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June 29, 2004

The Hypothetical Families

By QBlog in

Meet the Hypotheticals — three unique families pursuing the Amercian Dream in Suburbia, U.S.A. All three families are Quixtar IBOs but each joined up for different reasons. Let's take a look at each of the wonderful Hypothetical Families.

Hypothetical Family A

  • Married couple with two beautiful children
  • Household income is around $55,000 (annual gross)
  • Renting a lovely apartment
  • Reasons for joining Quixtar: "We were worried about not having enough money for retirement, wanted to be able to spend more time with the kids and were tired of working a J-O-B. We just wanted to be FREE!"
  • Dreams: "We have modest dreams. We don't really care about those lavish lifestyles we see on the Quixtar promotional videos. We just want to double our annual income, make around $110,000 a year, then we'd be much happier and free to do what we want."

    Hypothetical Family B

  • Married couple with two beautiful children
  • Household income is around $110,000 (annual gross)
  • Own a beautiful house in a nice school distristic
  • Reasons for joining Quixtar: "We were worried about not having enough money for retirement, wanted to be able to spend more time with the kids and were tired of working a J-O-B. We just wanted to be FREE!"
  • Dreams: "We have modest dreams. We don't really care about those lavish lifestyles we see on the Quixtar promotional videos. We just want to double our annual income, make around $225,000 a year, then we'd be much happier and free to do what we want."

    Hypothetical Family C

  • Married couple with two beautiful children
  • Household income is around $225,000 (annual gross)
  • Own a beautiful house and a little vacation cabin by the lake
  • Reasons for joining Quixtar: "We were worried about not having enough money for retirement, wanted to be able to spend more time with the kids and were tired of working a J-O-B. We just wanted to be FREE!"
  • Dreams: "We have modest dreams. We don't really care about those lavish lifestyles we see on the Quixtar promotional videos. We just want to double our annual income, make around $450,000 a year, then we'd be much happier and free to do what we want."

    Observation
    While in Quixtar, I spoke to people who resembled each of those hypothetical families. In my mind, I can see the faces of Family A, B and C as I'm typing this down. While each of the Hypothetical Families are just that, hypothetical, I believe they loosely represent a large cross-section of Quixtar IBOs.

    "So what?" you say. "So what?" indeed.

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    June 28, 2004

    Stephan Say What?

    By QBlog in

    On the "Business Plan" page of the new Quixtar Facts Web site there are several audio/video interviews with "Consultant and Former Kansas Attorney General" Robert T. Stephan. Each interview on the page is accompanied with a bit of text, describing the content of the linked interview (as demonstrated in the graphic below).

    stephan.gif

    Those who have studied Quixtar understand its historically complex relationship with the related Training and Motivational businesses (IBO Organizations). In fact, Quixtar attempts to address that relationship by explaining the Postma Memo.

    Many have speculated that those running Quixtar (and Amway) would love to see an end to the IBO Organizations (at least as they're currently operating) but choose inaction because they don't want to disrupt the cash flow created by those organizations. Whether there is any truth to such speculation is for you to decide but I think I may have discovered a clue about what Quixtar really thinks of those motivational organizations.

    If you notice, the interview with Robert T. Stephan at the bottom of the page is described as, "Marketplace Decides the Value of Training" which would appear to link to a discussion about the value of training. Right? Wrong!

    » Audio of Robert T. Stephan - Marketplace Decides the Value of Training

    If you listen to the clip (or watch the video) you'll hear Stephan say this:

    "You know, I don't know of any business entity that has people involved in the business world that doesn't see mistakes from time to time and sometimes intentional actions from time to time that needs to be handled. It's not novel in any business to see employees or independent representatives or independent contractors who don't follow the rules, either intentionally or unintentionally."
    What does that have to do with the value of training? Or the marketplace? It sounds like he may be excusing some unknown action by saying that everyone makes mistakes. But what action? The act of training? No idea. You tell me.

    Another detail that caught my attention was the name of the mp3 file containing Stephan's comments. The file is "Stephan_Mistakes.mp3." Possibly some Web-styled Freudian slip commenting on Quixtar training or much ado about nothing? You decide.

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    Monday Reader Mail: 3

    By QBlog in Reader Mail

    This Monday's Reader Mail selection is from someone identified as "D" and claiming to be a member of the Team of Destiny. I can't vouch for the accuracy of the information "D" includes in the message but it does seem to indicate that the testimony of Bo Short is having an impact on the perceptions of Quixtar among IBOs.

    As always, my comments are in bold

    name: D
    date: March 17, 2004

    message: To the uninformed!

    I have been with the TOD for just over a year and a half. I will start by saying they helped me understand a lot of things that no-one had before. That being said. My girlfriend and I joined the team within a few days and were told the same old stuff. System is where it's at! Because we were not married they encouraged seperate IBO #'s. After that they scoffed at us working the business together and insisted we each achieve our 150 PV. Oh yes and the seperate system count.

