thankfully see through the hype quicker than the rest of us. So there is a chance, and not a small one, that they can be talked out of the business, and the earlier the better. You are giving up on them too easily. I’m not that cynical. All of my downline quit well before I did.
If you come to someone with information against what they believe is a good thing your going to have resistence and they probably wont change there mind, however if you expose the upslimes for what they really are into the buisness for then you have a much better chance of people leaving or quiting the business. Your talking about people not renewing, that wasn’t the question
There are plenty of people who quit in the first year. In fact, 2/3 do not renew each year! So there is hope. Before they get too brainwashed, give them alternate information. Real facts. Tell them a good business owner is skeptical and puts together a business plan, with profit and expense projections. Go to the photos section of this club. We have a copy of a page that was a tear out to show prospects. It showed average GROSS income for Q-12 and above. A Diamond earns about $135K gross. I’ve done that NET most years since 1993, as a pediatrician, though it’s a lot less after taxes. More important is the fine print that has been magnified for better viewing. It demonstrates that less than 0.2% make Q-12. Given that the average Platinum lost $918 per year after all those system expenses, in a study done by the Wisconsin State Attorney General in 1982 (and nothing has changed for the better!) they are almost certain to lose money.
Ruth’s book is a huge resource–she has a chapter devoted to her Diamond’s income and expense record, which demonstrates that a Diamond’s lifestyle comes from the tools business and not the Amway/Quixtar business. The big Diamonds lie when they show their planes and their private islands. Another resource that I like the best are the multiple lawsuits of the Diamonds suing Diamonds over the tools business. These suits have court documents where it is stated that the income is really from the tape, book, and seminar business, and that the Quixtar business is a front for the Diamond’s real business, which is selling as many tapes and seminar tickets as possible. The transcripts for these suits are easy to find at:
On that website is a list of Diamonds and Emeralds who quit the business, and who had to go back to work!!!
My husband and I know all about Quixtar and it’s relations with Amway, as we have done extensive research on Quixtar. They cannot afford to lose the money and time that they will be investing in this company, and they are COMPLETELY convinced and they will be rich VERY SOON. Help. How do we convince them Quixtar is not the way to wealth?
You actually start to LOSE income, since the percentage paid to you is less than when the business volume of those people was flowing through you. I remember posing that question to one of my upline once. I don’t remember the exact answer he gave me, but I know it didn’t make sense. Now that I understand the flow of tool money, it all makes sense. What does it matter if an Emerald or Diamond’s Quixtar bonus money drops, as long as they’re making a mint off the ol’ tool trade, right?
BTW, I wonder if Don Storms will continue to rake in the tool bucks now that Quixtar has all but given him the heave-ho..
“Rules? We don’t need no stinkin’ rules!” say $100 in sales to members/clients is sufficient to qualify for any PV bonuses. There you have it. Sell $100 and you’re a bonified business builder IBO. Problems with that? That $100 at ‘suggested retail’ price would equate to just 89Bv according to Quixtar IBO plan. At the top 25% performance bonus that’s about $23 in bonus for those sales outside the business opportunity. ( 12monthsx$23=$276 annual bonus( + ( 20%x$100x12months=$240 annual gross retail profit) = $516 Gross income to cover typical IBO overhead per year.
Yes, Virginia, the pyramid IS negative.
The System motivationals make the pyramid REALLY negative.
How so? Typical Diamond System overhead runs in the $100s of dollars a month + borrow money online for the IBOs on System motivational junk.
Why would Rich Devos believe a 20% of gross sales as an appropriate level of BSM consumption per IBO? Top pv bonus is just 25%, and shipping charges average 5-7% per order. Following Devos suggestions would leave 99% of IBOs with NO profit.
Dateline, Dateline, wherfore art thou, Dateline?
Quixtar has the potential to earn you some extra cash. For most people it amounts to “fun money” – a movie here, a CD there….. ironically, if you look around a bit, you’ll even find people who might want to be a retail customer of yours if you give them a break on the retail price.
The chances of you “finding your dream”, “retiring”, blah blah blah are VERY slim – go to Vegas or buy lottery tickets; they’re faster.
If you are part of a “motivational organization” or “system” – then you are indeed looking at a money pit unless you have the gumption to say NO when your expenses exceed what you wish to be your profits. There will be HUGE pressure put upon you to “spend now to build your future”. You will probably be shunned by your upline.
I ran the family distributorship for years – it’s literally “the top of the heap” – the oldest and largest distributorship in the world, outside of JA-RI (Rich and Jay’s). I was given the opportunity to buy it recently – and on terms that anyone on this board could have afforded; and I didn’t want it. No way – no how!
I’m pretty sure Quixtar is the largest MLM, but any of them that have these “training fees” “motivational tools” “functions” etc are going to chew through your wallet in the same manner. You can find all the motivation you can stand at your local library for free.
The 3% IBO gets a $7.50 check. How much did they invest into system tools and function tickets? Did they sign up downlines? How much did they group invest into system tools and function tickets that month? This 3% group shares just $7.50 in gross income that month.
The 250bv generates just $87.50 (250bvx35%) in gross income for the entire organization. This includes performance bonus, ruby bonuses, Leadership bonus, profit sharing, Emerald, Diamond, and EDC bonuses, and Q12. What % of IBOs are at the 15% bonus? The 6-4-2 IBO plan shows 98% of IBOs below 15% bonus, meaning 60% of available gross income goes to the 2% of IBOs at 15%+ bonus levels. The average system IBO at the major functions makes less than the income average claimed in the IBO plan ($115 for ‘active’ IBOs–66% ‘active’).
