Quixtar - Compensation Plan
When I enrolled more than 12 years ago I believed in the premise that this was "it" in the industry. My personality may be similar to yours: if I am going to work at something I am going to succeed. In doing so, I never looked around to see what else was out there. In fact, that behavior was greatly frowned upon in the "teaching" I received. I complied, and worked diligently. However, upon leaving that business I began to study the industry itself. I recognized flaws that would have been apparent had I only acknowledged my own concerns early on.
I used to say, as many of you still do, "we pay as deep as we go in depth". What I could never understand was, if it was so good why did so few make any real money. I heard people say countless times, "We made $250 last month!" What many of them did not say is that they spent $500 in books, tapes and seminars that same month. This is a net loss of $250.
It may be very simple for some of you to tell me that in the early stages of a business one is expected to spend more than they make. I would agree. However, I would remind you that I am talking about people that had spent years pursuing their business.
People like me were used as the examples of how it could be done. Because of our early successes, we stood on stages and repeated the same things we were taught. Yet, over time I saw fewer and fewer people achieving any significant levels of income. (It was then that I began sharing my concerns and was told it would change. This feedback came from my "upline" as well as the "corporation".) Additionally, those I saw generating the larger incomes were doing so as a result of the business support materials income
Regarding this notion of paying as "deep as you go." I would ask you to rethink the benefit of that statement. Remember, a dollar is just a dollar. The "further you go" the more diluted it becomes. Some companies say they pay 20, 30 levels deep or even infinitely.
How many levels deep are you? Not how deep do you want to be, but how many levels deep are you? How long has it taken to get there? Be honest with yourself. I would encourage you to call the corporation and ask them this: how many people does the average IBO sponsor? The answer might surprise you. You might be told by your "upline" not to worry about the average person. Be the "above" average person, you are told. Fair enough, who are they? How many of them are there? How do you identify them? How many do they sponsor? How many new platinums or emeralds have your own diamonds "broken" lately? Most people never gain depth. Additionally, who is the beneficiary of depth? From my experiences, it is once again a small few.
The point here is this: it does not matter just how it looks or sounds, but how it works. I witnessed people more ambitious than myself fail to build any real depth. These were not lazy people. They were good, hard-working people. Many left being made to feel as though they were failures or quitters. They were neither.
On this topic of depth I would encourage you to ask your corporation the following question: "If I have $1,000,000 of volume in leg A, and 2500 to 7500+ PV of volume on the side, do I receive 4% of the $1,000,000?" Many people think so. However, that is not true even though many of us were told this when seeing "the plan". The compensation plan can be very confusing to most people, in or out of that business. It is therefore easy to gloss over issues that are critical to developing a solid personal business plan.
Most of the diamonds I knew could not explain the intricate "workings" of the plan. That is one reason you may hear the following cursory answer to many thoughtful questions: "You need to worry about that when you start making the money."
Think for yourself for a moment: would you take a job if you did not know the specifics of how you were going to make money?
Mr. Short has his opinions, but how many ceo's are at the top of corporate America, and how much did they spend to get there in college trainings etc. I guess its all relevant to what we want
Posted by: Jim | May 15, 2005 at 05:17 PM
Jim:
If you were going to get an MBA, It would take you 2 years. At the most expensive colleges, it would cost you $50,000 each year.
That's a plan.
Posted by: Enrique | January 21, 2006 at 07:39 PM
Whether or not you are in the MLM industry; there will be those that agree with the compensation plan and some that don't. One thing is for sure, you don't need an MBA to figure out your profit after expenses. The easier it is to build your business through word of mouth and the more money you make after your expenses, the better. Do your market research on the many companies, products available, etc., and then pick a company that is stable, fair with it's compensation and suits your interest. Scenario: Let's say,if you were wanting to provide reliable transportation for you or your family, I would hope that you thoroughly check out all the makes and models on the market and compare quality against the price and pick the one that best suits your needs. Now, if you happen to buy a lemon, or even just a mediocre vehicle, because a friends, or an enthusiastic stranger, told you it was the "bomb", then you are going to have a hard time convincing anyone that your decision is a good one. Here's another scenario to consider: If you were to stand losing...say... $200,000 off your hard earned money on a franchise, I'm guessing you'd all do some thorough market research before you committed to anything. Check out what MLM companies are at the top of their industry and why, you'll get the answers you need. If a company is not set up for the average person to make money, according to the MLM market research stats, then, it is not for the average person. And thus you will have to work much harder...and good luck with that! Common sense is on every street corner, providing you don't step off the curb without first looking both ways!!
