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May 31, 2004
Toons
By QBlog in
A cartoon submitted by a site visitor and republished with the artist's permission.
May 30, 2004
Globe Magazine says "Beware"
By QBlog in
Globe Magazine reporter David Thompson writes about Quixtar saying that "hundreds of thousands of hardworking Americans are being duped by the latest so-called 'get rich quick' program..."
Thompson explains how former Quixtar Emerald Eric Scheibeler (from the Dateline exposé) was left with "broken dreams and a busted wallet."
According to the article, Quixtar is a "cult-like" business that makes participants more and more dependent on their "how-to seminars and motivational books and tapes." The money from those motivational books and tapes (and not product sales) is how a select few at the top get rich while those at the bottom often end up in the red.
Of course, Quixtar denies these claims. Ken McDonald is quoted as saying that "we may not be perfect, but we do a lot of things right." Who's right? Decide for yourself.
The Source Yes, Globe Magazine is a supermarket tabloid though it's less sensational than some of its tabloid sisters. The Globe is more about celebrity news and less about "Aliens abducting the three-headed lizardboy." But does the fact that this story about Quixtar comes from a supermarket tabloid mean that nobody should read it? Absolutely not. Information from any source must be critically examined and if it passes your personal "credibility test" then who cares where the information came from as long as it's true.
We should scrutinize everything we read, whether it's a front page article from the New York Times, the witty musings of an Internet blogger or a press release put out by some corporate PR department. Sure, some sources have proven to be more trustworthy than others but my point is that we should never turn off our brains when reading (or watching) news. The day we stop being critical thinkers is the day Aldous Huxley's vision becomes a reality.
The Article From what I can tell, the Globe doesn't offer any of its articles online so I'm including a scan of the article from the June 7 issue as well as the complete transcription below. If the Globe does not want this article posted here then please contact me and I'll take the appropriate action.
May 29, 2004
Quixtar and Apple
By QBlog in
I love Apple. I'm not a pure Mac geek but I really enjoy Apple's products. The computers. The OS. The peripherals. The little things Apple does to make their products and services a little bit better than the competition. My PowerBook is two and half years old but it still works like the day I bought it.
However, I'm extremely critical of Apple. Their mistakes are numerous and when they happen, I'm one of the first to express my disappointment. Their .Mac service is a waste. They took a free email service and bundled it with .Mac, a fee service. This was stupid for many reasons that I've expressed elsewhere. The iPod Mini, while a huge hit, is simply overpriced. The market has proved me wrong I guess but I refuse $249 for something that's only slightly smaller than its $299 big brother and has less than one third the storage capacity.
Oh, and let's not forget the devious fiend that unleashed the infamous hockey puck mouse that frustrated happy hands everywhere. I'd love to meet the jerk who approved THAT design and summarily beat him with his own shoe. The list of Apple screw-ups is quite lengthy, they're a company and companies make mistakes. I won't even say that Apple is any better than Microsoft, I'll just say that for the most part, they are smarter.
And this relates to Quixtar how?
So, what the hell does any of this have to do with Quixtar? Well, a lot of folks in Quixtar take my criticisms of the business as some sort of personal attack. They're wrong of course but for some reason many IBOs believe that my asking questions, sharing my perceptions and pointing out mistakes means I hate the business that they love. Why do they feel this way? I don't really know. For some reason many Quixtar IBOs take things VERY seriously. Instead of laughing and admitting that the Quixtar Web site is poorly designed some IBOs get huffy, indignant and try to defend the site and say it's wonderful and that I'm a fool for disagreeing. The Apple freaks at least have a sense of humor (check out CARS to see what I mean) when their beloved products are slammed.
Anyway, just a note to you Quixtar IBOs out there who regularly get offended and irate when others criticize your beloved Quixtar — lighten up for goodness sake! I make mistakes. Apple makes mistakes. Quixtar makes mistakes. We all make mistakes. No big deal. The tragedy comes from not being able to be honest about those mistakes and learn from them. Right?
Ok, these were just some of my thoughts on a Saturday night. I'm off to bed. G'night.
May 28, 2004
Marks - Chapter 3
By QBlog in
Marks is a novel that tells the story of a young married couple, two college roommates and a successful businessman whose lives ultimately intertwine as the result of a business opportunity — and a dream. Quixtar BLOG is publishing Marks as a serial, making a new installment available every Friday.
If you missed chapter two, never fear, it's still here for your reading pleasure.
Disclaimer: This book has not been through a final edit. There may be some misspelled words and grammatical errors. Please understand that as you read through the novel.
» Chapter 3
Keying in numbers eight hours a day at Burkelin Securities was probably not the worst job to have, Teri decided, but it definitely made the top ten list. She pulled her feet out of her sensible, low heeled shoes, flexed her toes and glanced up at the clock that ticked by the seconds like a metronome. The face was an industrial model, devoid of any decoration and framed by an equally plain steel circle.
Teri planned to work for forty more minutes then take her morning break. That would leave only another hour and a half until lunch time.
She slipped her shoes back on, slid another sheet of green paper into the holder attached to her computer’s monitor and rejoined the chatter of ten-keyers picking out endless streams of data. Teri didn’t know what she was typing even as her fingers flew over the keys. When she first joined the firm, she always noticed if she entered a loan application, a company bank statement or an insurance claim. Now she just entered the form identification key highlighted in the upper righthand corner and pounded the information into the database form that the computer pulled up. She didn’t even bother to read the field names.
In Teri’s opinion, the worst part about the job was that she had to devote some minimal level of concentration to the task. If she were raking leaves, washing dishes or driving down the interstate, Teri could release her mind to a dream world and let the hours fly past as she visualized complex relationships between dashing knights and beautiful damsels in fantastical realms.
But reading line after line of numbers and translating them into keystrokes, while not a particularly challenging task, stifled her imagination. Time seemed to slow down as soon as she entered the data entry room. By the time she clocked out of her shift, Teri felt as though she had spent a year in the tight confines of her work station.
Wednesdays were especially long. When their Sheik Chic workload overtook every night of the week, Teri demanded a regular evening off. Tom had grudgingly agreed not to schedule any potential meetings, upline status reports or downline motivation reviews on that day. Instead, Teri drizzled a steaming tub of water with a few drops of lavender oil, put a conditioning treatment on her hair and spread a clarifying mark across her face. Immersed in water and warmed by a glass of wine, she could let her mind wander to anything but finances, recruitment and sales quotas.
Tom usually spent that glorious hour balancing their personal and professional books.
Teri pulled herself back to the pile of numbers stacked neatly on her worktable. She promised herself that she would not look at the clock or let her mind go off task until she finished the forms down to the third paperclip. Ever since she was a kid, Teri would offer little deals to God: If she finished all her math homework without making a mistake then she would ace the next text. If she held her breath through the commercial then she would get a puppy for Christmas. If she could keep the silver baton twirling until a blue car passed then she would make head majorette.
The habit stuck, but somewhere along the way she began to have trouble deciding what to ask for in return for her nominal sacrifices. Money? That seemed an immature and selfish reward. Happiness? What was that? Health? A long life? Anything that sounded worthwhile risked becoming a monkey’s paw. Teri began to settle for everything will be okay, which was as vague as her idea of God.
“Ready for a break, Kiddo?”
May 27, 2004
WWG Parameters
By QBlog in
Someone claiming to be in World Wide Group sent me a document that seems to outline the "statistics" and "suggested responsibilities" of Quixtar IBOs in the WWG system. It was given to me without comment and without any accompanying documents. I'm assuming that it's an official WWG document but I really have no way of verifying its authenticity.
The document shows Business Statistics, Annual Profit and Suggested Responsibilites, each in a separate column. The information begins with the New IBO and extends all the way up to Diamond. What is curious to me is that motivational data is figured into the "business statistics" column. For instance, the Diamond level includes data for the number of Legs Earning Bonus Checks and PV Outside Platinum Legs as well as the number of Legs Attending Functions and Total Standing Order. Correct me if I'm wrong here, but doesn't that seem to indicate that participation in the "tools" is sort of a requirement for each level? Maybe I'm misreading this since it is without context. But it's weird that the motivational stuff isn't ONLY in the "Suggested Responsibilities" column. Can anyone explain why its set up this way?
