Quixtar Ada-tudes: A View from the Top : Innovation

Innovation

Wednesday, March 14, 2007 by Jim Payne
Category: Quixtar Strategy, Products, Balanced Business, Innovation

I just finished a two-day meeting with senior management at Alticor, including Doug Devos and Steve Van Andel. The theme of the meeting was how we can become a more innovative company and drive growth across the enterprise and to all IBOs. We are a strong company and we have a fantastic business opportunity but we need to become even better.

In the meeting, we discussed the need for innovation that can and will happen anywhere, at any level in our company and in the market. We discussed the need to continue to become more transparent in everything we do as an enterprise. We discussed the need to be consumer/market focused and to insure that we have products and plans that consumers want to buy and IBOs want to sell.

As I said in a previous message, we need to SIMPLIFY our business to make certain it is less complicated to both the IBO and the consumer. We need to STRENGTHEN our brand messaging and provide SIZZLE to our IBOs that builds on their belief and confidence. We need to STREAMLINE what we do internallly, as well as in the field, to communicate to the market and to IBOs to insure we have a "speed-to-market" mentality and break down our own bureaucracy. It is critical that we assist IBOs in building a balanced business that focuses on transparency and the end consumer.

Our company has a great history of innovation, it IS the best business opportunity in the world ... but we can and must get better. So, why am I saying all this ... because I would like to ask you for your ideas on how we can become a more innovative company that helps drive a stronger, more profitable business for all. In our discussions the past few days, we developed several innovation themes. I would like to hear your thoughts/ideas on any or all of the following themes:

1. How do we become more conusmer-driven in our marketing approach (products consumers want to buy, IBOs want to sell )?

2. Ideas to enhance selling, recruiting and/or retention?

3. Ideas to improve IBO productivity?

4. Changes to our sales plan that assist in more profitability for a new IBO?

5. New approaches to training or education that the company can help lead or align with IBOs?

6. Areas where you see a need for the company to invest further to enhance our reputation and insure greater transparency in the market?

Please do not feel limited or constrained to only the above. If you have other thoughts on innovation, please feel free to address them. I am excited about hearing what creative, constructive ideas you all have to help us with becoming more innovative and building on this GREAT business opportunity.

I am out of the office until March 26 but will be reading and collecting the ideas from above.

THANK YOU for your continued interest in Opportunity Zone.

Jim

Comments

Joecool said: March 14, 2007 3:29 PM | #

Advertising would help IBOs. Allowing IBOs to create their own websites without password protection would makeit easier for consumers to find an IBO and make a purchase. Maybe consider making 50 PV the threshold for earning a bonus check.

Tex said: March 14, 2007 4:44 PM | #

Start with answering the questions we have already asked, to show you are serious about innovation in the first place.

I know some of the questions do not have short-term answers, but many of them do.

Even if you simply respond "noted", with a date we can expect more feedback for a particular issue, that would be a major innovation.

Did you see the mia culpa the Home Depot CEO did to a reporter's article regarding how Home Depot used to be his favorite place, but lack of service drove him away, which touched a raw nerve with so many people they got literally thousands of e-mails agreeing with the reporter's position?

I am not saying you should do the same (nor am I saying you shouldn't), but some feedback with the existing posts would be a great start.

Larry said: March 14, 2007 5:10 PM | #

Jim:

Thank you first for setting up this system for IBO's to share ideas. I have only been in the business for a few months, but have learned a lot here.

The first thing that comes to mind for me after reading your post is that in so many cases you are forced to purchase large amounts of products. Many people don't want to do that. You can purchase 1 bottle of Katchup but have to purchase a case of salad dressing. I think sales would be much higher if these could all be broken down to individual items. Then, if they are priced closer to market rates, we would all make more.

I am very excited about the opportunity that Quixtar opens up for people. I think I can make good money the way it is, but I am confident we could all make much more if just these two things were implimented.

Miia said: March 14, 2007 5:38 PM | #

Like others that put frequent post on this blog, I have my own soapbox and I will stand on my again…but very briefly.

I would like to see a slight modification to the current retailing rule. Allow IBO’s to display products, but not sell, at direct marketing products fairs.

Move to a more regionalized pricing so the areas that have a lower cost of living can be price competitive with local retailers. Even though we have some great products, in the Midwest even the cost per use is still too high from most potential customers to stomach.

Allow IBO’s to set their own pricing on the Quixtar supplied personal websites at the customers sign in level.

BillyBob said: March 14, 2007 7:13 PM | #

I agree with Joecool and Larry. I have been in the business a short time also. I am finding that the people i approach and speak to them about the business are ok with the joining as an IBO, but after that the prices are not competive, when the cost and shipping prices for an IBO are higher than the retail prices at some of the discount stores like Wal-Mart and Target even with the small pv ratio.I was happy when the cost of the green tea iced peach sold for a good IBO profit and the pv was great, but now it has

gone bonkers with the price and 1/2 pv. Bring bacK the good old days of Rich and Jay. Reinstate what Amway/Quixtar was all about Thank You.

jeff said: March 14, 2007 7:46 PM | #

THANK YOU ,

FOR LISTENING TO THE FEILDS IDEALS THATS A MAGIOR INNOVATION, IN ITS SELF. I HAVE A NUMBER OF IDEALS ABOUT INNOVATION , BUT WILL ONLY SHARE A FEW FOR NOW .

ONE IS HAVING LOSS LEADERS , LIKE WALMART HAS . THEY HAVE A FEW PRODUCTS THAT YOU CAN'T GET ANYWHERE ELSE CHEAPER. SO INTURN PEOPLE COME IN TO BUY THOSE AND ENDUP BUYING MUCH MORE.

THESE COULD BE PRODUCTS THAT QUIXTAR MAKES NO PROFIT ON , BUT THE IBO MAKES SOME RETAIL PROFIT ON ? , BUT NO PV ON ? . PRODUCTS THAT OTHER CO'S CAN'T TOUCH US IN PRICE .

FOR EXAMPLE : A DRINK THAT WAS IN DEMAND , TASTED GOOD , AND WAS 50 % OF THE CLOSEST NAME BRAND . THIS WOULD CREATE LOTS OF RETAIL CUSTOMERS FOR IBOS AND DRIVE SALES TO THOSE CUSTOMERS , AFTER RELATIONSHIPS ARE BUILD AND IBOS EDUCATE THEM ON QUIXTARS OTHER PRODUCT LINES.

