Quixtar’s recent announcement about its new customer awareness ad campaign has begun to create buzz. Many IBOs are excited about it, some aren’t so sure. If the ads send new customers to the Quixtar site, what happens to the profits that would have gone to an IBO if the customer had used an IBO number? If a new customer contacts Quixtar, who will get the lead?
Here is what we know: “Guest shoppers” have been able to buy directly from Quixtar for years, at least since 1999, and Quixtar has used various methods to give the PV/BV and profit to IBOs. Sales this way have always been very low, however. Despite rumors to the contrary, Quixtar has never taken our customers away or replaced IBOs. Quixtar doesn’t have a way to handle new customers except to pass them on to IBOs. Up until now, Quixtar would hand them over to a pool of nearby Platinums, but now — following consultation with the IBOAI — they’ve widened the pool to nearby Gold Producers in the expanded Customer Leads Program.
Customer Leads
There are two kinds of customer leads:
- One is the new customer who doesn’t know anything about the business and doesn’t know an IBO. Quixtar gives that person’s contact information to a nearby Gold Producer and if that Gold Producer has given Quixtar permission, Quixtar gives the customer the Gold Producer’s contact information, improving the potential that contact will be made.
- The second kind of lead is the consumer who wants to order product but for whatever reason wants no contact with an IBO and chooses to purchase the products anonymously. Quixtar could have turned down the order, but everyone loses out that way. Instead, under the new arrangement, Quixtar will take the order and distribute the profits among IBOs.
Profit Distribution
The IBOAI Board has complete faith and confidence that the primary goal of the ads is to increase sales by IBOs and to encourage new IBOs to join a business that benefits from national advertising. Quixtar believes the new ad program will generate a lot of new interest and we are confident that Quixtar will pass on any and all profits to the pool of IBOs no matter how large or small. Their plan is to put the PV/BV and profit into a pot or fund and share it with all IBOs who meet the guest shopper criteria, paying it twice a year.
The buzz will continue but we hope the uncertainty won’t. From what we know and from Quixtar’s history, this new ad program is all about building awareness to build leads to build orders to build profits – for IBOs!
This is a positive idea. It gives good leads to those leaders that have proven themselves to reflect the business in a positive way (who happen to also be profitable). Giving prospect leads to proven leaders also gives the public a better perspective about the Amway Global opportunity. A leader such as a Gold Producer doesn't necessarily need to sponsor someone else, but that individual will try to pursue it because the prospect came looking. It's kind of like, "Hey, this is about you, not me." in which it should always be.
As for the equal distributed profits based on good standing and business owner activity, I believe this is good. It demonstrates that the company isn't out to sideswipe every bit of profit they can. Instead they are rewarding the efforts of continually good activity in those businesses.
You take a look at what the IBOAI is really doing, and it's amazing. I enjoyed reading the message in the back of the Acheive magazine from Bill (follow link). It really hits home and it really is a Brand New Day.
Posted by: dig4truth | May 02, 2008 at 03:56 PM
I disagree with the 2nd lead group being added. They should be assigned to an IBO anyway, even with an unknown name. My opinion.
[Moderator 2: That might be one way to do it, but after much dialogue between the company and the IBOAI, this is where we landed. This way more IBOs will benefit.]
Posted by: Utah | May 02, 2008 at 04:19 PM
How exciting that a newer IBO can start generating retail profit from the new ad campaign. What other company can you join and start earning income simply because the company is able to generate sales to the public via advertising. I can't think of a more encouraging experience for someone new in business and I can't imagine another business that would do that for you. What an incredible deal we all have as IBO's. It really is Perfect!
Posted by: amwaybeliever | May 04, 2008 at 09:00 PM
This is a great solution to a unique problem. Who knows how many people (1000's, -100,000's?) are out there, wanting XS, SA8, Double X, or whatever and would order if they knew how to without being put into the position to make a decision about the business? How many people have been given a can of XS and never followed up with? Being able to order without being contacted is a simple solution and since the company is sharing the profit right back with the IBO's, it makes the company's success exciting for everyone.
Posted by: oneperfectbiz | May 05, 2008 at 06:16 PM
Utah,
What do you mean "unknown name"? The second lead group IS for the anonymous (unknown named) shoppers.
I'm confused as to what you are saying.
Posted by: Bridgett | May 06, 2008 at 02:06 AM
This is the 1st time Q/A has said, through the IBOAI, that they would have customers buying directly to Q/A, and not to IBOs. In the past, anyone that wanted to buy products, that didn't have an IBO, would be assigned one. If the customer wanted to remain anonymous, the platinum assigned would get the bonus, just not the name.
They are changing the lead process. Instead of a platinum, it could be a gold. I don't have an issue with that. What I am concerned with is that, there will be customers buying direct.
The corporation has said that the profits will be captured and spread to the IBOs. The IBOAI has bought in to this idea, hence the post. I don't think this is a good idea. Do you?
[Moderator: Now I'm confused, Utah. Customers have always been able to buy direct if they wanted to. The latest changes just make the process fairer to IBOs.]
