that I couldn’t find them afterwards.
I got my upline to show a few people the Plan and I showed a couple people the Plan as well. No one seemed to be interested. It was always, “Its too expensive”, or “I might sign up, I don’t know yet”, or “I’ll buy something from you instead”.
All in all, I didn’t make much as a Quixtar IBO but paid whatever it was to attend meetings or buy some product. Somehow, it was instilled in me that I mustn’t quit and I signed up for a second year in which I grew less and less interested and began once again to search for something else.
I was lucky to find out about affiliate marketing soon after which I found more rewarding and much better than being a Quixtar IBO.
Dateline’s “Quixtar Scam” Investigative Story
Dateline did a story to expose Quixtar as a scam. It also posed the question of whether or not Quixtar was a cult.
Ok, scam is a bit harsh but cult? When you watch the videos though, it appears that they may be on to something. Hmmm.
Was Quixtar a Scam?
Surprisingly, I never looked at Quixtar as a scam. Just because it didn’t work out for me doesn’t make it that.
It was more of a legitimate business to me although it has a pyramid structure. There were product to sell and there was the opportunity.
Most pyramids just had the opportunity and no product involve or a vague product.
You might say that I didn’t try hard enough. Admittedly though, it is hard to make it in Quixtar no matter what they told you. The stats don’t lie.
Most of the people that acted “fired up” and had you believe that they were making it weren’t making that much. Many weren’t making any more than US$300.00/month.
There were others though that I’ve seen do very well and their stories always intrigued me.
Here’s What’s Wrong with Network Marketing
Of course there was something wrong with MLM businesses like Amway. They required you to purchase the products in order for it to work and sell them to people. They also required to sell the opportunity to people in order to advance and make more money.
The problem was that you had to go and find these people who usually didn’t want the product or the opportunity.
Now pick a business or store in your area. McDonalds. Starbucks. When was the last time you saw them go looking for people who wanted fast food? When was the last time somebody came to you and tried to sell you coffee?
The reality is that they advertised and the people who wanted what they sold came and got the products because they wanted it. It is definitely much easier to make money that way.
The Problem with Quixtar
Quixtar, as I had been told in meetings wants to be a business built on word of mouth marketing. You couldn’t sell your products from a store – all sales must be referred through an IBO.
Even though IBOs have their own replicate websites, they couldn’t advertise on the internet – although I’ve seen many persons doing it. It’s all in the Quixtar terms and conditions – you just can’t do it.
If you could do otherwise it would surely make it a whole lot easier to sell the opportunity and the products. With such harsh restrictions, they are hindering IBOs progress but some do get away with it since it seems the rules aren’t enforced.
Quixtar has since rebranded itself into Amway which is the name they go by these days. And me…
How I Eventually Made It
While I was still a Quixtar IBO, I began to look for other opportunities for making money. Some went nowhere but I found an ad in Small Business Opportunity magazine which led me online.
The benefits of this opportunity:
- I didn’t have to buy any products/carry inventory
- I could chose my own hours
- I didn’t have to cold call customers
- I didn’t have to involve my friends or family
- Thousands of products I could choose from
and my personal favorite
- I could work from anywhere in the world.
I had found affiliate marketing and now work full time from the comfort of home since quitting my government job in 2009.
Do you have any experience with Quixtar? Have you been approached about joining? What do you think? Let’s hear it in the comments below.