Racing to Support IBOs
Monday, June 11, 2007  by Ray Alexander
Category: , ,

Hi, I am Ray Alexander, Director of Marketing for Quixtar. This is my inaugural posting to the blog and I am going to talk about an event this past weekend that paints a bit of a picture of where we are headed with putting our brands in front of consumers to make it easier for IBOs to sell.

IBOs Need to Make More Money Sooner -- it probably can't be said enough. The challenge is that new IBOs need to sell products to make money early and feel good about the business, and we've been a bit lax in providing them the tools and incentives for making the sale.

We need to make it easier to retail products. To do that, we are focusing on Health, Skin Care, and Gift, and creating product pathways for each that provide everything an IBO needs to sell to consumers. The pathway starts with products consumers want to buy, includes merchandising resources and training that help IBOs attract customers, and is supported with integrated consumer programs, events, and advertising.

IBOs clearly have a much easier time selling products that have some level of brand awareness in consumers' minds. Quixtar's exclusive product brands have not historically had great awareness outside of our business. A number of initiatives, such as last fall's national Nutrilite® advertising campaign and the global sponsorship of world record holders Asafa Powell (100 meter sprint) and Liu Xiang (110 meter hurdles), are working to change that. Just think of that a moment. Asafa Powell, the fast man in the world and the fastest man in history, attributes some of his success to Nutrilite!

Another great example of exciting brand awareness effort for Nutrilite is its official sponsorship of the 2007 Prefontaine Classic in Eugene, Oregon, Sunday, June 10. This race is the premiere track & field meet in the United States.  Since 1996, it has been ranked first among all annual track & field meets in the U.S. by the International Association of Athletics Federations (IAAF). For more event details, visit www.preclassic.com . This prestigious race is the only one in North America where both Asafa and Liu competed, making it the perfect event for highlighting the power and prestige of Nutrilite Double X® . The Nutrilite sponsorship of this event is exciting because it highlights four examples of how we are delivering on building the pathway: IBO involvement, local/national advertising, product accessibility, and sampling.

IBO Involvement
As an event sponsor, Nutrilite hosted two tents in the expo area of the race. The first was for the general public, and all attendees were able to pick up a free Asafa Powell/Liu Xiang/ Nutrilite  poster. The second tent was IBO-only and all IBOs received free Nutrilite merchandise and VIP treatment. This was a great atmosphere for IBOs to bring prospects in.

Advertising
Nutrilite also conducted special advertising in support of the event, including national commercial spots every 20 to 30 minutes during the live airing of the race on NBC.

Product Accessibility
Consumers have always found it difficult to buy product through Quixtar.com. Beginning with this race, Quixtar is making it easier. All ads direct viewers to the new www.teamnutrilite.quixtar.com . From this site, a consumer can order product in just two clicks of the mouse. The site includes an edited selection of Nutrilite  and XS™ products, as well as information about Asafa Powell and Liu Xiang, and information about the brands. Any customer without a referring IBO will be assigned to one behind the scenes, and all the PV/BV will be awarded to that IBO. Any customers who already have an IBO will be able to enter that person's information into the system instead.

Sampling
In addition to the sponsorship and advertising, Nutrilite also is offering a new 10-day supply of Double X , featuring Asafa graphics. These sample-sized packages allows customers to try Double X  without committing to a month-long supply, which equals easier retailing for IBOs.

Enough for now. As you an see, things are changing. The sponsorship of the Prefontaine is an excellent example.


Comments

Josh said:
June 11, 2007 1:00 PM | #

Ray,

Welcome to the blog.  It is great that Q* is really putting our brands out there in the public eye.

As there are many people critical of every step that Q*/Amway make, let me point out a couple areas I believe will become immediate points of contention.

1)  The website address is much too long.  People visit websites that have a single word.  Multiple dots and words seem to take too much time.

2)  IBOs will want to exactly how the PV/BV will distributed to IBOs "behind the scenes".  Will be fair for every IBO, or will it go to IBOs at a certain level?  What is the criteria by which IBOs are chosen to receive this "random" PV/BV.

Again those are a couple points that will become quick topics on here.  If you can address these topics early, you will save yourself much typing and headaches in the future.

Welcome

rdknyvr said:
June 11, 2007 3:23 PM | #

Ray,

Wonderful to see you posting here, and thanks for the great insights and encouragement above. You mentioned that "[t]he pathway starts with products consumers want to buy..." Don't forget, and I'm sure you aren't, new pathways and future trending products that can be created and 'owned' by Q, not just the existing ones that conventional market research will tell us about.