    After all of this we were told to get in and our team would build below us. Well that didn't happen as many people have found. We did sponsor people that didn't do anything and so on. However, I felt like we were lying to people when we were expected to tell them we would build their business and our upline would say things like: my upline didn't sponsor anyone for me so if you want a big team you have to build your team. It all seemed crazy but I was told to stay plugged in and everything would work out.

    "Stay plugged in and everything would work out" is something my wife and I heard from our upline. The feeling I got from them was that we didn't need to think, the system would do the thinking for us. Of course, we did "think" and that became a problem.

    After I got a rejection based on the internet postings I decided to check some out for myself. I would have expected people who didn't try to build to be upset. However, when I saw a name very familiar to TOD I was shocked. Bo Short had been a few tapes in our 300 dollar top 50 and he had spoken out and quit quixtar completely. This was something I couldn't dispute, nor could the TOD.

    After some checking and calculating I figured roughly without voicecom and the internet site. Profits were in the upwards of 40million/year. I figured on 25000 people on system. I thought to myself that they had to pay for the facilities with some of that. So I checked out the price for our 90 dollar major conference at the Breslin center at Michigan State University and although they didn't get specific but based on 7500 people they would charge starting at 8000/day This is a 2 day event and that doesn't include profits from tools and concessions. The amount of money brought in though for 7500 people is 630,000 dollars.!

    WOW, That is a good profit. I guess that's why Orrin is putting a 5000-10000 sq/ft addition to his house.

    I wonder how many people have contracts guaranteeing a cut of any conference money?

    To wrap up I would say this, the TOD says Quixtar is not a pyramid but what is a pyramid is the tool business. The top get more than the bottom. A lot more!

    Also, they say you should not like working for your boss who pays you to show up at his pyramid. The TOD has the same pyramid and they don't even pay you to show up!!

    Always inform
    D

    And inform we will.

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    June 25, 2004

    Marks - Chapter 7

    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 six, 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 7


    Cory Jackson hated MotoQuest weekend. He stayed in a four-star hotel but couldn’t get ice without members of his downline approaching him and asking for general advice. Of course, he always had to be polite or else his message that Sheik Chic was a happy, supportive family would ring hollow. He brought in a lot of money with the various fees and collections, but once the IRS and his ex-wife took their shares, little was left over. If he wasn’t behind on his hefty bills, he would skip the whole, irritating headache.

    Cory ran his palm along the sweeping curve of a motorcycle as he strolled through the grand ballroom. He paused to take a handkerchief out of his pants pocket and polished a smudge off the sparkling hull of a speedboat. The high-end luxury items were borrowed to decorate the areas where most of the presentations, “family quests” and “dream quests” were held. Sheik Chic dollars were invested in car dealerships, construction companies and political reelection funds. There were plenty of people willing to make motivational speeches and loan expensive showcase items.

    The shiny new trucks, boats, jewelry and even model homes would be cleared out on Monday, but if Cory and his fleet of Megas did their jobs, the visions of worldly goods would linger in the dreams of every independent retailer.

    Cory idly picked up one of the glossy programs stacked by the door. As the main attraction, he wasn’t scheduled to appear until four in the morning. Going on stage last kept the audience from leaving early. Besides that, after sitting through an entire day of evangelizing, testifying and witnessing, the recruited family would cheer for Cory Jackson no matter what he said. All he had to do was paste together a string of buzzwords and stock phrases from his motivational tapes and let the audience applaud every line with untamed enthusiasm.

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    June 23, 2004

    Anagram Fun

    By QBlog in

    Quixtar =

    • IRAQ TUX
    • AX QUIRT

    Did I miss any?

    Comments (3) TrackBack (0)

    June 22, 2004

    Jennie Loves Quixtar

    By QBlog in

    Yippee! Some positive blog comments about Quixtar. Nevermind that the author of those comments is underage. I'll take what I can get. So, from Jennie's blog:

    I went to Jim's place. Jim is a fellow Quixtar member like James...we talked about the possibility of me beginning to work and sponser people and starting my own business. All of it was insanely crazy. I think I want and need to do this for myself. This is something I want. I have to start doing the whole..."dress for success" dealio now. I have to begin and start learing. I need to become all hardcore right now. Technically--I can register...even though I'm not eighteen since they don't ask for the birthdates. If I do everything right I can start sponsering, start retailing things, and the marketing stuff. I have to work on my social skills and my appearance a lot. I'm not necessarily comfortable with myself within that area. I need to build all of that up. I'll make it. I know this is another calling in my life. Woosh. I love you Thomas...So sooooooo much.
    Go get 'em girl.

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    Amway, Quixtar and Taxes

    By QBlog in

    I discovered (thanks to a site visitor) an interesting tax case involving the IRS and a married couple in Amway (and later Quixtar). The summary opinion (pdf) deals with whether their tax deductions as Amway/Quixtar participants were in compliance with sections of the U.S. tax law.

    The entire summary is a good read but I want to point out a couple of things that especially caught my attention.

    1. The summary is written by a judge (no surprise there). According to Quixtar's own Web site (quixtarfacts.com) the opinions of lawyers are seemingly more important than the opinions of the co-founder of the company. Well, this isn't just the opinion of a lawyer, it's the opinion of a judge. That's like a lawyer and a half.

