Amway Global.com - Official Site of Amway Global / Quixtar Inc.
Advertising
Friday, August 13, 2004
I was reading a couple different articles this morning about advertising.  One was about all the advertisers capitalizing on the Olympics starting today in Greece, and another was about the growth of advertising tie-ins to popular movies.  It made me think a little about why Quixtar doesn't advertise.

You see, most traditional consumer products companies spend HUGE amounts of money on advertising to drive traffic to their products. They need to stand out from other products competing for the same shelf space in stores.  They need to capture the imagination of people so that when it comes time for them to choose from several different options -- soft drinks, let's say -- they pick one based on their mental impression of it (Oh, this is the one that Britney likes!!).

Well, Quixtar doesn't work that way.  A long time ago, Alticor co-founders Rich DeVos and Jay Van Andel realized that an ad-driven business model benefits the company (and its workers) and big media companies and stores -- but not everyday people.  A direct selling business would provide opportunity for anybody to earn income based on the sale of that products.

That's where Quixtar's business model comes in.  NOW, anybody can earn income on the sale of those products. IBOs earn bonuses on purchases made by people they introduce to the Quixtar concept, plus the opportunity for even more when they train others how to do the same thing.  That all costs Quixtar big $$ though.  Last year we paid IBOs $343 million on just over $1 billion in sales.  That doesn't leave anything for advertising.  But it doesn't really matter, because it's the one-on-one relationships IBOs form in the I-commerce business model that matters.

SO, as much as I'd like to see Quixtar featured in TV ads and in glossy spreads, it really flies in the face of what we're all about -- providing IBOs opportunity to earn the money other companies spend on ads.

Sounds pretty simple, huh? 


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