Amway launched Quixtar in the year 1999. For just a ten year old company, Quixtar is already now recognized as Amway Global.
Amway products and Quixtar products are practically the same. They offer not only just nutritional supplements, beauty appliances and cosmetics but, even equipments accessible through a friend without having any need to get into a store.
The company makes use of the concepts of MLM (multi-level marketing) business technique, meaning that a salesman can gain more profits by recruiting more people. However, Quixtar has an added advantage of one thing, the old Amway model didn’t have: the Internet. This establishes Quixtar as the 21st century Amway – a network marketing business.
It may make people questions about, the company getting into hassles of advertising through the web, since it still enforces publicizing orally and with little or no advertisements. However, as many viral emails exhibit, just approaching the people one knows, can proliferate into thousands of contacts a day.
For a person who wants to become an IBO(Independent Business Owner), he must get acquainted to another IBO. Quixtar family encourages its business owners to build their own website, in order to publicize the products. As a matter of fact, it is a prerequisite. Quixtar is devised to be a web business.
As in any store, IBOs are asked, to first buy the products they want to re-sell. In addition, they are perked up to enlist other IBOs. An IBO gets the commissions from his recruits, just as the recruiter generates revenues off of all the IBO’s purchases.
The only obstacle, is the fact that Quixtar disallows formal publicizing of IBO’s websites. So fundamentally, it gets back to the outdated word of mouth and man-to-man correspondence in modern-day means. One would consider social networking sites like Facebook, MySpace and orkut as a good medium to spread the word out. However, since Quixtar’s rules are often lacking clarity and distinctness, such kind of activities may breach their policies and conditions.
The platitude “it takes money to make money” is maintained, too. Right from kickoff, the IBO has to bear the expenditure, to build and manage a website, in addition to spending some amount on purchasing the products to sell. The expenses should also include a starter kit worth $200, to be counted in the budget.
The IBO gets revenue off of the retail net gain to buyers, alike any other store would. Apart from this, every member generates a 3-25% of business aggregate, determined by productiveness, and both monthly and annual leadership commission and additional compensations, based on group accomplishments.
Even though it may appear to be a pyramid scheme, but Quixtar affirms that it is, as a matter of fact, not. Each participant of the team, is a legal business owner. And comparable to any small business owner, each one is responsible to come up with his own interesting techniques and designs to create revenues. Of course, along with following the company’s rules and regulations as well.
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