    2. The summary stresses, among other things, the lack of outside business advice. The married couple did not seek or obtain independent business advice. All their advice was from their Amway/Quixtar business which can hardly be characterized as independent or neutral.

    Below you'll find various excerpts from the summary opinion. Each is without comment though I've bolded some portions for emphasis. Yes, it's a lot to read but I tried to break it up into bit-sized nuggets. Hope you enjoy.

    The Tax Problem
    "...Respondent determined deficiencies in petitioners' Federal income taxes of $ 3,976, $ 3,790, and $ 5,420 for 1996, 1997, and 1998, respectively. The issue for decision for each year is whether petitioners are entitled to deductions for expenses incurred in connection with the sale and distribution of Amway Corp. (Amway) products. The resolution of this issue for each year depends upon whether petitioners' Amway distributorship was a trade or business within the meaning of section 162..."

    Less Than $90 Gross
    "...Amway has about 360,000 independent [*4] distributors. During the years in issue, an Amway distributor's average monthly gross income from Amway-related activities was less than $ 90. Amway does not assign its distributors exclusive territories. As best we can determine from the record, there is no contractual relationship between an upline distributor and his or her downline distributors. A downline distributor is not obligated to remain in the distribution network of an upline distributor and is not obligated to achieve any minimum sales levels..."

    No Independent Advice
    "...Petitioners' Amway activities may be summarized as follows. Petitioners were recruited by an upline distributor of Amway products in 1995. They had no prior experience with Amway [*6] and no prior experience running a business. Before becoming Amway distributors, petitioners received advice from other Amway distributors but did not solicit business advice from those outside the Amway community; nor did petitioners seek independent business advice during the course of their affiliation with Amway..."

    Recruit Family, Friends and Acquaintances
    "...During the years in issue, petitioners spent little time or effort attempting to sell Amway products; instead they intended to develop a network of distributors. Consequently, their potential for profit depended almost entirely on Amway's performance bonus program and the sales efforts of their downline distributors. Recruiting productive downline distributors, therefore, was the key to petitioners' profit potential. In this regard, petitioners compiled an extensive list of family members, friends, and acquaintances that they used to identify and recruit potential downline Amway distributors. Typically, petitioners made contact with these individuals either by telephone or by traveling to wherever these individuals lived to meet with them. Nothing in the record suggests that petitioners made any effort to develop a profile of a successful downline distributor on which [*7] basis they would recruit; instead, petitioners recruited family, friends, and acquaintances..."

    No Contracts. Competition. Varying Point Value
    "...The relationship between petitioners and their downline distributors was, at best, informal. There were no contracts or minimum sales agreements. Downline distributors were free to leave petitioners' distribution network at will, and, if they desired, could even join another Amway distributorship under a different upline distributor. Petitioners were not assigned a sales territory, and, like their downline distributors, they presumably had to compete with some of the roughly 360,000 Amway distributors for sales and recruits. Petitioners' lack of control over their downline distributors hampered their ability to predict sales [*8] and, in turn, performance bonuses. Their difficulty in predicting performance bonuses was compounded by Amway's practice of varying the point value it assigned to a given product. Petitioners' lack of control over these key components of their distributorship caused any predictions of performance bonuses that they might have made to be, at best, uncertain..."

    CPA In Amway
    "...Each return was prepared by a certified public account who also was an Amway distributor..."

    Lacked Profit Objective
    "...Respondent argues that petitioners were not carrying on a trade or business because they lacked the requisite profit objective, and petitioners are not, therefore, entitled to the deductions they claim, except to the extent allowed by section 183.n6 For the following reasons, we agree with respondent..."

    Motivational Advice
    "...Before becoming Amway distributors, petitioners had neither experience with Amway nor experience in running a business. Nevertheless, they did not seek independent business advice at the outset, and they did not seek independent [*13] business advice afterwards even though losses were sustained year after year. Instead, they relied upon other Amway distributors whose advice is more accurately characterized as personal motivational advice than strategic business advice. Under the circumstances, petitioners' failure to seek independent business advice strongly suggests that they were distributing and using Amway products for purposes other than profit..."

    Expenses and Lack of Sales
    "...For the most part, [*14] the losses that petitioners incurred year after year are attributable to automobile and travel expenses (including the expenses incurred in attending various seminars). Petitioners did not concentrate on selling Amway products to customers, thereby eliminating sales as a potential source of profit. A substantial portion of the income earned from bonuses they received each year was paid out to their downline distributors. Other components of income were completely offset by matching expenses for the same items. Against the slim margin for profit, petitioners haphazardly incurred significant expenditures for automobile and other travel expenses in order to recruit downline distributors primarily from the ranks of family, friends, and acquaintances, some of whom lived considerable distances from petitioners. Such behavior suggests the absence of a profit objective..."

    4,000 PV
    "...In closing, we note that even if petitioners had maintained their monthly point value goal of 4,000, their expenses would still have exceeded their income from performance bonuses and retail sales..."

