Quixtar/Amway/cult businesses

[kddani]

Just saw a commercial during the Macy's parade for Amway... touting how great it is, how they had $7 billion in sales, allowed people to start their own businesses, etc. Made me remember this thread.

The "your own business" stuff is crap. You're a salesperson for them. It's not your own business.

[fantASTic]

Originally Posted by kddani

Just saw a commercial during the Macy's parade for Amway... touting how great it is, how they had $7 billion in sales, allowed people to start their own businesses, etc. Made me remember this thread.

The "your own business" stuff is crap. You're a salesperson for them. It's not your own business.

Amway is a great business that does a lot of good for a lot of people. There's a reason for their success - businesses that are scams don't last that long.

It's a lot different from many MLM systems, because you don't put any money down - no "give us $1000 and we will make that back for you five times over!".

I don't work for them or anything, but I do think that they are a great business.

[epchick]

Originally Posted by kddani

The "your own business" stuff is crap. You're a salesperson for them. It's not your own business.

You might be their salesperson, but you do get a percentage of what people buy from your "business." My uncle does the whole Quixtar thing, and he makes a good amount of money from it.

[kddani]

Originally Posted by fantASTic

Amway is a great business that does a lot of good for a lot of people. There's a reason for their success - businesses that are scams don't last that long.

What about all of the people that it has hurt? People that it has ruined financially? People who were brainwashed and driven away from their families because it has just taken over their lives? I've seen it first hand.

Originally Posted by epchick

You might be their salesperson, but you do get a percentage of what people buy from your "business." My uncle does the whole Quixtar thing, and he makes a good amount of money from it.

Salespeople get a percentage of what people buy from their "business". It's called commission. Just like a car salesman, etc.

[epchick]

Originally Posted by kddani

What about all of the people that it has hurt? People that it has ruined financially? People who were brainwashed and driven away from their families because it has just taken over their lives? I've seen it first hand.

Wow that sucks! I'm sorry that happened to whoever you know. But at the same time, did they rely on it as their sole source of income? I see it as comparable to any type of small business, there is always a chance of failure.

I have tried Quixtar and I know that I am not the type of person who could do it as my only source of income.

Originally Posted by kddani

Salespeople get a percentage of what people buy from their "business". It's called commission. Just like a car salesman, etc.

Well then, I wish I could make the ~$25-50,000 my uncle makes in "commission."

[fantASTic]

Originally Posted by kddani

What about all of the people that it has hurt? People that it has ruined financially? People who were brainwashed and driven away from their families because it has just taken over their lives? I've seen it first hand.

In Quixtar? I doubt it. As I said...you do not put any money down. Where are you losing?

[33girl]

Can I use this space to vent once more about the people who only sign up for GLO private sides/yahoogroups/facebook to plug their MLM business?

One of my sisters is a district director w/ Mary Kay but she is very respectful about not pushing it and she always contributes to the discussion of the subject at hand. The people who never say anything except telling you where their next sale is are the ones that irk me.

[KSig RC]

Originally Posted by fantASTic

In Quixtar? I doubt it. As I said...you do not put any money down. Where are you losing?

So your time has absolutely no value?

You're unwilling to receive full dispensation for sweat equity, while the people above you take a cut for literally no reason?

MLM scams usually require little to no start-up . . . it's the lost opportunity and the crappy pay that makes them suck.

[RU OX Alum]

what is prepaid legal? How could you possibly pay in advance for a lawyer? Or probably not a lawyer.

[summer_gphib]

We were members of PPL for a while, and it actually did come in handy. We signed up for help in starting our own business (they reviewed our documents etc.)

But it did come in real handy when we had trouble with Wells Fargo. We had paid off our car, and it cleared our account, but they refused to credit it to our account. We got ahold of the fraud department of our bank, and they proved that Wells Fargo had actually cashed the check, but Wells Fargo refused to make any changes to the account. We got ahold of PPL, and within a few weeks we had credit, and a letter of apology. ETA--It was about $2k in question.

We no longer have PPL, but it did work for us. We didn't sell it though. I have been through Monavie and Primerica, and I even sold Mary Kay for a while. I'd never do another MLM.

[RU OX Alum]

Originally Posted by DrPhil

I say that it's mostly a scam. I have warned people against it for years. A lot of people don't listen to me until they've already invested time and money. Then they say "I should've listened to you."

http://www.prepaidlegal.com/

Thanks for the link. Yikes. Who would get a lawyer for a speeding ticket anyway?

[epchick]

Originally Posted by KSig RC

So your time has absolutely no value?

You're unwilling to receive full dispensation for sweat equity, while the people above you take a cut for literally no reason?

MLM scams usually require little to no start-up . . . it's the lost opportunity and the crappy pay that makes them suck.

Your time has value, but how can it ruin you financially? Maybe people you all know have gone to really crappy business meetings that make it seem 100% foolproof. But the good business meetings will let you know that it isn't. They'll give you some statistics about how 'successful' you'll be (like that out of every 10 people you introduce to Quixtar only 1 will actually use it).

Again I compare it to small business. Not all small businesses succeed--not all Quixtar endeavors succeed. To me it's common sense to continue to have a stable job while you pursue Quixtar. If your friends didn't have that type of common sense, well i'm sorry. But it isn't Quixtar's fault. They don't decide how successful you'll be, you do.


ETA: and by 'you' it's a general you, it's not directed towards you KSig

[cheerfulgreek]

It's all network marketing bull designed to make people poor and the person/people who started it richer. They make it SO obvious too when they approach people trying to suck them in.

[KSig RC]

Originally Posted by epchick

Your time has value, but how can it ruin you financially?

I'd guess the common pathway is that people put an amount of time/effort into the Quixtar business, and never recoup enough to cover their monthly nut, thus dipping into/exhausting savings and general liquidity. Combine this with easy equity refinancing, and there's a definite opportunity for a problem.

Sure, some of this is probably the fault of the person taking on the 'job' - but the entire premise of the MLM is that the person at the bottom of the pyramid takes it in the ass for the people at the top. These people aren't really being compensated for their work. It's not a direct-line work/reward ratio, which is basically the definition of a 'scam' and the people running it are douche bags for it.

Again - because of the structure, the people at the bottom need more than 'hard work' to succeed . . . generally, they need to recruit more and more people. This is an untenable system - the later you get into the 'chain' the worse off you'll be.