Many system IBOs have posted their average system expenses and these expenses are not much more or less than the $262.50 gross income generated by each 300pv in sales to the IBOs and their members/clients.
What is missing from these equations? Retail sales to end-consumers.
The IBOs on the systems generate most (80-95%+) of Quixtar sales thru self consumption of the PV, but are conditioned to focus their efforts on recruiting (registering) more IBOs and promoting the system to these new recruits, in addition to the concept of ‘buy from your own store’. IBOs below the 25% bonus are considered B2B (business to business) customers of their uplines’ IBOs; more importantly, these IBOs below 25% bonus are the end-users of the uplines’ system of tools and function tickets.
The IBOs are conditioned to buy tools and function tickets and find more IBOs to buy more tools and function tickets.
IBOs are taught to retail. Unfortunately, the IBOs are retailing the system tools and function tickets and participating in NONE of the profits fromm these sales. It’s called ‘legal fiction’.
SPAN SYSTEM PLATINUMS ARE NEGATIVE.
I encourage every IBO to replace ‘tool’, ‘system’, and ‘function’ references on the tools and in the speeches to ‘soap’.
Focus on promoting and selling the ‘soap’, not the ‘hope’.
Enjoy paying your 1000% margin on tools and function tickets, suckers.
My Grampa was only an Emerald – the REALLY big checks go to our downline. And we never got any of that “system” money because we weren’t in one. We were sort of the “bastard child” of Amway…. and I personally am just a distributor under my Grampa (but ran the warehouse) – my whopping big bonus checks barely cover the cost of renewal every year 🙂
Fortunately, my husband has a real, honest-to-goodness 8 to 5 job; and keeps a lovely roof over our heads 🙂 He would also remind me, when I was pounding my head on the desk over some crazy thing that Amway would do – that Amway is not much different than any other big corporation, since he experiences the same feelings with the huge corporation he’s with…..
Here’s “my” acronym: GINAD – glad I’m not a diamond 🙂
No more products, no more Amway? No more?
Reason I ask is I interviewed an Amway/Quixtar IBO about two weeks ago. He was rather proud of his accomplishments in the business. On Thursday, I made him a job offer in Sales. He grabbed it pretty quick.
It just seemed odd.
Cell phone service has to be $40 a month, or maybe $60 a month for premium service, and that price may go lower, as much as companies have tried to product-differentiate, and as much as they have tried to use tricky pricing plans. It is basically just a commodity service.
And yeah, 1% sounds way too low for a commission sales person.
Yeah, the products are kind of alright, but they’re so expensive! Super premium prices for what are merely premium products.
So, something like phone service which might work as part of network marketing because you’re not transporting product, the price is just too high, especially for something that is basically just a comodity service.
a friend of ours tried to get us to see the mistake we were making. He gave us a binder full of articles and price comparisons, including an excerpt from Paul Butterfield’s book, “Amway: The Cult Of Free Enterprise.”
None of that worked. We were being manipulated by an expertly devised system that would use our friend to get us involved.
Telling someone that he/she is wrong about MLM is a tactic that is easily dismissed and will probably backfire.
I wish I could enlarge that sentence onto a billboard:
**Telling someone that he/she is wrong about MLM is a tactic that is easily dismissed and will probably backfire.**
The only method I’ve found to intervene that has any realistic hope of working is to ask questions. Learn as much as you can about MLM and about the particular company, and then ask “I don’t understand…”-type questions. If you can engage their critical thinking skills, you might have a chance. If you simply appeal to their emotions, you lose.
You can’t tell them they’re wrong; they have to find that out for themselves. They want to believe they made the right choice by getting involved, and they want to trust the people who recruited them. So you are fighting a battle of trust. And you don’t have the experience against their recruiting systems to win.
So the only path available to you is to get THEM thinking. “How long do they say it will take to get to the first achievement level? What happens if you don’t get there by the proscribed date? Do they just tell you to keep on going, even if you are losing money? All businesses (that are really businesses) have a ‘drop dead’ date. Were you encouraged to set one?”
“What about training? On my job, I’ve been given all the training I need at the company’s expense? I don’t understand why they have to have so much training, at YOUR expense.”
“Did the leaders claim that they don’t make any money unless YOU make money? What about all those training materials? Do they disclose how much profit they make from that? Or do they deny making anything?”
I hope you can see by now that these are the kinds of questions to which they may offer snap answers, but they’ll end up thinking about them more deeply in their own time.
Then all you can do is hope, and maybe pray.
Keep reading. Keep learning. Don’t give up on them. And most important of all, be there for them when they discover the truth about MLM and abandon it. Don’t criticize them for ignoring you. Don’t tell them “I told you so.” Just be grateful when they come out of it.
They’re going to need love and support in order to come to terms with what is happening to them. You can offer that, if you don’t burn the bridge.
What about Kendall Cho and Nikken … I guess he’s leading this company.
My parents have just signed up and are convinced it’s a great thing. I personally think the products are weak but very expensive. I’m just getting home from a seminar hosted by Linda Proctor. This is the first time I’m being exposed to MLM scheme. Any advice on helping my parents understand that this isn’t a good thing and they should cut their losses which they still have some $ and friends?
I had some health products left over & tried to sell them on eBay. Not one bid & they never sold. I’ve seen others trying to sell those things too & put them on my watch list to see if they’d sell..and they never did,at leat on my watch . No one wants that MLM crap. They’ll bid for all kinds of nonsense but not that stuff.I was given some “business books” & tapes to “hand out” & I put them all in the trash.