Friday, December 09, 2005

MORE DEBUNKING OF THE PRIVATE FRANCHISE ;-)) CONCEIT....


A reader, SNOTURKY, sent in his comments on my second post, HOW I GOT INTO THIS, basically spouting the same lame 'Private Franchise' conceit that Quixtar IBOs use all the time. I posted a rebuttal to his comments. This exchange is basically the gist of my third post, "PRIVATE FRANCHISE"?? YEAH, ;-)) RIGHT!. He sent some additional comments as a response to my rebuttal, which I am posting here alongwith my comments. My comments are in BLUE, and BLACK. SNOTURKY's comments are in RED.


What happens if there are NO CUSTOMERS who buy the food, BECAUSE THE PRICES ARE TOO HIGH, OR IT DOESN'T REPRESENT GOOD VALUE FOR MONEY?

Yes, I would agree that if a business is not moving any product or no one is interested in their service, that the business is failing and should shut down. Like I said before, no one guarantees that you will be successful. Or no one should, anyways...

Snoturky, you are MISSING THE POINT! I am NOT suggesting that there should be any guarantees about success. The point I am trying to make is that there IS a virtual GUARANTEE that the Quixtar IBO WILL NOT BE ABLE TO RETAIL PRODUCTS, BECAUSE THE Quixtar PRODUCTS ARE OVERPRICED AND DON'T REPRESENT GOOD VALUE FOR MONEY. Thus the lower level IBOs will lose money, period.

Is this so hard to understand??!!! I am making a SPECIFIC point, and you keep bringing up generalities.

But, with Quixtar, the SO-CALLED training SYSTEM [I can't help doubling over in laughter every time I hear about the ;-) SYSTEM] that is forced upon the IBOs, THE COSTS INVARIABLY EXCEED THEIR SALES COMMISSIONS/BONUSES.

Training systems being force upon IBO's is news to be. I've been in for quite a while and I have not purchased a single training tool. I have listened to some, but I have purchased any.

Groannnnn..... I am tired of individual IBOs protesting that they have never been forced to buy any Tools or use the System. Read the feedback section of www.amquix.info. Read the feedback section on Russell Glasser's website. Read the AUS link on amquix.info. Read John Hoagland's website. Read Imran Aziz's blog. Anecdote after anecdote after anecdote!! It is strongly implied that you can't succeed without the system, and that if you really want to be on the fast-track to success, you have to go all-out in using the system - CORE, so to speak.

Plus, I myself have been to quite a few 'Open Meetings' as well as 'Seminars', and every single time, I saw the same thing. INCREDIBLE HYPE about the System.

The SO-CALLED TRAINING SYSTEM/TOOLS INVARIABLY DO NOT PROVIDE ANY INFORMATION AT ALL ABOUT RUNNING THE BUSINESS! I have listened to hundreds of tapes and CDs and they are usually HYPE about where this business is HEADED, or HYPE about how GOOD the SYSTEM is, or HYPE about how a job is not good for financial security, or that you SHOULD use the SYTEM IF YOU HAVE TO SUCCEED.

I will not deny that some of the training is not exactly "training," but is meant only to make a comparison between (the potential of)this business and others. In a traditional business, you are in direct competition with your boss. He wants to squeeze the most amount of work out of you as possible, and pay you the least he can get away with. You want to do the least amount of work you can get away with and get paid the most you can get for it.Summarizing above - No, not all of the training is helpful in building a bussiness. Is all of the advice that has ever been given to you sound advice? The real reason why there are so many CD's that are based on the subject matter that you discussed is because anyone can record a CD and it is not reviewed by anyone for content before it is published.I would love to see more CD's that teach you how to think like a business owner and not a consumer, and that actually give directly helpful information.

Oh Boy..... Not that "think like a business owner and not a consumer" tapespeak AGAIN??!!! WHAT the heck does THAT MEAN??? Sounds like something Kiyosaki would say - meaningless slogans like "Don't work for money, make money work for you"... ;-)) I will get to dissecting this bit of 'Tapespeak' in just a minute, but before that let me get back to the rest of Snoturky's statements.