Posted by: Utah | May 07, 2008 at 11:55 AM
Utah,
First, I think we are only talking about the anonymous shoppers, right? Not the ones that get *successfully* hooked up with a Platinum (now also Gold) IBO, that you have issue with. Right?
Okay, let me write how I understand things, so that if I'm wrong, I can be corrected.
1) The Corp would always love for people who call the 800 number or go to the website, to be hooked up with an IBO. They've encouraged that. They've given the names of people to Platinums in the area based on zip code. I've even heard that they will try more than once (more than one Platinum) if the first (and the second even) Platinum has not contacted this potential customer.
And, from what I heard, some Platinums were/are horrible at following up. Or, when they followed up, they tried to show the biz opportunity, rather than just sell the darn products to the person.
2) This probably led to some people just wanting to remain anonymous and shop by themselves through the 800 number or now, very conveniently, online.
So, the Corp allowed (don't know when, but it's been for several years)these people to shop without any of their info being given to any IBO.
3) However, the Corp felt/feels that the PV/BV and Retail Profit should not be hoarded by the Corp, but rather given to IBOs. Up until 7 days ago, this PV/BV/RetailProfit was given to Platinums only.
Random PV/BV would show up on a Platinum's PV/BV inquiry. Retail Profit would should up in their Bonus Checks. And, if the Platinum would click on the order, no details would show up. No customer name or contact info. Just the word "anonymous".
4) Now, AS AN INCENTIVE TO GET IBOS TO RETAIL, the Corp is offering this "bonus" PV/BV/RetailProfit to ALL IBOs who do (in my opinion) miniscule PV of 50.
5) The more we all take good care of our customers, the fewer and fewer will wish to remain anonymous (in order to avoid bad customer service, or bad manners by trying to jam the biz opp down their throats).
6) And finally, as it's been said, VERY little volume is anonymous.
The fact that it's only give twice a year should tell you that it's a small amount of volume. Not significant enough, I'm sure, to even change a non-Platinum's bonus bracket.
This is just a nice little perk for those who choose to sell a product (or 50 PV worth) to a non-IBO.
Posted by: Bridgett | May 07, 2008 at 04:37 PM
No Moderator, that hasn't been the case. Last fall, on the blog Inside Quixtar, stumble-in customers were discussed, with the potential of changes. From that discussion:
"All "stumble-in" customers and 100% of their PV/BV is assigned to an IBO - either one that the customer provides, or one that is assigned via the leads process. The customer information will be provided to the IBO only if the customer gives permission. If they don't the volume is awarded to the assigned IBO anonymously."
For the last 50 years, Amway has not allowed customers to buy without an IBO. When Quixtar announced a leads program in 1999, it was to have stumble-in customers assigned to the closest platinum.
For the discussion, see:
http://insidequixtar.opportunityzone.com/2007/09/24/Does-an-IBO-make-a-difference--Yes-they-do-one-customer-at-a-time.aspx
Posted by: Utah | May 07, 2008 at 06:14 PM
Bridgett | May 07, 2008 at 04:37 PM
I agree with your description of the past and current situation. I am glad you are OK with the change. I was surprised to say the least. An other nail in the ... was my reaction. I would like some better info about the change from the Corporation. I am glad that the IBOAI at least published the change. Hopefully the moderator realizes by now it really is a change.
Posted by: Utah | May 07, 2008 at 07:44 PM
Good post. I’d agree it’s constructive if just to learn more about the positives and negatives.
Posted by: Sales leads | May 08, 2008 at 03:09 AM
I think this is a great idea! It is allowing the orders to be distributed to platinum, silver, and golds. I also think that it is just one more reason to go build this biz!
Posted by: Powerhouse411 | May 08, 2008 at 03:09 PM
Utah,
If you read the second to the last paragraph sentence of Beth's post that you provided a link to, she says "to make sure it's the best way to support IBOs *and* customers."
My points 1 and 2 in my last comment explain what was happening and why customers were not being serviced properly by some Platinums.
I know first hand that my Sponsor was the THIRD Platinum in her area that the Corp had to call to get someone to contact a woman who wanted some LOC.
Should the Corp have to do that? Should a customer wait two or three weeks to be able to get her product, while the Corp searches high and low for an IBO?
Again, this tweek in the Leads Program is only for those customers who do not want their info shared with an IBO. People have been able to shop w/o an IBO in the past (with the volume and profit being assigned to a Plat in their area), but these customers did not have the option to remain anonymous.
That's is the difference--the option to remain anonymous.
But this group of people is very, very small.
The focus of the change is not about these anonymous customers. The focus of the change in the Leads Program is that non-Platinums get to share in volume that once was only shared among Platinums.
Posted by: Bridgett | May 08, 2008 at 03:36 PM
Powerhouse411,
ALL IBOs get to participate in the "anonymous" volume (if they do at least 50 PV in retail a month for the previous 6 months)
Only Golds and above (not Silvers) get to participate in the non-anonymous volume (if they do at least 50 PV in retail a month for the previous 6 months).
