Quixtar is a daughter company of Alticor, the 25th largest private company in the United States, and globally the 108th largest retailer in the world. Alticor's most famous company is Amway, which began in 1959 as a direct selling company. They migrated their business model to the internet in 1999 as Quixtar, and Amway no longer operates in North America. Put simply, you can earn income by generating sales for Quixtar. You can do this either through your own shopping, through purchasing and reselling products from Quixtar, or by referring other people to the Quixtar website. These people then have the same opportunity as you do.
Like any business, it takes time and work to generate a significant income in Quixtar, and very few people who start with the opportunity persist long enough to reap the rewards. This of course leads to a lot of criticism from people who, for whatever reason, thought it would be easier. Of course, some of the blame lies with those who introduced them to the concept. I operate a website where I am collecting information about Quixtar - http://www.thetruthaboutquixtar.com
2006-09-16 11:54:52
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answer #1
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answered by David Steadson 3
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Quixtar is a multi-level marketing company, founded in 1999 by the families of Richard DeVos and Jay Van Andel. Quixtar is now owned by Alticor, which also owns Amway. While Access Business Group (also owned by Alticor, Inc.) took over the Amway infrastructure in North America, Quixtar still services "Independent Business Owners" (or IBOs) operating in the Amway business model in the United States, Canada and the Caribbean. It completely replaced Amway in 2001 as the marketing venture for products such as Nutrilite dietary supplements, XS Energy Drinks and Artistry cosmetics in those North American regions.
Quixtar and its predecessor Amway have been controversial for years because of allegations that these companies are pyramid schemes despite the 1979 FTC ruling (93 F.T.C. 618 (1979)) that legitimized the Amway business. Critics claim that most of the products sold by Quixtar are to its network of IBOs for personal consumption rather than to retail customers. They claim that many IBOs practice the "buy from yourself and teach others to do the same" method of multi-level marketing. However, in order to receive any earnings on their organization's sales beyond their own and their personal customers' use, Quixtar IBOs are required to sell either $100 of product to customers, 50 PV of product to customers (PV are a conversion of dollars to points, contributing towards the earnings bonus scale for IBOs), or sell to 10 customers in a given month. If not ordered directly by a customer from Quixtar.com, the website also allows an IBO to distinguish between personal consumption and retail sales. For instance, an IBO may choose to stock product at home and mark them as retail sales when sold directly to customers. However, it is based on an honor system: an IBO does have the ability to mislabel goods purchased for personal use as retail sales as well. By this loophole, Quixtar IBOs can bypass a 1979 Federal Trade Commission ruling that addressed this issue. See Litigation below. Many Quixtar leaders emphasize preventing this problem by offering those not interested in becoming IBOs the opportunity to become customers.
There is also a great deal of controversy surrounding the "Amway/Quixtar Motivational Organizations" (AMOs or AQMOs) owned and operated by high level distributors. Quixtar and the AMOs, such as WorldWide Dream Builders and The Team (QMO), claim that the business skills of IBOs are honed by the business support materials (BSM), or "tools", that are sold by the motivational organizations, and that the support material can be of help to an IBO if he wants to build a big business. Furthermore, during the registration process, IBOs are required to accept an agreement that is intended to make the new distributor aware that the BSMs - books, tapes, CDs, informational literature, seminars, etc. - are purely optional and that requires the above-mentioned AMO/AQMO's (also known as LOA, or Line Of Affiliation) to buy back any defective or unwanted business support materials within a reasonable time frame. New IBOs are also made aware that the producers of these "BSMs" are likely to make money selling them.
Critics, however, charge that many of the AQMOs do not provide reasonable terms for refunds and can exert pressure to induce participants into purchasing large amounts of these BSMs and to attend motivational seminars. The sale of the motivational tools to IBOs down the line is described as the "business within the business," of Quixtar from which the high-level distributors allegedly make the majority of their income. Undercover investigations (like one done by MSNBC Dateline in 2003-04) also suggest that much of the money being earned by the high-level distributors in some organizations was coming from the "tools" business rather than by selling the products of Quixtar. However, many argue that this is no different than successful athletes, entrepreneurs, and stockbrokers selling their experience and techniques through books, websites, or training systems. The Team (QMO) line of sponsorship, founded by Orrin Woodward and Chris Brady, offer profit sharing of tool money, with those achieving the Platinum level and above. Though Quixtar representatives declined to appear on the MSNBC special, the company did publish an official "Quixtar Response" website. Supporters claim that the Quixtar business model is the standard that the FTC uses as far as a legal network marketing business. Critics claim that although legal according to the FTC, the business practices that some AQMO's teach are unethical and immoral. This one point has been a focus of debate between its critics and supporters for the past 25 years.
2006-09-16 01:44:15
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answer #2
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answered by Fabo 2
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