So, Snoturky, you DO ADMIT that the majority of Tapes/CDs are NOT REALLY "TRAINING", but JUST HYPE. THANK YOU!!! This is the FIRST TIME I have heard a Quixtar IBO admitting this. At least you are honest about that. Now let me turn this around. So far, I have NOT heard a SINGLE CD/Tape that provided CONCRETE INFORMATION/TRAINING to run this so-called business. SAME with Seminars/Rallies/Meetings. And I have been to quite a few of each. Can YOU show us ONE?

ONE EXAMPLE of Concrete Information/Training?

Here's the thing. You DON'T need hundreds of CDs to explain "THE PLAN". I am guessing you would counter that motivation is an essential part of the business. Even Rich Devos said on his DirectlySpeakingTapes, that good, honest motivation is an essential part of the business. BUT, here's the problem, in my opinion. IF the business were TRULY LEGITIMATE (in the sense that ALL the participants would be able to make money, not just the top level IBOs who are making money off of the SO-CALLED SYSTEM), then you WOULD NOT NEED SO MUCH MOTIVATION. Showing the "PLAN" alone would be sufficient to convince a prospect to sign up.

What about the System CONFLICTS OF INTEREST? Consider this. If ALL the NEW IBOs are informed that top-level IBOs DO MAKE MOST OF THEIR INCOME FROM THE SO-CALLED TOOLS/SYSTEM, NOT QUIXTAR/AMWAY BONUSES, do you think they would blindly use the System without questioning?? And, YOU DO KNOW THAT FACT ABOUT SYSTEM INCOME, DON'T YOU?? How do you address that?

Here's a suggestion.

CREATE MP3 RECORDINGS OF THE SO-CALLED TRAINING/SYSTEM CDs. CREATE MPEG FILES OF THE LIFE-STYLE VIDEOS CREATED BY THE DIAMONDS. Put these recordings on a website. Charge all IBOs a nominal fee of $5/mnth for unlimited access to this website. Give them the freedom to burn their own CDs and use it to listen in their cars when they are traveling. CREATE A LIST OF RECOMMENDED BOOKS FOR READING ON THE WEBSITE. LET THE INDIVIDUAL IBOs PLACE REQUESTS FOR THE SPECIFIC BOOKS THEY WANT TO BUY FOR THE MONTH. After these requests are placed, the exact same no. of books are ordered by QUIXTAR CORPORATION at a bulk discount rate, and proof of purchase/price is shown to the IBOs. The total purchase price divided by the no. of books becomes the PRICE THAT WILL BE CHARGED TO THE IBOs. A nominal 10% will be added to the price for administrative costs. WEEKLY OPEN MEETINGS? How about all the local IBOs EACH do their own search and submit their proposal to find out which IBO found the cheapest venue. Naturally, the cheapest place becomes the venue for the Open Meeting, with all the IBOs splitting the cost of the venue equally.

YEAH RIGHT, THAT'S GOING TO HAPPEN ;-)) ;-)).....


NOW, just for fun ;-)), let's consider a HYPOTHETICAL SCENARIO. All the Tool/System King-pins decide to get over a new leaf (yeah sure, that's ;-D going to happen... but hey we can dream), and they do everything that I mentioned in the above paragraph. They start providing professional sales-training materials, CD/Tapes, Videos etc. Teaches you how to present yourself - firm handshake, direct eye-contact, good posture..... Teaches you how to make a fluent, effective presentation of the plan.

BUT.....

HOW do you overcome the objections that will be raised by the FUNDAMENTALLY FLAWED business model of Quixtar?

