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May 22, 2004
Quixtar's New Rules
By QBlog in
Are you a "Quixtar powered" IBO? Do you know about the changes to the Rules of Conduct (pdf)? I sure hope so. I hope that you're not learning about these rule changes for the first time from this blog. If you are, maybe you should ask yourself why you're learning about rule changes that may affect your business and the business of your downline from this goofy blog and not your upline.
While the Quixtar Business Compendium (pdf) has not yet been updated to reflect these changes, these rules are "effective immediately" according to an April 7, 2004, info item posted on the Quixtar "What's New" page (link works only for Quixtar IBOs).
What's Changed?
Well, there are really four major primary changes:
- Modification of rule 4.14 (the Other Selling Activities Rule) that basically includes an exception reference to the new Non-Competition and Anti-Raiding rule.
- Modification of rule 6.6.6. (The Sale of a Business Rule)
- Modification to the Arbitration rule (11.5.7)
- The new Non-Competition and Anti-Raiding rule (6.5) was originally "reserved." It outlines what type of business current and former IBOs can and can't operate.
The first change isn't really all that significant. It merely lays the groundwork for the new Non-Competition and Anti-Raiding rule. The second change (to rule 6.6.6.) is to emphasize that an IBO's business can only be sold to someone in good standing. The third change includes the "case management fee" in the list of things that must be presented for Arbitration. That went over my head too.
Non-Competition and Anti-Raiding
The fourth change, the new rule, is what is
really quite fascinating. Instead of trying to summarize the changes myself,
I'll quote from the Recommendation:
An IBO may engage only in other business ventures that do not compete with an independent business powered by Quixtar, and that IBO may solicit only those other IBOs whom he or she has personally registered in order to promote or expand such other non-competing business ventures.
An IBO must wait six months following resignation, non-renewal, or termination of his or her independent business before becoming a distributor for another network marketing company or selling products or services that are functionally interchangeable with those marketed through Quixtar.
An IBO must wait two years following resignation, non-renewal, or termination of his or her independent business before soliciting another current or former IBO to participate in another network marketing opportunity or to sell products or services that are functionally interchangeable with those marketed through Quixtar.
So, if I'm reading this right, if you're a Quixtar IBO then that's pretty much the only MLM you'll be operating. And, if you should decide to quit the Quixtar powered business then you must wait six months before participating in any other competing MLM business. I guess this would include companies like Passport, Melaleuca, Avon or even some new MLM business that you or your upline might want to start from scratch (sort of like Team In Focus).
I don't know about you but six months is a long time to sit around without a steady revenue stream. From what I understand, this will make leaving Quixtar a decision that must be considered a little more carefully for some folks.
For Example...
But then there's the part about how an "IBO must wait two years...before
soliciting another current or former IBO to participate in another network marketing
opportunity." What exactly does this mean? Well, if I understand this correctly,
let's say you see the Quixtar plan and decide to sign up. After going to some
meetings, making a few friends and buying some products you decide that you're
not all that interested in Quixtar and you resign. It happens all the time.
No big deal. However, six months later you decide to start selling Avon for
whatever reason. Now, you're still friends with some of those IBOs and you invite
them to an Avon party (or whatever Avon does) to get a little business. Guess
what? You've just solicited IBOs (even if they've also recently resigned) and
violated rule 6.5 and, according to sub-section 6.5.10., here's what Quixtar
can do:
...violation of any subsection of this Rule 6.5. will cause significant and irreparable harm to active IBOs and the Corporation, warranting an award of injunctive relief, including a temporary restraining order and/or a preliminary injunction, specific performance, and damages including costs, attorneys' fees, and disgorgement of all profits made as a result of such unauthorized activity.
Yowza!
Now, keep in mind I'm no lawyer and I'm no expert on Quixtar's Rules of Conduct so please read these rule changes for yourself before accepting my interpretation as gospel. To read the entire recommendation which includes all the rule changes just continue reading below.
And, as always, if you know of an error I've made please bring it to my attention so I can correct it as quickly as possible.
Board Recommends Changes to Rules of Conduct
Recommendations take effect immediately
At its March 2004 meeting, the Board of the Independent Business Owners Association
International recommended changes to certain Rules of Conduct and recommended
the adoption of a new rule.