Anyway, this is at least an interesting document, even if it's without the proper context. It does clearly demonstrate the annual profit for each level. I didn't realize that Platinums only earned $35-50,000 a year. For some reason I thought the Platinum level was more than that but I haven't really been paying attention to all the levels and stuff. Anyway, it's good stuff.
If you'd like to see a large copy of the document I've made two versions available. There is a smaller version for people with low res monitors and a larger version for folks who want the best. Both versions can be read but the larger version is much easier to read. Enjoy.
Southern Living at MY home
By QBlog in
I don't know much about Southern Living At HOME but I believe it's a sort of MLM-type business. One of my wife's friends is a "consultant" and we had a "party" at our house last Sunday night. I was gone during the party so I don't really know what happened but there was a bunch of awesome finger food in the fridge when I got home later that night.
After browsing through the Web site it looks like it's a kind of Pottery Barn MLM business or something. Anyway, my wife is not joining up or anything but she is trying to help out her friend. And this got me thinking (uh oh) about MLM businesses in general.
I really don't object to much about these "party" type businesses. From what I gather, it's a bunch of women who get together to eat and chat and then buy expensive crap that they probably won't use. What's the harm in that? Not much from what I can tell.
And the woman running the parties, well, she gets a commission from the sale of the products. She's not selling tapes or tickets to candle-lit rallies, she's just selling lipstick or food containers or placemats.
I don't know, I guess there may be a bit of a Motivational component that I don't know about but the whole idea seems somehow less annoying than Quixtar seemed to me when my wife first got involved. And after a quick Google search for Southern Living I didn't find any sites exposing the evils of Southern Living parties. Of course, that doesn't mean they aren't evil but it's something I guess. Or maybe not? Who knows.
One thing I know, I can't seem to escape MLM. It's everywhere. If you can't beat 'em, join 'em? Maybe, but not today.
May 26, 2004
Missing: TOD Tool-Money Contract
By QBlog in
Team of Destiny is a "Quixtar powered" business that promotes what's often called "tool money" as a key component of its business plan. Orrin Woodward, CEO of Team of Destiny, explains that this "tool money" is a "Secondary business" that "supports the primary business (Quixtar) with each segment generating revenues and profits." He includes two graphics (Graphic 1, Graphic 2) on his personal Web site that illustrate this concept.
The graphics clearly illustrate that money from speaking, events, and training & educational materials comprise a significant portion of TOD revenue. What's not clear is how TOD members specifically share in this "tool money."
SA4400
Quixtar makes their compensation plan very clear. In fact, even I understand most of it (and that's saying something). Not only is it pretty easy to understand, it's publicly available. Download a copy here (pdf) and see for yourself. You don't even have to be a Quixtar IBO to read it, you just need a Web browser.
Where's the TOD Compensation Plan?
What I don't find is a copy of Team of Destiny's compensation plan for the "tool money." Surely there is some sort of legally binding contract that clearly demonstrates how each TOD member will share in the "tool money" when he meets TOD's requirements. Quixtar has the SA4400, where is TOD's equivalent? It has to exist somewhere... right? Nobody would join up with TOD expecting revenue from "tool money" without a contract... would they?
Gosh, I hope not.
Wanted: TOD Tool Contract
I'm humbly requesting a copy of the TOD "tool money" guarantee. Once I receive a copy I will modify this post to reflect that reality. Thank you so much. I know it's out there... somewhere.
WIRED Top 40
By QBlog in
The WIRED Top 40 showcases the companies "driving the global economy." Here's a sample of who's on the list:
1. Google
2. Amazon.com
3. Apple Computer (thanks to iPod and iTunes Music Store)
... 7. Yahoo
... 16. Netflix
... 29. Costco Wholesale
... 30. Comcast
You know which company is not on the list? I'll give you a hint. Its name rhymes with Nicks Star (apologies to Stephon Marbury).
I know, I know. It's that liberal, anti-business Satanic media bias that has kept everyone's favorite "I-commerce" pioneer off the same list that put Amazon.com at #2. There's simply no justice in the world.
So seriously, why is the grandaddy of MLM businesses not on this list? Why wasn't it on the list last year? Or the year before?
May 25, 2004
Don't Forget Laurie?
By QBlog in
In March I mentioned that Orrin Woodward redesigned his personal Web site. It was a vast improvement over the previous site design and is pretty cool. I like it a lot (with only one design complaint that I won't bring up again).
Anyway, Woodward obviously spent some time and money into improving his Web site but I noticed that his wife's site, LaurieWoodward.com, still looks like total crap. I don't have any inside info but I'd bet a nickel that both sites are hosted on the same server. And I'd also bet that throwing the new OW template onto Laurie's site wouldn't take much effort at all. Ok, you'd probably have to swap out the header with a picture of Laurie but you could do that with a graphic, no need to repeat the Flash animation header gizmo.
So, why did Orrin redesign his site to look great but leave his wife's site looking like crap? No idea. Maybe he just doesn't have time? Maybe his wife really doesn't care about the Web site (my wife has virtually no interest in Web stuff... go figure)? Maybe they're planning an even cooler redesign for Laurie? No idea and it really doesn't mean anything but I notice stuff like this because frankly, I'm a Web nerd.
FOIA Jeopardy
By QBlog in
A: Quixtar.
Q: Information and documents about which Ada, Michigan-based company are so frequently requested that the FOIA (Freedom of Information Act) office of the Federal Trade Commission had to (by law) post a link to the material on their Frequently Requested FOIA Web page?
May 24, 2004
Views from a Quixtar Insider
By QBlog in
There's a new Blog in town. iBlogO (as in IBO... get it?) is a brand new blog run by none other than our good friend Dwighty! Yes, THAT Dwighty of Dwighty Show fame.
The blog only has four posts right now but looks very promising. Each post is a rather verbose examination of Quixtar's critics and criticisms. The post titled Hurray for Dateline! provides an IBO perspective of the Dateline NBC show about Quixtar:
...Dateline NBC has done up a wonderful job of a mock "investigation" on the company Quixtar. Quixtar is an incredibly huge network-marketing business that has been doing very well since 99. In this "investigation" Dateline interviewed a few people who tried the business and didn't make money. These people, rather than putting money into their business, gave it to people who were not Quixtar officials in a blind and sheepish pursuit of riches. And when it bit them in the rear, rather than blame themselves, they blamed Quixtar. They blamed the independents who gladly took their money (and rightfully so) but they also blamed a very innocent company...Shame on mean ole Datewine, picking on those wittle innocent multi-billion dohwar corporwations that do no wong. Datewine needsum a spanking. ;o)
In the Truth of the Tyranny: Part 1 we learn more about Dwighty's views on personal responsibility:
They are the victims. They are the hapless heroes who can do no wrong. If it's not Quixtar screwing them over, it's their parents. If it's not their parents, it's their friends. If it's not their friends, it's the convenient religion of the day. If it's not the religion, it's the government. If it's not the government, it's the world.I agree with personal responsibility. I think people today are too quick to yell "victim" instead of taking some responsibility for their own actions. One of the most visible "victims groups" is the smokers. So many lawsuits for so much money because "I was lied to and I can't quit smoking." Or, "My mommy died because of cigarettes." No, your mommy died because she didn't love you enough to stop smoking you idiot.
However, there are victims in the world, even victims of illegal business practices. Will anyone (except for maybe Ken Lay) say that Enron did nothing wrong and it's the employees who should be vilified for being "so stupid?" I think not.
Anyway, I won't dissect every post, just go read iBlogO. I hope it's regularly updated and doesn't disappear in 3 months like virtually every other Quixtar Advocate Blog. Good luck iBlogO. Good luck Dwighty. Let's get blogging. ;o)
May 23, 2004
Milton Lee Hill, Jr. - Quixtar IBO
By QBlog in
From the AOL-powered blog simply titled "Quixtar" we meet Milton Lee Hill, Jr. He's a Quixtar IBO and also the founder of a "new ministry" called Gospel Animation Ministry Enterprises (GAME). I admire his openness, honesty and seemingly sunny disposition. "Lee" offers a cheerful invite to young adults who want to be their own boss:
Don't be a stranger! Let's break the ice and get to know one another. I'm looking for young people (ages 18-25) who live in the Hampton Roads area of Virginia (Norfolk, Va. Beach, or Chesapeake), are out of high school, and whose desire is to own their own online Internet-shopping business. That's right, you can shop and buy for yourself with the business that I'm in called QUIXTAR. So, what are you waiting on? Talk to me, and I can tell you more about this exciting opportunity in person. You have nothing to lose when you visit the web site at www.quixtar.comGood luck "Lee." God bless.
