Inside Quixtar

What happened to transparency?

I thought we were going to see tool profit transparency?

They have it in the UK, where tool profit is zero (which I believe is goig overboard, but that's the Brits for ya!).

They apparently have it in India and Russia, where there are tool quantity and price limits.

There is ample evidence tool profit is several times A/Q profit in the U.S., yet we hear nothing on this issue.

Many/most IBO's don't have a net profit until they reach the Platinum level because of tool overhead.

It just DOESN'T add up.

I don't want A/Q to squander their advertising and other "goodwill" dollars, but I believe that's what is happening.

Beth,

I'm very excited about the Tina Turner concerts, and the other ways that we are raising public awareness.

After hearing about the Tina Turner sposorship I was curious to know if Amway Global will also sponsor a major artist that appeals more to the 20-35 year old crowd?

I'm kind of scratching my head here, trying to figure out who Amway is going after as our 'Target Market.'

Is it primarily the baby boomers who like Tina Turner? If it is, more of them already have an 'opinion' of Amway and it's not as much a matter of making a first impression on them, but making sure their impression is a positive one.

If we primarily target the younger crow, we will need somebody more current than Tina.

Going after the younger crowd would be easier, because most of them only need to have a 'first' impression made on them rather than a 'rebranding' impression.

In order to get the younger crowd I would like to see Amway learn more from how XS does their marketing.

Please bring back Krakoosh! That mag was hip like nothing else! Sponsor an artist that appeals to them. Advertise in ways that are relevent to them.

Maybe the baby boomers might have more money and are a larger crowd, but the younger generation is our future and we have a greater chance of capturing them now before they see out current focus and get their first impression of Amway as 'Their Father's Oldsmobile.'

Editor's Note:  The beauty of us sponsoring Tina Turner is that she appeals to a wide fan base -- from teens just 'discovering' her to a loyal following that's approaching retirement.  In that way, she not only appeals to those who might consider our business but also those who might influence a prospective IBOs' decision to engage.  We're just getting started with these programs...starting with Amway Global as presenting sponsor of the Tina Live in Concert North American tour, but who knows what's ahead? If you were us, who would you pick as a follow-up act?    

You know, I tried to stay out of these conversations about tools and such, but here's my poke at it. I think that everyone at this point knows that the uplines make profit on the tools. It's known on the consent form that we have to provide to Quixtar/Amway and the training orgranization also tells folks about it. Quixtar/Amway itself sells brochures, catalogs, etc to the IBO and I'm sure it's not cost, but for the quality of the brochures and catalogs it's not much at all. Same with the products from A/Q, I'm sure they are making a profit on it just selling it to us at retail.

I'm not a platinum in the business so I don't see any of the tool money, but to me, I dont see the big deal at all. Somebody somewhere is going to make money off of you in one form or another whether it's a book or CD you purchase at barns and noble or a movie/concert ticket or taxes (LOL).

Tex, I guess my question to you is, what is your real issue? Is it (1) people are making money off the tools just because they are making money off of them or (2) you feel that higher pin IBOs are pitching the profits made from tools in the place of profit being made through the business? i.e. they are saying "Hey, I make $2000 a month in the business" when they are actually making $1000 from the biz and $1000 from the tool profit?

I think the message, "this ain't your daddy's Amway", is coming across loud and clear.

TWS

Beth,

I believe the company is headed in the right direction with competitive products, national advertising, an increased emphasis on retail, an increased emphasis on training, increased bonuses,  and co-branding with IBO's. I am truly grateful for all you are doing in corporate to help us become successful in our Amway Global business. I have been in the business for 14 years and have been truly amazed with the transformation that is going on!

On the other hand it amazes me how someone who isn't even engaged in building this business, and doesn't even know how some LOA's work can come across as such an "expert".

Beth, any more info on the brochure you mentioned, Seize the Excitement? Will it be available as a pdf file on the IBO or Vistor portions of the Quixtar site?

With appreciation,

Editor's Note:  Let me check timing.   Thought this would be in the July polybag but just got mine and it isn't there.  Perhaps August.  Will do a little digging and report back.

Beth, could you check on when it will be sent out in Canada, and if it will also be available as a pdf file?

:)

Editor's Note:  Will do!

Tex,

I know all support organizations are different so it is difficult to generalize.  I have been a platinum for several years.  My A/Q net bonus is 16 times my tool net bonus.   Net earnings from products

after expenses is about 10x of tools.   There clearly are many IBOs out here running legitimate product businesses, supporting their group with effective reasonably priced tools.

