Critics of network marketing, and Amway and Quixtar in particular, often make the claim that while some people may make money in networking, it's at the expense of the majority who lose money. Now, assuming you are not talking about an illegal pyramid scheme, where you actually make money by recruiting people rather than product sales, how can you lose money? The only way is if your business expenses are greater than your business income.
According to www.thisbiznow.com,
surveys of Quixtar IBOs in 21 found that "only 66% of all IBOs IBO
attempted to make a retail sale, or presented the Independent
Business Ownership Plan, or received bonus money, or attended a company
or IBO meeting in the year 2."
So, 34% never even attended a single meeting or did anything towards operating a business. That's 34% you can be pretty sure had no expenses at all.
Furthermore, have a look at this document.
It's a scan of "parameters" from WWDB, one of the Quixtar affiliated
training companies, or PDPs. The PDPs keep track of various business
statistics. You can see for example that a "healthy, growing" 4PV
Quixtar business typically has 5-7 registered IBOs, of those, between
9 and 2 are on any subscription tape/cd program, and there are 25-3
people on seminars. Given many of these are couples, that's probably
1-2 IBOships. So, only around 1 out of 5, or 2% of all IBOs in a
"healthy, growing" Quixtar business are attending training seminars or
subscribing to tape/CD programs, the two major expenses.
If only 2% of IBOs are spending any money, how can the "majority lose money"?
Post a comment below or Discuss this post on Amway Talk