ALSO IF QUIXTAR WERE ABLE TO PARTNER WITH A BIG , GROCERY CHAIN . THIS WOULD OPEN UP THE PERISHABLE FOOD MARKETS A LOT MORE .

IBOS ABLE TO GO TO WALMART MAYBE ? PURCHASE ALL THIER PERSHABLE ITEMS , AND EARN PV ?

Tex said: March 14, 2007 9:08 PM | #

Larry,

I don't know how long it will take Jim or anyone else from Q to get back with you, so here's my two cents.

Regarding the case quantities, it is more efficient to sell in larger quantities. This is why Walmart is so successful, they buy in huge quantities and can therefore demand lower prices. The same is true on a smaller scale when we buy products from Q. Part of the reason is it is easier to handle a whole case, rather than break it up (probably manually, which means more cost, less money for us). Some techniques to manage this issue: 1. Try to buy only case quantity products having a relatively long shelf life. 2. Talk with your upline/downline and split up the case quantities. You can transfer the PV/BV, and it helps with team-building.

Remember that if prices are reduced, it will mean there will be left over to pay us. There is a balance between price and reward. If prices are too high, nobody would buy the products, IBO's or customers. If the prices are too low, there won't be much left to pay out PV/BV. Another challenge is the price of things varies across the country, but Q has one price everywhere.

Thomas said: March 14, 2007 10:17 PM | #

I am very excited about the Quixtar opportunity and the focus on the first circle since I am a relatively new IBO. One area of opportunity I see for sizzle is to create a powerful "Brand Suite" for men that is as far reaching as Artistry is for women. I think doing something like the Trim Body System but not just for weight management (which I think has more of an emotional pull for women than it does men), but expand the system (or create a parallel system) that deals with Performance/Sport/Strength Building. I think this would sizzle for guys the way Artistry sizzles for women.

We have the pieces with the XS brand but I think a "system" which shows how all the products "come together" to give you maximum peformance would be very powerful. I hope that makes sense.

Mike said: March 15, 2007 11:45 AM | #

Tex,

You need to check yourself, to be asked to participate in a conversation and then respond with your attitude of supreme knowledge is rude at the very least. Bottom line is if Quixtar completely eliminated the existing tool business the way it is today and replaced it with a company based model you would still be blogging and complaining about another reason why you are not growing. Your business will be built on leadership….YOUR leadership. If you are not growing there is only ONE reason, go into your bathroom and look in the mirror…there it is.

This is a great opportunity, focus on what is right and build a large organization. Only then will you have weight to your words. Until you prove yourself you come across like you have a case of the “loser’s limp”.

You can do this Tex, stop waiting for things to change and go MAKE the change. Like him or hate him, Dexter Yeager’s group started as one. Draw a line and every new person to bring into this community will have you as their example.

Be a great one!

Mike.

BILLYBOB said: March 15, 2007 12:53 PM | #

I wonder if any of these comments will get back to the people who can attempt to change some things mentioned ,or will the comments just dissolve and not get mentioned to the right people. I for one do believe in the system that Rich and Jay started out with and i know it could work for all new people . Now it seems that whoever started back in 1959 and stuck with it are the ones that are succesful.Was it easier then than now? were the pv/bv and prices different?

Anonymous said: March 15, 2007 2:34 PM | #

Dear Jim,

1. How do we become more consumer driven......?

Q has done a pretty good job of gauging buying trends and supplying innovative products in line with those trends.

Q provides solid data on the valuable difference for many of the exclusive products, making it possible for the IBO to avoid pricing issues as long as the customer is buying just those items. The perception of fair pricing is negatively affected when the customer starts roaming freely through the catelogue or site. I have a retail store, so I understand the importance of pricing perception. Items that don't have an apparent valuable difference need to be priced more sharply so they don't create a negative price perception for the array of products in general. Cut the PV on those items if you need to.

Shipping costs are an issue. I think you need to be more competitive with other internet businesses.

As for making products IBOs want to sell, it's my experience that hardly anyone wants to sell, period. The DVDs, the personalized web sites, the downloads, the product flyers, catelogues, etc. are all evidence that Q recognizes that fact too. The company is doing a phenominal job; do more of the same.

2. Ideas to enhance selling.......?

(I'm going to assume you're talking about selling the business opportunity in this question as well as the issue of retention.)

The focus from my experience has always been on recruitment. If individuals don't like to sell tangible products, imagine how much less they want to sell this intangible business to their friends and families! It tends to be a non-starter from the very beginning.

And why would anyone want to re-up a year later, when they have been uncomfortable for the whole time, gone to countless meetings, hearing the "plan" reiterated again and again, made little or no money, and have never really felt they owned a business.

And therein lies the problem. The new IBOs never feels vested in their own business. There are hundreds of businesses that could be structured on the Q platform of services/products.

Why not provide the new IBO with a manual suggesting a myriad of those business possibilites? Include marketing plans and budgets. Let the IBO create a business built on a product or service and they will renew. They will be able to recruit others because they will be selling something they know and believe in.

3. Ideas to improve IBO productivity?

Create work shops/on-line training seminars about how to build a business based on a product line.

Publish a guide for what IBOs can/cannot do on-line to market the opportunity/products. I know I can't sell Q products in my retail store because everyone doesn't have that opportunity. Everyone does have an opportunity to market on-line; it is a level playing field.

4. Changes to our sales plan that assist.......?

Convert to a quarterly payout schedule. Sales would be zeroed out quarterly rather than monthly. There might be more enthusiasm seeing PV climb to higher levels. Possibly less would be left on the table to roll up to the higher pins? Checks would be for larger amounts and might have more impact?

5. New approaches to training.......?

Downloads on how to present the business opportunity to different age groups.

Manuals on how to start a business in general

Manuals on how to start a business with in a specific product area

On-line Product Education Clinics

Training on how to utilze new and emerging technology to market and sell.

6. Areas where you need......?

Keep the Opportunity Zone as a vital component for spreading a positive message. Stay involved personally and introduce others on your staff to this end.