• Rule 4.14. Other Selling Activities - modification would clarify the IBO duty to not solicit non-personally-registered IBOs for other business ventures, and to limit participation in other business ventures only to those that do not compete with the products, services, or business opportunities offered by the Corporation.
• Rule 6.6. The Sale of a Business - modification would clarify the requirement that any sale of a business requires the purchaser to be in good standing.
• Rule 11.5.7. Arbitration - modification would clarify that applicable fees shall be as stated within the Rules rather than on a separate schedule.
• Rule 6.5. Non-Competition and Anti-Raiding - adoption would preserve the integrity of the Line of Sponsorship (LOS) and protect IBOs, as well as the Corporation, from competitive injury. For further information, please see the explanation that follows the Rule in this article.
These recommendations were adopted by the Corporation and take effect immediately. These changes also will be included in the next revision of the Business Reference Guide. All changes are (italicized).
Other Selling Activities
4.14. Other Selling Activities: Except as provided in Rule 6.5., IBOs may engage in other business ventures, including other selling activities, involving products, services, or business opportunities not offered or marketed by the Corporation. However, IBOs may not take advantage of their knowledge of or association with other IBOs whom they did not personally register, including their knowledge resulting from or relating to their individual lines of sponsorship, in order to promote and expand such other business ventures. Such conduct constitutes an unwarranted and unreasonable interference with the business of other IBOs and the Corporation.
4.14.1. Every IBO agrees not to solicit, directly or indirectly, other IBOs whom he or she did not personally register in order to sell, offer to sell, or promote other products, services, or business opportunities not offered or marketed by the Corporation.
4.14.2. Every IBO agrees not to sell, offer to sell, or promote any other business opportunities, products, or services in connection with the Corporation's Sales and Marketing Plan.
4.14.3. Nothing in Subsection 4.14.2. restricts the sale or distribution of privately developed Support Materials ("SM"), Business Support Materials ("BSM"), and Product Support Materials ("PSM") in accordance with Rule 7.
4.14.4. Nothing in this Rule 4.14. restricts, for example, an IBO regularly engaged in the operation of a service station, auto dealership, retail establishment, salon, or a professional service (e.g., law, medicine, dentistry, or accounting) from serving clients or customers who are IBOs and who have sought them out. But an IBO shall not actively solicit the patronage of other IBOs based on knowledge or information gained as a result of being an IBO.
Sale of Business
6.6.6. All purchasing IBOs must be in good standing as determined by the Corporation. All sales must be reviewed and approved by the Corporation before they become final. No changes in ownership will be implemented until the sales agreement has been received and approved by the Corporation.
Arbitration
11.5.7. Initiation under a Submission. Parties to any existing dispute may commence an arbitration under these rules by filing with the Case Administrator three copies of a written submission to arbitrate under these rules, signed by the parties. The submission shall contain a statement of the matter in dispute, the amount involved, if any, the remedy sought, and the hearing locale requested, if any, together with the case management fee as provided in these Rules.
Preservation of the Line of Sponsorship
6.5. Non-Competition and Anti-Raiding: The Corporation and all registered IBOs share a competitive business interest in maintaining the integrity of the Line of Sponsorship, which was developed exclusively for the purpose of distributing products and services offered or marketed by the Corporation and compensating IBOs for marketing and merchandising such products and services. In order to protect these interests as well as those detailed in Rule 4.27.1., current and former IBOs must not use the Line of Sponsorship to sell, distribute, or promote competing products, services, or other business ventures, or otherwise interfere in the Quixtar business of other IBOs.
6.5.1. For purposes of this Rule 6.5., "Compete" means to own, manage, operate, consult for, be employed by, or participate as an independent distributor in (a) any other direct sales program using a multilevel or "network" marketing structure, or (b) any other enterprise that markets, through independent distributors, products or services functionally interchangeable with those offered or marketed by the Corporation.
6.5.2. For purposes of this Rule 6.5., "IBO" means an IBO who is either currently registered or has been registered at any time within the past two calendar years.
