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Is There a Quixtar Scam?
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Quixtar is part of the Alticor family of companies, which includes the granddaddy of all multilevel marketing businesses, Amway. Quixtar is essentially a legal pyramid scheme. Participants ostensibly sell Artistry Skin Care and Color Cosmetics, Nutrilite Vitamins and other products, but the real gravy comes from bonuses for recruiting other salespeople, who pay for the privilege of becoming a member, and kick a percentage of their sales up the to the top of the pyramid. Theoretically, the richest independent distributor would have countless subordinate distributors who would be doing the actual selling, while the distributor didn’t bother selling Company product at all.
Sales people must buy the products they hope to sell from the company New recruits often end up buying more stuff than they sell. That’s why the emphasis of MLM schemes and the alleged Quixtar Scam is selling the Company itself rather than the products. Needless to say, few participants benefit from such an arrangement, and many end up with debt rather than profit. |
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