Posted by: Bridgett | May 08, 2008 at 03:41 PM
I believe Amway Global has really been on the right track, from ad spending, to bigger bonuses, to better products. This is just another example of the corp working on making it better for everybody! From the newest IBO to the long time Diamond, everybody benefits.
Posted by: visioneer | May 08, 2008 at 10:46 PM
I think the new changes are incredible. I am not yet Gold or Platinum, but I always do 100 to 200 personal use PV and I always do 100 to 200 PV retail customer sales, so I will always qualify for this "extra" anonymous PV and profit. I think it is a great incentive to use the products and get out there and get customers. This was definitely the right decision from both the company and the IBOAI.
I cannot tell you how many times I have heard horror stories of someone with a terrible sponsor or upline and had a horrific experience with a "system," but they loved the products. Now, if many of those people could shop anonymously without the fear of being "attacked," they'll do it. I actually think it could eventually be way more PV and profit than we think. Now, the ads can really mean something to (and for) us.
Posted by: Jeffrey | May 08, 2008 at 11:20 PM
i think that everything the corporation is doing for US is great.
name another company out there that is inducing hundreds of millions of dollars into advertising, brand recognition, and training!
especially when they are not advertising to go around its distribution points, hence taking the profit from the true representation, and in fact, putting it all into the hands of the people that are on the front line.
many companies push thier ads to do similar, but with different intentions, to create a "me" effect and drive traffic directly to them eliminating the need to pay commissions.
what a great alliance to have when they are willing to give so much that does not even come out of our pockets, but puts into them!
with the ads coming out and creating that awareness, and then redirecting that volume to the golds and above...what a great incentive to go out and build a business now just to be able to take part in the ads and the aditional volume.
no excuses, you do or you dont. put in the work and take advantage, or let it go by. but no complaints! get paid for what you do, not how many minutes you watch on the clock!
its a great time to be in business.
Posted by: j4.1776 | May 10, 2008 at 02:49 PM
I think this new "anonymous" customer or guest shopper program will be great to incent ALL IBOs to hit the 150pv (50pv retail) criteria to qualify for the shared profits.
Another great step to help IBOs be profitable within their first circle and legitimize their business.
Posted by: TWS | May 12, 2008 at 01:34 PM
Amway can stay in England.
A judge in the United Kingdom has dismissed government claims against Amway's operations there, saying major reforms last year fixed faults in its business model.
The ruling clears Amway UK, a part of Ada-based Alticor Inc., of the threat of expulsion from the country, one of Amway's oldest international markets.
Spokesman Rob Zeiger said the ruling was a "solid validation" of reforms implemented by the company to head off regulatory actions last year.
[Source: The Grand Rapids Press and mlive.com]
[This is off-topic for this section, so we added a place to comment on the Amway UK case dismissal in the Legal Matters section of IBOAI Blog at http://www.iboaiblog.com/my_weblog/2008/05/iboai-article-o.html. Please feel free to comment there. Thank you. Moderator 2.]
Posted by: Utah | May 14, 2008 at 09:19 AM
utah,
a little off subject, but others can find more details here:
http://adatudes.opportunityzone.com/2008/05/14/A-Challenge-Behind-Us-Changes-Ahead-of-Us.aspx#non
i do not fully understand how the UK is diferent then the US. but that could be a whole new thread.
i wonder if they get similar ads to help them? i dunno.
but man, gotta love being here in the US where the ads are hitting.
Posted by: j4.1776 | May 14, 2008 at 11:40 AM
Amway Global's new ads are sure to add credibility to the business of every IBO. It's also understandable that those who are "working" in the business, who are actively pursuing business, are better qualified to receive the new customers instead of an IBO who is not ready to handle more client business. It motivates me to become one of the Gold Producers so that I can reap the benefits of all the new Ads. Correct me if I'm wrong but I've never heard of Amway advertising like this before?! It's a new age. Let's all get ready for it.
Remember to always...
FollowURDreams
Posted by: FollowURDreams | May 16, 2008 at 08:39 PM
TV ads are here!
Check out three different spots plus the media schedule for the next few weeks at:
Manage My Business ---> Transform the Future ---> National Ad Campaign
Very professional, clean and direct. These will certainly start increasing awareness.
[Here's the direct link (requires log-in): https://www.quixtar.com/products/content.aspx?pid=10880&ctg=17331
Moderator2]
Posted by: TWS | May 27, 2008 at 05:51 PM
Just received some insight from Beth Dornan about a digital campaign starting this month. Goes hand-in-hand with advertising campaign.
http://insidequixtar.opportunityzone.com/2008/05/27/If-you-were-watching-TV-this-weekend-.aspx
[Note: Beth Dornan is Director of Marketing Services for Quixtar Inc. and authors the Inside Quixtar blog at the Opportunity Zone. Moderator 2]
Posted by: TWS | June 02, 2008 at 04:07 PM