I don't know that your recent advertising effort was effective. It was lovely, but did it achieve company goals?

Take more advantage of the internet. I can imagine a video on You Tube spoofing the current Honda ad where the rep goes into homes to apoplogize for the actions of the rest of the industry. Picture this, an IBO appologizing for abuses of the past and then having to do the householders laundry with SA8.

Invest more on the personalized web sites. Make it possible to actually "personalize" them.

That's all for now,

Sharon

Tex said: March 15, 2007 3:42 PM | #

Mike,

I have never advocated Q take over the tool systems, and it wasn't even mentioned in this thread.

All I said above was Q needs to address the numerous questions already asked in this blog, and gave my "two cents" (that means opinion, not an "attitude of supreme knowledge", a comment which should have been screened out of this blog, as it is neither civil nor respectful, in my opinion) on a product quantity and pricing issue.

Therefore, YOU need to check yourself, Mike.

I am both pointing out changes Q needs to make to the tool systems for it to survive, AND I have developed a tool system for FAR lesser cost to our group. But if the overall problems are not fixed, there won't be enough volume produced for Q to stay around, even if we were to get to the Diamond level. So, both short term and longer term issues need to be resolved.

I don't hate Dexter or the other tool owners/benefactors, but I do hate the actions they have taken over the years regarding the tool profits. I have Rich Devos in my corner on that issue, by the way. Ever read/listen to the "Directly Speaking" recordings?

Jeffrey said: March 15, 2007 5:55 PM | #

There are some small things that could be implemented very soon. Like next week. One of those things I have mentioned before and it was mentioned again by someone else on this blog. Break down the case lots. Tex, do you REALLY buy cases of products when you go to the grocery store or a discount store? No. If you do, send me a picture of you at the checkout buying case lots at Wally World. Why should we have to? It's ridiculous. Here is the list: Scouring/iCook sponges, canned cat/dog food, toilet paper, paper towels, napkins, sandwich/food storage bags, baby food/formula, diapers, feminine products on page 197 of Choices, Zsenso teas, Smart Menu meals, peanut butter, ketchup, mayonnaise, tuna, Pop Tarts, all the cereals (I buy ONE box of cereal at the store--I simply do not have room for 6 boxes. That is why I do NOT buy the cereal from the business), pretty much all the rest of the food items that wouldn't come open in the box during shipment. Also, (again) the SA8 Tablets. I should be able to buy ONE box. The Food Bars, Protein Shakes, the new Trim Advantage and Seismic snacks and drinks, the list still goes on and on. The marketing department keeps defending this insane practice. GET RID OF IT. These people have a degree in marketing so they know best--except maybe THAT'S the problem. Let's start using some common sense. Give people what they want and the volume will automatically go up without advertising or promotions.

The other thing that's bogging volume down: We continue to have the highest shipping rates on the internet. I know that gas prices are going through the roof again, but it doesn't matter. People simply want low shipping. $5.95 shipping up to $99.99, then free over $100. If Alticor has $94 million for the Diamonds, they can afford low/free shipping. Quit penalizing us and our customers for being loyal.

Also let us personalize out retail sites with contact information. Let us put our voice mail number and/or e-mail address. The techies could have that done in a week or two.

Piet said: March 16, 2007 2:27 AM | #

Case loads:

Is the basic underlying question not whether Q is a wholesale business, or a internet-based retail shop? I think once that question is answered, the "case" question will go away automatically.

Tex said: March 16, 2007 8:52 AM | #

Jeffrey,

As I mentioned above, it is easier to sell in case lots because less manual handling (which results in less cost to pay for the people opening the case quantity and pulling out an individual item).

The regional distribution centers are highly automated, and your products are largely picked by computers, not humans.

Your proposed change sounds on the surface a good and straightforward idea, but the implementation is more difficult.

We already have price competitive challenges, and this change would make these issues even more pronounced.

Would the other suggestions I mentioned in the previous post not work to help you?

Your points regarding shipping are more well founded, but I believe the $94 million that is being offered to the Diamonds (or whatever the right dollar figure is) is hopefully being used to incent lower tool income.

I haven't heard of a good reason why we shouldn't be able to have our phone number or e-mail address on the personalized web sites, although I am not sure how much actual business would result. This is because if a lot of IBO's do this, the number of potential customers would be diluted.

Tex said: March 16, 2007 10:17 AM | #

Piet,

It is both a wholesale business and an internet-based retail shop. It all depends on whether you are an IBO or a customer.

Piet said: March 16, 2007 11:09 AM | #

Joecool said: Advertising would help IBOs. Allowing IBOs to create their own websites without password protection would make it easier for consumers to find an IBO and make a purchase.

Piet says: The whole idea underlying MLM and specifically the Amway (and I assume Quixtar) plan, is that it is an equal opportunity for every one. Just as somebody with deep pockets is not allowed to set up shop on the corner, and retail to the public, the same way nobody should be allowed to set up shop on a *cybercorner* on the internet, and then advertise for all and sundry.

Similarly, one should not hope for customers to stumble/ find via advertising the IBO site, one should find them using good old fashioned word of mouth.

Hi-Tech with Hi-Touch.

Tex said: March 16, 2007 1:09 PM | #

Piet,

I tend to agree with you on the internet site issue.

The playing field needs to be kept level.

However, I think Q could put some additional effort into coming up with more interesting personal sites that could be used (a new thread for or blog for personal site innovations?).

The emphasis can still be on word of mouth, as someone who could afford to advertise their site will do it, making the playing field not level. In fact, this may be the concern about adding the e-mail and phone contact information in the first place.

P.S. I also wanted to note I didn't mention the "T" word a single time above, or even make reference to it. I'll give myself a gold star.

Joecool said: March 16, 2007 2:05 PM | #

Piet, word of mouth one person at a time is not an effiicient way to market products. It's ironic some IBOs think the quixtar busienss is "free" enterprise.

I think quixtar should advertise, and IBOs should be allowed to as well.

No or little advertising may make it "fair" but it gives all IBOs a huge disadvantage. Go walk up to people on the street as ask if they would rather wash their clothes with Tide or SA8. I rest my case.

Tex said: March 16, 2007 4:13 PM | #

JC,

Efficient or inefficient, it is the best way to keep the playing field level.

