Critics often get criticized for being negative or not offering solutions so I thought I would take some time to offer a (partial) solution for Amway/Quixtar in North America.
Here are what I see as the biggest issues with Quixtar/Amway in North America (not in any order):
1. Outdated Compensation
2. Poor Reputation
3. Lack of Product Focus
4. High Prices
Now for my solution:
1. Break up Amway – Quixtar (North America) into four new Network Marketing companies:
- XS Energy
This actually helps solve three of the four major issues, lack of product focus, reputation and compensation. Each product focused company could come out with an updated compensation plan with a focus on balance and the best reward strategy for the product line.
is should be no secret that the fastest growing companies in Network Marketing over the last five years have been single product or narrow product line focused (such as weight loss). Narrowing the product focus strips away confusion and allows the unique products to shine.
The reputation will be helped by the renewed focus on products and less focus on the "2-5 year plan".
2. Reduce prices and get PV/BV back to a reasonable level ($3 to 1PV is not reasonable).
The PV/BV situation overlaps with compensation but it is also needs to be mentioned with pricing. You can’t drop the prices by 30% and then drop the PV/BV associates with the products by 50% and claim to now magically have competitive pricing.
Just get reasonable here. Mercedes has proven that you don’t have to be the cheapest to be successful, but there is a line where the average consumer will say: "I don’t care how good you say (the product) is, I’m not paying that much for (fill in the blank – Amway Product).
3. Update the compensation plan for the 21st century. Adding $60 million in new bonuses and then making them twice as hard to achieve is not updating the plan. Add some money for the newest growing associate. The IBOAI propaganda is suggesting that Quixtar/Amway now has the best compensation plan in the industry.
Uh, yeah. If I was driving a car from 1959 and claimed that it got better gas mileage than a 2008 hybrid, you would laugh at me. In the same manner, people that understand compensation plans within the industry are laughing at the IBOAI.
Lastly, this breakup would help address the core of the reputation problem by nullifying the power of the IBOAI, who haven’t really represented the newest IBO in decades.