You are ASKING people to BUY OVERPRICED COMMODITY PRODUCTS and asking them to TEACH OTHERS TO DO THE SAME. IF those people are thinking clearly, and IF they are ethical, they WILL decide that it is UNETHICAL TO TELL OTHER PEOPLE TO BUY OVERPRICED COMMODITY PRODUCTS SO THAT YOU CAN GET A COMMISSION OFF OF THEIR PURCHASE. And that it IS UNETHICAL TO LEAVE A LOT OF PEOPLE AT THE BOTTOM OF THE PYRAMID HOLDING THE BAG, FOR A FEW PEOPLE TO PROFIT OFF OF THE LOSSES OF MANY.

I REST MY CASE......

Now, getting back to the "think like a business owner and not a consumer" tapespeak. What Quixbots/Ambots usually imply by this statement is that, a business owner would always only buy from his own business. AND, that it makes business and economic sense.

NOTHING could be farther from the truth. Consider the owner of a McDonald's Franchise. Let's say he considers that ALL burgers are burgers, that they are a 'commodity' - that a burger from McDonals' tastes the same as a burger from Wendy's. If so, his only consideration as regards to where he would eat a burger, would be price. Let's say, the variable costs of all the ingredients of a McDonald's Burger (i.e. the cost he would pay the McDonald's Corp. Approved Vendor, for the ingredients required to make a Burger) is $0.75. Now, let's say the variable costs of making the burger (the utilites consumed in making a burger, the time/payroll/employee costs consumed in making a burger) at his McDonald's store is $0.50. So, his TOTAL VARIABLE COST for the McDonald's Burger would be $1.25. Now, let's say, Wendy's sells the Burger for $0.99.

So, if he ate the burger at his own store, i.e. McDonald's he would be out of pocket $1.25. But, if he ate the burger at Wendy's, he would be out of pocket $0.99.

Guess WHERE the owner of the McDonald's would eat? BINGO! Give yourself an A ;-)) if you guessed, Wendy's.

The point? Monthly consumables like, soap, laundry detergent, deodorant, toothpaste, toilet-paper, shaving cream, vitamins etc. are COMMODITIES. i.e. One Brand of the product is perceived as no different from another brand.

That is to say, they are PRICE SENSITIVE.
People base their decision on which brand to buy, purely on the price. So, since these Quixtar Consumables ARE overpriced, consumers OUTSIDE OF THE QUIXTAR BUSINESS wouldn't buy it.

AND REMEMBER, this business is presented as a way of making RESIDUAL INCOME! i.e. Your downline keeps consuming products every month and you keep getting a commission/bonus from Quixtar. So, it would be LOGICAL to CONSIDER ONLY regular MONTHLY CONSUMABLES in the calculation of the BONUSES/RESIDUAL INCOME, right?

BUT, the conceit (another one that drives me nuts) that Quixtar IBOs use, with the "think like a business owner and not a consumer" statement, is that Quixtar Consumables are Higher Quality (i.e. NOT commodities), and therefore a higher price is justified, and that a Business Owner would always buy from his own business, irrespective of price.

I think I can say with a fair degree of confidence, that I DEMOLISHED both of those conceits. Wouldn't you agree, Mr.Snoturky? Oh, I forgot, it was ;-)) Mr.Principle.

One of those CDs that he gave me has that famous quote, 98% of people are either dead or broke by age 65

I've never heard that statistic, but I will not argue with you about its validity. My first reaction is to agree with you on that one.

So, YOU are essentially in AGREEMENT with me, that the use of such an outdated statistic (80 years old) is not only deceptive, but just plain stupid?

Secondly, he WILL LOSE MONEY, BECAUSE HE WILL BE BRAINWASHED INTO USING A SO-CALLED TRAINING SYSTEM THAT IS TOTALLY WORTHLESS, AND WILL COST MORE THAN HIS SALES BONUSES.

I do not brainwash anyone. If I wanted someone to listen to a certain training CD, I would not make the purchase it, I would loan it to them. I would not want a starting downline to have those additional costs, just as my upline did with me - he would loan me CD's so I would not have to buy them myself.

