New Scam In Town?

Quixtar or Amway is a multi-billion $ world-wide company, and is a class act. Some of it's independent distributors are not though. Their margins are not "razor thin", but exactly the opposite. I wouldn't judge any manufacturer by how an independent distributor of their product comes across.

Amway $10.2 billion in Sales Fiscal 2010-2011

 

Quixtar or Amway is a multi-billion $ world-wide company, and is a class act. Some of it's independent distributors are not though. Their margins are not "razor thin", but exactly the opposite. I wouldn't judge any manufacturer by how an independent distributor of their product comes across.

Amway $10.2 billion in Sales Fiscal 2010-2011

If you don't believe the info in this link just Google 2011 Amway sales figures.

 

Revenue isn't profit. You can even take a loss on revenue, no matter how high that number is.

I don't know what products Amway or Quixtar sell today, but when I attended the meeting, I saw that Quixtar sold many of the same products that I could find locally in retail stores. I'm assuming that for these products, they would have to be competitive with Amazon and Walmart, and those companies make thin margins on the products they sell. That's how they got so huge. You can't compete with them because they have such efficient supply chain management and negotiation power with their suppliers. I wouldn't buy something from Quixtar if I know that I can get the same thing cheaper during my next shopping trip to Walmart.

They may make good margins on some of their products, but I'm betting the best margins come from selling their business training and motivational materials. That's a great way for them to make money and drain what little profit their IBO's might bring in.

Sure, Amway / Quixtar probably have their own branded products that aren't purely informational products, but that's not their focus. Can they really provide something unique or innovative when that's not their specialty? This isn't a company which would be able to invent the Iphone. It's just a retailer which peddles the same products that any other retailer has access to (assuming there is enough demand without having to scam people with lies about the product.)

I don't understand how someone could think that selling for Amway or Quixtar could be a good idea. They take in anyone who is willing to take a go at sales. What other business operates like this? It seems to be that a more successful model is to retain the top sales people and cut the bottom feeders so that the top sales staff have as big of a pool as possible of potential customers to pitch to. I imagine nothing pisses off a skilled salesman than watching others blow opportunities which could have been turned into sales for someone else.

Running a business takes a lot of hard effort, no matter what business you are in. What I think the Amway / Quixtar IBO's don't realize is that there is a whole world for business opportunities and if they are good at being an Amway / Quixtar IBO then they could likely be successful selling just about anything. Why work with these B.S. companies when you could likely make far more money pitching products for a company which isn't competing with Walmart. How much money does an IBO make selling a bottle of laundry detergent? As a programmer, I would rather be selling high margin software to other businesses, or start my own business selling my own software (everyone has their unique experience and knowledge to apply to something like this.) If I'm good at that, then there is nothing special that Quixtar or Amway could bring to my table.

 

Filipino's have a nose for scams and buy into them at every chance they get. I've had a number already in my time here while at the boulevard try and sell me into the next "best thing". I ask questions they can't answer and keep asking me to the office for a seminar that will change my mind. When I can get answers I show that the profit margins are so terribly low that you can't ever make it worth the time (and I'm talking by filipino profit margins, not what I'd personally want). Other times I simply show how said product is a scam and worthless yet they still swear up and down by it. Very gullable people here.

 

You're missing it. Unfortunately a lot of people are very closed minded when it comes to multi-level marketing and companies like Amway. Amway started by selling basic consumer products that THEY MAKE. The products THEY MANUFACTURE in their own manufacturing facilities number in the 1,000's. And no that doesn't include variations of the same product such as size or color etc. They made them in the beginning. They made them when you saw the "opportunity" and they still make them today. The icing on the cake, but not their largest money maker, is selling products that they do not manufacture. Since so many people have a stigma about selling their base products like soap, household cleaners, cosmetics, vitamins, etc. a lot of their independent sales force pushes the fact that they sell other things (that can be found almost anywhere). Some of those products do not have a big mark-up, but some do. They are super easy to sell too. People pick items out of a catalog that is given to them, and the company does all the work of delivering, paperwork, and payment.

Most companies throughout the world participate in "multi-level" marketing in some form or another. A manufacturer makes the product. It is sold to a wholesaler or distributor who makes a profit by selling it again to either a retailer (who makes a profit) or directly to the consumer. The main advantage to selling consumer products is that people buy them, use them, and buy them again. Everyone needs toothpaste, laundry soap, and cleaners of various kinds. Some of the largest and most profitable businesses in the world sell basic consumer products.

Selling "high-margin" software or any other "high margin" product is great, but after the sale is complete how many customers buy that same product next week, next month, or next year? To effectively sell that kind of product all the energy is focused on finding new customers. I've sold "high end" products. Beating the bushes, cold calling, or chasing "leads" gets old. With selling consumer products, if the product is very good quality and offers value that the customer can't find elsewhere, the customer will buy that same product again and again and again. It doesn't take very many of these customers to generate a large amount of repeat sales. The "salesperson" doesn't have to concentrate on always finding new customers, but instead focus on the customers they already have.

With Amway the sales force buys their product directly from Amway and the distributor that introduced them to Amway gets a cut, just like if a retailer buys a product from a wholesaler, the wholesaler takes their cut. The main advantage of being an Amway "wholesaler" is that the "wholesaler" doesn't need to stock anything or do any paperwork, but still gets paid! They can go anywhere or do anything instead of holding a conventional "job" and still make money! They can sell retail, and they also sell "wholesale".

I personally know people in Amway that are ridiculously wealthy with their own airplanes, million dollar houses, etc. They don't make their money by selling "motivational materials" either. Their primary source of revenue is from selling what the company manufactures. Secondary is from what others manufacture. I've seen the monthly detailed print outs they get. It works if a person is willing to work hard, just like you stated above. Does everybody in Amway or any form of multi-level marketing make money? Of course not! The ones that don't aren't willing to do the work that it takes to make the $$. Is it for everybody? No.

As far as "training and motivational materials" go. Amway doesn't make them or sell them. They all, with VERY few exceptions, come from the "network". You could say that the "wholesaler" is gung-ho about selling, and produces all the motivational materials. Amway doesn't make them.

I don't sell Amway products, and I don't care if you or anyone else is interested in selling them or not. I'm just trying to clear up the misconceptions you, and a lot of other people have. :D

 

Great to have a new scam in town. Was getting tired of the same old.

 

Would it be surprising to know that Amway and/or Quixtar makes most money selling their motivational materials compared to products they claim to manufacture and sell?

In pursuit of the almighty dollar - Dateline NBC - Consumer Alert - NBCNews.com

 

Back in the old days Amway was selling cars, houses, etc...and they were BIG! I must admit that members do treat themselves like a cult and meet every weekend without fail having a coffee, etc, but they seem to think that they are a seperate breed of class back then....

 

Fair enough. I wasn't close minded because of the idea of selling retail products, it was more the vibe of the whole meeting that I attended. But keep in mind this was one Quixtar meeting probably around six years ago. A search for the name on the internet after the meeting didn't make me feel any better, so that was my last meeting. I don't doubt there are people making good money from Amway though, you can't argue with the numbers.

 

Amen, to that... but then, even small profits end up making millions if you are at the top...