Quixtar Scam – Is Amway a Legitimate Business?

QuixtarThe 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?

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The fineprint

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.

Comments

  1. I was an Amway distributor in the 1970s and learned the hard way, that I was nothing but a customer for the company’s over-price products. I tried a couple of others with the same results. The laundry ball was great. I made $15,000 in three months, but then 60-minutes exposed it as a fraud and killed the business. But I have always believed in the power of networking so when crude oil dropped from $150/barrel in 2014 to $28/barrel in Feb 2016, I felt that I had to do something to give ordinary people a chance to cash in on the obvious fact that oil would go back up again…and it is rising fast already. It took me three months to devise a system and now we are ready to roll.
    It is an affiliate marketing system similar to an investment club based on rising oil prices, with a generous 10-level payment plan. The idea is to give ordinary people the opportunity to buy large quantities of oil for nothing but a membership fee of $25 per month. Nothing to buy, nothing to sell, and no actual investment. All that’s required is to help us grow a huge membership.

    I believe I have the tool to make many poor people wealthy over the next few years, but I need someone like you, with the experience and marketing expertise, to make it grow quickly before crude prices level off again. Will you please take a look at it and either join me or give me some advice?
    Thank you.
    Calvin Smith

    • Nothing to buy, nothing to sell, and no actual investment. All that’s required is to help us grow a huge membership.

      Calvin, this sounds like a pyramid scheme to me. On a 10 level payment plan, the people at the top are the ones that are going to be killing it and the ones at the bottom aren’t going to be making anything. With no product, you’re crossing into ponzi territory which you know is illegal.

    • Amway used to be called Quixtar for a long time before they changed it to Amway. They only started using Amway around about 2005 when I dropped out.

      Are you an IBO for Amway?

      • Jay – Amway has been around for decades, WELL before the Quixtar name was used. Amway introduced Quixtar as some kind of subsidiary or branch of the company, when online sales started taking off. 1999 I believe. (I was briefly in the business before realizing that it absolutely did not work for me, but I do have to give them this: the products were very high quality. Too expensive to be competitive, but I did like the products.) I got the impression that Quixtar’s primary purpose, besides trying to break into the online sales market, was to allow IBO’s to avoid having to use the Amway name, which many people have a very negative reaction to.

        • Ok thanks for the info. I knew about Quixtar’s history but didn’t realize that they were Amway before they completely changed the identity to Amway around 2005. Maybe I heard that in the seminars or something but it just never registered.

  2. Not only are several of your claims wrong, but as per how Amway, which became Quixtar in 98/99, which about ten years later returned to Amway, works … the goal is to first sell something, even if it’s only one thing, to any given customer. THEN open up more communication with them. If they like the ability to save money then bring up the business opportunity. There is the start~up cost, but over time it pays for itself and from then on it’s saving money. Those that don’t care to join the business opportunity can simply remain customers and purchase as they’re able to. Of course then there’s the product cost, despite the product quality factor. However, the products that IBOs should ‘push’ are the products that no other place has. The XS Energy drinks are the best energy drinks on the market (and only sold, initially by Quixtar and now by Amway). There’s their Artistry products… and other products that are Quixtar/Amway specific. Those that claim Quixtar/Amway is a cult, well… look up the definition of cult. Not one word implies any kind of self~employment opportunity as the possibility of being a cult. In fact, check Amways BBB rating (they’re an accredited BBB business)… it’s rated A+ … they currently have ten complaints closed in the past three years and four just in the past year. (So, try telling me Amway is a scam.)
    http://bbb.org/western-michigan/business-reviews/multi-level-selling-companies/amway-in-ada-mi-17004933

    • Well I didn’t say that Amway was a scam. I used to be an IBO of Amway and I’ve said that the experience was beneficial but it’s a tough business to maintain and grow. I won’t recommend anyone actually get involved in the business side of Amway but some of the products are very good.

  3. $1400 bucks a year. Jeez.

    It’s even worse when you consider how deceptive averages can be. When you take into account the handful of people making six figures, the vast majority of Ibo’s are making zip.

    I got the pitch from a guy back in the 90’s who said “Hush Amway.” The company has a bad reputation so you try to sell people on it without admitting what it is.

    Yeah, that sounds like a formula for success. “Hey, buy this crappy car that looks and drives like a Yugo, but I’m not gonna tell you what brand it is…”

  4. Amway invented products that were safe for the environment way before it was cool. The established manufacturers used their lobbyists and media cronies to soil the reputation of Amway. This article has many false statements. Statistics show that 80% of ALL small businesses fail in the first 5 years. Away has a 5 year plan, and if followed ( just like following a successful franchise plan ) you will become financial independent. A Starbucks cost half a million dollars to start up so how is the Amway 500 dollar start-up considered expensive? Am way is a brilliant, easy to run, convenient way to shop (100’s of other manufacturers products are available for purchase except you buy from your store instead of your neighborhood grocery store, stuff you already buy every month anyway) Amway, since 1959, has shown an annual increase in business every single year, 9 billion dollars in 2014. The business model, like many, works. The challenge is people don’t. IBO’S run into so much negativity when trying to introduce prospects to the opportunity.
    When the world wide Web started and e- commerce became available, existing IBO’S could continue to market the Amway products and personally handle the priducts, or choose to switch to E-commerce (which Amway named Quixtar) that partnered with 100’s of manufactures and thousands of products. You virtually owned your own Costco but without a building or inventory, and products yor bought for personal use were delivered to your front door, or to your customers front door. MUCH EASIER AND TIME SAVING. Teach others to duplicate what your doing ( like the franchise model ) and soon the volume in your business is enough to get your monthly personal goods (stuff you use to give your $$$ to Walmart to buy and lug home) for free. Than those people your teaching show others how to do the same thing, now your supplementing your job income with your small business income, and you have the satisfaction of seeing your business partners ( called down line or crossing ) succeeding and not stressing out with more month than income headache. After a few years, you quit your full time job to run your part time business because your Amway business has tripled your income, and your partners ( now your best friends ) and you can enjoy life instead of dreading Monday mornings. Does that sound like a pyramid scheme or a cult? Sounds like the American dream to me. Don’t let negativity, stink’n think’n, or fear, steal your dreams. Me personally, I was on track to have a huge Quixtar business, but sometimes life happens ( my mentors daughter and her boyfriend are murdered, crossline friends are killed by a drunk driver, etc.) But Amway saved my life, streaghthened my Christian faith, taught me to constantly learn from successful people, changed me from a negative, sour puss drunk, to a positive upbeat , enjoy every second of my like crazy fun loving dude. K.B.B.T!!!

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