Boy, who is this Saintly ;-)) Upline of yours? I am dying ;-)) to meet him! Heck, I am half tempted to run away and join ;-)) your Quixtar cult - obviously I would be signing up under you.... Do the Diamonds in your LineOfSponsorship know what he is ;-) doing? Trust me, don't let word reach your Diamond, he will be very ;-)) displeased. And, by no means, should this information reach the low-level IBOs in the other LOS' because they will all quit their LOS and run to sign up underneath you - and that would make their ;-)) Diamonds mad at you....

Is it just me, or do other people find it strange that every single Quixtar IBO who visits these critical sites, claims that THEIR LOS is as virtuous ;-)) as Mother Teresa??

QUIXTAR PRODUCTS CAN NOT BE RETAILED SUCCESSFULLY BECAUSE THEY ARE OVERPRICED!!

That seems to be pretty much the root of your argument. Rightfully so, I suppose, since a business is only as good as its product or service. This is only your opinion, however, and I will explain later on how even if they cost more, that it is no problem. Read next--

"even if they cost more, that it is no problem" - What's with this "even if "? Make up your mind, do Quixtar Products cost more or not?? Truth is, they ARE. And, it IS UNETHICAL to tell somebody to buy OVERPRICED COMMODITY PRODUCTS, so that you can get a commission off of their purchases. Keep in mind, Mr.Principle, the KEY WORD here is COMMODITY products! i.e. Products DIFFERENTIATED ONLY BY PRICE, NOT BY QUALITY. i.e. The Market/Consumers do NOT PERCEIVE/CARE ABOUT a SUPPOSED difference in quality between different brands.

It's funny how at first you say, "truth is that higher quality stuff costs more". Seems to me you are implying/agreeing ;-) that Quixtar products do cost more. THEN you turn around and say, "I have done a few comparisons myself quite a while ago and have found that most of the stuff is cheaper". So, what is it? Are Quixtar Products HIGHER QUALITY or are they CHEAPER???

I seem to have contradicted myself. Allow me to clarify:It is my personal opinion (for the things that I have used) and the opinions of people that I know that use the products, that they are superior in quality to anything I/they have ever used. Some things, such as probably the cosmetics, are more expensive. (Keep in mind that we are in first place by far for online cosmetic sales, despite thier price) Other things, like the laundry system and cleaning supplies, I have found to be cheaper. You cannot simply look at the size of the bottle and the price. You have to consider the concentration, the amount needed per use; there is a convenience factor as well. Would you rather have a 20 lb. box of tide or a 6.6 lb box of SA8 for approx. the same amount of washes?I have a lot of retail customers, by the way. They love the products (which is why they choose to purchase them instead of from a store) and have no issues with the price. I will copy my latest member order:
Nutrilite® Double X® Vitamin/ Mineral/ Phytonutrient – 31-day Refill * 2 = $103.30

Nutrilite® Ocean Essentials® Balanced Health * 2 = $43.10

Nutrilite® Concentrated Fruits and Vegetables – Tablets * 2 = $65.00

Freedom® Fuel Additive * 1 = $11.45total producst price = $211.40

That probably shouldn't mean a lot to you since it's all vitamins and health stuff, because the prices on those across the market vary a great deal.

"It is my personal opinion (for the things that I have used) and the opinions of people that I know that use the products, that they are superior in quality to anything I/they have ever used." Okay, buddy, let me try to get this through your head. "Your Opinion" and the "Opinions of people I know" don't mean jack in the Real World. The REAL test is - Is there broad acceptance of the product in the marketplace outside of the Quixtar IBOworld? What is the drop-out rate of new IBOs, greater than 67% right? IF the Quixtar Products were such great quality and they were cheaper, how come these IBOs didn't stay on as Members to take advantage of these products??? Quixtar IBOs trot out this argument ONLY when they are Quixtar IBOs, they don't even look back once they have quit the business.

And yes, there are MULTIPLE price studies on the critical websites, which have taken into account the concentration factor, and STILL find Quixtar Products to be OVERPRICED.