    UPDATE
    Scott Larsen has pointed out his extensive collection of Amway and Quixtar tax cases in both the U.S. and Canada.

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    June 21, 2004

    Quixtar Fires Back

    By QBlog in

    Quixtar Facts seems to be a new Web site from Quixtar designed as a response to various criticisms about the company. The site even indirectly addresses the infamous Postma Memo on a page titled "Sister company communications in the 1980s." Here's an excerpt:

    In the early 1980s, Amway Corp., a sister company of Quixtar, became concerned when books, tapes, and meetings became significant businesses for some distributors affiliated with Amway. These concerns were cited in a memo written by an employee and a speech given that year by one of the company's co-founders. Neither of these communications, however, were a legal review or opinion. Rather, they were the opinions of their authors, neither of whom were lawyers.
    Wow. Am I reading that wrong or are they basically saying that Rich DeVos (the company's co-founder they mention) is a dumbass? I mean, it seems like if the freakin' founder of the company is concerned about something then it's pretty damn important even if he didn't go to law school. But that's just me I guess.

    Compendium and the New Rule
    Another thing I noticed is that the Rules of Conduct page still links to the old version of the Compendium which does not include the New Rules. I hope that gets updated soon.

    Message from Randy Bancino
    On the Quixtar MP3 page there is a message to Quixtar dads that announces the launch of the QuixtarFacts.com Web site. The message was dated June 21 (Fathers Day), and here are a couple of quotes:

    ...This site is far from complete. And We're going to add more information to it on a regular basis to provide the newest and most compelling information about your Quixtar powered businesses. About the products and the company. And basically all the solid factual information that people should know...

    ...Plus there's a lot more going on here at Quixtar this summer. The whole crew is working very hard to build Web tools to put into your hands to enhance your business. You'll be hearing a lot more about all of that in the weeks and months to come...

    For those who want to hear the entire audio message you can download the mp3 here:

    » Audio message from Randy Bancino

    The Power of Links
    I should point out that this site, unlike the Dateline Response site, is linked DIRECTLY from the Quixtar.com home page. This is very significant. It demonstrates the importance Quixtar places on this Facts site and how they want their brand clearly associated with the site. That wasn't so clear with the Dateline Response site.

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    Monday Reader Mail: 2

    By QBlog in Reader Mail

    This week's Monday Reader Mail comes from Mike who claims to have been in the World Wide Dream Builders group for ten years.

    name: mike r.

    date: May 4, 2004

    message: I spent almost 10 years in wwdb
    There is a lot of benefit the training that it provides, but as far as buliling the Amway/Quixtar business there are fewer and fewer people each year that actually succeed.

    I still have a few friend that are still involved in the business and the ones that are actually honest will admit that there is not much success anymore an average of 1 new diamond per year for the past few years.

    After speaking to some people recently about the business I am amazed at how many people dont realize where the real money comes from- the system. It is written in the BSMAA form which is WWDB' s tool agreement that every distributor signs.

    People STILL don't know about the tool money? Where have they been, in a cave?

    WW always compares themselves with other organizations within Quixtar as the average diamond making 250k year what some people dont know is that 50% of that is system money anyway I have moved on an am making more income outside of WW than I ever made in it, which diamonds in WW always stand on stage and say they have nevr met anyone who quit the amway business who made more money after they quit I know hundreds.

    Yeah, but they don't have "freedom" and are working for "Da Man" so who cares if they make more money without Quixtar/Amway?

    By the way the guy I heard say that several times is reported that he lost his home in Montan to a bank foreclosure and till maintains a diamond bus in wwdb.

    Where's Montan? Is that near Montana?

    Tune in next week for another exciting edition of Monday Reader Mail!

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    June 19, 2004

    Quixtar Recruiting Tip

    By QBlog in

    Much can be learned by the mistakes of others. Quixtar IBOs make a lot of mistakes when trying to recruit new IBOs and hopefully some will learn from the following example described on the Filtering Craig blog:

    Last week, I had a phone call.
    Me: Hello?
    Person: Hi is this Filtering Craig?
    Me: Maybe. Who is calling?
    Person: My name is so and so and I am looking for the Craig who went to Boston University I got your name from the Alumni Website.
    Me: This is he.
    Person: I also went to Boston University and I run an internet business that is just starting. We need people to help us get it off of the ground and I was wondering if you would be interested in something like this.
    Me: Who is "we?"
    Person: My Husband and I. Would you be interested?
    Me: Possibly. What is this business all about?
    What follows is "clyndall's" (the author of the blog post) rather humorous description of his meeting with the Quixtar IBOs. Read the entire post and the comments, there are some good lessons for you IBOs out there about what NOT to do when trying to get recruits.

    Just a thought, I wonder if "clyndall" is on that Do Not Call registry? I wonder if the Quixtar IBO checked the list for "clyndall's" name before calling? Gee, I sure hope no laws were broken to set up the little Quixtar coffee shop rendezvous. There's another lesson, IBOs should never break the law when trying to recruit.

    Now don't say I never help. This is good stuff here.

    This has been a Quixtar service announcement from yours truly.

