MLM's/Quixtar well disguised scam or genuine opportunity??

[Sierra_8561]

I was just curious to hear the opinion of members of this board on MLM. ie Amway aka quixtar, and others to me they are no different than a Pyramid scheme. I personally have fallen victim to my fair share of them always losing money and never getting anything in return. I guess my question is how are they legal?

[concerned]

I'm really not so sure where you are going with this. What you need to do is go to the FTC website for information about your problem. While you are there, do some searches on the information you are looking for. That way, you can get your information from a legal authority, instead of from our opinions. I think it is time you start to do your homework. Here is a link I think will help you out.

http://www.ftc.gov/bcp/conline/features/mlm.htm

It explains a little bit about how to recognize the difference between a legitimate MLM and a pyramid scheme.

Notice this sentence here.

In truth, the program had no product to offer. Its participants made money by recruiting distributors - not by selling goods or services to consumers.

If you take close notice, you will see that this is exactly what is happening with matrix sites. The people in the matrix lines ARE NOT selling the ebooks in order to make the system work, they are just trying to get more people into the lines.

Then notice this sentence.

Legitimate multilevel marketing plans offer a product or service that's sold to the public through a tiered network of distributors.

Again, with matrix sites all you see is 1 website selling the ebooks, and not the "network of distributors."

Some of the companies that you listed above ACTUALLY sell products through a network of distributors. That is the main difference, but if you do a search on FTC about those companys, you will see lots of articles about stiff fines that have been imposed on them for failing to comply with the laws.

Now, on to other stuff. I notice that you mention that you have fallen victim to these in the past. If I may be so blunt, may I ask why you are now looking into matrix sites? All you are going to do is fall victim to them again. Might I suggest that you do the exact opposite of what you think is the right thing to do? If you keep falling for these schemes, then you should learn to walk away.

Again, if I may be blunt, why are you trying to take the easy road to making money? Why don't you do what the majority of us do in order to make money. Work!!!

[Sierra_8561]

I'm really not so sure where you are going with this. by concerned

I just wanted to hear the opinions of this forum.

[ycchen]

The similarity between Amway and Pyramid-matrix scheme.

1. The all rely heavily on recruiting new members
2. They need constantly exploring new market. That is why pyramid-matrix scam has expanded to UK, Canada..etc.


The difference between Amway and pyramid-matrix scheme

1. Amway sell useful products at reasonable price with resell value.

Pyramid-matrix sell overpriced ebook that has zero resell value.

2. Amway sell around 20% of the goods to non-members (below the 70% required by 70% test that determine whether a scheme is MLM or pyramid scheme). The main reason is becasue buyer usually joint Amway as member to get discount member price for their pots and pans.

Pyramid-matrix sell 0% ebook to non-members. In this sense, it is closer to a ponzi scheme.

3. Amway do their 'own' advertisement through workshop, seminar and promotion events.

The owner of the Pyramid-matrix scheme (such as gotmatrix) do NOTHING. They transfer the responsibility to their new members who do all the dirty work but get NOTHING in return. Anyone who signup to gotmatrix in 2004 will NOT get anything! They are pure donors!

4. Amway has been in the market for more than 20 years, and has established its reputation and can defense their business practice under the sun.

Pyramid-matrix schemes are tiny online scam that only scam money in the dark, and do not dare to attract much attention.

[David 1]

I personally have fallen victim to my fair share of them always losing money and never getting anything in return.

I've been an IBO for about 6 years & for the most part I've found that I usually get exactly what I put in to it. For the last few years I've put nothing into it so can you guess what I got out of it?????

Again, if I may be blunt, why are you trying to take the easy road to making money? Why don't you do what the majority of us do in order to make money. Work!!!

Yup, owning your own business takes a lot of work, sometime (most of the times) more then working for the paycheck. Usually when you start a business you end up taking a lost the first 5 years or so give or take, wether that be online or offline.

Well I guess that's all I got, Maybe I should put something into it so that I get MORE out of it???? Ya think, Thanks Sierra_8561 for starting this thread a year ago, I needed it.

David 1

[troysavary]

I have been an IBO for a while now. Have I made a lot of money with it? No, but that is because I haven't really tried hard. I am in because I really like some of the products and if I make a bit of money, it is a bonus. Some people I know are making significant money in Quixtar. Why? Mainly because they work much harder at it than I do.

What separates Quixtar from a matrix scam is that there is an actual product to buy. Some of the products I like, so I buy, and some I don't, so I skip. Yes, there are some that get into the MLM cult mentality and say that you must buy all of your stuff through Quixtar and call non-Quixtar products "negative product" but I fault that on them, not Quixtar.

The great thing is the stuff that I buy is stuff that I was buying before anyway, so their is no added expense on my part. And if is not something I would buy otherwise, then I don't buy it from Quixtar just to get my PV/BV. If everyone approached the business this way, we wouldn't get the disillusioned ones who drop out after spending thousands on product they have no use for expecting it to make them rich.

[Webwatch]

Hello Troysavary and welcome to Matrixwatch.

I suspect the size of Quixtar alone means it has a huge amount of Critics and promoters.

As I'm new to this particular MLM and have only had a brief look into it could you tell us more about the particular products on offer as all I could find was Nutritional suppliments and Air/Water purifiers.

Thats not to say thats a bad thing but could anyone really acheive success in this just by marketing the products. You could be the best Salesman in the world but unless you had a talent for downline building and recruiting isn't Quixtar nothing more than a hobby that can only generate a few hundred dollars for the above average IBO, and a lot of that revenue is generated by purchasing Quixtar products whether you need them or not.

I'm sure there are numerous IBO's that have garages full of this stuff and can't shift it-does that mean they aren't good sales people or the products themselves don't have significant appeal to be marketable outside an MLM structure.

Also does it cost anything to join, or is membership free.

Admittedly I need to do more research on this but I prefer to hear things from the horses mouth (an IBO) rather than what quixtar advertise.

Is Quixtar one of the few MLM's thats products are for using not just for selling.

[Trinket]

Quixtar is "Amway" in disguise, plain and simple! My husband and I failed at it miserably! You MUST recruit! Although it's been 15 years since our experience, I doubt much has changed. 95% fail and the 5% are the big money earners. Nothing new for an MLM.

I liked a lot of the products, too, but many of them cost much more than those I purchased outside of Amway. Thats where the money comes from to pay those commissions. We pitched friends, family and business associates for almost a year before ONE joined. They lasted 3 months after attending a function (rally) where too much praying went on. That really turned off a lot of people.

I also found many of the rallys and functions promoting a cult-like atmosphere. The tapes and books we were pressured to buy were very effective in brain washing those who listened to become devoid of anything but AMWAY!

We joined under good friends and had to quit after a year when we still could not bring anyone in who would work the business. It takes a LOT of time and expense to work and there is no guarantee that you will succeed. All our plans were put on by successful upline 'stars', so it wasn't us!

When we finally had to move on, our good "friends" were no longer friends. What a shame. They worked hard but eventually quit, as well. Hard work, commitment and motivation still doesn't guarantee success in MLM.

Just my 2 cents and based on solid experience.