Also, here's a newsflash, buddy. Signing up somebody as a Member, doesn't automatically qualify their purchase as retail sales. BECAUSE Members can buy the products AT THE SAME PRICE AS IBOs. SO WHERE'S YOUR RETAIL PROFIT????

Nutrilite® Double X® Vitamin/ Mineral/ Phytonutrient – 31-day Refill * 2 = $103.30

$52.00 for a 31-day supply of Vitamins???? Good heavens! Man, you gotta be outta yer mind!!!! You can buy a 450-ct Multi-vitamin for $9-75. Oh, by the way, you still have to deduct $52.00 from your monthly total, because it's only $52 for a 31-day supply.

Nutrilite® Ocean Essentials® Balanced Health * 2 = $43.10

$43.10?? For Snake-Oil ;-)) ????? You gotta be kidding me, right!!?? And I see *2 - does that mean it's a 2-mnth supply? In that case, don't you think the monthly total should be $21.50??

Nutrilite® Concentrated Fruits and Vegetables – Tablets * 2 = $65.00
$65.00?????? For MORE Snake-Oil??? This isn't even funny anymore! Again I see the *2 - is it a 2-mnth supply again? So, in this case also, the monthly total is actually reduced by $32.50, right.

So, the monthly total, EVEN AT THESE INSANE PRICES, is ACTUALLY $106, not $211..... AM I RIGHT??

Am I the only one who thinks that, either, your so-called 'Member' is cuckoo, OR you just made up this fictitious 'Member'?????

And, are you saying that this is REPEAT ORDERS, every month?? Can you prove that by posting an ACTUAL SCREEN CAPTURE OF YOUR QUIXTAR PAGE??

What about the AVERAGE PV in your group? Or the AVERAGE PV in your Platinum's group? Care to show us a screen capture of that???

>>>>TELLING SOMEONE ELSE TO BUY OVERPRICED PRODUCTS SO THAT I CAN GET A COMMISSION IS UNETHICAL!!!

Do you have any concept of business at all? All products are "over-priced." Computer software, is a prime example. The newest games can cost $40 to $60 each. Then comes the similarily-priced expansion and sequels. A year later, they'll be selling all 3 in a single box for $15. Still makin a profit? You bet.

Read my rebuttal above. The Quixtar Business model is sold to prospects on the Promise Of Residual Income. And that promise is predicated upon Repeat Purchases every month by your down-line. Those repeat purchases happen to be monthly consumables. And these monthly consumables are nothing but COMMODITY PRODUCTS. NO RATIONAL person will pay a premium price for a commodity product. The ONLY reason Quixtar IBOs buy these overpriced products is that, they want their down-line to emulate them, which is their key to earning bonuses from Quixtar.

So you think that making money "off of other people" is bad? The all jobs are evil. I have no problem selling a product to someone where I make a commission from their purchase. That is the way all business in the world works. They have a choice to buy it or not. If it is a higher price than my competitors, they can pay it or buy another product.

No, I DID NOT say making money "off of other people" is bad. I said, making money by deceiving other people to buy overpriced products is unethical. Yes, people do have a choice. But if people in Quixtar exercised their choice rationally, they would not buy Quixtar Products because they are overpriced. BUT, IF they did that, they WOULD NOT BE ABLE TO TELL THEIR DOWNLINE TO PURCHASE QUIXTAR PRODUCTS, WHICH IS ESSENTIAL TO THEIR EARNING A BONUS, AND IN THE LONG-TERM GENERATING RESIDUAL INCOME. Repeat this argument down each layer of IBO, down to the last level.

Quixtar IBOs are repeatedly told to be 100% loyal to Quixtar Products. Remember your own "think like a business owner and not a consumer" statement? WHAT are you implying by the statement? That Quixtar IBOs SHOULD NOT EXERCISE CHOICE, and SHOULD BUY ONLY FROM QUIXTAR, right?