    Comments (4) TrackBack (0)

    June 18, 2004

    Marks - Chapter 6

    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 five, 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 6


    Abuja, Nigeria

    The air conditioner had broken again and the heat in the hotel was almost unbearable. Jacob wondered if the air was any less stuffy outside. He planned to take a long, cool shower then venture out to the concrete terrace attached to the back of the building.

    “So, how much did you earn today?” Marco asked as soon as Jacob opened the door. He was spread out on his bed, dripping wet and wearing only his boxer shorts. “A buck fifty or so? About enough to pay for an nice fat olive in a first class passenger’s cocktail?”

    “Shut up,” Jacob replied. He was exhausted from working in the incessant heat and that was the best retort he could form. “I need a shower.”

    “Good luck. The water is about as hot as the air. It’s like standing in steam.”

    “At least it will get some of this sweat off of me,” Jacob growled. He started shedding clothes before he was in the bathroom.

    “We got a nibble,” Marco announced.

    Jacob stuck his head out.

    “What?”

    “On the Bala Reyima email. We got a response.”

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    June 17, 2004

    Watch this Blog

    By QBlog in

    David Robison is blogging. His On the Road with Dave blog is a humorous bit of classic blogging about "Multi-level Marketing, his daily life as a partner in a home renovation/handyman business, trials and tribulations of beginning real estate investment, and the hopeful aspirations of reviving a comedy career."

    The guy's really got a knack for blogging. I wish him the best. And he even has a positive perspective about Quixtar. Finally, another pro-Quixtar blogger. And he's a pretty successful IBO from what I hear.

    So be sure to check out On the Road with Dave. It won't disappoint.

    Just had a wild thought. I wonder if Jack Kerouac would have blogged if blogs were around back then.

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    Hard Core

    By QBlog in

    What is "Hard Core?" Well, it means one thing in the porn industry and something else entirely in the World Wide DreamBuilders. I received a document that apparently explains the essentials of a "Fast Track" plan for Quixtar success. The list of twelve "Hard Core" items seems pretty much the norm for Quixtar groups and I think it promotes some very positive business fundamentals.

    However, there were two items that confused me ever so slightly. Both are highlighted in the graphic below.

    Hard Core

    The first puzzling item was number two on the list and it says "pay retail to your business for your personal use in order to isolate the savings." What exactly does this mean? My Quixtar stupidity shows again here but surely they aren't suggesting that IBOs forego their IBO discount to "isolate the savings?" What does "isolate the savings" even mean? I'm asking for help here. If you know, please tell me and I'll update this post to explain it.

    Secondly, item twelve seems to say that one should use Profit and Savings to pay for CORE after you have already paid for it. Maybe I'm reading it wrong but it seems to be saying that I should pay for CORE and then use the money I make on my first 1,000 PV to repay that CORE cost. I guess there is some sense to this because you assume your CORE actions will eventually generate enough profit to pay for the costs of being CORE. But what if it doesn't? Or what if it takes longer than expected to reach that 1,000 PV? Is there a plan to deal with that? I guess there has to be right?

    UPDATE: Bo Short comments on the "isolate savings" issue.

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    June 16, 2004

    Bill Britt Retirement

    By QBlog in

    So apparently Bill Britt is retiring. A voice message from Ron Puryear to the World Wide Group says that Bill and Peggy Britt have decided to retire from "this business." Linked below is a copy of that audio message (originally posted on Scott Larsen's site) followed by a full transcript.

    » Audio message from Ron Puryear

    Hi everyone, I'm going to read a prepared statement that's been approved by all the diamonds in World Wide for immediate distribution to the whole organization.

    Here goes.

    We all know that God's plan includes seasons and seasons mean change. This message is to announce a change that has occurred and a new season in God's plan that we look forward to. The diamonds had a meeting with Bill Britt at "Go Diamond" this past January where he mentioned that he was thinking of retirement.

    In fact, Bill and Peggy have decided that was the last function they would do for World Wide Dream Builders, and they have decided to retire from this business. Georgia Lee and I and all your diamonds know that Bill and Peggy's leadership and mentorship were crucial in the formation of World Wide Dream Builders and we thank God for Bill's guidance in those early years.

    As Bill and Peggy enter a new season of their life we ask you all to join us in prayer for Bill and Peg for their remaining years, for their good health and God's blessings. Georgia Lee and I along with all your diamonds look forward to another of God's seasons with excitement and anticipation for what the future holds.

    End of statement.

    Love you all. God bless.

    No reason is given for their retirement. Maybe it's just time for the Britts to move on to other things? However, some have speculated that the Britts were forced into retirement as a result of recent marriage problems or possibly some poor business decisions.

    Whatever the case, I wish Bill and Peggy the best in their retirement.

    Comments (54) TrackBack (0)

    June 15, 2004

    Perception = Reality

    By QBlog in

    Quixtar is NOT Amway. Quixtar is Amway. Quixtar was Amway. Quixtar was NEVER Amway. Amway and Quixtar are sister companies. Quixtar and Amway are the same company. Amway evolved into Quixtar. Quixtar was started by the people who started Amway. Quixtar sells the same products Amway sells. Quixtar is on the Internet and Amway is not. The Quixtar system is TOTALLY different than the Amway system.

