Back in 1999, a new company was formed from the infrastructure of Amway Corporation. A company that was to be a “sister” of Amway, underneath a new corporate umbrella named Alticor. This company, as most in the world of MLM already know, was named Quixtar.
Quixtar’s new business model provided several options for those interested in purchasing products and/or profiting from the new re-designed business opportunity.
First, an individual could start their own business as an Independent Business Owner affiliated with Quixtar. The individual would be sponsored by an existing “IBO”; purchase a sales kit; and sell Quixtar products at a profit, as well as, be able to sponsor additional IBOs and earn bonuses based on the combined volume.
Secondly, an individual could become a “Member” or preferred customer of Quixtar through a Quixtar IBO. As a member, the person could purchase Quixtar products at the wholesale price and also earn points on each purchase to redeem for additional products. To have this privilege; The member paid a yearly fee of only $19.95.
Third, an individual could merely purchase products from Quixtar at the suggested retail price at Quixtar.com or enjoy personalized service from a Quixtar IBO offline through in-home sales calls and catalogs. This individual was a “Client” and paid no fee.
Today, I received notice that Quixtar will be phasing out the “Member” option as of June 15, 2006.
Truthfully, I never promoted the “Member” option much. The $19.95 fee, while inexpensive compared to the price of registering as an IBO, seemed a bit much just to have the right to purchase at wholesale.
Also, Quixtar will now refer to “Clients” as the more basic term “Customer”.
I personally preferred the term “Client”, as I have always referred my customer base as clients in my other ventures. I think the connotation is more professional than merely “customer” and invokes a certain loyalty and obligation between the seller and the customer.
On the 15th of June, Quixtar will automatically convert all existing Members to the Customer category. As a “Customer,” they will no longer need to renew annually, and they can continue to use their current ID number to place orders.
Quixtar will honor current contracts with existing Members converted to Customers, and will extend to these individuals IBO pricing, Network Savings benefits, and any seasonal catalogs for which they qualify for one year following the status change.
Quixtar will eliminate Q-credits® Points (a savings stamp-type program) The portion of awarded PV/BV from Member purchases at Partner Stores & Services that is currently set aside to fund this program will be reverted to IBOs.
This will leave two simple registration options – IBO and Customer.
Quixtar will add a new feature for IBOs to service their preferred customers. IBOs will now be able to indicate whether Quixtar should charge each of their Customers IBO cost or suggested retail. Quixtar will automatically charge newly registered customers suggested retail pricing unless their IBO indicates otherwise by flagging the customer’s account through the Business Management controls the IBO can access at Quixtar.com.
The newly converted “Members’-to-Customers'” pricing will be “locked” at IBO cost through the duration of their Member benefits extension. The Members’ benefits will extend through June 16th, 2007, after which, the IBO can continue the lower price option for the “Customer” or revert the account back to normal retail pricing.
Current Members will be notified by mail, of the upcoming changes and receive a timeline detailing the transition.
I like the new feature for IBOs to adjust pricing options for Customers, but would like the option to determine a range of percentage discounts per individual customer. Maybe that will come later. Until then, customized discounts can still be given to
clients customers who order through their servicing IBO and as always, IBOs are legally free to determine their own pricing schedule, discounts, and rebates.
It’s merely conjecture on my part, but I think this change to delete the “Member” option is an attempt by Quixtar to focus Quixtar IBOs on the “retailing to customers” focus that is needed to truly be profitable in any MLM company. It’s also easier for new IBOs to explain just the Two Options of IBO and Customer, rather than the additional Member option that only offered the IBO additional volume but no retail profit.