You are comparing apples to oranges. Pretend you walk into a Holiday Inn express and find out that you can get a single room for $45 for a night. Then you walk down the street to a Radison where they price a single room at $135. Would you tell them, "What?! I can get a room at the Holiday Inn down the street for only 45 bucks! This is an outrage!" No, of course you wouldn't. Holiday Inn is a cheap, value-priced stay. Radison is an expensive quality stay. Different business models.Quixtar's business model is not Target's business model. Target's business is super-discount store. Mediocre products, low customer service for a low price. Quixtar choses high quality products at a (sometimes) slightly higher price (although they produce all of the products themselves, so they are able to sell them competively and still make much more than other cmopanies) and give superior customer service. You have 180 days to decide if you like the laundry soap you bought. Did you use 90% of the box? That's too bad, they are going to give you all you money back anyways AND pay to ship that 10% back to them.

You are comparing apples to oranges. NO, YOU ARE DEAD WRONG! I AM NOT!

I will say this sloooowly, again, so you can understand.... Monthly consumables like, soap, laundry detergent, deodorant, toothpaste, toilet-paper, shaving cream, vitamins etc. are COMMODITIES. i.e. One Brand of the product is PERCEIVED as NO DIFFERENT from another brand. The Market/Consumers do NOT PERCEIVE/CARE ABOUT a SUPPOSED difference in quality between different brands.

NO RATIONAL person will pay a PREMIUM PRICE for a COMMODITY PRODUCT!!!!!

Okay, now let's consider your HolidayInn vs. Radisson example. I agree consumers would not decide which one to choose based on the price. BECAUSE they are NOT COMMODITY PRODUCTS/SERVICES. Consider another example.

Do you know the difference between Quartz Watches and Mechanical Watches? If not, let me explain the difference.

Quartz Watches are operated by an electronic mechanism which is powered by a battery. The power source that drives the movement of the watch hands, is electric/electronic. It is distinguished by a 'ticking' of the 'seconds' hand. The 'seconds' hand 'ticks' from one second-marker on the watch to the next second-marker, quickly at the end of each second elapsed. It is not a continuous movement, but a tick-stop-tick-stop kind of movement. They are very cheap to produce and are mass manufactured in the hundreds of thousands in China, Japan etc. Quartz watches therefore tend to be cheap. BUT, they are the MOST accurate in terms of keeping time.
Mechanical watches are operated by the 'kinetic' energy that is imparted by the movement of your wrist to the 'rotor' inside the watch. Consider a flat metal circular disc. Now draw a line from the center of the disc to its circumference. Draw another line, say, about 45 degrees apart from the center of the disc to its circumference. The region defined between these two lines and the circumference of the disc is called a 'sector'. Now if you cut this 'sector' out of the disc, it would look exactly like a 'rotor' inside a mechanical/automatic watch. This sector/rotor is pivoted at the center of the movement inside the watch. Because of the greater mass of the rotor at the circumference relative to its mass at the center where it is pivoted, depending on the position of your wrist, the rotor will rotate due to the gravitational force acting on it. It is this rotating motion that 'winds' a spring inside the movement. And it is the 'un-winding' of this spring that provides the motion to the 'hands' of the watch. The 'seconds' hand moves in a smooth 'sweeping' fashion, unlike the tick-tock movement in a Quartz watch. If you look at a movement like this, it looks pretty complicated. Lots of moving parts. Also, this kind of watch has to be assembled manually by an experienced watchmaker, because of the tiny nature of the parts/components/screws/gears/springs etc. Naturally, because this process is not automated, and not like mass-production, the cost of producing these watches tend to be higher than Quartz watches. Plus the cost of components is also higher. BUT Mechanical watches tend to be LESS accurate than Quartz watches when it comes to keeping time.

