Quixtar and its predecessor Amway have been controversial for years because of allegations that these companies are pyramid schemes. Critics claim that most of the products sold by Quixtar are to its network of IBOs for personal consumption rather than to retail customers. Because there is no mechanism in place to distinguish personal consumption from retail sales, many IBOs practice the “buy from yourself and teach others to do the same” method of multi-level marketing. The sales made through the Quixtar website does allow the IBO to distinguish personal consumption and retail sales but it is a flawed system in the sense that the IBO can label the goods purchased for personal use to retail sales at their discretion.
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Quixtar Wikipedia – Controversy
October 31, 2005 by Ty | 1 Comment
In Network Marketing Companies
Kurt on December 29th, 2005 at 5:40 pm
I came across this myself as an IBO. Now we have this Epay system… like a PayPal card for Ebay, that comes direct instead of from our upline. In order to ensure that you get your bonus you have to manually account for your non-consumption sales by entering them into the site under “Build and Manage My business”. At first I didn’t really get it — but it makes sense now. It’s their way of differentiating between using and selling.
It doesn’t have to be much — heck if I just sell 10 people at the office an energy drink — then I qualify. Simple.