Question by the_thrice2049: suggestions on how to explain quixtar is a bad idea?
my friend recently joined up with quixtar and he invited me to a meeting. i found what they said to be misleading. i know that most of the people that join do not do well (.163% as of 2005),but some do. i dont want him stay with this,and most of his other friends agree its no good. i have tried bringing it up to him once and he repeated the things that i heard them telling everyone at the meeting. i am not good with words and know that there are others who have gathered much more information than i have. so if possible, i would like to see if someone could help me with providing a response. here is what he tells me when i bring up certain points:
“quixtar is just the supplier”
“every business is a pyramid”
“if it was a bad idea, it wouldnt have lasted this long”
“amway is misunderstood, like mary-kay”
“all the people who say this plan is bad are people who did it and didnt put forth an effort”
“you buy this stuff anyway”
“they dont charge to go to meetings”
please send a detailed response for the questions, and if possible, put some factual data in there, such as what a true pyramid scheme is. thank you so much in advance!
Answer by jl
Oh, Amway is most definitely a pyramid scheme.
You don’t see their products anywhere because they only sell them to themselves.
In many ways it’s no different than many other network marketing type organizations; Avon, TupperWare, Mary Kay, Pampered Chef, Party Lite, etc.
The thing that makes Amway a pyramid (though, obviously, they deny that they are) is that most Amway reps don’t sell to the general public – they don’t host “parties” or “shows” in their homes, invite their friends, neighbors, co-workers over to buy the products.
In contrast, really the only people who use Amway products are Amway people. True, a Pampered Chef consultant has and uses Pampered Chef products in their home (trust me – my wife was a consultant for them for a year – and we have a TON of their stuff) – but their main focus is on having shows, getting people to host parties in their homes and sell the products for you. You don’t see Amway people doing that.
Amway focuses almost exclusively on organization building – you want to get your “downline” – people that you sponsor into the business. As an Amway “rep” the only products you’ll buy are the products you plan on using yourself. If you get a big enough organization beneath you, you might stockpile some products, and then resell them to your downline – but you don’t mark them up or make a profit on them.
The other thing that the “upper level” people in Amway do is provide “training material” to their downlines – and that is almost 100% profit. They tape upper level Amway people speaking at meetings and rallies and then resell those tapes to their downlines for an enormous profit.
What’s frequently gotten Amway into trouble in many states is the fact that they focus more on organization building than on actual retailing – and to not be considered a true pyramid organization, there needs to be a retail component to the organization (which – truly – there isn’t).
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