The biggest obstacle Quixtar, as well as other legitimate network or referral marketing companies has, are unethical practices by some of their independent representatives. Network marketing has already been touted as a scam, a pyramid scheme, a money making opportunity where you make money off of other people signing up, therefore Quixtar falls into the 'scam' beliefs of many individuals.
Although Quixtar is a legitimate business, the unethical business practices by some independent representatives give Quixtar a bad name. They do not abide by the rules and regulations that they agreed to upon signing; their recruitment activities are not approved, and they build their own 'business model' outside of the Quixtar business model.
Network marketing companies are heavily regulated by the Federal Trade Commission. Those that are not up to standards should be shut down immediately. The FTC is constantly trying to lay a heavy hand on these illegal businesses that claim they are a network marketing company.
Network marketing also has a bad reputation because of all the 'high hopes' of new representatives (reps) being dashed. "Prospects" are led to believe they will become millionaires and have financial freedom in a short amount of time; like the 'leaders' of the company. Although this can be achieved, most will not achieve such financial success. The practice of misleading prospects is not condoned by Quixtar or any legitimate network marketing company. Yet reps, in order to build their 'downline', mislead prospects into these beliefs. The new rep 'buys into' the glory, spends a ton of money to 'invest' in products he/she will never sell or use, does not get proper training, and eventually quits. The failure rate is extremely high - but this does not have to be the case.
Proper training, true commitment, due diligence, and business awareness must be achieved for a rep to have the chance to succeed. The business model is extremely simple. But it is not easy. Hard work, in this case, will pay off. If it takes 3, 5, or 10 years, hard work will pay off with any legitimate network marketing company.
In fact, if an independent representative consistently works the network marketing business they started for 10 years, 95% of these representatives will reach the highest levels of compensation the company has to offer. That could be in the millions of dollars. ("Your first year in Network Marketing" by Mark Yarnell)
Most new reps quit at an alarmingly high rate. These reps carry the image of the company as a marketing scam instead of what it really is and should have been for them. The majority actually quit within the first 3 months of enrollment. Yet the key to success in any network marketing business is to first, find a legitimate company that offers great support, offers training, encourages continued education in this field, and to understand that commitment means having a long term plan instead of a 3 month 'get rich quick' mind set.
It is unfortunate that pyramid schemes, scams, and illegal 'get quick rich' opportunities gives Quixtar and other network marketing companies a bad name. Quixtar's business model, the products, and the compensation plan are all legitimate ways to earn money. The practices of some representatives may not fall in line with Quixtar's philosophy and those reps are the ones that ruin it for so many people with high hopes.
Analogy: A Fortune 500 Company is a legitimate company. But the practices of a manager representing the company may be unethical and illegal. The Fortune 500 Company is still a legitimate business despite the practices of a single individual. The Fortune 500 Company is now responsible to fix the situation that the manager created. The same goes for Quixtar. They use their own reps to 'police' and report illegal and unethical practices and continually try to fix these situations as soon as possible.
If you are interested in Quixtar, or any other network marketing company, make sure it is a recognized company with a five star opportunity instead of those used car salesman type 'scams' that pop of more often than not. Stick to the business model, commit to a long term business plan, get as much training as possible and yes, you have a chance at financial freedom and success.
Published by Glenn Magas
Triathlete, golfer, financial analyst, writer, producer, and screenwriter. View profile
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