6.5.3. Every IBO agrees not to Compete, directly or indirectly, with the business of the Corporation while registered as an IBO.
6.5.4. Every IBO agrees not to Compete, directly or indirectly, with the business of the Corporation in the U.S., Canada, and all offshore markets operating under the North American Independent Business Ownership Plan during the six-month period following (a) the voluntary or involuntary resignation, non-renewal, or termination of that IBO's independent business, or (b) any violation by the IBO of this Subsection 6.5.4., whichever is later.
6.5.5. Every IBO agrees not to encourage, solicit, or otherwise attempt to recruit or persuade any other IBO to Compete with the business of the Corporation.
6.5.6. Nothing in this Rule 6.5. restricts the sale or distribution of privately developed Support Materials ("SM"), Business Support Materials ("BSM"), and Product Support Materials ("PSM") in accordance with Rule 7 and Rule 4.14.
6.5.7. Nothing in this Rule 6.5. restricts the right of an IBO to carry on a trade, business, or profession that does not Compete with the Corporation and to serve customers or clients who happen to be IBOs in accordance with Rule 4.14.
6.5.8. Nothing in this Rule 6.5. restricts the right of an IBO to employ or be employed by any person that is not an IBO and is not a company owned or controlled by IBOs following the voluntary or involuntary resignation, non-renewal, or termination of that IBO's independent business.
6.5.9. Nothing in this Rule 6.5. restricts competition between registered IBOs (a) in the sale of products or services offered or marketed by the Corporation to Clients, Members, or other customers or (b) in the registration of new IBOs, Members, or Clients.
6.5.10. Every IBO acknowledges that violation of any subsection of this Rule 6.5. will cause significant and irreparable harm to active IBOs and the Corporation, warranting an award of injunctive relief, including a temporary restraining order and/or a preliminary injunction, specific performance, and damages including costs, attorneys' fees, and disgorgement of all profits made as a result of such unauthorized activity.
6.5.11. An IBO's obligations under this Rule 6.5. shall survive and remain enforceable following the voluntary or involuntary resignation, non-renewal, or termination of that IBO's independent business.
6.5.12. If an arbitrator or court of competent jurisdiction determines any subsection of this Rule 6.5. to be unenforceable in any respect, then it shall enforce that subsection to the fullest extent permitted by law without affecting the enforceability of all remaining subsections.
LOS Preservation
To protect the efforts of IBOs in building and maintaining their business organizations, it is imperative that the Rules of Conduct preserve and protect the Line of Sponsorship for its intended purpose: to distribute products and services offered by the Corporation and to compensate IBOs for marketing such products and services and sponsoring others who do the same under the Independent Business Ownership Plan.
The Plan provides every IBO a solid framework upon which to build an independent business. One of the key elements of the Plan is that every upline IBO has a beneficial interest in his or her downline IBO's performance and vice-versa. It is clear the harm that results to an entire organization if some IBOs devote their efforts to a competitive network marketing opportunity or take advantage of their knowledge of or association with other IBOs in their individual lines of sponsorship in order to promote and expand their competitive interests. To do so either while an IBO or shortly after the resignation, non-renewal, or termination of that IBO's independent business would be an unreasonable interference with the business of other IBOs and the Corporation.
Rule 6.5. clarifies that "other selling activities" permitted by Rule 4.14. do not include direct selling opportunities using a multilevel or "network" marketing structure or products and services that are functionally interchangeable with those offered or marketed by the Corporation. However, nothing in Rule 6.5. restricts the right of an IBO to carry on a trade or business that does not compete with an independent business powered by Quixtar, or to serve customers who happen to be IBOs in accordance with Rule 4.14.
In summary, Rule 6.5. together with Rule 4.14., mean that:
An IBO may engage only in other business ventures that do not compete with an
independent business powered by Quixtar, and that IBO may solicit only those
other IBOs whom he or she has personally registered in order to promote or expand
such other non-competing business ventures.
An IBO must wait six months following resignation, non-renewal, or termination of his or her independent business before becoming a distributor for another network marketing company or selling products or services that are functionally interchangeable with those marketed through Quixtar.