    I've heard every single one of those statements since I've been investigating Quixtar. Which is true? Which one best describes reality? Well, there's an old saying that perception equals reality. You be the judge.

    "Quixtar = Amway"

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    Pyramid Schemes and the FTC

    By QBlog in

    In September '03 I posted a blog entry titled "The Cycles of Pyramid Schemes where I sort of tried to figure out what Debra Valentine had to say about Pyramid Schemes and Amway.

    Well, tonight I was reading back through her comments and was struck by the following excerpt:

    What is a Pyramid Scheme and What is Legitimate Marketing?

    Pyramid schemes now come in so many forms that they may be difficult to recognize immediately. However, they all share one overriding characteristic. They promise consumers or investors large profits based primarily on recruiting others to join their program, not based on profits from any real investment or real sale of goods to the public.

    Some schemes may purport to sell a product, but they often simply use the product to hide their pyramid structure. There are two tell-tale signs that a product is simply being used to disguise a pyramid scheme: inventory loading and a lack of retail sales.

    Inventory loading occurs when a company's incentive program forces recruits to buy more products than they could ever sell, often at inflated prices. If this occurs throughout the company's distribution system, the people at the top of the pyramid reap substantial profits, even though little or no product moves to market. The people at the bottom make excessive payments for inventory that simply accumulates in their basements.

    A lack of retail sales is also a red flag that a pyramid exists. Many pyramid schemes will claim that their product is selling like hot cakes. However, on closer examination, the sales occur only between people inside the pyramid structure or to new recruits joining the structure, not to consumers out in the general public.

    That selling to people within the "pyramid structure" is exactly how my wife and I were told to work the Quixtar business. In fact, Harvey Ostrander of Team of Destiny said pretty much the same thing at an open meeting. Not only that, but many Quixtar IBOs have told me the same thing, that the way to work this business is to simply change your buying habits and teach others (your downline) to do the same thing. Instead of shopping at Wal-Mart we learn to shop at Me-Mart.

    This is Weird
    What's weird about Valentine's very unambiguous comments on Pyramid Schemes is that I'm told her comments are linked by Matt Abraham (a lawyer in TOD) in his legal analysis of the Team of Destiny. This is the same Team of Destiny that claims the infamous "70% rule" primarily exists to ensure IBOs aren't "stocking their basements full of product" to reach a new level.

    Very interesting. Raise your hand if you're confused.

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    June 14, 2004

    Monday Reader Mail

    By QBlog in Reader Mail

    Today is the first day of a new, recurring feature at Quixtar BLOG called Monday Reader Mail. You've probably already guessed how it works but I'll explain it for the slower folks (you know who you are).

    Every Monday I'll post an email that was sent in by a site visitor and I'll include a few of my comments. Last names and email addresses (if provided) will be removed. There may be a few minor edits to clean up foul language but for the most part, each message will be posted as it was received, including misspellings and grammar errors. My comments will be in bold.

    Today's offering:

    Name: IBO
    date: May 4, 2004

    message: Hey, this site is pretty funny. Ever notice how the guy is always the one who wasn't involved. Ya right, more like his wife is breast feeding him and trying to help him save his loser minimum wage ego.

    Actually I moved to solid foods a couple of years ago.

    This is so stupid because the Quixtar IBO that actually do something make all the information about their lives public and you use the fact that they arn't perfect as if you were just born last night. Who is perfect.

    Look, the point is this lady and husband who probably changes tires down at the local jiffy lube don't put all their personal information out there to compare against the Quixtar Diamonds.

    I mean come on you put everyday TV watchin and city league softball playin fools on here and give us their perspective as if they are a credible sources for financial independence.

    The reason people were approached and agreed to see the opportunity to begin with is because others have created a positive and legal financial situation due to the effort they put into this business.

    And then on the other hand you have people that hide behind the internet and say bad stuff about it, yet these negative people have a worse income statement the people they are creating this site for.

    I mean forget the negative and make a site for what you do and then the people reading this can compare and decide who they want to take finacial advise from.

    I'm sure they will get excited seeing a day in the life of this supposed couple fighting about not being able to pay the minimum payment on the master card.

    Give me a break, this is stupid!

    Huh?

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    June 13, 2004

    Good for Amway

    By QBlog in

    According to Molly Ivins, Congress gave a nice $283 million tax break to one corporation in 1997. The name of that corporation was Amway. Way to go Amway. I wish there were more details in the column and maybe a few comparisons with the tax breaks given to other corporations. I'm pretty clueless about corporate tax breaks so maybe $283 million isn't so much when looking at the big picture? Anyway, what I really found interesting in the column was two paragraphs about Amway folks in Congress:

    Of course, it helps that Amway has its own caucus in Congress. Yes, the Amway caucus. Five Republican House members are also Amway distributors: Reps. Sue Myrick of North Carolina, Jon Christensen of Nebraska, Dick Chrysler of Michigan, Richard Rombo of California and John Ensign of Nevada. Their informal caucus meets several times a year with Amway bigwigs to discuss policy matters affecting the company, including China's trade status.