With appreciation,

rdknyvr said:
June 11, 2007 3:51 PM | #

Ray and Josh,

Some thoughts for which IBOs should be assigned "behind the scenes" customers coming in from these other access points:

1. Have achieved Platinum or Q12 or better (cuts me out for now) -- have earned the right, demonstrated the commitment

2. Are currently demonstrating growth in both their own personal First Circle and sponsoring, thereby indicating an ability to teach retailing and growth leadership

3. Have completed the appropriate training modules with QU when that becomes available

With appreciation,

YankeeIBO said:
June 11, 2007 6:07 PM | #

Glad to hear a new voice, Ray!

I agree with Josh about deciding who gets new customers coming in through the new site--and through the Q* site, as well. If the focus is to get new IBO's profitable sooner, giving these to Platinums and above is counterproductive, and stacks even more of the wealth on top, where it is already too top-heavy. New online customers should be given to the closest active geographical IBO (even the "inactive" active IBO's might get back in the game with a new customer). If there are a number of IBO's in the same area, it should be given to the newest, qualified IBO--all the PV/BV flows uphill and benefits the entire upline.

In my case, my upline Platinums are in a different state, so giving new accounts to the local upline would cut me out. I am sure I am not the only one in that position!

Just keep it simple and fair and in keeping with the stated goals--making new IBO's profitable sooner, so they stay with the business and have good things to tell their prospects about us!!

Ed - New York said:
June 11, 2007 10:02 PM | #

Our MLM Competitors like Nuskin Enterprises which last year had 31 distributors earn over $1 Million Dollars on $1.18 Billion in revenue and Primerica which had 52 distributors earn over $1 Million (and 4 earned over $4 Million) on $2.2 Billion in revenue have much more lucrative compensation programs, are consistently profitable and even pay dividends to shareholders. Do you have any plans to create a "Pathway" to BIG TIME Income in the Quixtar business since thats why most people get involved in the first place. I'm from New York and $150,000 (Diamond Level Income) would be a big pay cut for me and most of the people I know- furthermore FAR LESS than 1% of the total distributor population will ever do MLM as their Full-Time Sole-Source of income. It would be really tough (impossible) to get excited about spending 10 to 20 years building a business for "chump change" --Speaking of "the spirit of Transparency and Openness" How many Quixtar IBO's earned over $1 Million Dollars last year? (I'm going to guess thats secret information at Quixtar even though its openly provided by our MLM competitors) the income information on thisbiznow.com is somewhat intentionally vague  

Editor's Note:
While Amway and Quixtar do not currently disclose the number of IBOs who earn more than $1 million in a given performance year, our numbers are very competitive with other business opportunities and exceed most. Further, research has shown that average incomes are pretty much the same across most direct selling opportunities.

Also, our research has shown that, while many aspire to earn higher incomes, most have smaller initial goals they would like to achieve with their supplemental business. While higher incomes are possible, Quixtar requires IBOs to share accurate representations of actual incomes earned by those who have attempted in some way, shape, or form to build a Quixtar business.

Katie Pearsall
Editor -- Opportunity Zone

Avin Kline said:
June 11, 2007 10:29 PM | #

Ray & Q,

Thanks for the info...I appreciate the work Q is doing to help us build our businesses.

I'm curious about the new "product accessibility" practices and what made Q decide it's okay to do the PV/BV behind the scenses w/o hooking them up with an IBO first?

I'm not going to be dogmatic enough to say that this is a bad move, I just need my reservations answered.

When this random person can shop online w/o being directed to an IBO first, what kind of IBO will they be directed to? If it's going to be completely random, then Q will not have to pay out as much bonus $ since it's a lot easier for Q to pay 3% or so compared to 25% (and we all know there's a lot more 3% then 25%), whereas when a customer is contacted by an IBO, chances are the IBO will be at 6-25%, which means Q has to pay out more $$$. we want to be able to trust Q, so please assure us.

Also, when the random customer lands on the site and gets randomly connected to an IBO, are they not basically "taken out of the game" for an IBO who is actively seeking customer? What reason would this random customer have to start buying from an very active IBO once they are already connected randomly?

Thanks for your response!!!

