Quixtar Inc. is a Web-based e-commerce business launched September 1, 1999. Quixtar offers consumer shopping, membership benefits and business ownership opportunities on the Internet. Quixtar operates using a form of marketing called "referral marketing" or more commonly, "direct selling." Independent Business Owners (IBOs) powered by Quixtar refer customers to www.quixtar.com for products and services and earn income based on sales resulting from their referrals and on sales made by other IBOs they have registered. Each IBO's individual success depends upon his or her own efforts and the selling efforts of those whom they register.