This 'Craftsmanship' conceit , and the idea that a Mechanical watch is more expensive to manufacture, is what Swiss Watch Manufacturers use, to charge premium prices for their watches. But, consider this. The mass manufacturing of the components for mechanical watches has reduced the price of components significantly over the years. Seiko (Japan), also makes Mechanical Watches. You can buy them for around $200. And, what is the price of one of the cheapest Rolex models, the 'Submariner'? Around $4,000. Do the people buying Rolexes, know that they are essentially buying a very overpriced watch? SURE, they do. I myself have three of them. Here's the thing. Swiss Watches like Rolex are marketed as 'luxury', premium products for rich folks. Most people buy a Rolex and other Swiss watches for its 'show-off-value'. To show that they have 'arrived'. Some people buy it because they like mechanical watches (take a look inside a mechanical watch, it's a thing of beauty). Another thing is that Swiss Watch Manufacturers make VERY HANDSOME looking watches. No other country comes even close, when it comes to DESIGN of watches, in my opinion. To ME, this, alongwith the mental image of all those mechanical parts moving in perfect mechanical harmony ;-), is the appeal. Do you buy an expensive Swiss Watch to 'keep time'? Heck no ;-), that is just a secondary function. And it doesn't do that very well either. Although mechanical movements have improved in terms of accuracy, Quartz watches are still the most accurate.

If you just wanted a utilitarian watch to keep accurate time, you would buy a cheap Timex (a commodity product). When you want a 'Premium Product' with all the associated imagery, you buy a Swiss watch.

BOTTOMLINE, LET ME REPEAT THIS AGAIN. Monthly consumables like, soap, laundry detergent, deodorant, toothpaste, toilet-paper, shaving cream, vitamins etc. are COMMODITIES. i.e. One Brand of the product is PERCEIVED as NO DIFFERENT from another brand. The Market/Consumers do NOT PERCEIVE/CARE ABOUT a SUPPOSED difference in quality between different brands. QUIXTAR CONSUMABLES are ALSO COMMODITY PRODUCTS.

NO RATIONAL person will pay a premium price for a commodity product!!!!!

Newsflash, Mr.Principle! ALL Franchises SELL/RETAIL a specific product, they DON'T prospect a customer to sell him another franchise. That's the TRUE DEFINITION OF A FRANCHISE.

Ever heard of Ray Kroc? He went around looking for people that wanted to own a restaurant. He set them up with their very own restaurant, and only asked for 2% of their monthly earnings. That was called McDonald's. They very definition of a franchise is granting another person distribution rights of a company's goods or services. That means that you do not own a franchise at all until you have given someone sales rights.

First, I made a typo, when I wrote that statement. The correct word, should have been FranchisEE, instead of FranchisE.

Now. Snoturky, I am going to speak sloooooowly again, so you can understand.

Repeat after me, Ray Kroc/McDonald's Coprn. is the FranchisOR. Repeat two or three times. Memorize it.

Now, let's assume that you OWN a McDonald's store.

Now, repeat after me, you/McDonald's-Store-Owner are the FranchisEE. Repeat two or three times. Memorize it.

The FranchisOR, i.e. Ray-Kroc/McDonald's-Coprn. grants you, the FranchisEE, Franchise Rights and collects a royalty, off of your sales. McDonald's Coprn., i.e. the FranchisOR, also makes sure that there won't be any Competing FranchisEEs, within a specific geographic region around your store. i.e. McDonald's Corpn., the FranchisOR will make sure that there will NOT be any unhealthy competition between you and another FranchisEE, and thus your business can survive and prosper.

You, as a FranchisEE, do NOT have any right to grant /sell Franchise Rights to a customer who walks into your store. i.e. YOU can not decide who else gets to become a FranchisEE. If you do not sell any hamburgers, i.e. make retail sales, you will go out of business!!

SEE THE DIFFERENCE???? If you still don't get it, you are beyond help ;-) buddy.

