Quixtar Scam Revealed Truth Multi Level Marketing Internet Based Business
A Yahoo! search of "I hate Quixtar" produces 58 results. What is this company called Quixtar and why would people bother creating a web page devoted to addressing their hatred of it?
Quixtar has been accredited by the Better Business Bureau since 1999, the year it started business, and was determined by the Federal Trade Commission to be a legal and viable business model. Since its launch in 1999 the company has recorded $6.8 billion in sales and has paid out $2.2 billion in bonuses and incentives to its distributors. Quixtar, through it's One by One charity program has donated over $50 million and over 800,000 volunteer hours to a number of charitable organizations, including the American Red Cross, International Aid, and Easter Seals.
On the surface, this company appears to be an American corporate success story, but there are several reasons why Quixtar is a "scam." (Scam defined as "a fraudulent scheme, esp. for making a quick profit; swindle.")
It has been discovered that some people who become IBO's (Independent Business Owners) start using products that they did not use previously. For example, one source cited that his college roommate began drinking energy drinks. But he did not drink energy drinks BEFORE he was in Quixtar. You see, Quixtar manufactures XS Energy Drinks, the second best-selling energy drink on the market (and the top-selling, American-manufactured energy drink). Do you see now how Quixtar is a scam? Prior to becoming a business owner that distributes XS, his roommate drank Pepsi, coffee, and probably beer; but instead of drinking those products, he began drinking a product that was manufactured by Quixtar. True, every single product manufactured by Quixtar is covered by a 100% money back guarantee for 180 days, including empty boxes of totally consumed products, but he was probably too embarrassed to ask for it. Instead, he spent hard-earned money on a product that he reps rather than spending his hard-earned money on a competitor's product. Scam! Just like the poor pretzel-cart vendor who spends $30,000 for his Pret-zilla franchise and ends up eating a pretzel every day for lunch instead of his usual hot dog on a stick. Or the McDonald's owner who was tricked by McDonald's corporation into no longer eating a Whopper every day. Or the owner of the Ford dealership that was tricked into driving a Ford instead of a Mitsubishi. Don't fall for these scams.
Upon further research into the "roommate investigation," it was discovered that some people spend more money on products than they earn in commissions. Looking at the "roommate investigation" research we find that the "roommate" bought energy drinks, but these energy drinks cost more than the commission he earned for buying these energy drinks. What a scam! You mean to tell me that the poor IBO earns less than a 100% commission on each case of energy drinks? To see how unrealistic it is to make a profit, let's look at what an IBO needs to do to earn a commission equal to the cost of a single 12-pack of XS. With a retail price of $19.99 and an estimated 20% mark-up, that is only a $4.00 profit per case sold. So assuming the "roommate" had four customers that each purchased a 12-pack of XS energy drinks each month, he would only break roughly even if he drank his own 12-pack a month, thus blowing his $16 profit on something that could have been spent on Pepsi, coffee, or beer. Fortunately the investigator recognized this scam and refused to purchase any products from the "roommate."
A widely known fact of Quixtar is that everyone has heard of it and it has reached market saturation. These known facts of course trump company claims that every day, globally over 12,000 people sign up as new Independent Business Owners in Quixtar North America and its sister company Amway Global.
A sinister secret that Quixtar doesn't want anyone to know about it, is that the average "active" Quixtar IBO earns only $115 in gross monthly income. This is such a damning secret, that Quixtar prints it on a document called the Quixtar Business Opportunity Brochure that is required to be given to all prospects seeing the business opportunity. Here in this document is also the definition of what an "active" IBO is:
"'Active' IBOs: Based on an independent survey during 2001, 'active' means an IBO who attempted to make a retail sale, or presented the Marketing Plan, or received bonus money, or attended a company or IBO meeting in the year 2000."
So according to the "roommate investigation," by attempting to sell an energy drink, the roommate qualified as an "active" IBO. Yet, he didn't make any money. This is as blatant a scam as professional athletics. When you hear about the so-called huge average incomes that basketball players earn, they are actually only including those basketball players that play on NBA teams! But they purposely exclude the literally millions of kids playing at the college, high school, and little league level that never collect any money in income from playing basketball. Scam!
Another hidden secret of Quixtar, is that many of the high-income earners provide training materials to their organizations and sell them at a profit. Of course, all new Quixtar IBO's (Independent Business Owners) are required to sign a contract which informs them that all BSMs (Business Support Materials) are optional and that the producers and sellers of the BSMs may make profit or loss from their sale (like any other business). Also, BSMs are required by Quixtar to be covered by the same 100% money back guarantee for 180 days that all Quixtar products are covered by. But brand new people starting a Quixtar business should not be expected to read a contract that they are signing or visit Quixtar web sites to learn these things. Instead, they are sucked in to buying tapes, books, and tickets to motivational seminars. All a part of the Quixtar scam.
If you don't believe that Quixtar is a scam by reading this one article, then you can always read Eric Scheibeler's eBook, Merchant's of Deception. You can trust what he has to say since he is a failed IBO whose business fell apart, he attempted to sue Quixtar and other IBOs for millions of dollars in alleged damages, was forced to recant on allegations that he admitted were false in a written statement, and then later started his own Multi-Level Marketing company (a competitor to Quixtar) which later failed.
So you see, Quixtar is a scam when you delve into the negative articles, blogs, and websites devoted to it. In fact, the only place you will hear anything positive about a company like Quixtar is from your state Attorney General's office, the Better Business Bureau, the U.S. Chamber of Commerce, the Federal Trade Commission, vice presidents of partner stores like Circuit City and Barnes & Nobles.com, charities such as Easter Seals, the Red Cross, and U.S. Dream Academy, business leaders like Robert Kiyosaki and Donald Trump, and the estimated 13,000 people that have become millionaires in the United States through the Quixtar business model. To get the true story on the Quixtar scam, limit your internet search to "i hate quixtar." And to get the true story on some other truly negative things, try these other Yahoo! searches:
"i hate democrats" (21,500 results)
"i hate republicans" (57,500 results)
"i hate madonna" (15,500 results)
"i hate donuts" (1250 results)
"i hate cheese" (39,800 results), and of course...
"i hate cripples" (188 results)
So there you have it. There are nearly as many people that hate Quixtar as there are people that hate cripples.