Dean Kosage raised on boats
By QBlog in
According to Quixtar, Dean Kosage is a new Founders Diamond from Washington (posted 3/31/2004 on the What's New Page). What's really odd is the audio clip they include from Kosage. It's this bizarre non-sequitur where he says:
Hello, my name is Dean Kosage and it's just great to be here. I uh... my parents owned charter boats growing up and I didn't live on land till high school. I lived on boats and wha... (cuts off)So, I'm thinking, "Ok... dude grew up on boats and we care about this because???" I dunno, maybe the audio clip got cut off or something? Or maybe Quixtar IBOs just find that being raised on a boat is very inspirational to their business? Or maybe there's some secret hidden message that we will only discover if we play it backwards? I dunno.
» Audio of Dean Kosage, New Founders Diamond (this audio is directly from Quixtar's Web site).
» Someone sent me a copy of the audio in reverse. There's no hidden message that I can hear but check it out for yourself. You be the judge.
Where do you get stats?
By QBlog in
According to WebProNews, Quixtar ranked in the top five of sites that saw traffic growth during the week leading up to Mother's Day. Quixtar had 285,000 unique visitors that week, which was up 8% from the previous week. A Google-cached copy of the Nielsen NetRatings report reveals that the site with the most growth was AOL Shopping, which shot up 91% to 1,374,000 unique visitors.
Now, 285,000 uniques in a week is an impressive stat, there's no doubt about that (did I just make a rhyme?). However, they should also be viewed within their proper context. According to Nielsen NetRatings (as of May 23) the most visited commerce site for the week ending May 10 was eBay, with 16,989,000 unique visitors (visiting from home computers). Amazon.com saw over 7 million unique visitors that same week (visiting from work computers). Assuming Quixtar had 285,000 uniques EVERY week (which is being generous) that's no where near the traffic seen by Amazon or eBay.
Why is this important? Well, it's not really except that I've heard many Quixtar IBOs claim that Quixtar.com was the second biggest e-Commerce site, right after eBay. Maybe they're number three (which is unlikely given the huge difference between Amazon's and Quixtar's stats) but they are definitely NOT number two... unless you're ranking by some obscure, niche statistic, like number of unique visitors named Orrin or something.
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.
May 21, 2004
Just Imagine
By QBlog in
Can you imagine the day when some Web-savvy IBO starts up an anti-quixtarBLOG blog? Me neither.
Marks - Chapter 2
By QBlog in
Marks is a novel that tells the story of a young married couple, two college roommates and a successful businessman whose lives ultimately intertwine as the result of a business opportunity — and a dream. Quixtar BLOG is publishing Marks as a serial, making a new installment available every Friday.
If you missed chapter one, never fear, it's still here for your reading pleasure.
Disclaimer: This book has not been through a final edit. There may be some misspelled words and grammatical errors. Please understand that as you read through the novel.
» Chapter 2
Ohio, US
When Heart Magazine named Kenton University the party school of the year, neither the alumni nor the current students were surprised. The campus was strewn with beer bottles and graffiti for a week as both groups celebrated the title with as much enthusiasm as other schools commemorated bowl wins.
Kenton was a small, private school just north of Cincinnati. The institution housed a tiny but accomplished Honors program and a well-respected engineering department. Although these academic opportunities of the school were much touted in recruitment brochures, they brought in few students and little money. The theology and business schools funded everything at Kenton – from the state of the art research civil engineering research lab to the Honors program scholarships.
Several years before, the McIntyre School of Theology made the sound financial decision to offer a major in alternative religions. The program quickly became a popular choice for young women who liked to dress in flowing robes, experiment with promiscuity and take classes like “Advanced Therapeutic Bathing” and “Polyamorous Symbolism in Modern Worship.” Many of the alternative religions students were graduates of Catholic high schools, so collectively they were known as the Scary Marys.
The average business student was male. He occasionally attended class, sowed his wild oats among the Scary Marys and departed after four short years with a degree, a suitable wife from outside of the school of theology and a secure position in his father’s furniture store, car dealership or brokerage firm.
Marco Brand and Jacob McCoy were juniors in the business school. They had been friends since prep school when Marco had come to the rescue of the slender, quiet boy who was an easy target for the bullies on the wrestling team. Together they managed to graduate without too many scars. They were an unlikely pair — the smart-mouthed, muscular, six-foot tall blond who never had the grades to go out for football and the short, shy outcast who slicked his dark hair back and worked hard for every B.
It had been Marco’s idea to go to Kenton.
“Kenton University,” Jacob’s father often muttered to whoever would listen. He shook his head and rolled his eyes to the sky as if those two words summed up all his burdens. John McCoy worked hard and made a comfortable living as a construction foreman. He never let his son forget the sacrifices he made for the family. “First in the family to go to college and a state school isn’t good enough for him.”
May 20, 2004
Bob Kerkstra says...
By QBlog in
Bo Short has started naming names. The first name he mentions is Bob Kerkstra, a former Quixtar/Amway executive. Short attributes the following quotes to Kerkstra:
"You know the 10 customer rule? Well, it’s really a 10 customer suggestion."So, did Kerkstra really say those things? If so, then it provides some insight into the mentality of at least one Quixtar executive."The corporation had been looking for a solution to the BSM (business support materials) challenge for 35 years…"
"…this was the first time that the corporation has taken an active role in supporting what a group has attempted to do"
"My one goal before retirement is to fix this problem."
"The Corporation is 90-120 days from putting a plan in place."
"This is not going to be pleasant to do as it will have a big impact and hurt my friends…like Jerry and Sherry Meadows…"
According to the quotes, Kerkstra knew that the motivation business was a problem. He says the corporation knew of the problem for 35 years and yet, hadn't done anything to correct that problem.
So why didn't he follow through on his commitment to "fix this problem?" What happened to the "plan?" Why don't we see answers to THOSE questions on Quixtar's Response page?
May 19, 2004
Deconstructing the Postma Memo
By QBlog in Amway
The "Postma Memo" (pdf) is a brief and rather dry Amway document examining the Bill Britt and Dexter Yager motivational businesses. It was written in 1983 by Ed Postma, formerly Amway's business conduct manager, and provides a glimpse into the hidden conflict between the Amway corporation and the rapidly growing "tool business."
Relationships are sacred
The first thing we learn from the memo is that relationships within the Britt/Yager systems are sacred.
...It is also customary for this line of sponsorship to consistently teach that the relationships in a line of sponsorship are sacred...
...So, while friendships are being developed, a dependency is also being created. It is this aspect of their methodology, that has allowed for charges of "mind control."
The "dependency" that Postma mentions ultimately suppresses individuality and creativity. The downline is taught that the upline should be the only source of information and guidance. Postma goes on to say that creativity in the Britt/Yager system provides a "chance of failure" and failure is not allowed if their business is to be credible.
Don't trust anyone... except your upline
Another characteristic of the Britt/Yager systems is the culture of mistrust and suspicion towards anyone outside of their specific Line of Sponsorship (LoS), including the Amway corporation itself. Only the upline organization is to be trusted. Postma describes a culture teaching that the Amway corporation is out of touch with the realities of the Amway business and as a result can't provide the type of support, information and advice needed to succeed as a Distributor. However, Postma clearly disagrees with such ideas and even suggests that the corporation could provide superior motivation to the Distributors.
It has been my judgment on observations, that they do not do a better meeting than we do, nor can they provide the same type of motivation as we do. However, in attempting to convince the corporation to stay out of the motivation business, it allows them to do two things: first, it further isolates the business, second, it allows them to operate a motivation business with little or no competition.
Motivation is where the big money is made
Postma makes it clear that the primary source of revenue for Britt/Yager Diamonds is the tool business and not the distribution of Amway products.