I agree that A/Q should address the groups that have their tool business out of alignment with the intent of the business.

On another note, the positive PR campaign is working great.   Thanks!

Theo

Beth...

All the Rah Rah excitement about the year of change rings hollow.  Just as in the last name change to Quixtar, you've allowed the tool kingpins to transition right into Amway Global.  They will drag their TOOL SCAM behind them and stink up your latest efforts to rehabilitate the Amway name.  You missed a golden opportunity to put scandal behind you and are inviting even more.  

CJ...

You need to sit down and do an accurate accounting of how much the tool kingpins really want you to devote to their cause.  These folk have a greedy agenda that cares very little that you manage to turn a profit.  Attendance at 4 Rallies a year, throw in some seminars, and buy the Standing Order Tape and you can say good bye to several thousand dollars you'll most likely never recoup in retail sales.  Believing that you'll be able to share in the tool scam profits yourself someday may keep you interested, but will the treasure you really seek be there when you are?  

Editor's Note:  I discussed just one aspect of the transformation of our North American business in that post -- our brand investments. Previous posts here, at Ada-Tudes and at Real Quixtar Blog have detailed other areas of our business that we're working to improve and those aspects were not discussed or covered in this post.    

I apologize Beth for using your blog on a totally different subject outside of what you have posted but I would like to address Tex, Quixtarisacult, and any others who have an issue with the tools if my first response didn't quite make the mark. Tex/Quixtarisacult, if you really want to make a difference that you feel folks need to stand up and see, show the world that the business can be built without the systems or using the tools from the systems if you feel strongly about it. It seems as if you both want to believe that the Quixtar/Amway business in and of itself is a good business, minus the tools and systems. If that is the case, don't use the systems or the tools and just build the business. I hope you don't think I'm being sarcastic in my response because I don't mean to be at all. Is it possible that you can build a successful business using only the tools and trainings available through the corporations? Anything is possible. Who knows, I can't be one to doubt that it can't and I won't. In the end, nothing is guaranteed whether you use the tools/system or not- our brand of business is not exempt from the general rule that most businesses fail to see a profit in 3-5 years and that some business fail within that same 3-5 years having spent thousands as well-that type of pain may be less severe in our business, but none different, especially if its not being built at all. All you have to do is run a check on businesses (probably some well known franchises) and you'll find some folks (franchise owners) who never could get it off the ground or took a while to make a profit. Tex/Quixtarisacult, I don't know your personal stories so I can't speak against or for your comments, but I would say this, if you feel in your heart of hearts that you can build a successful business not using any tools/system except for that of what A/Q provides itself, then strive to do that and then let others and the corporation know of your success so that the corporation can provide something as an example to other current/potential IBOs out there who may choose to not be involved in a system-maybe run your test of your hypothesis and put it on a website for others and the corporation to learn about. We can all complain on corporate blogsites, instead, you guys be apart of the solution and start creating solutions right from where you are. Don't wait for Quixtar/Amway to make a difference, you guys start from where you are and make changes at your individual business level and for those who chose to use the systems because they believe/and it does give them an advantage then let them go for it. That's the beauty of free enterprise.

For sure, this will be the last time I decide to jump into a tool/system discussion-LOL!

Tex/Quixtarisacult- I wish you nothing but continued success in any and all of your current and future endeavors!

Theo,

Glad to hear that, but the big bucks don't generally kick in until you get to Platinum.  

How much do the various parts of your system cost?

What is your net profit?

What do you mean by "many IBOs out here running legitimate product businesses?"

Care to take a crack at whether the "many" is 50% of all Platinums, 10%, 1%?

The reason I ask is because I'll bet there were "many" Platinums in the UK doing their business without excessive tool profits, but they got shut down with the rest of them, didn't they?

CJ, Theo, I was about to jump in and rant until I saw your posts...and I couldn't have said it better.  As a Founders Platinum, my A/Q income alone has given my family lots of choices over the years.  I HAVE found that my leadership skills have increased to the extent that I have used the system and the tools.  These days with the unprecedented support of the Corporation, and taking advantage of technology and the right effort, I believe that Tex or Quixtarisacult or anyone else could certainly go Ruby/Q12 without participating in a tools system. BUT...when it comes to leadership....they'll be better leaders by  getting educated or mentored from SOMEWHERE outside themselves.

CJ,

Thanks for jumping in. I also hate to go off topic but it's only when others have already done so. FYI, I gave a similar response to Tex on another post in "New online courses prepare you for selling."