An IBO must wait two years following resignation, non-renewal, or termination of his or her independent business before soliciting another current or former IBO to participate in another network marketing opportunity or to sell products or services that are functionally interchangeable with those marketed through Quixtar.
Comments
The important rules of conduct are designed to keep the Quixtar business LEGAL. This does nothing of the kind. This is a non-compete clause, and should appear in the CONTRACT. New IBOs have to sign contracts, and the BSM Arbitration Agreement. Quixtar is essentially changing the contract without IBO consent. This appears to be something the IBO should have to sign. Since they put it in the Rules of Conduct, I'm not sure it could stand up in court. Rules of Conduct do not apply to non-IBOs. Anyone who quits is no longer an IBO and is not subject to the rules.
The new rule states one cannot sell products or services that are functionally interchangeable with those marketed through Quixtar. This means one could not work in any store as a sales clerk (think of all the partner stores), or start a small business, and one could not even work in a grocery store where they sell steaks (Omaha Steaks is a partner store). Basically, it leaves only the service industry or real estate.
LOL, the business is supposedly about "free enterprise" It seems to me Quixtar is trying to impose restraint of trade and prevent fair competition. And they're too chicken to do it properly, by amending the contract and having every IBO sign the amendment. I'd love to see what a lawyer would have to say about this.
...?? I the pdf file posted here, as well as the one on quixtar.com (I am an IBO), and I haven't seen anything other than RESERVED on 6.5, where did you get this information? The link you posted also says RESERVED, and nothing of what you just said.
Are you lying?
The six month and two year rules have been operating in Australia (for Amway) for at least the last 4 years. It does reduce the likelyhood of jumping to another mlm but it is rarely enforced.
Bryan, you are right to question this post. I would expect it of everyone, especially those who do not know me.
All I can offer is that I believe it to be true. At least one other IBO has stated that he was aware of this rule change prior to me posting it here on my site. I can give you his contact info if you email me privately.
Also, the pdf you downloaded came from Quixtar.com, not my site. I linked to Quixtar's copy of the Business Compendium. I did not say that the Rules of Conduct had been changed on Quixtar's site, just that these new rules "will" replace the word "reserved" when the Compendium is updated.
Why is the compendium not updated? I don't know. I have a friend checking on that too.
I will say this, I'm furiously searching to find the specific link on Quixtar.com where this info came from. I'm not an IBO so I don't have access to the site like others.
Thanks for your interest and as always, be skeptical.
ok how to I go about emailing you qblog personally so I can get his contact information?
Bryan,
try the "contact" link.
Also, I've update the intro to the post to avoid any further confusion. I thought it was clear but apparently it wasn't. Thanks for bringing that to my attention.
Qblog, I apologize for accusing you of lying.
I found it on quixtar, and word for word you are accurate.
this is messed up, I'm not a happy camper.
I agree that if you do buy and sell stock that would compete with your own business, it would affect your proffits through this business. But I thought I owned my own business, and therefore had no boss or anyone to answer to (escept the law). And I would like to have the choice of what to sell and buy from MY OWN BUSINESS!
Thing is, I can understand Quixtar telling its present IBOs not to sell Pampered Chef or Excel on the side. That's dealing with the competition, and I can see a direct-sales company wanting their salespeople focued solely on their product.
But this? Two years before you can deal in the working world with products that deal with Quixtar (read 6.5.1 carefully, look at their definition of "Compete")?
Can you say "overreaction?"
More info on the new rules.
Quixtar won't go after every little IBO to goes to another MLM or what-haveya. It's also for IBO's trying to get other IBO's from different legs of Quixtar to be under theirs and bring the team with them.
Remember Bo Short? When he quit (asked to resign from) quixtar, he opened his own MLM and then solicited and brought over many IBO's that were formerly in his leg. Which hurt his former upline cause he took most of his former team. The board of iboa decided to stop that (I sitll don't agree with it, nothing wrong with competition), so with this clause no one can do a repeat of that again.
I still think the choice should be up to the individual, but as far as the cross lining and grabbing IBO's from other legs, well, think of the upline who spent a lot of time and devotion to one of their legs, only to have that whole leg go to another IBO... that too is pretty messed up.