If there are any discussions of any length with the Diamonds utilizing this system, it becomes clear that although they realize that they are Amway distributors, they consider their personal business to be the motivation (tool) business. I think there is little question that is where the big money is made.
Postma then outlines five categories that constitute the motivation business.
- Tapes and Books - "At that level (Direct), the tool business subsidizes the Amway business"
- Rallies - "It is not uncommon for the profits on these functions to exceed $25,000 to $50,000 for a weekend or $250,000 for a Free Enterprise night."
- Accessories - "...accessories (jewelry, clothing, and automobiles) are made available to distributors so that they may appear successful. It is considered extremely important for Diamonds to show material success in the business."
- Counseling - "Counseling goes on continually with the upline also causing dependency."
- Moving Up - "It is important to demonstrate success as the system (not the Amway business) allows."
"This business will crumble under its own weight"
Obviously Postma miscalculated the resilience of the Britt/Yager motivation businesses. In his summary, Postma predicts that "...anything that is done by the corporation that will cause conflict or competition with this business could cause a major split. This business will crumble under its own weight..." He then lists three reasons that the motivation business will crumble:
- Rights of the Directs - "The biggest fear that Diamonds have in this system is that the Directs will take Rich's speeches seriously, become "little Napolean," and cut off their ability to move the motivation business downline..."
- Greed - "Ego could destroy the traditional system. The system has encouraged "sponsoring" up so much that in many cases, the downline leader is smarter, more ambitious, and more ego bound than the upline."
- The Tool business (motivation) is illegal - "Unlike the Koscot method of marketing, the MLM system moves a product to an ultimate consumer outside of the business structure; i.e., a customer. Although the Amway business is legal (no question), the tool business is not (my conclusion)."
The memo concludes with what appears to be a plan of action. Postma states that "with proper prodding, this business (tool business) will fail." Did that prodding ever occur? Was there ever any plan to initiate the suggested prodding? If so, it was obviously unsuccessful because the Britt/Yager motivation business is alive and well today, nearly 21 years after the Postma Memo was written.
May 18, 2004
The Competitive Edge
By QBlog in
Looks like the MLM hyenas are out. After Dateline NBC aired its Quixtar investigation show I found a "business" using the keywords "Dateline Amway" in an advertisement on Google. The ad reads:
Dateline Scams MLMThis is followed by a link to the site which I won't name because I don't want to indirectly help that site's Google ranking (however the link is visible in the graphic).
The business behind the business of Quixtar and Amway on Dateline truth
The ad links to a page titled "The Competitive Edge" and rambles on about how Quixtar sucks because it has a crappy compensation plan and of course this "Competitive Edge" business has a superior compensation plan.
Former Quixtar IBO Reveals the Whole Truth About the Dateline InvestigationWhat's odd (at least to my non-MLM mind) is that no details are given about the "Competitive Edge" business. No explanation of the "improved" compensation plan, no description of how it works and there's not even a name associated with the site. Just an "email me your NAME and EMAIL ADDRESS" to get the information.Dateline recently aired a program that explained the business behind the business of the Quixtar/Amway corporation. I have experienced the Quixtar Business first hand, and I now understand the whole truth behind the business of Quixtar/Amway. I don't put the blame on any one person for Quixtar's faults. I put the sole blame on the compensation plan...
Well, according to Network Solutions the site is registered to Kelly Hashimoto but that doesn't necessarily mean he/she is the person running the site. The address given is in Utah but a quick Google search of the name and Utah didn't yield any MLM-type results. So who knows what or whom is behind this hyena-styled site.
So I must say, no thanks to "Competitive Edge" and their unsavory marketing tactics.
May 17, 2004
Lindy and Vicki Respond
By QBlog in
Lindy and Vicki Mack were interviewed for the Dateline NBC show about Quixtar. They are former IBOs who told of their experience with The Business. Quixtar's official response site gives a brief description of the Macks and some of the video responses also mention the Macks, at least indirectly.As a sort of response to Quixtar's response, Lindy Mack has asked me to publish the following letter and I've decided to oblige.
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The Letter:
Response to Quixtar's "response" to the Dateline exposé that aired May 7, 2004
by Lindy and Vicki Mack
Quixtar Got It Wrong
In its "response" to the Dateline NBC exposé on Quixtar and its motivational organizations, Quixtar has shown itself to be inaccurate and in many ways, deceptive. It also failed to understand that the Dateline exposé, in a very limited period of time, was trying to show that the problem is with the motivational systems operated by a few kingpin distributors. That Quixtar, and its predecessor Amway, has deliberately ignored what they themselves perceive to be an illegal pyramid scheme, and in fact have dismissed distributors who tried to change things, speaks volumes about the integrity of this multi-billion dollar company. But having billions of dollars does not make a company ethical.
First, and foremost, Quixtar's response is not a response. A response is an answer. By definition, a response waits for the issues to be raised before a contrary opinion is offered. Quixtar did not wait for the issues to be raised. It guessed what the issues might be and responded to its own guesses. It planned and prepared its "response" months before issuing it. Its response attacked the messenger in an attempt to obscure the message.
The most recent update of their website, www.quixtar-response.com, was created before the Dateline program even aired. It was on the Internet within moments of the broadcast and could not have been created in response to the program so quickly if it had been an actual response to the show.
It is simply their corporate spin, created and timed to coincide with the Dateline show. Nothing more.
Glaring Errors
Regarding the inaccuracy in the site's content, there are several glaring errors that should be pointed out and are further evidence that the "response" was not any more than a company line intended solely to protect themselves rather than to present the truth.
May 16, 2004
Platinum Index 2002
By QBlog in
Here is a report called the "Platinum Index." I'm honestly not exactly sure what it is but I can never seem to find it when people mention the "Q-12 Numbers" so I thought I'd post it here for safekeeping.
May 15, 2004
Quixtar and the sexes
By QBlog in
Did you know that according to the DSA "72 percent of direct sales consultants in the United States are women. Fifty-four percent are between the ages of 35 and 54, and 75 percent are married and have some college education."
In-Forum.com reports on the growth of Direct Selling (free registration) in the United States. According to the article, Direct Selling (or Multi-Level Marketing or Network Marketing) is a huge industry employing "13 million salespeople who sold $28 billion worth of products in 2002." It names successful businesses like Mary Kay, Tupperware and Pampered Chef to demonstrate how this growth has been achieved.
One thing I've always maintained is that Amway (and Quixtar) was able to work a bit of "magic" within the MLM industry by convincing men to sell soap, vitamins and cleaning products. Frankly, there's nothing exactly "macho" about selling such items and yet Amway (and Quixtar) is male-dominated (with the help of their loving spouses). And this is in the midst of an industry that is almost three-fourths female! It's as if Amway (and Quixtar) is the single co-ed (yet male controlled) dorm in the middle of an enormous all-female campus. Hoo-ah!
And I believe it's those men that are responsible for Quixtar's (and Amway) leadership role in the world of MLM businesses. Imagine Quixtar being run by women. Imagine the plan only being shown by women at "house parties." Imagine that the bonus for the Big PIN level is a pink Lincoln Navigator instead of a trip to Peter Island. Would Quixtar be where it is today if all those fired-up men were merely the husbands of Quixtar IBOs? I don't know but it's fun to think about.
If I ever start an MLM business (which won't happen) it'll be called The Man's MLM Business. We'll only sell things like beer, barbecue grills, big screen televisions, motorcycles, thick steaks, shotguns, cigars and stereo systems. Leave the soap, shampoo and vitamins for the ladies. Belch!
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PS: Who says Amway doesn't operate in the United States? Not In-Forum.com.The company (Amway), headquartered in Michigan, currently claims over 500,000 representatives in the United States who sold more than $5.5 billion worth of products worldwide in 2000, according to the Detroit Free Press.
Why no mention of Quixtar? That's sloppy In-Forum.com.
May 14, 2004
Marks - A Novel
By QBlog in
What do John Grisham, Daniel Defoe and Charles Dickens all have in common? Well, besides being male, they've all published at least one novel as a serial. And today, author Janet Marie Mills joins their prestigious company as Quixtar BLOG publishes the first chapter in a 16 part serialization of her novel, Marks.
