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August 31, 2004
"My experiences with the Team of Destiny"
By QBlog in
As I was sorting through some old emails yesterday, I came across an interesting one from "BigA" who shared that he was accused of libel after posting his experiences with Team of Destiny.
...Thank you for taking the time to read this. I have made an entry on my online diary about the quixtar company and was accused of libel.. *sigh*... I'm sure you've had that too...Of course, I've been accused of many things as a result of this blog. The most recent accusation is that I was somehow responsible for Janet Jackson's "wardrobe malfunction" at the last Super Bowl. But I digress.
The post that "BigA" was referring to appears in the jemdiary under the heading "Team Of Destiny." Here are a few excerpts:
... Imagine my suprise when, after about 2 years, Lemon calls me. He asks how I am doing, and such. I say great, whats up with you? "Not too much.. but i've found this way to make money on the internet, i thought you'd like to know about"... right away, my skin crawls and i'm all like "ah! scam! ah! scam!"... but never thte less, i give him a chance.. "go on..." i say. "have you heard of george tero-naga-saki-jujubean (or something very japanesey)." "no"...The "libel" comment comes from Adam, who claims he is "not with TOD" but warns of libel charges nonetheless.... We arrive to the little meeting and I see another guy i knew from college... afew actually.. all like burnouts and drop outs and stuff... this is getting scarier by the moment. and then men in suits... Lemons' little co conspirtator ... i mean mentor... wlecomes me and talks to me and such... tries very hard to pretend like he wants to know about me... yet his attention is elsewhere ... i wonder if he's imagining how much money i have in my wallet?
... the Team of Destiny idea is mathetmatically sound... I just dont' think it will be popuplar enough... plus, I'm not that type of salesman.. I dont agree or "believe' in the "dream" enough to sell others into it.
"BigA" was just sharing his experience. I also thought it was extremely interesting that "BigA" didn't cite a single Web site for information. Maybe he just didn't mention it but this post doesn't look like it was influenced by the so-called "negative, dream-killing" Web sites. I think that's important to point out. "BigA" formulated his opinions about TOD all by himself and then shared it with the world. Think about that, especially you IBOs who still believe in the "Mysterious Meeting."
Comments
I'm looking for info about this "Quixtar" schpeal. I was recently contacted by a former customer under the guise of flattery and now I can't seem to get rid of these people. I feel like I've been contacted by a new rendition of Charles Manson's sheep. I'm fairly certain this Quixtar they speak of is a wolf in sheep's clothing but I can't seem to find any credible information, aside from sites that sound, amazingly enough, like the half hour "Become a millionaire in two years." crock i jut sat through. So I'm stepping out on a limb hoping someone can give me a little "laymans" insight. Much thanks!
Tine (part 3),
It doesn’t get better, sorry. As explained in part 1, the path to financial freedom involves building a sizeable group under you that will provide a constant residual income.
You don’t get to just ‘join’ Quixtar. You have to be sponsored – that is – you have to join someone else’s group. ‘Start at the bottom’ as it were. You will enter a ‘line of sponsorship’ or LOS. Your LOS may or may not be affiliated with an ‘outside’ or additional group that presents itself as a support system to help and guide you in building a group large enough for you to turn a profit and eventually be financially independent. DISCLAIMER: I have yet to be given any proof, statement or affirmation that ANY LOS for Quixtar is not affiliated with an outside group. I assume, and will continue to do so until someone tells me differently, that all Quixtar IBOs (Independent Business Owners) are also members of a LOS associated with an ‘outside’ group.
Your LOS will work to help you build your business. How? They will provide direct mentorship through your upline (the person who sponsored you), as well as Business Support Materials (BSMs) that consist of motivational tapes, books and seminars. You may also be required to have a number of services, at an additional cost to you, that are deemed as essential for your business such as voicemail accounts, 1-800 numbers, etc. You will be assured that all of these BSMs and services, which will be provided at a cost to you (sometimes initially free), are optional. However, you will also be told that you cannot expect to receive the full benefit of your LOSs knowledge and support if you do not participate in the program. If you don’t follow what they say, how can you blame them if your business fails to grow and show a profit?
The drawback to LOS BSMs are two: First is that a large amount of money is made off of them. All of the tapes, books and seminars – which you would not normally purchase anyway – are priced to you at a significant mark-up. The profit from these materials is split amongst the higher ‘pin’ levels. Many higher pins, if not all, make the majority of their income off of the BSMs, not the product residuals from selling through Quixtar. You may or may not be told that the money you are paying them only covers cost. This is demonstrably untrue. If a profit off of the BSMs is admitted, it will be presented to you as a ‘business expense’ in the form of training, which every business should do. Fair enough. But, the second drawback is that the ‘training’ provided almost exclusively centers on reinforcing why you entered the ‘business’ in the first place and why you should stay, and how to get more people to join (thereby getting more people buying tapes/books/seminars). The training centers on marketing the LOS, not on marketing the products. You joined to market actual products, help others do the same, and make money. You find out that you joined to get as many people under you as you can so you can get to the point where you get a cut of the money made from the LOS. That was not was presented to you, was it?
