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Quixtar explained: Why it's a scam

by Matt Lau

Created on: August 15, 2008   Last Updated: August 09, 2009

A Yahoo! search of "I hate Quixtar" produces 58 results. What is this company called Quixtar and why would people bother creating a web page devoted to addressing their hatred of it?

Quixtar has been accredited by the Better Business Bureau since 1999, the year it started business, and was determined by the Federal Trade Commission to be a legal and viable business model. Since its launch in 1999 the company has recorded $6.8 billion in sales and has paid out $2.2 billion in bonuses and incentives to its distributors. Quixtar, through it's One by One charity program has donated over $50 million and over 800,000 volunteer hours to a number of charitable organizations, including the American Red Cross, International Aid, and Easter Seals.

On the surface, this company appears to be an American corporate success story, but there are several reasons why Quixtar is a "scam." (Scam defined as "a fraudulent scheme, esp. for making a quick profit; swindle.")

It has been discovered that some people who become IBO's (Independent Business Owners) start using products that they did not use previously. For example, one source cited that his college roommate began drinking energy drinks. But he did not drink energy drinks BEFORE he was in Quixtar. You see, Quixtar manufactures XS Energy Drinks, the second best-selling energy drink on the market (and the top-selling, American-manufactured energy drink). Do you see now how Quixtar is a scam? Prior to becoming a business owner that distributes XS, his roommate drank Pepsi, coffee, and probably beer; but instead of drinking those products, he began drinking a product that was manufactured by Quixtar. True, every single product manufactured by Quixtar is covered by a 100% money back guarantee for 180 days, including empty boxes of totally consumed products, but he was probably too embarrassed to ask for it. Instead, he spent hard-earned money on a product that he reps rather than spending his hard-earned money on a competitor's product. Scam! Just like the poor pretzel-cart vendor who spends $30,000 for his Pret-zilla franchise and ends up eating a pretzel every day for lunch instead of his usual hot dog on a stick. Or the McDonald's owner who was tricked by McDonald's corporation into no longer eating a Whopper every day. Or the owner of the Ford dealership that was tricked into driving a Ford instead of a Mitsubishi. Don't fall for these scams.

Upon further research into the "roommate investigation," it was discovered that

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