"You have opened my eyes to many facts that you completely spelled out for me. Including the break down of the 6-4-2 plan, and how if you do not incorporate a large percentage, and focus on a large percentage, on retail. You will only remain in the red unless you sponsor and teach many others how to go in the red too." IBO Site Visitor

THE 6-4-2 Business Plan

Typical "Show The Plan" presentations present the AmQuix Sales and Marketing Plan. The Sales and Marketing plan is just that, a sales plan. When you start a business you need a sales plan but more importantly, you need a business plan. This page details the 6-4-2 Business Profitability Plan. A business plan shows the complete financial plan before it ever gets started. Any lender will require a business plan before they loan you money. Why not work out a "business plan" for your AmQuix business before you invest your own money and time?

Amway and Quixtar utilize the same sales and marketing plan. The plan below illustrates the power of duplication for generating sales. It also shows the power of duplication for generating business expenses and losses as well.

Some lines of sponsorship use other models besides the 6-4-2. Unless average IBO sales exceed average IBO expenses by about four times, no matter what model you use, the majority of IBOs will have the same profitability problems as those employing the 6-4-2 model.

Einstein points out to an Amway distributor the obvious profitability problems in the Amway Plan when overhead costs are included.

Step 1: YOU

The Amway/Quixtar "Sales and Marketing" Plan

$ 230 BV
X 30%
$ 69.00 Immediate Profit
+ 7.00 Performance Bonus
$ 76.00

"An average immediate profit of about 30% comes from buying at discount and selling at retail. 100PV earns you a 3% performance bonus on the Business Volume (BV)".

The 6-4-2 Business and Profitability Plan

The first deception of the "plan" is the immediate profit. This either assumes you will be retailing product at "Suggested Retail Price" to your friends, or you are consuming product for yourself at lower prices than you could buy those products for in discount stores. My studies showed I would have paid 40% more purchasing from "my own business". Plan presentations never include typical overhead expenses of an IBO. I will assume the distributor has $3,200/year ($267/month) in expenses. $3,200 is conservative for a married couple building the business.

$ 230 BV
X -40%
$ 92 Product Price premiums

$267 Distributorship overhead costs
+ 7 Performance Bonus
$ 352/month Business loss

Your Total losses at Step 1: $3,120/year ($4,224/yr including product premiums)

Does your financial situation allow you to spend $3,120 the first year you are in business? Don't quit your job just yet, you need it to finance the losses of your AmQuix distributorship. They will however coach you and teach you how to reprioritize your spending so that you can come up with the necessary funds to buy tapes and go to motivational seminars.

 

Step 2: Duplicate yourself and sponsor 6 people

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