There's good and bad in everything I guess... still not happy.
well am a new ibo with quixtar so far i don't have any complain i've been paid and still just by metting people you make your business grow , and don't get me wrong in every business you have negative and positive instead of looking at the negative why not just take the good that come from it and use it to your interest
Regarding rule 6.5
Non-compete clauses are nothing new. Most financial planners, insurance agents,and some mortgage brokers have them.
Going inactive for 6 months or 2 years shouldn't be a big deal to most since most are inactive even when they are IN the business :)
I've been in the business for over 10 years. The 6 month inactivity rule has been around since I got in. It has never raised any issues.
Just thought you might want to know...
Thanks
One more thing...
To date...a signature from all Platinums up to the first diamond has been a way to circumvent the 6 month inactivity rule in the past. This may still hold true. Although you would have to get your upline to agree.
I, myself, HAVE signed a waiver and even allowed an IBO in my organization to transfer to another line of sponsorship. This was due to the fact that he wanted to build the business with his best friend. If your upline Platinum is reasonable you probably wouldn't have a problem getting signatures.
I think the rule is primarily to discourage hopping from one line of sponsorship to another.
Who knows...Doesn't concern me. Quixtar would only enforce it in extreme circumstances...I'm pretty confident of that.
I have been an Amway/Quixtar distributor/ IBO since 1979. I have personally sponsored/ recruited about 90 people in that time frame. The most that had stayed in at any time were about 15. At that time there were a total of about 130 people in the organization. We did reach 7500 PV once (silver, platimun). We grossed about $1500 that month. For a few years after that we had a group of about 100 people and could barely hit 1000 PV every month. This generated a gross income of about $150 per month. Expenses on tax returns most years were averaging $20,000. Can you say losing money? We traveled the length of the east coast to show the plan to people, sometimes for "no shows".
Our sponsor is the number 2 IBO in the business and has been in the business for 33 years now. Bought his first jet in 1981. He has/had about 200 diamonds in his downline and has one group larger than Bill Britt. I do know what I am talking about because of the uniqueness and closeness of our experience. I've been to Dexter Yager's house with only two other people with me at the property. I've worked backstage at these functions at coliseums with 20,000 and 40,000 people in attendance. I've read all the negative websites for the last three years. I have yet to see one that is even in the same league as far as time in, work put in, results accomplished, money lost as the one I could write in detail. Everything I've read is basically true and I believe all of them. I just wish my story was as good as all those. I still have a membership andthere are still about 20 people who generate an average of 600 P.V. This creates an income of about $40 monthly. This is truly passive because I spend nothing and do nothing including tools. This business stole my life from 18-40 years old. It was all my focus and attention. I literally spent over $200,000 chasing the dream while my wife and I worked at jobs that paid under $10/hour. I then became fully disabled two years later through a rare illness. We had a bankruptcy in 1990 because of the business and almost did it again 9 years later. One month we made $1500. Next best month was about $800. All before expenses. The life we lost is the sad thing. We have yet to have vacation that doesn't have a business schedule somewhere in it. This was our 'life" for 23 years. It's a miracle my wife is still with me after 25 years.
I need to repeat that everything I've read on every 'negative' website is true. All are mild compared to mine. God Bless.
Oh, by the way, the new rules mentiones about non-competing, etc., are true. I just went into the Quixtar website as an IBO and there it is under the What's New section. You guys are dead on correct!
Hope this helps someone.
It was my understanding that the 6 month rule was created to deal with IBOs quitting their current LOS to join another. There was also a stipulation that gave the former upline 2 years in which to contest this process. How does the auto-renewal aspect play into these rule changes?
Vicky - I agree with you. Lawyers could find as additional source of revenue from this. Does Quixtar think they can lock the barn door now that Dateline has brought the spotlight onto their business operation? How about the IBOA? Aren't these rules typically brought forward from the board?
I, for one, am glad that I formally resigned my IBOship prior to these new rules.
Mike:
I am anxiously awaiting responses to my questions. I thought maybe you were too busy, and didn't want to spend any more time on these sites, but I guess you still enjoy the banter...
Anyway, when you have time, I'll keep checking in.
