Amway and Quixtar are both part of the Alticor family of companies. Amway Corporation was founded in 1959 by Rich DeVos and Jay Van Andel. In 1999, Quixtar, Amway, and Quixtar were officially called Multi-Tier Marketing Companies, which in reality are nothing more than legal pyramid schemes.
Amway and Quixtar primarily deal with Artistry skin and color care products, Nutrilite vitamins and supplements, eSpring water purification system, and SA8 laundry system products.
Feeding on the American dream of getting rich quick and easy, the basic formula is simple.
First, there is the “company”, which has a product or a line of products. Second, there are the independent distributors who (a) sell the Company's product and (b) recruit new distributors who do the same, endlessly if possible.
The reason Distributors don't just sell the company's product is because they receive 'bonuses' for sales made by their recruits. Theoretically, the richest independent distributor would have tens, hundreds, thousands, or even millions of subordinate distributors doing the actual sale, while the Big One would sell little or none of the company's product.
Simply put, MLM programs do not focus on selling the product of the company but on selling the company itself.
It is possible to be successful as an Independent Distributor, but the chances are that you will end up alienating your family and friends. You will likely end up buying more stuff than you sell. And you will learn a lot about how to cheat on yourself and others.
Some of the more interesting rules that Amway enforces are shown below.
The Direct Distributor or Sponsoring Distributor will repurchase any unused salable product from a Distributor whose inventory is not moving or who wishes to leave the business. Amway applies the buy-back rule.
To ensure that Distributors do not attempt to earn the Performance Bonus solely on the basis of purchases, Amway requires that in order to receive a Performance Bonus, Distributors must resell at least 70% of the products they bought each month.
The "tencustomer rule" provides that distributors cannot receive a performance bonus unless they prove a sale to each of ten different retail customers during each month.