I would argue whether it is inefficient or not, but consider this a secondary factor to the level playing field.

If you want to overcome the "Tide vs. SA8" issue, then advertising from Q would be the way to fix that. There may even be some value in doing some of this, but I would not suggest spending so much that it significantly affects the price or PV/BV. After all, P&G doesn't pay for advertising, either, the customers do.

Mike. said: March 16, 2007 4:22 PM | #

How did Hotmail grow from zero to 30 million users in 2 1/2 years....word of mouth.

Build it in groups Joecool, not one at a time.

1 tells 1 tells 1 = 3

20 tell 20 tell 20 = 8,401

If Quixtar was to advertise their brand and products they would not need you (the IBO). We provide value to Quixtar because we tell the story...we are the advertisement.

Mike.

Joecool said: March 16, 2007 5:32 PM | #

Mike,

Hotmail did not grow 1+1+1. There's no restrictions. You don't need a password to view MSN and register for hotmail.

Why does there need to be a level playing field for IBOs? The smarter, more motivated and efficient ones should be rewarded. That's free enterprise.

Quixtar should do more advertising. They still need IBOs in lieu of opening up brock and mortar stores.

Jeffrey said: March 16, 2007 5:33 PM | #

Tex, do you REALLY buy 6 boxes of cereal at once? My ma-in-law is 80. My parents are in their 80's also. I have others in the group in their 60's and 70's. They are not going to buy 6 boxes of cereal, 4 jars of peanut butter, 4 bottles of ketchup, a case of T.P. and a case of paper towels. How much does Quixtar make from products that sit in their warehouse because the quantity is not convenient to buy? All I'm saying is: break these case lots up, put them on the pick line with the other eachies, and move this stuff. Also, the Q marketers/buyers need to be more agressive with the suppliers when they are negotiating for these items, ala the Wally World buyers. Q is big enough that they can say to these companies: this is what we want and this is what we will pay you for it. If you can't meet our price, some other company will. When they negotiate like that, we will get better prices so we can move this stuff, both to IBOs and to customers. Let's make this stuff easy to buy and people will buy it.

Also, I know that home care stuff is not very popular compared to health and beauty products, but let's face it: you still have to clean your house. When was the last time you saw Pursue Disinfectant Cleaner featured on the home page? Why not? It's an awesome product. I use it in my janitorial business to clean kitchens and bathrooms in businesses.

LOC Towelettes is also an incredible product. Know anybody that has a paper route? There is nothing better for removing newspaper ink from hands than LOC Towelettes, except the regular LOC itself. Everybody in the business needs to keep some LOC Towelettes in their car/truck. I've never seen that featured on the home page, either.

I have another idea: the Fuller Brush Partner Store has some incredible products. They have full PV/BV. Why not have Q inventory those products in the Ada warehouse and put them in the Choices Catalog? Then they could be added to your regular orders and we could get those cheap looking generics out of the catalog. That would add some credibility.

ted said: March 16, 2007 8:55 PM | #

Curb shipping cost so that once you reach 100pv shipping is free. what good is it to get a pv check neutralize by shipping cost. Also match bv with actual cost of exclusive product that way more income for ibo and keeping our core product on the forefront.

Anonymous said: March 17, 2007 2:41 AM | #

Jim,

One other issue I think is important. The relative slow growth of popular Partner Stores. The PV earned on Partner Store purchases for the most part is not great, but as shopping on the internet increases, small numbers from many seaprate resources can add up to significant dollars to an IBO. Popular Partner Stores are also a big selling point to prospects.

Sharon

Piet said: March 17, 2007 4:36 AM | #

Message to JoeCool: Then MLM and A/Q is not for you, set up a corner store and sell Tide in the cornerstore.

At first I wanted to agree with you that it is not very efficient, but it all depends on how you calculate efficiency. The effort making use of advertising is extremely inefficient - you have a shotgun approach, and just fire away. And everybody does that. Which is why there is so little brand loyalty out there. And the full value of whatever brand equity exists, only ever belongs to the company.

In MLM it works completely different: more of a targeted approach, i.e. word of mouth, where relationships are extremely important, and where brand equity is available to anyone willing to work hard enough to earn it.

We need to innovate, but innovate in the right places. (Massmarket) Advertising is not one of them.

Well done Tex!!

Joe said: March 17, 2007 10:38 AM | #

I think the business is great! Most people have no idea on how to make the business really work for themselves. Remember what industry we are involved with??? If you have never studied our industry then I would suggest doing so because then you will find the anwser on how to build your business. People are looking for a easier way to build this type of a business. Thousands of people in our industry with our company or other companies have all built the business in a similiar way. So I suggest everyone who get's involved with this type of a business first needs to learn the major principles of our industry. Once that is in place then you can focus efforts on different areas like retailing and things like that. We are in the business of "helping people" and never forget that.

Now my suggestions that could help us IBOs out a ton. I think a simple thing to do is put on conferance calls about the business & opportunity. Either a recorded call or a live call that people can call in and listen to information about the company & products, & about the business, also testimonials and things like that. You could do business opportunity calls, product calls, things like that. Other companies are doing this and it is a very useful tool. One of the most important I think! Quixtar could do something like this to help our IBOs because it is a real simple thing. All other companies are doing this, i am not sure why we have never had this simple tool. Maybe a simple company brochure also that tells info about the quixtar company. Not sure why we do not have this either??? But those are my two suggestions. If I think of anything else I will write again.

Curtis Duncan said: March 17, 2007 6:53 PM | #

Jim, thanks for another tool for IBOs. My "radar" is always up and running as I visit with friends and newpeople moving into town..they tell me the save a lot at a certain "x-mart"..then in the same breath tell me how horrible the parking is especially when it rains and blows in this part of Kansas. Then I strike, nicely , with one or two quick questions and go from there. If I can save hundreds of trips to another larger city 100 miles to 200 miles away in times of increasing gas and diesel..& help them makle money and then help them show others..I will ! This is a great business and many more people need to see it.

p.s. I like the idea maybe of free shipping for a period of time...maybe 3-6 months and see how volume increases.

