Saturday, November 20, 2010

Amway Global Business Analysis - a look at the Amway Quixtar business opportunity

Amway Global Business Analysis - a look at the Amway Quixtar business opportunity: "The general public does not take time to understand the poor overall economics of Quixtar's 'buy from your self' product merchandising plan.  Federal Trade Commission pyramiding regulations require companies like Amway/Quixtar and their Lines of Affiliation to sell a majority of their volume to non-distributors to avoid being an illegal pyramid scheme.  In reality most distributors have no customers besides themselves.  An active Quixtar distributor could spend a couple of thousand dollars and hundreds of hours per year to promote a business model that has just a few thousand dollars of sales, with most sales to the distributor himself.  When you add up the actual cost of time used to promote this scheme and compare it to the volume of product sold, it is has to be the world's least efficient product marketing method.  Distributors are taught 'If the dream is big enough, the facts don't count'.  The facts make little difference to most distributors since they are taught to believe their dream is possible for anyone willing to just work hard enough and recruit enough people to the pyramid."

1 comment:

  1. Great post! You have summed up what is wrong with this opportunity!

    ReplyDelete

Not moderated but I do delete spam and I would rather that people not act like assholes.