Just as a side note - You shouldn't post in caps so much. I understand that it's easy to write in all caps when one is frustrated, but it's very distracting to read and does not speak well about the writer. :)

Okay, I am posting in Caps, because I am trying to EMPHASIZE that particular word/phrase/sentence. Sometimes, I want a few words or sentences to stand out in a whole paragraph, so that the reader walks away with that image in their mind, hopefully well-entrenched. Remember, I am a man on a :-)) mission, right?? It's not because of frustration, ALTHOUGH, I have to admit, sometimes it is INDEED frustrating when I have to write pages and pages to explain a SIMPLE concept ;-).

THE DEBATE CONTINUES........

4 Comments:

At 9:42 AM, Blogger perceptive said...

Snoturky, the reader who originally initiated this 'Private Franchise' debate, sent in a comment on this post. He had some VALID complaints - specifically that I am being 'condescending'... I AGREE - "guilty as charged"! And I apologize....

It's been a pretty hectic week, and I won't be able to work on this blog until maybe later this weekend. So, I just wanted to assure Snoturky, that his comments as well as my rebuttal will be posted this weekend. Along with a DETAILED apology and explanation for why I wrote the way I did.

 
At 11:34 PM, Blogger SuccessfulIBO said...

Hey Mr. P. I stumbled across your blog.. No way I have time to read all of that but I have to address at least one thing I did read here. FYI, things are changing rapidly on my team and other teams all across the country so all the "tools" arguments etc. so pervasive on the web are all but obsolete. Here is why:

In fact many business development teams, like the one I am affiliated with, have done exactly what you have suggested in this post. I have access to one team web site as a prospecting and training tool TOTALLY FREE OF CHARGE with streaming video and many other training resources for myself and my group to use.

I also have access to another web site for a "nominal fee" that I use to train and motivate down line with streaming audio & video. On this web site they are grouping both CD & book orders and buying in bulk for savings which has resulted in about a 30% price reduction on CDs (which were cheap to begin with) and we also get up to 50% off the cover price of books on the book list as well. Oh, and mp3 download / CD creation are on the way as well. There has never been a better time to build a Quixtar business!!

I hope your readers will note that all teams and their tool / teaching practices cannot be generalized as Quixtar. You could attend a dozen different open meetings and only ever catch a glimpse (lit pack / CD) of an individual team's tool practices. Now thank you though for your blog and others like it. I think they have collectively had something to do with the changes.

 
At 11:54 PM, Blogger SuccessfulIBO said...

I have to point something out about the term franchising and how people use it. I still work for a large defense contractor at the moment and they use the term franchise very very loosely at a lot of corporate meetings I attend. Anytime they can get repeated reuse or regular follow on work from a single contract they call it a franchise business. It isn't even a seperate business!! This angers me because Quixtar's term "Private Franchising" is much more accurate than Corporate America’s definition. It is more accurate because 1. franchising more accurately describes what Quixtar does than these corporate models I speak of and 2. it is actually a modified term because it pre-fixes the work "Private."

Don't know if this helps or hinders the debate...

 
At 11:08 PM, Blogger smarties said...

We became N21 Emeralds in 2007.Only after reaching the Emerald level did we really start questioning things.I had a very interesting phone conversation with my upline Diamond.She confirmed what I had suspected was true.She told me that most Platinums, Emeralds and Diamonds never re-qualify at those levels.Most people that give testimonies at the end of a business preview are not earning the money that is portrayed.
This is more obvious once you become Emerald and notice the absence of previous qualified Platinums and Emeralds on the trips.
If Diamonds are making so much money in Amway how come a N21 Diamond called us at our home trying to get us into his new MLM he had just launched himself, while still in Amway?
We made the decision to no longer build the Amway business as we no longer wanted to drive the miles every night and go to meetings every week.We no longer think the small monetary return is worth it. we are now loving our life being home every evening with our 4 beautiful children.
We were told to burn the bridges and get rid of our traditional businesses by our upline, which of course, we did.
Over the last 6 years we befriended many lovely people, but unfortunately since retreating from the fold we don't have any contact with them.
Having been business owners for over 20 years, we have now got a new business.A Home business where we are home day and night and have earned a Diamond income in under a year.

 

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