CurtisDD

Tex said: March 17, 2007 8:32 PM | #

Jeffrey,

Yes, I just bought 6 boxes of the organic apple cinnamon o's cereal that was on sale (it is still listed, but no longer available). It tastes great, too.

Are all of the people you referenced located in different parts of the country? If so, you have somewhat of a point.

If this is a large issue for you, then you have learned a valuable lesson in how the current constraints hamper getting customers. Perhaps customers in your local area would make more sense, so if they want some cereal, you buy 6, sell them 2, share 2 with another IBO, have 2 for yourself.

If you intend to have a huge retail business, there will be more opportunities to split case quantities among the customers.

If you want a huge network of IBO's, there will be more opportunities to split the case quantities among the IBO's. Although a bit of a hassle, if this is your biggest problem with the business, congratulations.

Ty said: March 18, 2007 8:11 PM | #

JoeCool said:

"Piet, word of mouth one person at a time is not an effiicient way to market products."

Where did you get this piece of "information"?

Direct Sales (that would be person to person word of mouth) has doubled in the last 10 years and the growth rate outpaced traditional retail sales in 2005 and 2006.

Pretty good numbers for ineffecient business model, don't you think?

Piet said: March 19, 2007 6:43 AM | #

Curtis Duncan said:If I can save hundreds of trips to another larger city 100 miles...

Piet says: This is one of the main reasons why this type of business is a no-brainer to me: There is a huge amount of inefficiency in the current distribution chain in traditional manufacturing/ wholesale /retail. This business, by making use of technology will make drastic inroads on the cost of getting goods to end-consumers.

Joecool said: March 19, 2007 1:34 PM | #

Ty, I should restate what I said. Word of mouth 1 person at a time is not as efficient as say mass media advertising.

Joecool said: March 19, 2007 1:37 PM | #

My real question is why all IBOs need to have some "level" playing field? Why all the restrictions? Without some of the restrictions, the more motivated and innovative IBOs could excel and make more than others. That is closeer to free enterprise than what exists under the current rules.

Tex said: March 19, 2007 5:43 PM | #

Because from the very beginning, Rich and Jay designed the business so it was a good opportunity for the "average Joe" (not to be confused with Joecool, of course). If you remove some of the restrictions, the people with more money will have a better shot at success with the business than those who don't.

Even with the internet, you can "buy" your position on search engines, although I don't think you would see folks stampeding into a site to get to the products when they can already call/go online and contact Q directly for an IBO to sell them products.

Besides, why would you want to spend money on advertising when you can buy a few more CD's, go to a function, etc? :-)

Jeffrey said: March 19, 2007 6:51 PM | #

After several disastrous attempts at advertising in the newspaper and listing in the phone book, I believe Sinclair Lewis had it right: "Advertising is a valuable economic factor because it is the cheapest way of selling goods, particularly if they are worthless." Let's let the K-Marts and Wal-Marts of this world advertise. They have products that do not hold a candle to ours. They cannot create wealth for anyone (except those that get into senior management--then it's not even wealth--it's just a high-paying job.) We have a business opportunity and merchandise that needs to be explained person to person. You can compare Tide and SA8 on a cost-per-use basis, but that's it. The two are so far apart in quality that there is no comparison. Same for our business opportunity. Sure, I can risk my financial security and get a franchise. Or I can expand my janitorial business and hire more help (some of whom MIGHT show up for work), or I can build this business--no overhead, no inventory requirements, no workman's comp, work from home, set my own hours, set my own goals and deadlines, make as little or as much money as I choose, market world-class products, and on and on. How can you put all that in an advertisement? Yes, I have some beefs with the business: the tool systems, my bad experiences with my upline Diamond, some quantity and packaging issues. It doesn't matter; I'm going Platinum anyway because this is the best business opportunity out there. See ya June 9th!

Piet said: March 20, 2007 2:54 AM | #

Joecool said: Ty, I should restate what I said. Word of mouth 1 person at a time is not as efficient as say mass media advertising.

Piet says: See my comment above. Why do you think mass-marketing is effective? Because *everybody* does it? That's not a really good argument.

A level playing field is fundamental to the philosophy of this business. The more motivated and innovative IBO's do do excel and make more than the others, they are the ones going diamond. Networking relies on large numbers of people, each one striving for his own goals, getting rewarded for his efforts. Not for how much money he had to set up a big store in main street (Physical or Cyber).

This is the business for the little guy, for the guy with small resources but big dreams. Once you skew the rules to work against them and for the people with resources, you're doomed.

oneIBO said: March 21, 2007 5:34 PM | #

Jim,

Thank you the invitation for feedback.

I think moving away from the case requirements on certain products is important. From what I can tell, the large-quantity-only products don't seem to be big-pv items.

Growing up in an Executive Diamond family and building my own Quixtar-powered business, I am about as loyal a purchaser as there is, always defending the reason to buy everything we can from our own biz...that said, last night my wife wanted chocolate syrup with the ice cream she was purchasing at the grocery store. I chimed in with my usual, "we can buy that from our business" to which she nicely replied that if we don't want to buy [6] bottles of syrup, we shouldn't feel pressured to do it. I'm starting to agree.

I understand that some people are used to buying large quantities for deep-discounts, but as far as I know, that's not our game. We specialize in quality, convenience, and great service, and though I am Q's biggest cheerleader when it comes to all three, in the case of quantity-only-products, it's in my opinion the farthest from convenient and to be honest good service either.

I'm sure the quantity-only products lowers cost, which means more money in your wallet and mine...at least for the short-run.

Long-run, is it possible that more people will stick around and buy the great exclusive money-makers when they are happy to buy one bottle of chocolate syrup as they please? You know better than I do, but thanks for asking.

Chris O. said: March 22, 2007 10:22 PM | #

Dear Jim,

I have only been in this business for a short time, but my background for the last 18 years has been in sales, marketing, and distribution, and in secondary education before that. Because of that, there are certain things I have come to expect from successful sales-driven organizations that I have a fair amount of frustration at not finding here.

1. We do direct marketing for a distribution business and our job is to find and bring on new customers and new salesreps (IBO's) who will continue the process. I see a lot of talk from those who don't seem to grasp what the proven, duplicatable structure of a successful sales-driven organziation requires--weekly group or territory progress meetings, monthly product marketing, training and motivational meetings, regular one-on-one sessions--there are some that require weekly teleconferencing at your own expense. The difference, here, is that we all own our own part of this business, and we have to shell out money out of our pockets to subsidize all this before we are able to become profitable--so many of us appear to think that it will always be this way and quit. What if Q or our LOA's picked up that tab for the first six months?