To keep the FTC at bay, the LOSs will pressure you to maintain a level of product sales through your 'business' in an attempt to show that Quixtar is a product based business. Unfortunately, you will end up buying most of these products yourself as you find there is very little time left in the week to sell anything when all your time is spent listening to tapes, reading books, going to seminars and meetings and trying to prospect other people into joining. The biggest drawback: there is also very little time left to spend on your family. Sell products, sleep, or spend time with your wife/husband/kids...the choice will be yours.
The end. Hope that helps.
OK. Where am I wrong? I have never been in ‘the business,’ and will be told that I don’t understand it and shouldn’t criticize it if I haven’t been in because I don’t understand. What didn’t I understand?
Tine (part 2),
Here are the problems:
First, the cost of items purchased through Quixtar is, at best, competitive to the prices you can get at large retailers. Frequently, the prices are higher. Any refund or ‘bonus’ that you may receive comes largely from paying too much for a product in the first place. Plus, you have to pay for shipping and handling from Quixtar to you, which is not included in the cost of the product.
There are products, specifically Amway, that you cannot purchase in retail stores. The vast majority of these Amway brand products have received mixed reviews, and some are downright bad. One product that is touted repeatedly is SA8 laundry detergent, and I haven’t heard anything bad about it. I will give credit where it is due, but that’s the ONLY product I haven’t heard anything bad about. Also, Amway products are presented as being ‘concentrated’ so less does more, and that is why the price is higher. Again, laundry detergent makes sense…toothpaste, no. But, that is a lot of laundry detergent to peddle to get to financial freedom.
Because of the first problem(s), actually selling the products outside of your group tends to be difficult – the prices of common products are not competitive (even though you are told they are) and the quality of Amway only products is mediocre (even though you are told they are superior). This stuff doesn’t fly off the shelves.
To receive a bonus check, you have to move a minimum level of products (volume). You are not allowed to place adds, set up a store, or even place your products in a normal retail environment. You have to sell ‘door to door.’ Unimpressive products at unimpressive prices don’t do well. So, to get your bonus, you end up purchasing most of the products you need to move through your ‘business’ by yourself. You may hear “Buy from yourself and teach others to do the same.” Makes sense, but this is in violation of Amway/Quixtar’s policies, as well as the FTC, that says you have to sell most of your products to someone who is either not you or not in your group – i.e. customers. If you do not have ‘customers,’ your business and group are classified as an illegal pyramid scheme. Compounding this is the feeling that if you don’t make all of your normal, day to day purchases through Quixtar (which ‘pays’ you for shopping there), how can you ask anyone else (customers) to do the same? You have to act as your own best marketing tool.
If you have a good month, you may come close to ‘qualifying’ for the next level of bonuses. Everyone wants to succeed, so you may be tempted to make an additional purchase to put yourself over the edge to the next level. Once again, buying from yourself. Plus, you don’t want to fall behind the next month – you should always be moving forward – so you are tempted to take up even more slack. You dig yourself deeper and deeper into a hole to give the appearance of being successful, hoping that someday you will be.
Part 3 next.
Tine (part one),
Here's about as layman as I can get in explaining the ‘plan’:
Quixtar, previously Amway, proposes that you can retail goods through their website at a cost that is advantageous to you because there is no marketing retailer in the middle. On all purchases, you receive ‘credit’ or points that entitle you to a bonus check realized from both the savings and the amount of products you move.
While theoretically you could make a reasonable income by selling these products to outside customers yourself, the big money (residual) comes from enlisting other distributors under you. You get a percentage cut of the amount of product that they move, as well as a percentage of the products that distributors move who are under them. The larger your group, the more product that is moved, and the more money that comes back to you and your group in bonuses.
If you reach a certain level of both products moved in your group and members, you can qualify for a ‘pin’ level, which entitles you to additional bonuses just because of the strength of your group.
You help people who have joined under you expand their groups until you are at such a level that you spend your time managing and mentoring people and not so much about moving the products, because the structure is already in place. At this point, your group should be large enough that the percentage cut that you get, as well as your ‘pin’ bonuses, should allow you to receive a comfortable residual income that keeps coming and coming – financial freedom.
How’d I do, IBOs? Am I steering Tine wrong?
Stay tuned for part 2.
porkchopjim,
You hit it right on the head. I've been involved and you are absolutely right.
Very good explanation porkchopjim, I commend you on your depth of detail, and simplicity at the same time.
You'd have to be from another planet to not recognize the so-called "curoisity approach" nowadays in this country. Why they still advocate this approach is beyond me.
Posted by: ladytw | August 31, 2004 12:19 PM