Wednesday, September 01, 2004

Quixtar model is mathematically flawed

HOLY SMOKES: Quixtar model is inherently flawed!! Majority will lose money no matter what! It's just mathematics.

As the bottom level IBOs will make up more than 80% of the whole LOS, of ANY LOS, and if they are not profitable, whole pyramid is negative. Tell me if someone who did 100 PV is profitable? He / she earns $7.5 and spends much more than that to make a 100 PV. Here is cost of being an IBO to give a rough idea.

Here is a great analysis of Quixtar Model by lawBlawg.

lawBlawg: Scamology 101: Introduction to Pyramid Scheme Math:

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