2. We need to be able to make a selling profit faster. This is the only sales distribution system I have seen that ties the hands of the business owners regarding the prices they charge for their goods. Understandably, you need to regulate the IBO cost and set the maximum "suggested retail" so Q can pay expenses and so no one can charge more than is reasonable for the products. That leaves a lot of ground in between that the Q system has made it almost impossible to use to our best advantage. I know that we can set pricing on individual items in DITTO orders, but that is such a cumbersome process that it is just not practical. How many of us give away our profits and charge straight IBO cost for EVERYTHING OUR CUSTOMERS BUY--just so we can get them to buy our high PV/BV items?

a. I may have to sell my Dbl X at no profit, but I don't have to do that with all the other 5000+ items my customers might buy.

b. By not giving me the ability to develop pricing structures that fit my customers needs, you have effectively removed my ability to maximize my profits--and extended the length of time you are going to have to coax me to stay with it so I can see significant bonus money coming in.

c. Try taking the profit numbers out of the plan presentation figures and see what's left for all that work--not much.

d. what we need is to be able to build an order guide (shopping list) for our customers that we can set pricing at the levels we feel will get us the business--at the item level. It would basically work like the DITTO order form, but would not be an order, and would not need a signed form to be submitted. It would just be a pricing guide that we would set up and that would then appear in our customers' sites.

I am a Margin Manager at the distribution company I work for, and I oversee 6 different pricing systems that work together to give our sales force the flexibility they need to compete. Q needs to step up to the plate and give us the same flexibility.

In regards to the broken case sales on the quantity items, I am very much aware of the problems and expense of Inventory Shrink caused by damages, and selling broken case items is at the top of that list. I offer a possible compromise. Pack in smaller sizes--3 chocolate syrup to a case, 6 rolls of paper towels, 12 rolls of toilet tissue, 3 sleeves of cotton pads, etc. This solves the damage problem, and allows the customer to buy quantities they are more comfortable with and a lower out-of-pocket expense and lower shipping costs. Just a thought.

I have plenty more I could add, but this is already half a book! Thanks for listening!

Brad said: March 30, 2007 1:49 PM | #

Hello Jim, and other OZ contributors.

I was wondering if you could shed light on relations with a new "IBO Network" company? Their website is: www.ibonetwork.com

I believe this will drastically impact the current LOA hold on tool/training flow and could provide an interesting new avenue for the corporation to reach the newest IBO.

Thanks!

Brad,

This company is not part of Quixtar Inc. and has been created by an individual who is independent of an established Line of Affiliation. The creators of IBO Network must work with Quixtar Rules to ensure their materials are in compliance with our Rules of Conduct.

Thanks,

Anna Bryce
Managing Editor -- Quixtar Opportunity Zone

rara said: April 2, 2007 7:47 PM | #

Anna (or Jim or Todd or anyone else working at Quixtar):

1. Could you give examples of possible problems IBONetwork.com could have with the Quixtar rules? I would appreciate if I got a clear answer because this is something critics could point to as a way the big pins could prevail upon Quixtar to crush IBONetwork.com. (Forgive the dramatic language.)

2. Also, have the creators of the company contacted Quixtar about their plans? I can't imagine that a company planning to give only business info (no motivational stories) wouldn't have.

3. Has Quixtar spoken with the creators about how to comply with the rules?

I believe that honest answers to these questions would be in the interest of transparency.

Thank you.

Repsonse from Quixtar Business Conduct & Rules (posted by Anna Bryce):

IBOs have a contractual obligation to comply with the Rules of Conduct. Under the rules certain tools used to build the business must be reviewed and authorized. If an IBO selected IBONetwork as their tool provider, the IBO is obligated to ensure that the tools offered are in compliance with the rules. The corporation does not review or authorize tools for 3rd parties unless they come to us "holding the hand" of an IBO. This information has been shared with IBONetwork.

Josh said: April 3, 2007 2:03 AM | #

Quick observation here.

Are we in business to make money or save money?

I personally wish they would double the price of their products. Higher price, higher profits. This might be a slight exaggeration....or is it?

Here is a quick math example. The plan shows you spend 250 bucks a month. What percentage of that could you "save" at Wally World? 10% 20% I doubt it.

For our example let's say you are God's gift to coupon cutting and saving. You find 50% savings month in and month over the 250.

Do the math---$125 a month X 12 months = 1500/year X 50 years = $75,000

Good for you, you saved a lot. But did you? Did you put this savings into an account? Or did you buy more stuff with it (albeit junk you don't need).

Now do the math of going Platinum. Let's say it takes you 9 years as stated as average time. Let's say your Platinum is structured correctly to bring in 50k a year.

Costs of business for 9 year (my estimate)= 5000 per year = 45000

50,000 X 41 years = $2,050,000 - Cost of business = 2,005,000.

Come on folks, plan as day. Stop negotiating the price of success. Are you here to save money or make money???

Piet Strydom said: April 3, 2007 5:36 AM | #

Brad said: I believe this will drastically impact the current LOA hold on tool/training flow and could provide an interesting new avenue for the corporation to reach the newest IBO

Piet says: Two comments:

1. You have several established BSG's, that have been in operation for many years. World wide they receive tens of thousands of new apps per month, propably hundreds of thousands. They cover millions of IBO's. A new, unproven start-up will NOT drastically alter the landscape. It will take them years to just get to what the established guys are doing on a monthly basis.

You will have a far larger influence from the established companies shooting themselves in the foot.

But the size of the existing BSG's show, that on balance, they satisfy a need, and satisfy it efficiently. Yes, there have been abuses, and yes, there will continue to be abuses. Q/A's most important function I believe is to establish mechanisms to a) prevent those abuses occurring, and b) to detect and correct abuses where they do occur.

2. Using IBO network to reach new IBO's will give Q/A access to an undetectable percentage of new IBO's. They already have access to each and every new IBO - IBO's all register with Q/A. The question is what form the interaction with the IBO should assume.