All the advertising has made a huge difference... As we are out exposing the amazing opportunity and products to people, never before have we had such positive response.  Almost everyone that we talk to has been the tv commercials or some form of awareness.  No longer do people have a bad thought about the Amway Global or Quixtar companies.  Every response we have gotten is possitive and everyone is excited!  

The business is growing at a rapid pace and I am so stoked about the Tina Turner exposure that will bring the name to a even larger audience.  Even though I am not a huge fan of hers, she reaches such a large audience and I know that is the goal of the campaign.

Devos and Van Andel familys, Thank you so much for being willing to go above and beyond to make Amway Global the best business opportunity in the world!

Thanks CJ, you are spot on!  My suggestion to Tex is to find someone who

has a copy of a tape Rich did called Try or Cry.  He put it pretty blunt

when he said "Either go out and build this business or shut up about it!

Plain talk from a guy who had NO tools or systems and I think he did very

well.  

Tex, you have been harping daily for months about the tools and systems.  

Why try to make a big deal out of the way other people choose to run their

business?  If you don't see a value in tools and systems, guess what--Don't

buy them.  At the same time it is unfair of you to demand that Q/A do some-

thing to price control tools and systems.  That seems socialistic to me and

I could have nothing to do with it.  It is up to ME to buy what I want and

I learned early in my life not to make value judgement decisions based solely on price.  

Lastly, please read the new Quixtar Business Opportunity brochure that is

very clear about the purchase of business support materials (BSM). Clear as

a bell Tex.  It is your choice, as always.

CJ...

You are still supporting a bad system.  There is a better way.  You don't want to have to keep dragging a cinder block in your race to the finish line.  Tex has expressed ideas for putting the Tool Scam issue to bed.  Not the present failure to act on the scandal that plagues Amway/Quixtar. The whole focus is Reputation building.  The company isn't doing anything to rebuild its reputation unless it takes the tool kingpins off the playing field and make the kind of changes that would work.  Not keep going down the scandal road.

CJ,

Thanks for jumping in, I also don't like stray outside of the subject unless someone else has already done so. Thanks also for being so diplomatic with Tex/qiac, I gave a similar response to Tex on another post. It's hard to do, but I will also try to keep out of the tool discussion when it's outside of the subject.

Beth,

I have seen expressed by some on other sites that the advertising being done could do more harm then good.  The reason was because once people see the commercial they Google it on the net and end up at sites that don't paint a necessarily rosy picture.  Was this something that was considered before doing commercials and what would you say in response to that?

Editor's Note:  It was part of the discussion.  But every company and business has critics and always will.  We didn't want to wait to tell our story and help create a more accurate impression of what the business is today and of the Amway Global name. 

This business has always and will always grow and prosper for people who build their business, not only with the right parameters, but also treat people with respect.  The issue is never whether or not you market tools and support, but how people are treated.  Most people spend as much money or more a month on cable tv, itunes, and and dvd rentals.  Investing the same in business education from leaders in the field who have actually done what you are trying to do is never something to apologize about.  The people who treated people improperly gave the business a bad reputation, not the fact they offer BSM's.  I am fired up the company is investing millions in getting the word out on the TRUTH!  This is the greatest business opportunity for anyone to acheive financial success!

I like my Daddy's Amway. I liked what the old corporation endorsed. They were culture transforming back then now they are embracing a corrupt culture in order to appeal to them.

When my parents joined the business the catalogs were family friendly. ie the models had conservative modest clothes. Now we have to try to explain ourselves when we say that Amway is a corporation with integrity. Catalogs show the hypocracy.

If a couple was featured on or in the catalog, they wore wedding rings on their fingers. Amway used to stand for what was pure and right even in the detail. Now there are near naked men and women climing rock cliffs, playing basket ball and living what appears to be a life of protracted singleness. What happened to the standard that marriage is to be greatly valued and the raising of wholesome families is near the top of the list of pursuits that stabalize our society and strengthen our nation.

In my Daddy's Amway I never say the corporation endorse a public idol who's image screams sex and rock 'n' roll.

In my Daddy's Amway distributors upheld the image that Amway endorsed. It is now harder than ever to endorse Amway. It used to be a culture transforming company that espoused integrity in all things. Now prospects wonder what we are talking about when we say Integrity and Amway in the same sentence. The business model is still great and has gotten batter but the look, the image the first impression contains so much that a prospect has to look past and eventually decided whether they will tolerate/ignore  in order to sign up. They new prospect is facing the battle of how will I explain this corrupt image that they are so proud of in order to get my new prospects to see the profit potential.

Kindest Regards.