Marks tells the story of a young married couple, two college roommates and a successful businessman whose lives ultimately intertwine as the result of a business opportunity — and a dream. Each Friday another chapter of the book will be published here at Quixtar BLOG. After the last chapter has been published, a "pdf" copy of the book will be available for download.
Disclaimer: This book has not been through a final edit. There may be some misspelled words and grammatical errors. Please understand that as you read through the novel.
» Chapter 1
“I’m going out to eat, Tom. Sure I can’t bring you anything back?”
Byron smiled from the doorway. He was just out of college — energetic and talkative. The kid was the newest member of the engineering department and stuck in a room with a lowly construction equipment salesman until a space could be found for him upstairs. At twenty-two he was ten years younger than Tom and made fifteen thousand a year more.
Tom wanted to smack the acne ridden face and fire off a spirited speech about the injustice of the world. Instead, he smiled, shook his blond head and waved to his young officemate.
“No thanks,” Tom said. “Hey, do me a favor and close the door on you way out, would you?”
Byron smiled wide enough that Tom could see the entire row of dark metal braces that lined his teeth.
“Don’t you want the boss to see you diligently working through lunchtime?”
“No way,” Tom answered. “He’ll assume I’ve been goofing off all morning. You’ll learn. The man sees good in nothing.”
With a chuckle and a wave Byron was gone. From behind the large, buffed steel expanse of his desk, Tom studied the door to make certain it was securely shut. He gritted his teeth, gave a determined sigh, picked up the phone and dialed the number that had been floating in his head all morning — singing to him even as he talked about the latest model of excavaters to bored superintendents.
“Hello?” a male voice answered after four rings.
“May I speak to Charles Tygart, please?” Tom asked while he flipped a three-ring notebook open.
“Speaking.”
“Charles! This is Tom Remly, your old suitemate back at school. I saw you at Sam’s funeral.”
“Tom, yes. Sorry I couldn’t talk to you then. I was just so upset about Sam. It was such a shock, you know? He was so young — our age.”
“I know,” Tom lowered his voice. “A real tragedy.”
Tom used the respectful silence to review his notes.
“Listen,” he continued after a moment. “I don’t want to make light of anything, but it really was great to see you; brought up some great memories.”
“I know. Too bad it had to be because of such a horrible occasion. What are you up to now, Tom? Still living in Tennessee?”
Tom leaned back in his chair and smiled. The awkward part was over. Now he could relax and follow the script.
May 13, 2004
Special Message for Platinums
By QBlog in
The following message was forwarded to me from someone claiming to be an IBO. I have no idea if it's really from Ken McDonald or not but it sounds believable. Nothing sensational about this email, just thought it was interesting that McDonald sent this on Wednesday instead of Saturday or even Monday. I guess he's been busy with other stuff.
From: Ken McDonaldWell, I don't know why this caught my eye (and it's probably nothing) but why did McDonald say "satisfied with their Quixtar experience" and not "Quixtar business?" Poh-tay-toe - Puh-tah-toe maybe? Yeah, I know I'm reading too much into this stuff.
To: (name withheld)
Sent: Wednesday, May 12, 2004 7:18 AM
Subject: A Special Message for PlatinumsTo Qualified Platinums and above:
Some of you may have seen the Dateline NBC story about our business that aired on Friday night. Obviously, Dateline got it wrong. It was not a fair and balanced look at our business. After more than a year of reporting, it focused on the complaints of three former IBOs -- one of whom is now a competitor -- and ignored the countless stories of people who are completely satisfied with their Quixtar experience. But we know the vast majority of you get it RIGHT, day after day, as you help people help themselves.If you are interested in our complete response to the Dateline story, check out http://www.quixtarresponse.com. You'll find positive statements addressing topics raised by Dateline, plus media clips from Doug DeVos, your Quixtar management team, the Better Business Bureau, the U.S. Chamber of Commerce, a former Attorney General, and more. We hope you use this site to respond to any questions that may come your way.
All of us here at Quixtar have tremendous confidence in this great business and even more confidence in YOU! Let's prove Dateline wrong by continuing to grow our business to new levels of success.
All the best,
Ken McDonald
These pretzels are making me thirsty
By QBlog in
Quixtar pretzels sucked. They were either too salty or too stale. Rold Gold they weren't.
The boxes of orange juice that didn't need to be refrigerated sucked. Never could figure out how they kept that juice from spoiling without refrigeration. Guess it did spoil because it sure tasted awful.
The lawn and leaf bags sucked. Note to Quixtar, trash bags should not have TWO holes. One hole is sufficient.
The protein bars tasted like sweetened cardboard. And the weird thing was, after eating them my stomach hurt. Even my poor tummy knew those protein bars sucked. Yet I ate them because we must have had a couple of hundred in our pantry.
Quixtar peanut butter sucked. JIF please. Quixtar peanut butter wasn't the worst I've ever had but it certainly wasn't JIF.
Those meals, like meat and veggies and stuff, that didn't need to be kept cold. Those sucked. Actually, I never ate one. I started to once but it smelled so bad I threw it out. My wife loved them but then she was earning PV/BV with every bite. Yummy.
I did like SA8. No idea how good it was at getting out stains because I don't really stain my clothes but it didn't clog our drain and that's good. But the name SA8 sucks. Get a new name Quixtar.
Rant over. Move along. Nothing to see here.
May 12, 2004
FBI and IRS inquire
By QBlog in
According to Quixtar, the Dateline NBC story was a biased ratings ploy to push the hidden agendas of a few disgruntled IBOs. Fine. Whatever.
However, in all of the official Quixtar Response I can't seem to find a single mention of this little nugget from the Dateline exposé:
What about others involved in Quixtar? Both the FBI and the criminal division of the IRS are making separate inquiries into at least two top distributors not focused on in this report.So what's the hidden agenda of the FBI and the criminal division of the IRS? Oh that's right, they're both part of the ratings-hungry liberal media... no... wait... that's not right. They're government agencies. That's right. Keep forgetting. Silly me.
TOD vs. WWG
By QBlog in
Every Quixtar Line of Sponsorship (LOS) believes that their organization is unique and is the fastest growing, most successful organization in all of Quixtar. And of all the Quixtar organizations out there, none seem to be growing as quickly and generating as much success as the Team of Destiny (TOD)... at least according to Orrin Woodward and others within the TOD organization.
And you know what? I think that success is fantastic. Congratulations TOD. I'm impressed by the way you're changing the face of Quixtar and building the most successful Quixtar-powered organization. However, I think Woodward and the other TOD members might want to have a little talk with Dave Severn of the World Wide Group.
In a phone message to IBOs in the WWG, Severn says the following:
I've said it many times over the years and I'll repeat it again. By the end of the decade, World Wide DreamBuilders, by the end of the decade, World Wide Group will be the Quixtar business. If you're wise enough to be in it, growing and building the business, and not allowing yourself to get derailed by any kind of critic, then your income and your future are totally unlimited. Because all that money will be made and will be paid, and it will go to the people who have a business in place by the end of the decade. If you let this show interrupt anything you're doing, then you will automatically cancel your participation in that great blessing that's coming. The benefits are incredible today, but you haven't seen nothin'‚ like their gonna be in the days ahead. And they will only go to the people with enough belief and fortitude to persevere.Or, if you prefer, listen to Severn say this in his own words.
So I ask you TOD and WWG... who's right? Let's Get Ready to RUUUMMMBBBLLLE!
And now, the rest of the story
By QBlog in
Bo Short, the former Amway/Quixtar diamond featured in the Dateline NBC show investigating Quixtar, has published an essay on his site titled The Beginning...of The Rest of the Story. It's lengthy but makes for some compelling reading. I challenge you, dear blog readers, to take the time to go through the entire essay. Whatever your feelings or opinions might be about Short, the essay is a solid piece of work with cited documents and testimony.
There are two things that really interested me about the essay:
1. Bo Short is now, for the first time (to my knowledge), telling much of what he knows and believes to be true about Quixtar/Amway and their relationship with the "tool businesses."
2. He's naming names.
If you want to say something to Bo Short about the essay send an email to boshort@hotmail.com.
May 11, 2004
Keeping an Open Mind
By QBlog in
I received a recording of a message from Larry Winters to his organization. The message was recorded prior to the airing of the Quixtar investigation show by Dateline. Basically, the message characterized the show (without actually having seen it) as a biased attack on Quixtar and would essentially have little impact on the Quixtar business. Larry Winters was briefly featured in a clip on the show but was not interviewed.