Reading some comments might leave people with the impression that the BSG's are entities that should be done away with - far from it, they have enabled Alticor to become the largest MLM company in the world, that have changed the lives of countless people.

Do not throw out the baby with the bathwater!!!

Tex said: April 3, 2007 10:47 AM | #

Josh,

You are neglecting the $5,000/year overhead of the 100-150 IBO's needed to make your $50,000/year.

Piet,

It remains to be seen how visible and useful this new tool company will be. If nothing else, I like the price comparisons that will result from this company coming on board.

rara said: April 3, 2007 8:32 PM | #

Anna, thank you for posting the response from the Biz Rules and Conduct Dept.

They said: "IBOs have a contractual obligation to comply with the Rules of Conduct. Under the rules certain tools used to build the business must be reviewed and authorized....he IBO is obligated to ensure that the tools offered are in compliance with the rules. The corporation does not review or authorize tools for 3rd parties unless they come to us "holding the hand" of an IBO."

My question is: It seems that the BSMs provided by the Quixtar LOAs do not fall into the "certain tools" category above. Or do they? Because I can assure you that if someone from the corp listened to some BWW CDs, they would come pretty close to having a myocardial infarction. That is, of course, if they are listening to one for the first time. If the answer to my question above is no, why not? Also, what kind of tools have to be reviewed and authorized by Quixtar?

Thanks for your willingness to answer my questions!

Editor's Note:

According to Quixtar Rules -- The Rules of Conduct require that all Prospecting, Product, and IBO Compensation Plan materials be reviewed and authorized. We work with the LOAs through individual IBOs to review and authorize those certain tools that fall subject to review under the Rule. Materials of a general "how to" nature for use with Existing IBOs are permitted under the Rules and do not require review and authorization. We define "how to nature" to include "how to sell products," "how to conduct training meetings," "how to manage inventory," "how to motivate people," and "motivational success stories," etc.

You can find more information on Quixtar's rules concerning support materials at https://www.quixtar.com/Business/default.aspx?cid=4175&pid=573#7.

Katie Pearsall
Editor -- Opportunity Zone

Josh said: April 3, 2007 9:31 PM | #

What does that matter Tex? That is their business expense. It may not be as much as mine. Working within a defined budget is key. That is one of the first things a Q* business teaches the new person.

Budgeting and planning ahead to make the most use of the products and tools at your disposal is vital. It is also the first real step toward building a responsible business.

Chris O. said: April 7, 2007 10:08 AM | #

Jim,

In response to points 1, 2 and 3 above, combined--which also flows to training:

In the retail business, it is standard business practice for vendors to supply their distributors' sales force with product samples for training purposes, so the sales force knows what they are selling, and can do so with the confidence and assurance that comes from having tasted/used/worn the product.

In keeping with the migration to viewing IBO's as full business partners, and not just another kind of customer, I suggest that Q provides every new IBO with a monthly "training sample budget" for the first year, to be used to try Q exclusive brand products for their own use. Further, I propose that sample sizes of NEW products be shipped free of charge to any IBO who requests it--one time only.

When a new IBO signs up, they should be sent one of the product packs free of charge, giving them a chance to try things out before forming an opinion about the price they paid for it.

We are your marketing force, and will gladly sell anything we know, like and believe in to our customers and prospects. Why limit the number of those things to the size of our wallets? If I can't afford a Perfect pack, or a Time Defiance product I would like to try, and have people I could sell it to--you have just closed off sales on those items because I can't speak for them when people ask me--and most want more than a 180-day guarantee before they shell out dollars on something they've never heard of. The IBO testimonial is critical, here--as you well know, and is why we are all told to "buy from our own store".

Let's face it, we come from all walks of life, and all levels of disposable income--from none and up. there are a large portion of us who have grown up as W shoppers, and are now being introduced to a whole new level of quality and pricing--if Q doesn't supply us with training samples, there are things we may never buy or be able to sell. Worse, we may buy them and go broke doing so before we have built the business to a point that can support the expense--either way, the IBO, the LOA and Q lose, which is a far greater loss than the cost of the free training samples would be.

The concept is simple--it's called "seed money". You plant seeds with us, and we will make your garden grow exponentially!! $100/month for the first year (the length of time a new IBO is encouraged to "stick it out"), used to allow new IBO's to buy and try Q branded products they haven't bought before, would create such excitement for this business, and pass that excitement on to prospective IBO's it would be unbelievable!!! THAT would make us feel like partners, and take away some of the financial fear of getting into this business. It would also allow us to operate as confident professionals, instead of desperate sales reps, trying to cover our expenses--an approach that is a recipe for failure.

Step up the plate, Q--let us shine!!

MKingston said: April 8, 2007 8:02 PM | #

Quixtar quote- The corporation does not review or authorize tools for 3rd parties unless they come to us "holding the hand" of an IBO.

Anna, this means Quixtar WILL work with us as IBOs if we use the IBO Network, right? And you'll work on the IBOs behalf regardless of the supplier and our pin level?

Editor's Note:
We are happy to work with IBO Network or other third party vendors at the request of an IBO. However, there are some restrictions. In order to ensure that the IBOs who are creating tools are leaders in the business and have some experience to bring to the table, Quixtar Rules require that an IBO be EDC or a corporate designee. Also, the IBO is obligated to ensure that the tools created through the third party vendor are in compliance with the Rules of Conduct.

Katie Pearsall
Editor -- Opportunity Zone

ibofightback said: April 14, 2007 7:47 AM | #

EDC? As in Executive Diamond? Are you saying the corp. does not consider a leader to have "some experience to bring to the table" unless they are EDC or above?

I suggest you think about some predictable consequences of that. First of all, according to quixtarfacts, the average diamond achieved that level in a little less than 10 years. I don't how long it takes the average EDC, but I'm guessing 15 years. Most EDCs are not actively adding frontline prospects to their business, indeed the FAA awards goes someway to encouraging them not too, and instead (positively) encouraging them to build stability in depth.

What this means is that the majority of people you consider to have necessary "experience to bring to the table" were last "on the frontline" getting personal experience was 15 years ago.