Josh said:
June 11, 2007 10:40 PM | #

Ray,

Ok that sounds great to me and makes sense.  

What you will see and hear next....will be something like this.  "Well, if you are promoting this first circle thing and want to make IBOs more profitable faster, wouldn't this be a great way to do it, for those less than Platinum (ie new people)?  Rather than giving PV to those that have a profitable business."

This is the thought process as I have seen it on here and other corporate blogs.  People want something for nothing.  They think everything should be free, BSMs, products should be reduced for easy marketability....etc.  

Most are unwillingly to pay a price to get to Platinum.

Just trying to keep ahead of the garbage you will most likely hear.

Jackie said:
June 12, 2007 11:03 AM | #

All -

Agree!  First Circle is about helping IBOs at all levels be profitable.  If we want to really make a difference, we need to make sure that the newest IBOs are profitable as soon as possible.  If they are profitable, everyone in their line of sponsorship benefits...because they will likely buy product (thereby generating PV) longer and renew year after year.  ( Win-Win!)  If they don't make money, they may become disillusioned and quit.  

It's in the best interest of the company and of all IBOs that new entrants to the Quixtar Business Opportunity make money...so, yeah, maybe one way to help the new guy/gal is by giving them the leads.

YankeeIBO said:
June 12, 2007 12:56 PM | #

As you can tell, I am diametrically opposed to the stance that Josh has now expressed--that the new fruit on the vine should be taken by those who already have experience harvesting it and making something of it.

In the sales and distribution industry, the most effective way to grow business is to increase your sales force. I have been involved in simulations that prove this over and over again, and seen the results, firsthand. It is standard practice in sales organizations to set new sales people up with some current "seed"  accounts that are already doing business with the company. This provides an opportunity for the rep--or IBO--to learn how to service a customer who wants to buy from them, and gain confidence in the products and processes at the same time. This approach makes it much more likely that the reps will go out and get new customers, based on knowledge and experience gained from the business "given" to them. Everyone in the organization benefits when the new rep/IBO succeeds--and the upline should be there to coach the new IBO on the best ways to service and grow new customers, and from that new IBO's.

The philosophy that this is "something for nothing" thinking, is just plain wrong--if we are not all on board to make the new IBO's succeed, then we will all fail, together.

Mike Clouse said:
June 12, 2007 1:52 PM | #

Who said life was fair?

Do something that shows that you take this business seriously, like have 10 customers each on a 25pv min ditto schedule.

Then you would qualify to have new customers assigned to you from the Corp.

-Mike.

Darlene Brewer said:
June 12, 2007 3:49 PM | #

Hey Ray,

I just found this site and I think it's great!!! It's good to see IBOs sharing info, ideas or suggestions.

It was so exciting to see Nutrilite being the official sponsorship of the 2007 Prefontaine Classic. I have lots of friends that are athletes whom I compete with that would never even try any of the Nutrilite products because it wasn't sold in GNC or local retail stores and now that they've watched the event on Sunday some of them have called me wanting to sample the Double X, I couldn't believe it. It's almost like they had to see it on National Television before they wanted to try it.

Anyway, It would be great to see more Nutrilite advertising during the race events. I think it would attract a huge crowd of athlete's from around the US.

The sponsorship of the Prefontaine was awesome!!

Josh said:
June 12, 2007 10:44 PM | #

YankeeIBO,

I am not opposed to your way of thinking.  I think that some customer volume should be given to those below the Platinum level.  However, it shouldn't be given to an IBO who is NOT active.  For two reasons.

1) An inactive IBO is not committed enough to deserve additional PV/BV (ie something for nothing).

2) Q* is a word of mouth of business, their reputation, especially where customers are concerned, has got to be their #1 priority.  Finding an IBO who can PROPERLY service a customer will be key to establishing a positive word of mouth reputation.  

I run a traditional business, and it would be ridiculous for me to give a new large corporate account to a rookie.  I want my best salesperson on the job to see that they are properly serviced...even if it has to come down to me doing it personally.

Remember when you are dealing with your Q* business you need to also look at it from the corporation's viewpoint as well.

Again, good idea with the geographic location....but we need to give the customers to an IBO with a proven track record (doesn't have to be Platinum and above) IMO.

Texas IBO said:
June 13, 2007 1:42 PM | #

I just heard that they are announcing changing the Q* name back to the A* name.  I don't think any advertizing will help this move.  I think sales will decrease and so will the salesforce.