Bryan,
Do you have any proof that Bo Short was asked to resign from Quixtar?
Utterly dumbfounded...
You got me...:)
I know I need to answer your questions...
The other ones that I responded to are fast and quick responses. You had a large number of great questions which would take a little time.
I will get back to you tonight...I promise!
My bad...it's just that...well...no excuses...sorry about that!
sincererly, mike-quixtar ibo
Can you say fouth reich? Talk about facism.
What fascinates me is the exceptions made for "Business Support Materials".
This comment is kinda in regards to how much money Phillip pumped into his business...One of the reasons, after about 2 months of being "wined and dined" by my potential sponsor and upline, i decided NOT to become a Quixtar IBO, is simply how much money i realized i would have to spend. When you pay for a business incorporation whether it be a publicly traded corporation or a small LLC (limited liability corporation), it establishes your business as a financial entity of its own. You can take out business loans in its name, not yours. If you file for bankruptcy, although your name is tied to the failure of the business in your banks eyes, the bankruptcy is in the business's name, not yours. Thus, a bad business venture need not ruin one's ability to generate future financial success. Peoples claims of success thru Quixtar made no sense to me. How could anyone call a business that required so much delayed gratification (fancy talk for being in the "red" financially) a great idea? If any business venture doesn't result in the business being self-sufficient financially within a year or two AND result in NET profit that is worth what you put into the business (money, time, emotion...etc) then i say find a new line of work. Probably the best time financially to get out of Quixtar is an IBO's "best" month. There is a bit of extra money to cushion the blow. Unfortunately, because so many people equate success with money, this will be the time that most IBO's feel like all their hard work is starting to pay off and will be most closed minded to skeptics... BG
Philip Saulnier,
Are you talking about RP or PM? Its got to be RP because LK is the only business bigger than BB. 400 diamonds though, not 200. 80K distributors
If your so aware of what is the truth then why do these websites forget to mention the 400 new diamonds in that one leg in 10 years?
Ya, I don't believe that you are or know what you say you do because my upline doesn't even counsel me to drive 5 hours on a weekend for a downline that isn't asking for help. Flying to the east coast, I don't think RP ever told you to do that.
I have family that have spent a lot of one-on-one time with BD and he never counsels someone to travel to the east coast for a leg.
Actually this is one of my uplines pet peives with new people, they forget about their own city and start thinking about starting business in lower-slombovia.
Classic DS.
This must mean that Bill Britt cannot sell Soar at functions because it competes with other software they sell. Perhaps, the suits he sells are also illegal since Quixstar has catalogue sales of suits. This new anti compete ruling would make it illegal for any Diamond to sell virtually any products from their business. So I guess that Eagle Business Systems and the other companies that Bill Britt has are illegal since they interefer with the IBO business, interferance can be interpeted as either positive or negative.
Your comments......
I am a new IBO... I have been in the buisness for about 3 months and i am at the 4000 PV level. MY group hit 2700 in my second month and i got a check for $1032 dollars. THats not bad to me... I dont know what everyone is complaining for. This business is just like others those whom quit or dont manage their business right fail and quit. Those whom manage things right and do stuff the right way do fine. People see the negatives and blow them up what about the negatives of all other buisnesses and everything else you do in life. I am only 21 years old attending college at MAryland and when i will never have to work a day in my life because of this buisness.
As far as the non-compete clause is concerned, I believe it unenforceble in California bacause the IBO cannot exchange any concideration with Quixtar, they are a one-way distribution system. Unless of course, the IBO is actually an Agent of Quixtar. The first court case would be interesting if IBO's are classified as such
I'm new to this business of being an IBO. I have questions? I'm not a door to door sales type of person and my upline tell me that I have great ideas of how to market or get my business going. He says that I speak of character and this will get me places!!! I need to know what marketing rules their are about our products. Example, can I go to say a gym and market the sports drink without reprocussions from the mother company? What can I do, outside of door to door and my local releif society?
Please help me before I make a mistake and end up spending more than this adventure is worth.
Sincerely, Gennell
I am an attorney and I have a lot of doubt that Quixtar would be able to enforce its non-compete. I would think they might even run afoul of a lot of state franchise laws if they did.