1992. That was the year Windows 3.1 was released. There were something like 20 or 30 websites - in the entire world.

Something to think about.

ibofightback said: April 14, 2007 11:26 AM | #

Just read an interesting article -

Women fight for anti-age cream

Now, we as IBOs are told that Artistry has this scientific backing - but where's the backing? The product in the article sold out in a few days and has 11000 people on a waiting list. Why? Because a third party, the University of Manchester, said it worked.

Who says Artistry works? IBOs and Artistry. Where's the third party backing that gives credibility?

Rusty said: April 15, 2007 9:53 AM | #

ibofightback,

I totally agree with your point! As a new IBO in this business (<1 yr), I want to hear from those who have gone my way more recently and forged new paths to success in today's web environment. Those who have dealt with and overcome the negative spin that is so available to everyone, these days. I want to know what techniques they are using besides picking long lines at the grocery store! The internet has made today's consumer very savvy and very wary, which requires a different approach than was used when Q launched. (as an example, it is not unusual for me to know about the latest medical news before my doctor does, because it's on the internet before his journals get to him.)

MLM's exist in staggering numbers, and many of them suck people in for a fee, and what they get in return is instructions on how to do the same to others--all take and no give. This is the environment we operate in today, and need some new models to deal with. Don't get me wrong, I have gotten some great advice and insight from our current tapes and CD's, and many of the methods are timeless and proven.

What is the first level of achievement that is the biggest hurdle on the way to Diamond? The point at which an IBO can see the path to Diamond clearly in front of them and knows that what they are doing will get them there? THOSE are the people I want to hear something from!

DH said: April 28, 2007 9:20 AM | #

As this blog continues to grow, don't you think the posting should post from the latest first? Or is there something about now to list that I don't Know about

Anna Bryce said: April 30, 2007 3:06 PM | #

DH,

If you're talking about comments, Ada-tudes' comments appear in the order they are received with the most recent last in the list. This is standard in the blogosphere and allows readers to follow a conversation in chronological order.

If I'm misunderstanding your question, please let me know!

Anna Bryce, Managing Editor

Quixtar Opportunity Zone

Katie Pearsall said: May 2, 2007 4:57 PM | #

ibofightback,

Below is a response to your questions about Artistry's credibility from our marketing team. For more information, visit http://www.quixtar.com/products/content.aspx?pid=1484&cid=6727

Artistry is Backed by the Best Science in the World:

• Artistry leverages science and technology from the world’s leading global brand of vitamins, minerals and supplements.

• Among our top advisors are internationally renowned dermatologists, surgeons and researchers, and over 500 scientists, engineers and technicians around the world.

• All Artistry skin care products are Dermatologist Approved by internationally renowned, American Academy of Dermatology – certified dermatologist, Dr. Indira Misra-Higgins.

Artistry offers Unparalleled Proof of Performance:

All Artistry products clinically proven and guaranteed to perform.

• Artistry uses only reputable, third party research firms to produce non-biased clinical claims.

• Artistry uses state-of-the-art instruments and technologies, including systems originally perfected for space travel by NASA.

Katie Pearsall

Editor, Quixtar Opportunity Zone

Steve said: May 6, 2007 12:34 PM | #

Jim,

One point of confusion for new IBO's could be the strategy for building depth. I noticed that Quixtar shows 6-4-2. Some LOS's (mine included) teaches a different way of building depth which requires a different mindset and results in a less cohesive group (IMO). Also when I try to calculate my income, the calculator on Quixtar is not applicable to our way of building depth. Food for thought.

Tracy Baker said: May 7, 2007 11:10 AM | #

We have been following the discussions on the blogs and find them interesting; however, there is one issue that has not been touched upon.

Timely shipping.

For years our products have been delivered in a timely manner. Order day Wednesday, delivery by Friday and on rare occasion delivery first thing Saturday morning. This has held true a numerous locations from 150 milers to 900 miles from our service center.

We have now relocated and are less than 50 miles from the service center and are lucky if our orders arrive within a week. Guess the anwer would be to pay extra but that does not seem to a logical conclusion.

Our suggestion would be to take a very close look at who and how the products move from the service center to the IBO. It would appear that contract carriers can no longer perform satisfactorily and need either to be replaced or more diversification in carriers

Sandy Reid said: June 5, 2007 5:16 PM | #

We have been trying for the past 8 months to create

a one stop gift registry for our business. We were very disappointed when Quixtar stopped including the Quixtar products in the gift registry on shop.com.

We feel there is a lot of business being missed because of this.

Secondly,

Because we have to refer to Shop.com and give them the steps to get there, we will lose all those people that will just go straight to shop.com, as that is easier for them.

We really need a Quixtar Gift Registry (in Quixtar)

that includes all of the Quixtar products plus all the products from the partner stores.

We are ready to bring customers but are stymied with how to proceed.

Please answer ASAP, our opportunity is awaiting..

Thanks

Heather Gladden said: July 20, 2007 2:13 PM | #

Hello, I've been pondering this question for some time now and finally think I have it down to an askable question.

I have been an IBO for 13 years I also own & run 2 other businesses. The question keeps coming up in my mind: "What business am I in?", "Am I in business for myself?", or "Am I sales person for Quixar/Amway?", or "Is my business about buying products for myself and then signing up other's to do the same?" or "Do I I have a retail business with retail customers?"

Reason for this query is this: If I want to be successful in this day and age, I have to "Brand" my business to my customers.

If I'm in my own business, and want my business to be professional looking then I would have a business name (DBA), a website with email all with the same domain name. I'd also have one place for my customers to shop that is customer friendly and informative.

I understand rules and issues regarding branding and protecting the name of Quixtar/Amway. But as an IBO that seriously wants to build a strong and profitable business with a strong customer base first and then strong IBO base second (without the side volume from BSMs), I need some help.

The personal websites are great and if they could be further developed it could be the answer to my query. They are way less confusing to a customer than the Quixtar site and I like the options to focus on a particular line. But as a business owner I need to have the option to have all of my products and services listed not just some.

In my own business I can run sales. I'd like the flexability to do that as well, where I can set an intermediate price for my customers. I do this now, but can't utilize the website for this.

I would be so appreciative if someone could answer the question above about what business am I really in, that would be great. or if there's a better place to direct this question to, that would help also.

Thank you for your time!!

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