Editor's Note:
For more information on this issue, please see Beth's announcement on the Inside Quixtar blog. http://insidequixtar.opportunityzone.com/default.aspx

Katie Pearsall
Editor -- Opportunity Zone

The Big Apple said:
June 14, 2007 12:05 AM | #

All,

Ray said, "IBOs Need to Make More Money Sooner," and " . . . new IBOs need to sell products to make money . . ."  

He did not say, "get new IBO's profitable sooner."  (YankeeIBO)

Giving a new customer an IBO who has no demonstratable skills or motivation is very likely to cause that customer to have a bad experience and never buy again.  IBOs are, by definition, independent.  Their sponsor is not their sales manager and cannot function as one.  

A new IBO who has just received this "gift" of a customer may then sit and wait for the next gift, much like children of wealthy parents who don't teach their children the value of money, but rather, shower them with gifts and money.

There's an old Chinese saying, "Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime."

And with regards to "stacks even more of the wealth on top," Platinum is not the top, nor are they making that much money.  The "top" is Diamond and above, and perhaps Emerald.  Years ago, a Platinum made enough to leave their job, which doesn't happen often these days.

New customers need to placed in the care of an experienced IBO who will service them and let them be customers rather than trying to turn every customer into an IBO.  

Jeffrey said:
June 14, 2007 12:18 AM | #

I think the referral lead should go to a Platinum--if they are the closest in proximity to the prospect. However, there are some of us that are not yet Platinum, but would love to get the lead. Maybe for those of us that are active and building, we could meet some sort of mini-accreditation that would qualify us for leads, such as: meeting the Customer Volume Requirement every month, not having any complaints against us from the rules department, having a working knowledge of the Compensation Plan, and being willing to honor the Satisfaction Guarantee.

There are many in my group that are not active and either would not want the lead, or wouldn't take care of it if they did get it. On the other hand, Platinum is not easy to achieve, and some of us struggle more than others to achieve it. Getting a qualified lead that would generate some good PV might just be the extra boost that would move someone to give it the extra push to go over 7500 and maintain it.

Another idea might be for the referral to enter their zip code and be directed to the nearest IBO that has set up a Personal Retail website, or that could possibly be in conjunction with the above mini accreditation.

Since the company wants IBOs to be profitable sooner, for those that are serious and active, this could be a small way to help achieve that.

colin howe said:
June 14, 2007 4:17 AM | #

solution,

why not give the new account to a new ibo but thru the upline platinuim so that the plat' gets to contact the new ibo (he'll feel great speaking to someone already plat') and the two can work together on seeing that project thru, do it  on a certain time scale and if not done the plat' could pass the lead on to another recently new ibo

Tex said:
June 14, 2007 9:42 AM | #

Ray,

Can you confirm the letter in this story? http://www.thetruthaboutamway.com/index.php/content/view/5398/90/lang,en/

If true, another way to be "racing to support IBOs" would be to make this information known on sites like this or quixtar.com prior to them being posted on other sites.

If you really are "racing", I've got some news, you've been lapped.

Editor's Note:
For more information on this issue, please see Beth's announcement on the Inside Quixtar blog. http://insidequixtar.opportunityzone.com/default.aspx

Katie Pearsall
Editor -- Opportunity Zone

Dahlia Madison said:
June 15, 2007 11:13 AM | #

I just tested the http://www.teamnutrilite.quixtar.com/ site by creating an account. The statement "Any customers who already have an IBO will be able to enter that person's information into the system instead" is not true. There is no facility for a customer to enter the referring IBO's information when registering. Therefore, if an IBO's customer goes to that site after seeing the event and places an order, the IBO will not get the credit for the sale. Please resolve this issue immediately.

Editor's Note by Anna Bryce:

Dahlia:

Thank you for bringing this to our attention. The ability to enter an IBO's number should have been part of this site from the start. We have corrected the problem and it's functioning as intended now.

Greg said:
June 19, 2007 10:32 PM | #

Quixtar Strategic Direction one of the tatics is that "we need more products IBOs want to sell, not just products IBOs want to buy". Once challege is some of the products are just too expensive with very little competive advantage. For example: Tolsom shave gel retails for $12.45, while a competitive product, sales for about $3.00. How can I sale this? What is the competitive advantage that would make my customers pay $10.00 more for this. I will buy this because am an IBO. But I have not been able to market one of these type products. Many are very marketable and have a competitive advantage both in price and quality such as Artistry, Xs, Nutrilite, and home care. Most of the personal care, paper product etc, are hard to market

Tex said:
June 20, 2007 3:17 PM | #

Greg,

If the difference in quality isn't enough for the price difference, I suggest you don't buy these products for your own use or try to sell, concentrate on the products that do meet this criteria.

