Is Quixtar a Scam?
Posted By XternalStory on November 21, 2009
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In my first article I described the trouble I faced as a seller for Mary Kay cosmetics. Of course some people may flourish with Mary Kay or other online opportunities, but I became aware that their main goal was not to help salespeople gain profits.
I started to see the problems with Mary Kay from the start, but after I tried to work things out to no avail; I moved on to Quixtar. At first I did not even want to end up using Quixtar because of the presentation I received. I didn’t like being pitched another MLM and I especially did not want to get wrangled into another one!
After a few months of confusion and deliberation, I decided to finally try Quixtar. When I first saw it, Quixtar did not feel like a Multi-Level Marketing scheme, but more like a wholesale business. They allowed me with a bunch of products to sell for only $150 dollars each year.
Wholesale Doesn’t Work With Small Profit Margins
I do not ultimately blame Quixtar, much of my failure was my fault. I lured myself into belief by sitting through a recruitment meeting and took in every single word that I was told. The presenter looked very professional and knowledgable. He 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 showing the products Quixtar had to offer.
This was a sharp contrast 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 goods 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 my former Mary Kay experience or like any MLM.
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 almost exactly like stores like Costco or Walmart.
I was not too concerned because it seemed like the vitamins would allow for a large, beneficial profit. Unlike Mary Kay, however, vitamins are not as attractive as cosmetics to sell. I also had previous experience in selling cosmetics. Most goods 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 was expecting either. I figured out that selling these products plus making a profit was not worth any of my time.
MLM Was More Important Than The Wholesale For Quixtar
After I was finally established and ready to sell vitamins at wholesale prices I was asked to recruit more prospective sellers into my group; unlike Mary Kay, Quixtar let me to use different approaches 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 any money if you are primarily focused on getting more people to sell for you. This was not the first time I learned my lesson, but this time it was with wholesale products. This shady 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 curious system of paying out profits to their clients; instead of receiving a paycheck the sellers would receive a predetermined amount of points per sale. After you have finally reached a point checkpoint, Quixtar would send a check. After a lot of anger, I decided to 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 switched its system and point structure every quarter. It was very challenging to set up a plan or organize all of my ideas when everything kept changing. Even if I suckered enough customers to purchase my product I would quickly lose them to the actual wholesale companies. I would also have an unstable income because of the changing point amounts per product. I might have made a large amount of points 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 off 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 much 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 a lot of money 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.
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Thank you for this valuable post. It changed my approximation