Quixtar and Multi-Level Marketing Scams
In my first article I described the problems I faced as a consultant for Mary Kay cosmetics. Of course some people may succeed with Mary Kay, or other online opportunities, but I noticed that their main goal was not to help consultants gain profits. I started to notice the problems with Mary Kay early, but I tried to work things out to no avail; I moved on to Quixtar. At first I did not even want to consider using Quixtar because of the presentation I received. I did not mind being pitched another MLM and I especially did not want to get caught into another one! After a few months of indecision and thought I decided to finally try Quixtar. When I first saw it, Quixtar did not seem like a Multi-Level Marketing scheme, but more like a wholesale business. They provided me with a bunch of products to sell for $150 dollars each year. Wholesale Doesn’t Work With Small Profit Margins I do not completely blame Quixtar, much of my failure was my fault. I lured myself into stability by sitting through a recruitment meeting and took in every single word that I was told. He looked very professional and classy. The presenter even gave examples of success and plenty of information on Quixtar’s special catalogs and specials. This was only the beginning, however, because he kept presenting of products Quixtar had to offer. This was the exact opposite of what I had disliked about Mary Kay’s operation. I tried to sell what I wanted with Mary Kay, but I was restricted; Quixtar had no restrictions of this time. There were also a lot more products and brand names that the presenter showed to us and we only had to pay one wholesale price. This Quixtar business did not seem like any MLM or like my previous Mary Kay experience. I wish I could have actually looked at a catalog though. After I had already signed up I received the Independent Business Owner catalog. The bad news was that I was only allowed to get wholesale prices on vitamins. All of the other products were priced similarly to stores like Costco or Walmart. I was not too worried because it seemed like the vitamins would allow for a large, beneficial profit. Unlike Mary Kay, however, vitamins are not as interesting as cosmetics to sell. I also had previous experience in selling cosmetics. Most products only had a 5 to 10 percent difference on price and the shipping was not reduced at all! The brand names were not what I expected either. I figured out that selling these products plus making a profit was not worth all of my time. MLM Was More Important Than The Wholesale For Quixtar After I was finally set up and ready to sell vitamins at wholesale prices I was asked to recruit more prospective sellers into my group; unlike Mary Kay, Quixtar allowed me to use different options when making sales, such as making one sale or allowing a person to sell wholesale after paying a monthly or annual fee. This led me to one fact: A company or program cannot make you gain a profit if you are suppose to focus on getting more people to sell for you. This was the second time I learned my lesson, but this time it was with wholesale products. This fake business model is what tricked me twice into scams known as MLM. Once the wholesale purchasers at the bottom of the food chain purchase their products they will not be able to make a profit. You will most likely be one of those people! Profit Payments and Profit Margin Switches in Quixtar’s Scams Quixtar had a suspicious system of paying out profits to their clients; instead of receiving a paycheck the sellers would receive a certain amount of points per sale. After you have finally reached a point checkpoint, Quixtar would send a check. After a lot of frustration I kept the products for myself. The only advantage gained with using Quixtar is receiving Quixtar products for $149 a year instead of going out to buy groceries. It would have been better for a family bigger than mine, which only contained two. Quixtar also changed its system and point structure every quarter. It was very difficult to set up a plan or organize all of my ideas when everything kept changing. Even if I found enough customers to purchase my product I would quickly lose them to the real wholesale companies. I would also have an unsteady income because of the changing point amounts per product. I might have made a bunch of point in a given quarter with certain drinks only to find that they are worth much less the next quarter. Why couldn’t they give an exact monetary value for each product? Because then a lot of people would be turned away by the low profit margins! I would never recommend Quixtar to anyone, unless you want to buy groceries in bulk. You will receive groceries for a lower price and they will also be delivered to your house like you are a member of an important club. You will not, however, make any money whatsoever by selling products, even with a large amount of clients. You could make a profit by recruiting many people, but I do not think you could recruit enough people to fall for this scam
Tags: Drop Ship Clothing, Drop Ship Companies, Drop Ship Directory, Drop Ship Distributor, Drop Ship Distributors, Drop Ship Manufacturer, Drop Ship Manufacturers, Drop Ship Merchandise, Drop Ship Products, Drop Ship Source, Drop Ship Sup, Mlm, Wholesale Prices
health scams | Healthreporterplus | 
January 13, 2010 11:57 pm
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