ExtremePerspective

Common sense perspectives and finding a way to retire

Is Quixtar/ Amway a good or bad business?

Posted by Paul on January 3, 2007

I read a post linked from Carnival of Personal Finance today by a bloger called Getting Green about the Amway/ Quixtar Network Marketing business. It seems that this blogger has either some grudge about the Quixtar business or they are just closed minded. For someone who claims to be writing “for people who want to be millionaires” he is way off base.

I’ve blogged about my experience in Amway before. I spent over a decade involved with it before they changed their name to Quixtar. Getting Greens big objection to Quixtar is that is “hard work”! Well – duh!!!! (He also thinks the products are expensive – but I’ll get to that.)

This blogger must be a very young person who has no clue about success. (Maybe today with the Internet you don’t need hard work to succeed – I don’t know about that yet.) But any business takes hard work in order to achieve real success. You are fooling yourself if you think you will get rich easily.

As far as business models go, the Amway model has a number of key components that really can help you succeed. The downside is that the cost of entry to this business is so low that people think it will be easy. Among the excellent attributes I saw:

  1. Access to millionaires – I always had the opportunity to listen to and meet and personally talk on the phone to people that were extremely rich. If you want to be rich – you have got to associate with wealthy people. Broke people think like broke people.
  2. A good “franchise” system (see E-Myth Revisited). One of the criticism’s of Quixtar is that people make money on tapes. Well, the tapes are part of the success system that leaders in that business have put together. When you purchase a Franchise, what do you you think you are buying – hamburgers? Heck no, you are buying the system. What does that franchise system cost? From $10,000’s to $1,000,000’s. The Quixtar franchise system is a bargain.
  3. Good quality products. The Green blogger complains about the cost of the products. When I started that business I too was sceptical about the prices. What I found out was that the products are very high quality and very good value for what they did. Now when you start a business you can have a low cost pricing structure like Walmart (My Chinese wife claims the Chinese ship all their “crap” to Walmart – the quality of goods in China is much higher :)). Certainly Walmart makes a lot of money, but so do stores that cater to high-end customers like Neiman-Marcus. When you are in sales is it easier to justify good quality or have to explain poor quality? I always found it very easy to justify the higher quality products to people – much easier than handling complaints.

When I was involved with that business, I probably had about 500 people pass through my organization. Probably 90% of the people did nothing but buy some products – no work at all. Like any business it is a numbers game. It is also a people business (my great failing). Success requires hard work, good people skills, perseverance and adherence to the system. Is it saturated? Hardly – the potential opportunity is worldwide and they have fractions of a percent of market share. In fact, I have never been contacted about it by anyone in my 54 years ( I sought it out).

Disclaimer: I am not now affiliated with Amway or Quixtar or know of anyone who is. I have not been involved with that business since 1995.

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One Response to “Is Quixtar/ Amway a good or bad business?”

  1. grace said

    Hi, it’s great to see an insider’s perspective on Amway that isn’t all skewed. I’m a current IBO and can’t really understand all the negativity that floats around. There seems to be so many comments about the business but none of these authors have been IN the business except you. So kudos to you for giving it a decent run down and being open about everything.

    Hope you heading towards your goals 🙂

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