I'm posting this message in an edited format. Before you listen to it, you should know that I edited the original 4 minute, 31 second message down to a much shorter length. I don't like editing audio like this but I wanted to eliminate any doubts about whether or not this recording is considered Fair Use. To make my edits clear, I inserted a generic tone at the beginning of each edit. If you wish to believe that I've sliced and diced the audio to distort its true message, that's fine. I probably can't convince you otherwise. For whatever it's worth, I give you my word that I am not attempting to use the edits to mislead or distort the full message.
» Message from Larry Winters (in mp3 format)
The IBOs speak
By QBlog in
Looks like the Quixtar IBOs have responded to my post about "Taking the 'Blog Pulse.'" In that post I repeated an observation I've often made regarding blogs and Quixtar:
I hate to keep saying this but I'm continually surprised that there aren't many positive blog comments about Quixtar. Why is this? No idea. Maybe Quixtar IBOs just don't have time to blog?Tangible Dreams
The day after my post was made (on May 9) I received an email from an IBO named HK, asking me to check out the Xanga blog, Tangible Dreams. Here's an excerpt from the post:
...I wish Dateline would've also pointed that out more directly and honestly, stating that although the Quixtar company and business model / plan in and of itself isn't bad, it's the tools business that takes away it's "purity" and stains it, and that even though the tools and the marketing program goes hand in hand in a way, it's like a person and an automobile / vehicle: you don't necessarily need the other to get to a destination; but for some, the addition / enhancement makes it even more enjoyable or what not...Dwighty's Journal
I also received a heads-up on a post made by friend and IBO Dwighty. In Panderings of a Young Conservative Mind Dwighty gets downright verbose in his vilification of Dateline, those interviewed for the show, "Internet critic" Scott Larsen and pretty much anyone who has lost money as a Quixtar IBO. Here's a few excerpts:
...So Dateline got a few people who had the time to moan and groan about how it "wasn't their fault," and the to back those complaints up, they interviewed and/or sourced two upstanding individuals. Those individuals were Scott Larsen and Bo Short and both had horrible things to say about Quixtar. Of course, Dateline had nothing but GOOD to say about Short and Larsen. They're saints, after all. By the end of the article, one thing was clear: Quixtar bad. But then again, that was pretty much clear from the beginning, so was this really an investigation...What's interesting is that Enron execs said the same type things about Sherron Watkins (the infamous Enron whistle-blower) that Quixtar, and IBOs like Dwighty, are saying about those interviewed in the Dateline investigation.
Dwighty continues slamming Scott Larsen and Bo Short and wraps it up with this:
...So, when an article is released with a solid message from start to finish with the two most radical individuals as their primary sources, you know something's up. But what is it? I don't know. I haven't gotten that far, but I have concluded that Dateline has brought themselves to a new low. Rather than focus on personal responsibility, they have followed the sheeping masses and taken the fight to the wrong guy. Where Walmart and Costco don't give you anything for bringing your rich friends to their store, Quixtar gave you five bucks. And in return, they're being "investigated." If this isn't the preverbal biting the hand that feeds you, I don't know what is.I should probably point out that Dwighty didn't actually watch the show, he read the transcript at MSNBC. Anyway, it's good to know that there are Quixtar IBOs with blogs (or Live Journals or Xangas or whatever) who have a somewhat positive perspective of Quixtar. The masses are speaking!
May 10, 2004
The Trouble With Quixtar: Conclusion
By QBlog in
What is "The Trouble With Quixtar?"
In September, 2003, I began an attempt to fully comprehend why I am unable to embrace Quixtar, or any MLM business. This attempt consisted of a series of informal, self-reflecting blog posts which I titled, "The Trouble With Quixtar."
The title of the series was lifted from the 1955 Alfred Hitchcock classic, The Trouble With Harry. For those unfamiliar with the film, it's about a dead man named Harry who is basically buried and unburied several times as different people in the community believe to be guilty (or believe to be covering for the guilt of another) of Harry's murder. I picked this title for my series because in some strange way, I identify my Quixtar struggles with the confusion and misunderstanding surrounding Harry's death.
So where are the posts?
Many of the posts don't make a lot of sense, I admit that on the front end. They were more for me than anyone else. Each post began with this disclaimer:
Because blogs are inherently conversational and generally informal I thought it might be fun for me to take a few days to work out some of my issues with Quixtar right here, in this public space. Some posts may not make a lot of sense on their own but I hope that as a collection these posts will all tie together to accurately describe what I call "The Trouble With Quixtar."As you can see, this took much longer than I originally anticipated. Instead of a few days it's taken several months and I'm not sure I'm much closer to understanding than I was in September. For your review, here are the posts:To keep things organized I'm titling each related entry The Trouble With Quixtar and then numbering them sequentially. Also, please understand that this is a personal effort for me to fully comprehend why I am unable to embrace Quixtar, or any MLM business. This is my personal struggle with Quixtar.
- Discussion of my experience with panhandlers
- My work with drunks and addicts
- Being disturbed in my "comfort zone"
- If you love your job is it really work?
- I hate phonies
- Used car salemen
And now the conclusion
What I learned from this little experiment is that I really don't know why I can't embrace Quixtar as the business opportunity for me. I have a good idea but it's really difficult to figure out the specifics. I'll list some of the things that I do know about myself as it relates to Quixtar.
- I'm not a salesman and there's no shame in that, but to really "succeed" in Quixtar one needs to be a salesman.
- I can do without the goofy Quixtar rallies. If the only way to Quixtar riches is through those rallies then I'll pass, thankyaverymuch.
- The whole upline, crossline, downline thing is weird. Joining Quixtar a few months before me doesn't suddenly make you more knowledgeable about the business than me. I live on the Web (almost literally) and what makes the Web work is free-flowing information. Look to the open-source community to see what I'm talking about.
- In my heart, I believe that market saturation is real. On a small scale or grand scale, I believe that markets do become saturated and this disadvantages the newest IBOs. That does not make for an equal playing field. It means those first in have an easier time than those last in.
- I've observed "Diamond Worship" and I hate it. Financial riches do not make you worthy of my respect or my attention. Nor does having a large business. I've been told that "Diamond Worship" is not common in other LOS but I just know what I saw. You must earn my respect and a fancy car and large downline doesn't cut the mustard with me. Sorry.
- Information seems to be controlled and I resist that in a business, especially a Web business. We're all adults, let's allow the information to exist in its natural state, freely accessible to everyone. There seemed to be too much secrecy in Quixtar.
- The nature of MLM seems to be that recruiting must be emphasized while sales are de-emphasized. In my mind, this sets up MLM to ultimately fail because it's much easier to get rich recruiting than selling and I believe that human nature is to seek the path of least resistance. MLM seems to ignore a lot of human nature and hope for the best.
- The final point would probably be that Quixtar, for being a Web business, doesn't seem to "get" the Web. Amazon.com "gets" it but why not Quixtar? I don't know but I don't like that for some reason.
I know that I've probably not made a lot of sense. A lot of this is still confusing to me and I've left out a lot of stuff that's been swimming in my mind since I began this blog series. I just knew that I needed to try to reach some sort of resolution because it's really been on my mind all this time.
I hope I have made some sense. Probably not. I don't mind criticisms so don't be shy but I also wouldn't mind hearing from anyone who might sort of understand what I'm saying, even if I don't fully grasp it myself.
Thanks for enduring "The Trouble With Quixtar." I can finally move on.
Minor blog changes
By QBlog in
I've made a few improvements to the blog this morning. Most people won't notice these tweaks but this explanation is for those who do notice such details.
1. The first change is that I've ditched the comment pop-up and now link to the individual archive page for comments. The main reason for this is to keep things simple (a solid archived link instead of a cgi link if that makes sense). If you're running MT, here's how to do it.
2. The individual blog archive file names are no longer seemingly random numbers (000546.php) but they now should have a file name like minor_blog_changes.php. This just makes things easier to figure out. Many thanks to friend Matt Wood for help on this.
That's about it. Enjoy.