Posted by: Dan | March 12, 2007 at 10:38 AM
I used to be in Quixtar/Amway years ago. One thing I noticed about Quixtar people is they are very pushy because they lose all their volume at month end if they don't hit their mark. Also they want to show you what they have but if you want to share something you have they get very upset with you. It was so bad that I had to cut all ties with my old buddies in Quixtar. I like to do business without worrying about hitting a monthly deadline and getting a $20 check for spending $300-$400 a month
Posted by: Cliff | August 07, 2007 at 09:12 AM
I was in quixtar for 2.5 years and totally agree with Bo Shorts. Quixtar has the worst compensation plan. In fact according to Quixtar themselves (public documentation) they stated that only 66 distributor out of all the distributors in Quixtar made a 6 figure income in 2001. None of which have made a 7 figure. Network marketing is a great business model with the right business. Unfortunately It took me 2.5 years to figure that out. I have since become a distributor at another network marketing company and archieved in less then 3 months what took me 2.5 years in quixtar. I did learn alot from being a distributor at quixtar. Just don't expect to make any significant amount of money in it. What do you expect with a comp plan like they have an a 95% turnover rate in a 5 year period.
My suggestion for everyone in quixtar, you are on track with the thought of building your own business, and network marketing is awesome. Do some real research and due dillegence and find one that actually works.
Posted by: Andreas | August 23, 2007 at 12:44 PM
Quixtar's compensation plan is very slow. They have a huge turn over rate. I was introduced and things just didn't add up for me. I didn't want to be on an emotional roller coaster by joining them. I am happy where I am. Profit from month 1.
Posted by: Derik Tutt | November 09, 2007 at 12:13 AM
I am a fairly new ibo with quixtar.. A few months with 2 ibo's personally sponsored. I have yet to spend anything on cd's and books lol. My upline provides all of it for me. This business isn't for everyone just like doing construction or plumbing or whatever else type job isn't for everyone. But to down the business isn't going to do anything i'm sure there are ups and downs in everything even the new organizations some of you people went to i'm sure its not all fine and dandy because if it was everyone would be doing it. Thats just my opinion
Posted by: David | February 18, 2008 at 11:17 AM
A great quotation for our times from Jim Collins: "If we allow the celebrity rock-star model of leadership to triumph, we will see the decline of corporations and institutions of all types. The twentieth century was a century of greatness, but we face the very real prospect that the next century will see very few enduring great institutions." We would do well to pay attention to his reflection.
Posted by: 2008 Leadership | August 20, 2008 at 11:11 PM
My advice is to learn as much about any business you decide to venture into. The support material (Books and CDs) are OPTIONAL, so don't make that an excuse for expense. If you can afford them in your profit/loss statement then consider them, if you can't don't.
This is YOUR business. Don't let people push you around! And have you ever seen a salesperson get angry when you don't buy his product? He moves on! He knows if he doesn't make a sale he makes no commission so he moves on. So why don't we do the same??!! It's just juvenile to be angry. remember, not everybody wants to be a doctor or a lawyer, same here.
All in all, if you know how your compensation plan (business) works then you know what you need to do to stay in business. Don't go pointing fingers at others, your life IS in your hands not someone else's. If you knew your life depended on it like you do in your job, you would find a way to do it.
Posted by: Devanand Singh | September 17, 2008 at 02:54 PM
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Posted by: sirada | July 06, 2009 at 03:39 PM