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ANSWERS |
Answers to 21 Tough Questions About IBOs, IBOAI, and Quixtar / Amway Global
Use the links below or at the left to get answers to 21 tough questions, provided by the IBOA International (IBOAI or Independent Business Owners Association International).
Question 1: What are the chances someone can start from scratch and become a Diamond?
The chances are the same for everyone who starts this kind of independent business. That’s because the Independent Business Ownership Plan is structured to provide an even playing field for everyone.
However, whether an IBO (Independent Business Owner) reaches the Diamond level depends ultimately on whether he or she wants to build a business to that particular level. Every IBO has personal reasons to become a business owner and, thus, has personal goals for his or her business.
For example:
As with any business, hard work is necessary to build a Quixtar-powered independent business, and that requires time and commitment, especially in the beginning.
The fact is, this business offers tremendous flexibility. IBOs powered by Quixtar can start immediately and work at home. They can operate their business when they want, at their own pace, on their own schedule, and according to the goals they have set for themselves. The choice of when, where, and how much time to devote to their independent business is theirs alone.
Question 2: Why are tapes, books, and meetings common in this business?
The majority of IBOs have never built a business before and rely on the information communicated through “PDPs” to help gain the skills necessary to help achieve success.
Every industry has what are sometimes called Professional Development Programs or PDPs. Quixtar is no exception. They often include the use of tapes, books, and meetings, which in our case are developed by experienced IBOs to guide newer, less experienced IBOs in a business “powered by Quixtar.” They are also a source of motivation for new IBOs.
PDPs may also include books and tapes developed by non-IBOs who are accomplished sales superstars, like Og Mandino and Napoleon Hill.
IBO PDPs are a proven way to attain knowledge, gain skills, and improve performance in today’s business world. Ours are user-friendly, tailored to this business, and come in many formats: video, audio, digital, print, and interpersonal education programs. They help provide:
Did you realize that PDPs are everywhere, not just in business powered by Quixtar? For example:
See our separate section on PDPs.
Question 3:
Do tapes,
books, and meetings offer value as well as a money-back guarantee?
As for cost, compare the prices charged for PDPs to the prices of similar materials and events from other training and motivation organizations. We think IBO PDP prices are totally in line.
What’s more, all aspects of PDP-use are covered under a generous buy-back provision.
See our separate section on PDPs.
Question 4: Are prices for products offered on Quixtar.com competitive?
Quixtar Inc. continually looks at the question of product pricing because, like any company, it wants to be competitive in the market. Quixtar has found that what the consumer really wants is value, and a lot more goes into determining value than simply price.
For instance, most cleaners you buy off the store shelf are "ready-to-use:" You take it home, open the bottle, and squirt some cleaner on dirt and wash it away. To be competitive, Quixtar has had to figure out what was more valuable than this type of product. Research over the years has shown that versatility and longer-lasting product offer more value – so many of the cleaners offered through Quixtar.com are concentrated to last longer and offer more cleaning options. Put another way: when you concentrate the cleaner, there’s much more value per bottle. In many cases, the cost-per-use of a cleaner on Quixtar.com works out to be cheaper than the ready-to-use at its price-per-bottle. That certainly makes such a product on Quixtar.com price-competitive.
Another way to add value is to provide unique features and benefits, do what a competitive product can do – and then do even more. Or … do what a competitive product will do, but not do something unwanted that a competitive product does. For instance, Quixtar offered a powdered chlorine bleach when everyone else sold it in liquid form. The reason? Because if you spill the container, a liquid can damage fabrics in a way that a dry powder will not. In those instances, Quixtar.com can be competitive because its product is unique.
In general, products on Quixtar.com are price-competitive and good value for the money. Research shows that some products are less expensive than their counterparts, others are more expensive, and most are competitively priced.
Question 5: What makes the Quixtar Independent Business Ownership Plan legal while some businesses perceived to be similar are illegal?
The Independent Business Ownership Plan is based on a proven plan that originated with one of Quixtar Inc.’s sister companies, Amway. (These two firms, Quixtar Inc. and Amway Corp., along with other companies, are subsidiaries of Alticor Inc., a global enterprise doing business in manufacturing, marketing, logistics, and product and business development.)
