Wednesday, January 3, 2007

Is Quixtar / Amway a good or bad business?

I read a post linked from Carnival of Personal Finance today by a bloger called Getting Green about the Amway/ Quixtar Network Marketing business. It seems that this blogger has either some grudge about the Quixtar business or they are just closed minded. For someone who claims to be writing "for people who want to be millionaires" he is way off base.

I've blogged about my experience in Amway before. I spent over a decade involved with it before they changed their name to Quixtar. Getting Greens big objection to Quixtar is that is "hard work"! Well - duh!!!! (He also thinks the products are expensive - but I'll get to that.)

This blogger must be a very young person who has no clue about success. (Maybe today with the Internet you don't need hard work to succeed - I don't know about that yet.) But any business takes hard work in order to achieve real success. You are fooling yourself if you think you will get rich easily.

As far as business models go, the Amway model has a number of key components that really can help you succeed. The downside is that the cost of entry to this business is so low that people think it will be easy. Among the excellent attributes I saw:
  1. Access to millionaires - I always had the opportunity to listen to and meet and personally talk on the phone to people that were extremely rich. If you want to be rich - you have got to associate with wealthy people. Broke people think like broke people.
  2. A good "franchise" system (see E-Myth Revisited). One of the criticism's of Quixtar is that people make money on tapes. Well, the tapes are part of the success system that leaders in that business have put together. When you purchase a Franchise, what do you you think you are buying - hamburgers? Heck no, you are buying the system. What does that franchise system cost? From $10,000's to $1,000,000's. The Quixtar franchise system is a bargain.
  3. Good quality products. The Green blogger complains about the cost of the products. When I started that business I too was sceptical about the prices. What I found out was that the products are very high quality and very good value for what they did. Now when you start a business you can have a low cost pricing structure like Walmart (My Chinese wife claims the Chinese ship all their "crap" to Walmart - the quality of goods in China is much higher :)). Certainly Walmart makes a lot of money, but so do stores that cater to high-end customers like Neiman-Marcus. When you are in sales is it easier to justify good quality or have to explain poor quality? I always found it very easy to justify the higher quality products to people - much easier than handling complaints.

When I was involved with that business, I probably had about 500 people pass through my organization. Probably 90% of the people did nothing but buy some products - no work at all. Like any business it is a numbers game. It is also a people business (my great failing). Success requires hard work, good people skills, perseverance and adherence to the system. Is it saturated? Hardly - the potential opportunity is worldwide and they have fractions of a percent of market share. In fact, I have never been contacted about it by anyone in my 54 years ( I sought it out).

Disclaimer: I am not now affiliated with Amway or Quixtar or know of anyone who is. I have not been involved with that business since 1995.


Anonymous said...

I really apreciate the blog you posted here. My wife and I are currently with quixtar/amway and have a very good business going for our selves. There is a lot of bad rep for amway and I hope in the future people will come to see they are not trying to scam anyone only help people succeed in life. I have a wonderful support system from my upline and wouldn't have it any other way, thanks again,

martinaguayo said...

I was in quixtar once, a long time ago, and loved it. I had to quit because of a traning session that one of my upline emeralds had. He asked everyone in traning to raise there hands if they were in for 6 months or more and were making less that $600 a month. My hand was one of the ones that went up. I had a rude awakening that day he said and I quoate "This must me and expensive hobby." That's when i realized that if you don't have the drive to do this you souldn't be in the system. In the 6 months that I was in I think I showed the plan 4 times. 4 times!!!!!!! and I expencted to be a dimond that way I don't think so.

I just resently found some of my old motivational tapes and poped them in to my cd player in my car and I now realize what I had in my hands. I am now tring to get back in and am having trouble finding my old upline they were a great bunch of guys and very successful too.

Well that's my two cents thanks for reading and BREAK 6!!!!

P.S. A great man once said "SW SW SW SW SW!!!!!"

For those who don't know.
SIX WILL!!!!!!!!!

Anonymous said...

I'm just getting started with Quixtar and Amway. Originally, I was skeptical of it due to the fact that so many people a generation before me have had negative experiences with Amway and Quixtar, and that Google is littered with people who have had bad experiences that claim amway has somehow ripped them off or caused some kind of detrament ot their life. I joined a team known as LTD, off of an invite that at first i wasn't interested in, but then later on i re-inquired and was brought in.(That's another thing, a recurring theme in the business is if your not interested, neither are we.) I have yet to actually start selling products because i haven't payed amways fee (wich is refundable). However i decided to go LTD's convention in Kansas City, Although it was pricey ($126!) I had an AWESOME time! and looking at some of the discounts you can get on alot of brands that people spend alot of money on everyday, you could theoretically make the money invested back in discounts off of products from companies like dell in a very short period of time, and save your family money on christmas shopping etc.. So is Amway/Quixtar good or bad? I got to sample a few of their products while i was at the convention, and they're truley high quality products. In fact the Xs energy drink in my opinion is far better than any energy drink iv'e ever had, and it comes cheaper than things like monster and red bull to IBO's (Remember im not in this for the sales yet, this is my honost pre-opinion, im not advertising)

And the people i got a chance to meat who are all involved in my up-line are very genuine people. I think the reason most people get a bad rap about amway is this, and only this- Their upline either pushes them, or coerces them, and anyone who is pushed or coerced has no chance of positive results with negative initiation.