    House Majority Whip Tom DeLay, a onetime Amway salesman, also remains close to the company. `Mother Jones' magazine, which has followed Amway's shenanigans closely, reported last fall that Myrick owes her election to the company -- almost half of her total campaign funds came from Amway people.

    I know about Sue Myrick but I didn't know about the other folks. That's cool that Amway has a bit of influence Congress but I wonder if it ever represents a conflict of interest when drafting new policies?

    Nah, that never happens on Capitol Hill.

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    June 12, 2004

    IBOA using "Bo Short" in Google Ad?

    By QBlog in IBOAI

    A site visitor alerted me to this interesting little tidbit. The IBOA apparently has a Google Ad for the phrase "Bo Short" (screenshot). Searching Google for "Bo Short" produces an ad on the right side of the page with this text "Age Defying: Artistry" linking to an IBO Facts page discussing an Artistry product. Just thought it was interesting, especially since I've heard rumors that Passport Associates were banned from using the word "Quixtar" in their Google Ads after Quixtar pressured Google to scrap the ads.

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    Joe Land to sue Archive.org?

    By QBlog in

    Why was Joe Land so upset about this Web page that he threatened to sue the site owner but doesn't seem to care much about this page on Archive.org? Has Archive.org received any lawsuit threats? Things that make you go hmmmm.

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    PV/BV Message from Larry

    By QBlog in

    Can any Quixtar scholars explain what Larry Harper is talking about here?

    » Audio Message from Larry Harper about changes to PV/BV ratio. (May 24, 2004)

    "While PV is reduced by 4%, BV is increased by 4% and all bonuses are paid on BV."
    Ok, that sort of makes sense. Not much else in the message makes a lot of sense to me but I'm not a Quixtar IBO so maybe that's why. I just thought this business was so simple even a moron like me could understand it. Guess I was wrong... again. Lil' help?

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    Paul Timmins meets TOD

    By QBlog in

    Paul Timmins seems to be some kind of professional computer geek who infrequently updates his LiveJournal cleverly titled "Paul Timmins" of course.

    If you're wondering how I act around other people, I don't get out much, so I talk about computers all the time and cuss alot. I think that describes me well. I pretend to have a short temper, but I am actually pretty easygoing.
    Paul's post from Oct. 18, 2003, describes his encounter with a Quixtar IBO in the Team of Destiny group.
    Had some creep from Quixtar/"Team of Destiny"/Amway come try to do their creepy talk to me when I was chillin in the Mall's food court and was online. These people were the f**king stupidest shysters I've ever seen. At one point, one bragged about how he "work at DaimlerChrysler and oh, if you want, you can email me at (removed)@daimlerchrysler.com." "Oh, your work dosn't care you use your work email for personal business?" "Yea, but I don't care. The secretary told me the other day that 'They're reading your email, you should stop' and I just told her 'Oh, I don't care, that's okay, I don't plan on working here for too much longer'"

    I've decided that I'm gonna rustle through my network contacts at Daimler Chrysler and try and make his dream of not being employed at Daimler Chrysler a reality. He also gave me a vonage number to call him at. I'm gonna call my contacts at Vonage and make sure they're billing him for a business account, since he's clearly operating a business on it.

    Play nice now Paul ;o)

    He goes on to say that he pulled up Scott Larsen's page about Team of Destiny and showed it to the TOD guy who froze and "stare(d) like a deer in the headlights."

    Timmins even tried to record the conversation but apparently his battery died so there's no audio (reminder: keep those batteries charged). He ends his post saying, "I love making scammers squirm."

    I've been searching for blog commentary (positive, negative or neutral) about Quixtar for over a year and for whatever reason those comments are overwhelmingly negative (like Timmins'). Quixtar advocates explain this phenomenon by claiming that successful IBOs don't have the time or desire to "waste their efforts" posting positive stuff about Quixtar. Basically, they claim that dedicated IBOs have better things to do than post stuff on the Web.

    My response is "What the hell?" Sure, many IBOs don't know WWW from FTP but you're telling me there's not a single successful Quixtar IBO who has the inclination to post a blog or something? Besides Dwighty I've yet to meet a gung-ho IBO with their own personal (non-business) Web site. Oh, they have better things to do right? Like what?

    What do IBOs do for fun?
    IBOs do have free time right? And in that free time one would assume that an IBO might do something like play golf, go to a movie, read a book or maybe... just maybe... post a freakin' blog. Ya think? So, all you IBOs are telling me that Dwighty is the the only Quixtar advocate in all of Quixtar-dom who blogs or has some sort of personal Web site? If that's the case then don't you find that a little bit strange? If it's not the case then why is it that the majority of the comments I find are like Paul Timmins' and Dwighty-styled comments are in the minority?

