Quixtar as a Warehouse Club

March 9th, 2007 • Related • Filed Under • by admin

The multi-level-marketing company Quixtar is one of those things that we just keep hearing about. Chances are someone you know is one of their individual business operator’s (IBO) and have tried to get you to be on their team. I don’t think I’ll ever consider becoming a Quixtar IBO because it’s too much like using your friends. You don’t want to sign them up to Quixtar to help them; rather you just want them to sign up so you can get more money. What if we didn’t think of Quixtar as the next version of Amway, but rather as a digital Sam’s Club? Would it make sense to join then? Let’s consider the possibility.

Quixtar IBO’s can earn commissions by selling Quixtar’s exclusive products, but they can also earn commission by selling products from other major online retailers, such as Barnes and Nobel, Office Depot, eToys, Blue Nile, Ace Hardware, Circuit City, Dell, and Days Inn. If you shop at these stores or stores like these a lot, perhaps it would make sense to buy from these sites and keep the commission.

Let’s look at some mathematics and see if it makes sense to do so. The annual membership fee of becoming a Quixtar member is $50.00, so in order for this to be a profitable venture, we will have to get the same prices as the stores we normally visit, and earn $50.00 annually in Quixtar commissions.

The formula that Quixtar uses for commissions is a bit of a point system. They assign points to each purchases, as well as a bonus value. The formula is point value percentage times business volume minus down line commissions. You aren’t going to have a down line since you are just thinking of this as a warehouse club exercise, as if you were a member of Costco or Sam’s Club. Each Business Volume (BV) Point equates to about 80 cents.

BV is essentially the percentage of your gross earnings that you receive. Since you’re only selling to yourself, it’s unlikely that you’d make it to the second tier each month which would require you to spend $750 a month through Quixtar affiliated stores. In most cases, you’ll only receive a 3% commission. This means that in order to break even, you would have to spend $1,333.33 annually or $111.11 a month through Quixtar affiliated stores to earn your $50.00 back.

Unless you have a very large income, it’s unlikely that you are going to spend that much monthly on Quixtar’s products and their associated stores. If you do spend a lot of money on the stores that they offer or the same type of stores and you can get competitive prices, it might make sense to do. I won’t be doing it any time in the near future, but it’s an interesting thought.