May 9, 2004
Taking the "Blog Pulse"
By QBlog in
Found a couple of blogs briefly posting about the Dateline show that investigated Quixtar. From Justin Shearer (get a permalink Justin!) we read his May 8, 2004, post which includes this observation:
I was personally approached by several "friends" about a "business opportunity." They are really vague and try to set up a meeting with you. Then they lay it on really thick. They talk of wealth and independence, but are not able to tell you how much money they have made or name one person that has made any real money. Quixtar is really adaptive too. It was presented to me as an "internet commerce company" once. Somebody setup some ASP forms and emailed a link once a month for replentishable items. hmmmmm It is kind of a religion. Think about it.And then there was this from Cathleen:
The world is finally catching up to this??? We've been calling them "Scamway" for years.That's about all I've found. I hate to keep saying this but I'm continually surprised that there aren't many positive blog comments about Quixtar. Why is this? No idea. Maybe Quixtar IBOs just don't have time to blog?They built my city on this scheme, so I have a hard time being critical. When the Van Andel Institute makes some breakthrough on cancer research, maybe we can say that something good (for the world, not just pretty buildings downtown) came out of all this deception.
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UPDATE: Thanks to a comment from J.O. I can now link to another blogger commenting on the Dateline show and Quixtar in general. Here's an excerpt from The Objective Few:
Anyway, my cousin was only able to sell product by “guilting” family members into buying product or buying it for himself. Actually, he became a slave to the product. He was buying things he didn’t even need, just because he thought he was getting a discount and he was getting money back. To me, it just seemed like he was making someone else money, because he sure wasn’t making any.
Quixtar in the news
By QBlog in
The Grand Rapids Press provides us with this report on Quixtar and their official reaction to the Dateline NBC show that aired May 7.
Their headline reads, "Quixtar disputes TV report," and the story basically reports a lot of what the Quixtar Response page states.
Quixtar rejected Dateline NBC's assertion that it runs a "scam" where few get rich and many lose money buying high-priced business support materials such as motivational cassettes and videos.The article continues with some statements from Quixtar Managing Director Ken McDonald, statements that I have not found on the Quixtar Response site, though I haven't watched/listened to all of the numerous video/audio clips.The direct-selling branch of Alticor Inc. said in a prepared statement that "we may not be perfect, but we do a lot of things right, including our commitment to consumer protection."
He said most people get involved to make a little extra income, not attain great wealth.The "little extra income" motivation may be true but what I observed with my wife and everyone in her upline (and downline) was quite the opposite."Quixtar offers an opportunity, not a guarantee," McDonald said.
Every single person I spoke with in her group got involved with Quixtar to earn a LOT of income. They wanted to earn enough income to retire early and maybe roam the globe with their families. They told me that they got involved with Quixtar because their current jobs would leave them essentially broke and penniless at retirement age if they didn't build the Quixtar business.
Maybe such motivations weren't typical of the enormous Quixtar community? I can only speak from my personal experience. But I did not talk to a single person in my wife's group that was only involved to "make a little extra income." I thought that's what Avon and candle parties were for. Quixtar is where you made the BIG BUCKS. At least that's the impression I got every time my wife scheduled a dream home tour.
Anyway, The Miami Herald picked up the Grand Rapids report which apparently got repackaged and heavily edited by the AP. That's about all the news coverage I've found so far but I've only done a brief search. I'll try to dig a little deeper when I have more time.
May 7, 2004
The Official Quixtar Response
By QBlog in
Well, the official Quixtar Response is now live and I must confess, I'm impressed. It's slick, very professional and packed full of facts, figures, video, audio, testimonials and more. This time Quixtar got the Web presentation right.
I haven't had time to dig through the entire site. There's just so much stuff there. A couple of things jumped out at me.
1. There's a box on the right linking to video and audio interviews with Quixtar big-shots with the heading "Interviews Dateline Didn't Do. Hear from people Dateline didn't talk to."
My reaction: No kidding! Of course those are the people Dateline didn't interview because Quixtar declined every single Dateline interview request. Here's a tip for you, if you decline an interview request then you'll make the "didn't interview" list. Hell, I'm on that list too now that I think of it. Well, I never declined an interview but I do qualify simply because I wasn't interviewed... right?
2. Ken McDonald's "message to Quixtar-powered IBOs" is in audio only. He's obviously reading a script so why not publish the transcript of what he has to say? No idea why, but I decided to publish it. I've inserted my own comments in bold.
Transcript of Ken McDonald's message to Quixtar IBOs in response to the Dateline NBC investigation that aired Friday, May 7, 2004.
Hello everyone and congratulations on an outstanding year. An $11 million day on March 31, a $100 million month in March. You are on a roll. You have the momentum.One last thing I'll mention is that this Quixtar Response site tells me one thing about the Dateline show. Quixtar is taking it VERY seriously. They're not fooling around. A LOT of time and effort went into getting this thing up. This is the real deal folks.And with all this momentum, I gotta wonder after watching the Dateline story (like many of you did), What's Up With Them?!?
Imagine you're a Dateline producer and you're assigned to do a story on the Republicans and you only interview the Democrats. Is that a fair and balanced story? Well, we don't think the Dateline story about OUR business was fair and balanced either.
But what if the Republicans decline every interview request? Is Dateline supposed to just scrap the show? Gimme a break.
But you know what? That is not important. The important thing is for you to prove Dateline wrong by building your business in the right way. Building your business big and reaching new heights that we have never reached before. And all of us at Quixtar have tremendous confidence in your ability to build this business right and build this business big.
Why does this have to be about "showing up" Dateline? I dunno but that seems like a silly motivation to me.
And all of us at Quixtar have tremendous confidence in the incredible opportunity that Quixtar provides people to help themselves. So go out there and share this opportunity with everyone. Share the incredible products we have with everyone and prove Dateline wrong.
Dateline NBC says "Quixtar was Amway"
By QBlog in
Someone, in a blog comment, accused me of misquoting the part in the show where Dateline makes the Amway/Quixtar connection. I'm not perfect and I'll own up to any misquotes the moment I'm aware of them but I did NOT misquote Dateline on this. I have TiVo and I just transcribed this part from the show.
Remember when we said Quixtar sounded a little like Amway, the company which drew the ire of the Federal Government several years back from making false promises to recruits? Well, it turns out, Quixtar isn't just like Amway, it was Amway. Quixtar is just its new incarnation with many of the same players.What's that line where they say, "it turns out, Quixtar isn't just like Amway, it was Amway?" Hmmmmm.
Blogging Dateline NBC - Wrapup
By QBlog in
Overall, I thought it was a good show. I'll watch it again later. It's odd but I think the most compelling part of the show was making the Quixtar/Amway connection. Knowing a little bit about television (and considering my dislike of Dateline), I think they packaged it pretty well and kept it interesting. They never mentioned Dexter Yager though they showed his name on one of the tapes. And they really never focused on any single person beyond Greg Fredericks, whoever he is.
To summarize the show:
1. Quixtar was Amway
2. Most IBOs only make $1400 a year, or something like that
3. Most of the money is made from tool sales and not product sales
4. Amway became Quixtar
5. Those rallies are really scary
Blogging Dateline NBC - 9:25 p.m. EDT
By QBlog in
Show's over. I realize I'm not a great "event blogger." Oh well. Hope this was good for someone. Dateline has a report and info about the show.
UPDATE: Holy crap! Dateline NBC has linked directly to Scott Larsen's AmQuix.info right next to the link to Quixtar.com. The link text reads, "Quixtar and more information." Wowzers. Getting linked from Dateline ain't too shabby.
Blogging Dateline NBC - 9:20 p.m. EDT
By QBlog in
Reveals that most Quixtar IBOs only make $1400 a year or something.
Confronts Greg Fredericks who said that most of the money made by elite IBOs is from seminars, rallies, books, tapes, etc.
Blogging Dateline NBC - 9:14 p.m. EDT
By QBlog in
Bo talks about his conversation with Quixtar's Managing Director, Ken McDonald about the tools "scam."
Bo said to Ken, "Ken, I believe that people are stealing money and you're letting it happen. Ken, Kick some of them out. Show people you're serious." Said Ken looked at him and said, "What would happen to the business?" Short says the company acknowledged that it knew of the tools problem.