In 1979, the U.S. Federal Trade Commission found that this plan was not an illegal business opportunity. Unlike illegal business plans, Quixtar Inc. does not…
The IBOAI and Quixtar encourage anyone looking to participate in this business to carefully scrutinize the IBO Plan and ask any questions they have. We all want the business opportunity to be completely transparent – no surprises.
Question 6: Should a business dispute occur with another IBO, what options do they have?
Safeguards are in place in the event IBOs (Independent Business Owners) are unable to resolve their business disputes. The Rules of Conduct for IBOs defines the specific Dispute Resolution process. As an association representing the interests of all IBOs, the IBOAI also participates in the resolution process.
Question 7: I’ve heard rumors that I have to “follow the system” (listen, read, and attend) to get help from my upline. Is there any truth to that?
This is not true. System participation is optional. The IBO (Independent Business Owner) Rules of Conduct stipulate the responsibilities and obligations of all sponsors to train and supply IBOs they have registered as well as to offer the option of system participation.
Question 8: I heard some Emeralds and Diamonds have quit their business. Is that true?
It is not inconceivable that an IBO (Independent Business Owner) who has achieved Emerald or Diamond status has quit his or her business. This can happen for a variety of reasons, from wanting to pursue other interests to not paying attention to business. That’s the entrepreneurial nature of business. It happens in all professions, including doctors, lawyers, teachers, CEOs (Chief Executive Officers), CFOs (Chief Financial Officers), and actors, to name just a few. Some people just want a change, others want to find a less stressful career, and some find that after a time their career isn’t what they thought it would be. Those are actually reasons a lot of professionals turn to Quixtar as an alternative.
Question 9: What about Quixtar lawsuits and legal disputes?
You can’t be a successful business today without getting sued, unfortunately, and the bigger you are, the more you’re targeted. In most areas of the U.S., anyone with $50-$100 can file a lawsuit and even get media attention for it, even if the facts of the case are bogus. If you ever have questions about allegations made in a Quixtar-related lawsuit, please let the IBOAI know, or contact Quixtar Inc. We are confident that either can provide information that will set your mind at ease.
Question 10: What is the difference between "the system" and "the business"?
“The business” is the opportunity offered individuals to start their own independent business by contractual affiliation with Quixtar Inc. This includes participation in the Independent Business Ownership Plan to receive bonuses and a comprehensive line of products and services to market.
“The System” offers business-building and motivation techniques that are easy to use and reproduce through Personal Development Programs (PDPs) tailored to help support Independent Business Owners' businesses.
Question 11: Is one IBO organization or group better than another?
This business is comprised of numerous IBO (Independent Business Owner) organizations, who sometimes differ on the approach to building an independent business. However, while groups and organizations may differ in some ways, none are considered to be “better” than another. All IBOs and their respective organizations operate under the same Independent Business Ownership Plan and Rules of Conduct.
The IBOAI and Quixtar urge you to talk to IBOs already in the IBO organization you have contact with and carefully assess that group to see if it is a good “fit” for you.
Question 12: How much money can I really earn? How fast?
This business lets you be your own boss, set your own hours and working conditions, and earn based on how much effort and passion you put into it. Some IBOs have a simple goal of making extra income, while others make it their whole, and often very profitable, career. It’s up to you.
Question 13: Do higher level IBOs make money from the sale of tapes, books, and tickets?
Yes, IBOs (Independent Business Owners) can earn money from the sale of tapes, books, and tickets. IBO leaders are successful managers of large businesses. Some leaders have thousands of other IBOs in their organization, spread across North America. As business leaders and managers, they have the responsibility to educate and motivate these other Independent Business Owners. What they offer are professional development materials focused specifically on their business.
In addition, IBO leaders pay for the production facilities, equipment, technicians, accountants, assistants, and other employees necessary to produce such training and motivational materials. They incur the expenses and, of course, realize profits or losses from their efforts, as with any other business.
It is important to note that professional development and education is an international multibillion-dollar business. Authors such as Dr. Stephen Covey (The 7 Habits of Highly Effective People) earn incomes from the sale of books and other materials and conducting seminars. Bookstores everywhere offer hundreds of “how-to” books, tapes, and videos on a variety of topics. Producing and selling books, tapes, and meetings is nothing new to the business world.