Amway will have to either drop those products or reduce the prices if enough IBO's take this approach.

I was also taught 100% product loyalty, which has resulted in Amway either making too much profit,  getting lazy with their efficiencies, and/or picking the wrong products to carry (ones they can't compete with).

Josh said:
June 21, 2007 1:32 AM | #

Greg,

Regards to the Tolsom.  Inspect the ingredients of both.  I bet you will find much more in the Tolsom.

However, I do also have a hard time marketing the tolsom shave gel.  Mostly, because guys are Macho, and do not need that skin crap!

The skin smoothing gel is a great product and easy sell.  Makes your face feel baby smooth, chicks dig that!  That is my marketing for that.  Get samples!!

Mike said:
June 21, 2007 9:26 AM | #

Josh,

"I think that some customer volume should be given to those below the Platinum level. "

I say Hogwash!

Tex you sound like a broken record. You obviously have alot to say, why don't you start your own blog?

Anna Bryce said:
June 21, 2007 9:57 AM | #

Thanks for all your comments on this thread and especially on the leads program. Just to clarify, here's how the program currently works:

The Quixtar site (or teamnutrilite.com) or Customer Support will collect the Prospect Leads Name, mailing address, phone number and/or email address.

A qualified Platinum will receive an email with the prospect's name, contact information, language preference, and their interest in Quixtar (product or starting a business). NOTE: By selecting a language preference, this does not mean that the Platinum assigned to them will speak this language.

The prospect lead must be contacted within 10 calendar days or will be re-assigned to a new Platinum.

The Diamond will be notified via email that their downline Platinum has been assigned a new Prospect Lead.

Quixtar will send a follow-up communication to the prospect to confirm that contact has been made.

Qualified Platinum's will be randomly selected and assigned to a prospect based on the prospect’s postal code.

In order to be eligible to participate in the Prospect Leads Program, they must be a qualified Platinum and meet all of the following requirements:

1. Generate 200 Personal PV in the previous month.

2. Personally registered at least one IBO in the past  six months OR five new IBOs were registered in your group in the past six months.

3. Have a valid email address on file.

Anna Bryce

Managing Editor -- Opportunity Zone

Tex said:
June 21, 2007 10:35 AM | #

Mike,

Why would I start my own blog when I have access to a corporate blog that has much more credibility than all the other blogs out there put together?

Anna,

Thanks for the info. I assume it is up to the Platinum whether they work with the person personally or assign them as a customer or IBO to someone in their group, correct?

Editor's Note from Anna Bryce:

That's correct, Tex. Quixtar Sales tells me that the idea is that the Platinum would service the customer directly due to their credibility and experience in the business, but if for some reason they can't (location, time, choice ... ) they can  refer the lead to a downline IBO. The main thing is that the customer is contacted and supplied with product in a timely and satisfactory manner.

Jeffrey said:
June 26, 2007 7:26 PM | #

Why do we have to wait two weeks for a new post to Adatudes?

Tex said:
June 27, 2007 10:53 AM | #

Does this story mean you are switching from Microsoft to Oracle? http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/06-27-2007/0004616248&EDATE=

Editor's Comment from Anna Bryce:

No. Quixtar IT tells me that this news is in regards to a back-end solution used Alticor-wide and primarily for financial solutions and doesn't change Quixtar's current IT direction.

Tex said:
July 2, 2007 10:33 AM | #

When are you going to post the video being show in the UK?

Editor's Note:
This video was created for Amway's European affiliates. There are no plans at this time to use this video for Quixtar in North America.

Katie Pearsall
Editor -- Opportunity Zone

Tex said:
July 3, 2007 5:03 PM | #

So, we're reduced to finding it on YouTube and reading second hand accounts of the video on blogs.

So much for a global Amway presence.

I think it would be far better to show it yourself, with a disclaimer that laws differ in different countries, therefore some of the issues may be handled differently in different countries.

I recommend all Amway employees, especially managers/supervisors, read "The Cluetrain Manifesto", a great book on how to thrive as a company in the internet age.

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