Now they make the Quixtar/Amway connection. Dateline says that Quixtar was Amway. Not that Quixtar was sort of Amway or any such nonsense, they just say Quixtar is/was/will be Amway.
Blogging Dateline NBC - 9:14 p.m. EDT
By QBlog in
Eric Scheibeler is being featured now. Shows video of Eric shooting his alarm clock with a shotgun.
Now he gives the soundbit, "We're destitute."
Vicki and Lindy Mack lost a lot of money in Quixtar too. Bo Short is named now. He was one of Quixtar's brightest stars. In the end he came to realize that he was part of a mass deception.
"Is the wealth achievable?"
Bo says, "In my experience, no."
Now they're talking about the tools business. The REAL money is in the tools, not the products.
Blogging Dateline NBC - 9:05 p.m. EDT
By QBlog in
Bill Britt has been named. No Dexter Yager yet. Talking about the Function/Seminar that Dateline is attending/filming and discusses the late hours, lighting candles and now asking the big question: Who is making money in Quixtar?
Blogging Dateline NBC - 9:03 p.m. EDT
By QBlog in
Just got Fredericks on camera praying to Jesus. What you wanna bet Quixtar spins this show as an anti-Christian attack?
Blogging Dateline NBC - 9:02 p.m. EDT
By QBlog in
Greg Fredericks is caught on a hidden camera telling Dateline that it's pretty easy to make a ton of money. Dateline signs up and gets introduced to the Fredericks team.
Tells Dateline to stop reading the newspaper and buy tools, books, tapes and seminars.
Blogging Dateline NBC - 8:58 p.m. EDT
By QBlog in
It's beginning. Starts showing a big rally with a bunch of people chanting and raising their arms yelling FREEDOM!
"This is the best opportunity in the world... PERIOD!" says someone in a promotional video.
All of this is the setup for "who are these people?" Now it reveals that it's Quixtar.
Chris Hansen is the reporter. He just explained the business in a very simplistic way. "Recruit more people, etc."
Now they make the Amway connection! Oops.
Blogging Dateline NBC - 8:54 p.m. EDT
By QBlog in
Just saw Lindy (aka PW) on the Dateline promo for the Quixtar segment. Not everyone will know what I'm talking about but he's a friend of mine. At least I think that was Lindy.
Blogging Dateline NBC - 8:50 p.m. EDT
By QBlog in
Next segment talking about ATM identity theft or something. One of my pet peeves is when people say ATM Machines. It drives me insane. ATM stands for Automated Teller Machine and so adding the word "Machine" to the end of the ATM acronym is redundant and stupid.
I'm watching closely to see how many times they say the word "ATM Machine."
;o)
---------------
UPDATE: Just counted one use of "ATM Machine."
Blogging Dateline NBC - 8:38 p.m. EDT
By QBlog in
Ok, now I know why I never watched Dateline before tonight. It's B-O-R-I-N-G. Makes me really appreciate Don Hewitt and "60 Minutes." That's a damn good show even after all this time. Yeah, it's got an agenda but what news show doesn't these days? It's still good TV. Dateline is like... well... boring.
I dunno, maybe it's because I don't give a rat's patootie about terrorist marriages or whatever this thing is about.
Blogging Dateline NBC - 8:22 p.m. EDT
By QBlog in
Next segment is about terrorists getting married or something. Decided to skip this segment and watch something else. I love my TiVo.
Blogging Dateline NBC - 8:06 p.m. EDT
By QBlog in
First segment is about Hugh Jackman and how he's a tough guy from Australia but also has a sensitive side. Katie Couric is doing the interview.
Blogging Dateline NBC
By QBlog in
Tonight I will be blogging the Dateline NBC show investigating Quixtar. This basically means that I will post updates to this site as the show airs. Each update will hopefully reveal a little about the show and a little about my perceptions of the show. Others have blogged "live" events before and readers have found such "event blogs" to be quite informative, especially those who couldn't attend or view the event. This will be my first "event blog" so expect some typos and bad grammar.
If you want to read the latest update be sure to refresh your browser every few minutes. Hope you enjoy. The show's about to start.
By the way, I received this copy of an instant message conversation between two guys who claim to work in customer service for Quixtar. The first guy (Employee 1) is the one who sent me the conversation. He says that today was his day off and he was chatting with a co-worker who was currently working at Quixtar Customer Service. I've only edited the names:
xxxx: tonight we are not allowed to give callers info on an IBO in their areaVery Interesting.
Employee 1: really
xxxx: aparently, they must be expecting lynchings tat's my guess, anyway you'll have to keep me posted on the dateling thing
Employee 1: I will. so if someone asks for an IBO in their area, what are you supposed to tell them? Sorry, call back when people hate us a little less?
xxxx: actually, I'm supposed to tell them that I can't process their request at this tim and make a case in prism with their info so they will be contacted later with an IBO's info
Employee 1: heh
xxxx: we're supposed to continually check business info today for updates on how to act for different stuff
Employee 1: wow and they're kicking us out of the outback to let a focus group use our computers is the focus group people that you recognize?
xxxx: I don't know yet, they're booting us out at 8:30
May 6, 2004
A sneak peek at the Dateline NBC investigation
By QBlog in
From WoodTV of Grand Rapids, MI, we learn a few more details about Dateline's investigation of Quixtar. The story just went live less than two hours ago with this headline - Dateline NBC investigation of Quixtar's "get rich quick" scheme. Here are a few interesting quotes from the article
Amway and Quixtar are about to make national news with a Dateline NBC investigative report that promises to expose how well known Amway success stories really make their money...I'm beginning to suspect that the Alticor PR folks will be pulling some all-nighters after this show airs. I'll be watching....NBC's report calls Ada based Quixtar, the mother of all get rich quick schemes...
...Dateline NBC says when it brought its hidden cameras to a recruitment meeting, they too were promised easy money. Eric Scheibeler told NBC's Chris Hansen he heard a similar pitch when he signed up. "What do you have today?" asked Hansen. "Financially we have nothing as a specific result of this," replied Scheibeler...
...NBC is promising the culmination of a year-long investigation into the company. So far, officials from Alticor, the parent company of Quixtar, have refused to appear on camera.
Quixtar did send 24 Hour News 8 a statement late Thursday afternoon, saying, "Quixtar has had limited contact with Dateline about this story...and based on these exchanges...Quixtar is concerned about fairness, balance and accuracy, and because of this wants to reserve comment until viewing the story."
The Rest of the Story
By QBlog in
Looks like Quixtar is getting ready for the big Dateline NBC show. They've updated the official Quixtar Response site from its original content. The updated site simply says, "Quixtar will post its response to the Dateline NBC story after it airs." The original site had this to say:
Quixtar learned in late June that Dateline NBC is preparing a story about Quixtar and Independent Business Owners (IBOs) when the company received a letter asking for Quixtar’s response on two issues...I'm extremely curious about what Quixtar's official response will be. Can't wait to find out.
May 5, 2004
More info about the Quixtar Show
By QBlog in
Bo Short confirms on his site that Dateline NBC will air it's Quixtar segment this Friday.
Not only does Bo Short say it will air Friday but this was posted on the Dateline NBC scheduling page:
FRIDAY, MAY 7 - 8:00 PM ETI've decided to do a live blog of the Dateline show. So if you live out of the country or are unable to get to a television on Friday for some reason, just point your browser here and I'll post about the show as it airs.
Dateline presents a yearlong hidden camera investigation into the company, Quixtar. The broadcast joins loyal Quixtar distributors at massive rallies and recruitment meetings and a former high-level insider tells NBC’s Chris Hansen for the first time how top leaders are really making their fortunes.
Gotta love the blog baby.
Dateline is a GO!
By QBlog in
Just heard that the Dateline NBC show about Quixtar will air this Friday, May 7, at 8 p.m. Eastern.
Tune in your TiVo baby. It's showtime.
May 4, 2004
The Quixtar BLOG Redesign
By QBlog in
Welcome to the new, improved site. As you can see, this site has been completely redesigned. Part of that process was to eliminate tables and make the site standards compliant. You'll probably notice a few bugs while I go through and update all of the old pages so please bear with me. Also, there may be some minor adjustments to the site as I discover problems with rendering the design.
Anyway, hope you like it.