Has anyone seen any cases of Quixtar successfully enforcing this in court? v Have there been any cases on this at all? Or is it just something to scare people?
Heya all,
I am a new Quixtar IBO... I appreciate you bringing these new rules to my attention as I could not even get the people at Alticor to give me more than rude remarks.
I am here in search of answers regarding the sale of products such as XS Energy Drinks. I have called Alticor a well as Quixtar and all I have gotten is a run around... "Call this person, call that person... etc"
I cannot see how they could enfore one not being able to sell a product to a retail sales person. Say, a retail grocery store or a gym. If you (a Quixtar IBO) the the only source of XS products for that establishment... why would Quixtar care?
I asked repededly whether of not they could give me a phone number for XS... or the state it was in... their response, "We don't have that information" . Rather odd if you ask me.
I am rather upset with this "business" and if things do not change soon I will resign.
I like some of their products, such as the SA8 laundry detergent. But, most of their products are so astronomically priced it is not funny! I have written them 3 rather lengthy letter attempting to understand their rational... but again I am getting the run-around.
I also believe that we are not recieving the products at whole-sale price. If you calculate price per product based off of BV(or business volume) then you come close to most retail stores.
If any one can provide some direction to the rules that stipulate how you can sell a product in it's original packaging without selling a product in it's original packaging please let me know :)
I will explain what I mean. Here is an exerpt from the Quixtar Business Rules & Laws link in the Build and Manage my Business section of the web site while logged in as an IBO:
***Begin Paste***
Repackaging Products Quixtar’s products are to be sold only in their original packages and in their original formulations.
Most of Quixtar’s product names, including Artistry®, L.O.C.®, and Satinique®, are registered trademarks of Quixtar or its parent, Alticor Inc. They are valuable assets to Quixtar because they embody the goodwill we have built through superior products and service. To maintain federal trademark protection for the exclusive use of these trademarks, Quixtar must follow very specific criteria for their use.
Product labeling is highly regulated by the state and federal governments. These regulations dictate not only the form and content of labels, but also the types of claims that can be made on a particular product. For example, certain claims on the label of a cosmetic product may cause it to be classified as a drug by the Food and Drug Administration (FDA).
FDA regulations also dictate strict manufacturing conditions under which products are packaged to ensure the products do not become contaminated. Quixtar devotes considerable resources to market research to develop products and packaging that meet the needs and desires of consumers. If repackaging were permitted, it would cause confusion among consumers and IBOs, possibly decrease the value of our products, and dilute the effectiveness of Quixtar’s promotional efforts.
***END Paste***(from https://www.quixtar.com/Business/default.aspx?cid=4171&pid=573)
Yet, they tell you the only way to sell the products to a retail establishment is to sell them to the establishment, say... a bar? then the bar pours them into a drink and sells the drink :) Seem to contradict it'self does it not :)
Hope to hear from people about this :)
-Casey
Hmm, several spelling errors in there... sorry. Also here is an exerpt from XSGEAR.com attemting to tell you why this rule is in place.
***BEGIN PASTE***
2. Can XS Energy Drink cans be sold through a retail store, vending machine, or gas station?
No, XS Energy Drink in the can is not allowed to be sold in a retail store or service establishment. The Retail Sales Rule (Rule 4.3) states that an IBO shall not permit the Corporation’s products or services to be sold or displayed in retail stores or any similar establishments. The Rule goes on to clarify that an IBO that works in or owns a retail store must operate their IB separate and apart from the store.
*To appreciate the reasoning behind this Rule one must keep in mind that it is designed to give people from all walks of life the ability to own their own business. Allowing our products to be sold in retail or service establishments would give those IBO’s that have access to them an unfair advantage and would be contrary to the person-to-person nature of the business.