See our separate section on PDPs.
Question 14: Am I "in Quixtar" or am I really an "Independent Business Owner"?
Independent Business Owners (IBOs) are just that: independent. They are not “in Quixtar” but powered by (or affiliated with) Quixtar Inc., utilizing its Independent Business Ownership Plan as the platform for their businesses. As with any industry, there are rules and regulations that IBOs must observe.
Question 15: Who are your customers -- consumers or other IBOs?
Really, every IBO and Customer you have registered is your customer (Customers are general consumers). You have brought them into the Quixtar family to order products (in case of Customers and IBOs) and to share the Quixtar business ownership plan (in the case of IBOs) with all of its benefits. As an IBO, you earn money when your IBOs and Customers order products -- you don’t receive a bonus until someone buys products. In reality, because they buy and use products, IBOs and Customers are consumers, even though IBOs are a unique kind of consumer because they also sell products to build a business.
Question 16: When I search for Quixtar on the Internet, I find some negative stuff. What's up with that?
The Internet is a giant bulletin board open to anyone who wants to post a message and, because it’s largely unregulated, it’s easy for anyone to post opinions, spread rumors, tell lies, or even build entire websites devoted to whatever topic he or she desires.
Because this is so, very few major American companies don’t have critics online. And because negative comments are often reprinted on other sites – few of which do their homework or simply don’t care – it often appears that there is far more criticism than actually exists.
The bottom line is: Do your homework. Remember how inaccurate rumors are, online or off. And ask the IBOAI or Quixtar Inc. about anything that concerns you.
Question 17: Is the business plan today as valid as it was 20 or 30 years ago?
Absolutely. The Independent Business Ownership Plan, with its roots in the basic elements of free enterprise, is a proven business concept. Originating almost half a century ago, this business plan has been continually refined and enhanced to meet the needs of entrepreneurs. Now, with the significant addition of the Internet, the IBO Plan’s efficiency and effectiveness in ordering, communications, and business operation has been elevated to a new level.
Question 18: Am I required to hold certain beliefs to be accepted?
No. Respect for every individual is a foundational value of this business. This has always been an equal opportunity business, open to people of all walks of life, varying religious convictions, political affiliations, nationalities, ethnic backgrounds and racial origins.
Question 19: Aren't Amway and Quixtar really the same?
No, Quixtar and Amway are sister companies and subsidiaries of their parent company, Alticor Inc., a global enterprise doing business in manufacturing, marketing, logistics, and product and business development.
Quixtar was started in 1999 and offers entrepreneurs in North America a unique business model over the Internet. Amway was started in 1959 and continues today in 80 countries and territories outside of North America, using its traditional sales, marketing, and distribution model. Both use a similar Independent Business Ownership Plan, but operations are very different. Because they are so different, Quixtar has its own name and brand identity.
Question 20: Odd as it may sound, I’ve heard some rumors that Quixtar is a cult. Is there anything to that?
If you asked where the “charismatic leader” of Quixtar is, most IBOs wouldn’t even know the names of ANY of Quixtar Inc’s executive team! Most IBOs only know their immediate “upline” and the head of any IBO organization in which they may participate. There are as many leadership and management styles as there are individuals among our approximately 700,000 IBOs, so nothing could be further from the truth than the idea of a cult, which involves everyone following one leader and a belief system to which you must subscribe.
Question 21: Why do the Rules of Conduct for IBOs powered by Quixtar require that disputes be submitted to an arbitrator rather than the courts?
Quixtar adopted the arbitration rule for the benefit of IBOs. Many other companies have also adopted this method of dispute resolution.
Cases going to arbitration are heard more quickly and at considerably lower cost to those involved in the dispute. If the same matter were tried in the courts, an initial decision probably would not be rendered for close to a year, and that decision could be appealed to a higher court, taking upwards of another year or more. In arbitration, by contrast, a matter is generally heard within a few months and a decision rendered within a few days after the hearing. And there is no appeal!
To assure complete fairness, and to eliminate bias in favor of either side in a dispute, Quixtar contracted with JAMS/Endispute. They are a totally independent, experienced, highly qualified and impartial dispute resolution agency that hears and decides all disputes involving IBOs.
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