Now that the holiday season is winding down, people will be looking to find ways to get a little extra money to pay off those credit card bills. Some will turn to full time second jobs; others will wait on that hefty tax return. Unfortunately, others will turn to work-at-home scams. The biggest one of these today is Quixtar.
How do I know that Quixtar is a scam? I have relatives that were involved in Quixtar just from the outer fringes. I have friends of friends who are in Quixtar now. I also have been recruited to sell their products and turned it down. All these experiences led me to do more research on this company because I saw its lure and it definitely smells fishy. This seems like the biggest work at home scam.
First, I’ll do a Donald Rumsfeld and Q A; myself to get out the facts.
1) What is Quixtar? Quixtar is a company that sells products both of their own company as well as other major brands. The premise is that by buying from them, you are changing someone’s buying habits by getting them products cheaper and direct. You’re saving them gas by not having to shop. You buy a certain amount every month, you get discounts. This is just as a buyer.
2) Are the products legit or cheaper? A lot of them are. Some of their products are a bit low quality, though. The paper towels that they sell aren’t anything to brag about. Sure, it’s cheaper, but they don’t fit on your standard paper towel roll and for a few cents more, you might as well go to the grocery store. And as a buyer, you can pretty much get their name brand products for about the same price anywhere at your local chain store. Their “sales” aren’t really that different than anywhere else. Their energy drinks aren’t bad tasting and actually don’t come with that down feeling afterwards. The detergent works well, the vitamins work well, but again, nothing spectacular.
3) What’s the catch? The catch is selling the sell. See, they show you these products and say “ok, their a little cheaper on the dollar than if you bought them at the grocery store. But if you decide to SELL the products, we can get them to you even cheaper! All you have to do is…” and then it begins. All you have to do is buy a certain point value per month and you get a discount. BUT… if you can convince others to buy under your account, a piece of their point values count towards yours.
For example, every month you gotta get 200 points, which is about $250, to get a 3% commission (which works out to be 6 dollars. Wow.) If it gets towards the end of the month and you haven’t sold any products under your account to get those points, guess who sucks up the cost? You! That’s a lot of lipstick.
And vitamins. Why do you think they rate so high on vitamin sales? Because their nutrional supplements are decent, easy to buy and give away. If I had to find 100 bucks to spend or not get commission, I can only buy so much lipstick for my wife. I might as well buy vitamins and supplements. At least I’ll be in shape while I’m poor.
The only way to keep yourself from stocking up on cheap lipstick and toilet paper is to convince others to pay the average price (if not higher) for those products under your account. You don’t get any of their money, but you get a commission based on how many products they buy. How do you convince someone that they should buy from you and not from someone else products that really don’t save them money?
You don’t. You convince them to sell to others. And you get a percentage of their points, and so forth and so on. So in the end, most Quixtar people aren’t even selling the products, their selling the IDEA of getting those products.
4) How much money can you actually make doing this not-so-pyramid scheme? There are two answers to this: 1) Not a lot and 2) A TON. It all depends on what kind of morals, gumption, salesmanship, and extra time you have in your life. 99% of the people (and this is my guess) don’t make a lot.
They start off thinking that they will because the one guy who has the flashy car and rings comes by and says “you can be like me by selling these products!” Then they get that commission check and see that it’s $115 for about 20 hours of work a week, convincing others to “change their buying habits”, researching products, finding the sales, ensuring their customers got their orders, etc. Guess what? Quixtar reported (because, by law, they had to) that the average independent business owner- that’s the name for the guy who decided to sell and not just buy- averages only $115 a month! Is working at home that hard worth $115, minus gas and sleepless nights?
So how do you get to be the guy with the flashy car and makes answer#2 money? You sell your soul… and the pipe dream. Continuing the scenario, your 5 people aren’t selling well. What can they do to get better? Well, they can buy these tapes from you that are motivational in helping you sell. They can also buy videotapes and DVDs from you. They can also attend those seminars that you’ve been to that motivate people to sell.
But wait…how did you get those tapes and how much did you pay for them? You got them because you were so good at recruiting you made it to a special secret society of tape sellers. If you managed to recruit a lot of people that recruited others on the pipe dream, you are allowed to buy tapes from the company, sell them, and keep the profits.
And THAT is where the true money is. In my own house, I could buy one Quixtar motivational CD for 10 bucks, make 40 copies, sell them for 15 dollars and guess what? I keep the profit. Let’s say those tapes worked a bit and my point values went up because my recruits recruited recruits to go out and recruit people to maybe sell these products.
The more points I have the bigger commission checks I receive. Bigger than what I have when I was still pursuing hospitality jobs. If my downline recruiting chain manages to net me 4000 points in a month, I get a commission check of $1050. And I didn’t sell a damn roll of toilet paper to do it. Seminars are about $25; major function tickets are about $90. You can spend a lot of money just learning to sell these products, not to mention time and gas. No wonder you can clear barely over a Benjamin!
All in all, if you’re in Quixtar to save a few dollars and make a few dollars, you’re going to work very hard at it. Writing for Associated Content, depending on your typing and keyword ability, can make you a whole lot more. Just spending 8 hours on 10 articles that are special offers can make you $80. If you’re good at selling a pipe dream, Quixtar may work out in your favor. But even then, the time probably isn’t worth it.