Quixtar/Amway/cult businesses

[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.

[kddani]

Originally Posted by KSig RC

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.

My friend who sold it was highly pressured to keep a stock of some of the more popular products - her focus was on the energy drinks and energy bar- type things. She spent a fortune on that stuff, and bought everything that they sold she could possibly use from them. Their products are no deal - she spent way more than she would in a normal store on those items.

And it's not just the products - she paid an enormous amount of money for various seminars to listen to higher ups. Not just locally, but taking road trips to places to hear these people speak. And there were always fees.

And she lost money in other ways- see my posts earlier in this thread where she decided to back out on a cruise with me and several other of my friends two weeks before - losing ALL that she paid for it- flight and entire cost of the cruise. Her higher ups told her that she MUST go to this "meeting" - which incidentally cost quite a bit.

That sort of pressure to alienate your friends and family who won't join your business is exactly why people think so poorly of these types of "businesses".

Companies like this prey on people who are in need of the self esteem boost, and that are natural people pleasers - they more easily fall into the guilt.

[epchick]

Originally Posted by kddani

My friend who sold it was highly pressured to keep a stock of some of the more popular products - her focus was on the energy drinks and energy bar- type things. She spent a fortune on that stuff, and bought everything that they sold she could possibly use from them. Their products are no deal - she spent way more than she would in a normal store on those items.

And it's not just the products - she paid an enormous amount of money for various seminars to listen to higher ups. Not just locally, but taking road trips to places to hear these people speak. And there were always fees.

And she lost money in other ways- see my posts earlier in this thread where she decided to back out on a cruise with me and several other of my friends two weeks before - losing ALL that she paid for it- flight and entire cost of the cruise. Her higher ups told her that she MUST go to this "meeting" - which incidentally cost quite a bit.

That sort of pressure to alienate your friends and family who won't join your business is exactly why people think so poorly of these types of "businesses".

Companies like this prey on people who are in need of the self esteem boost, and that are natural people pleasers - they more easily fall into the guilt.

Wow that sucks for your friend. I'm sorry that happened to her. It's people like your friend's "higher ups" that give the business a bad name. You don't HAVE to do any of those things. You don't have to keep stock of a product (which btw I will admit are overpriced). You don't have to go to those business meetings (although i've never paid any money to attend a meeting) or the conventions (which cost about $100).

But don't blame the entire business because of a few douchebags.