***END PASTE***(From http://www.xsgear.com/store/otc_tips.htm)
-Casey
To Doesn't Believe Philip Saulnier:
Good for You! I guess a little bit of info can make you feel brilliant. You're proof. We call that "often wrong but seldom in doubt". It's been two years since I wrote that letter and I believe I know what my life consisted of for 25 years a bit more than you do. How arrogant to think you know more about my life and experiences than I do.Your first "fact" of someone having a group of 80,000 distributors including 400 diamonds is not only mathematically impossible. This means each diamond has 200 distributors. A stinking direct qualifying every month needs more than that many as the average person in the business only creates about 30 PV. Hello! 80,000 people will give you about 400 directs, not diamonds! Do you know the difference? Apparently not. I love it when people pretend they know how the business works.
You learn a lot more being in the business around the top leadership than you will reading websites. Much of what is on some of the websites is correct, some is jumbled and some is just wrong. Rick and Sue Lynn Setzer who are happily married are listed as divorced and they are/were upline from Kenny Stewart, George Halsey, Hal Gooch, Tim Foley and about 100 other diamonds. Diamonds, not directs, diamonds and that was all in one leg bigger than Britt. They're triples so use your imagination on the rest. At one point the group consisted of approximately 700,000 people so you can do some math with that. Plus international. His son had one group in the Czech Republic with thousands of people. I met a few emeralds from there myself so I believe that. I was there when they got their pins. Were you?
You wrote "Ya I don't believe that you are or know what you say or do because my upline doesn't even counsel me to drive 5 hours on a weekend for a downline that isn't even asking for help. Flying to the east coast, I don't think R.P. ever told you to do that."
Well first of all I know exactly what I am and know exactly what I said and did. You can't! You're upline doesn't even counsel you to drive 5 hours etc..
Good for you. My sponsor was not your sponsor and neither he nor I would be stupid enough to drive 5 hours to help someone who doesn't want it. I didn't need counseling for obviously stupid business activities. Are you a robot? I also never wrote that anyway. Where are you getting these thoughts from? I did mention driving long distances on the east coast for "no shows". Do you know the difference between helping someone who doesn't want it and having an appointment with a new prospect who looks promising and says all the right things and then does not show up for an appointment? Big difference! Then you mention flying to the east coast wasting time. Where did I write that? You're in la-la land again. I have never flown to the east coast! I live on the east coast! You're something! Then you mention R.P. telling me stuff in your imagination. R.P. is and wasn't my sponsor or upline! I could imagine him telling me all kinds of things but it would all be in my imagination. You're 0 for 8 so far. Shall I keep going O Wise One? Classic DS! The reason people have groups out of town is because you sponsor people in your backyard, lots of them, and they sponsor people all over the place. If you understand the concept of working depth in a leg, which is your job, off you go. I feel very strongly that you never experienced something like this in your business, if you had one to work. The other reason you "get out of town" is because when someone local becomes full of DS and wild fantasies like most of your letter, the local people all end up getting infected and quitting but the distance group isn't around the DS or aware of it so they stick and are usually stronger. They will normally respect your time more and you develop leaders quicker because you aren't there to babysit them. That's the theory that is taught at higher levels. Obviously a new person is encouraged to start locally and see what can happen.
Man, I feel like I'm in the business again. I did not renew this year after 27 years but after reading your letter I remember why I quit.
You don't have to believe anything I wrote before or now. I really don't care. I just want to help the other people who read your brilliant fantasies about all that you could possibly know about my personal and business life over the last 27 years.
You keep on trying to get your logic just a little bit more lined up and also remember what they say about the word "assume".
Good luck!
Philip Saulnier
P.S. Are you confident enough in your knowledge to use your name?
From Phil Saulnier,
Just to clarify an error. RP was not my sponsor.
If I read the "Rule 6.5. together with Rule 4.14" correctly, it means you can't sell ANYTHING that "competes" with what Quixtar sells. That could easily mean opening a convenience store, hiring into P&G as a line worker at a Tide factory, or getting a sales job at a Cadillac dealer after you quit Quixtar.
While I'm sure your average IBO would be able to break this rule with imputiny (being low enough on the totem pole to not be noticed), I doubt that Bo Short would have been allowed to start Passport under such rulings -- or that Yager or Britt will be allowed to start their own "Business Opportunity" now with this ruling. Thus comes the end of the "Quixtar needs us, we don't need them" mantra.
Posted by: Don | May 22, 2004 11:21 PM