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    June 11, 2004

    Marks - Chapter 5

    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 four, 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 5


    Teri kicked off her sensible but ladylike shoes as soon as she stepped into the living room of little townhouse. She pulled the vinyl miniblinds up and sorted through the mail. There was no need to cook since she would be leaving to have dinner with a potential as soon as Tom came home. She walked through the kitchen, pausing to put some letters in the bill box, on her way to the bathroom to touch up her makeup. The answering machine was tucked beside the refrigerator. Out of the corner of her eye, Teri saw its red light blinking wildly.

    She pressed the play button, turned the volume up and continued to the bathroom while trying to squelch the hope that it was a message from the potential, canceling the meeting.

    To Teri’s surprise, it was her mother. Uncle Robert had died.

    Teri crept back into the kitchen. She found the message pad and pen and replayed the message so she could jot down the dates and times of the wake and funeral.

    Teri felt as though she had sat in the silent living room nearly all evening before Tom came home. He swung the door open wide and glanced at her, curled up on the couch.

    “Are you all ready? I left the car running. Let’s go.”

    “My parents called,” Teri whispered in a hoarse voice. Tom’s eyes opened wide in surprise. The Carlisles were seldom mentioned in the Remly home.

    “Uncle Robert died this morning,” Teri continued.

    “Geez,” Tom muttered. He stepped into the townhouse and slammed the door closed behind him. “How are we ever going to make up his sales? He was keeping us afloat.”

    Teri’s head snapped up and her eyes blazed with disgust.

    Comments (0) TrackBack (0)

    June 10, 2004

    Back in the saddle

    By QBlog in

    I've just returned from a wonderful family vacation. I had no intention of even thinking about Quixtar while I was away but part of my vacation was spent in what is apparently the heart of Bill Britt Country. I saw Paul Miller and met some folks who are friends with Miller's family and Larry Winters' family. It was quite interesting. I also spent some time on the beach doing beach stuff. It was great to relax a bit but it's really good to be back home.

    Now, time to update this ole blog.

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    June 4, 2004

    Marks - Chapter 4

    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 three, 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 4


    Abuja, Nigeria

    Just two days ago he touched down in Abuja, and already Jacob missed Bethany. Everything he saw – the young girls playing games with sticks and rocks, mothers cradling sleeping infants, stalls displaying bolts of brightly dyed cloth – reminded him of her. Her wished he could hear her voice and gently laugh, but Jacob couldn’t figure out how to make international calls on the hotel phone system.

    Jacob kicked Marco’s bed on his way to the bathroom.

    “Wake up,” he commanded. “Dr. Bean said to be in his room at eight o’clock sharp.”

    Marco rubbed his eyes and yawned.

    “How long does jet lag last, anyways? I feel dead.”

    “It probably wouldn’t be so bad if we got to bed at a decent hour. I’m not going out tonight. I need to catch up on my sleep.”

    Jacob shoved his toothbrush in his mouth and stepped over the wet towel Marco had left on the floor after his shower four hours before.

    “We didn’t ‘go out,’” Marco countered. “We just hung out downstairs in the hotel lounge.”

    Dr. Bean warned them about the danger of being an obvious foreigner on a Nigerian street, but it wasn’t until they witnessed an armed robbery in broad daylight, right across the street from the airport, that Jacob realized the severity of the situation. Even though Marco wanted to spend their free time exploring the city’s hot spots, he agreed not to leave the hotel except for the planned and escorted research trips with Dr. Bean.

    Jacob pulled up his denim shorts and slid into a tee shirt. He kick Marco’s bed again while he retrieved his shoes from across the room.

    “All right, all right.” Marco rolled out of bed. “Let’s go see what menial tasks the good doctor has in store for us today.”

    Dr. Bean looked up over the edge of his thick glasses and waved enthusiastically when Jacob and Marco entered his room. The hotel was hot, despite the promise of air conditioning, but the professor seemed unaffected in his tweed jacket and gray slacks.

    “What’s up, Doc?” Marco asked wryly.

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    June 2, 2004

    Response to Quixtar's New Rule

    By QBlog in

    The following message was sent to me as a response to Quixtar's New Rule by someone claiming to be a Quixtar IBO. I've made minor edits at the request of the author to keep it relatively anonymous:

    MESSAGE: The new rule introduced by Quixtar in May 2004 which prevents any Quixtar IBO from operating or participating in another multi-level, "network" marketing business of any kind, in my opinion, infringes on human rights and the right to free enterprise in both the US and Canada. We have been threatened with termination because my husband started another network marketing company, the residual profits of which are helping to "grow" (an important financial asset). We have operated a profitable Amway/Quixtar (non-system) business for 30 years and now they're telling us we must make a choice or be terminated.

    We have been IBOs in good standing for 30 years and have never abused or tried to hurst anyone's organization in any way. The only option available to us if we want to keep both businesses (based on their new rules) is to divorce. Where might we go to seek some advice or assistance as to whether these new rules are actually legal and enforceable. I understand new IBOs sign a contract that gives Quixtar the right to make changes in the rules from time to time. However, we have been involved for 30 years when there were very few rules in place and have been an automatic renewal for probably 10 years or more. Any suggestions or advice would be most appreciated.

    I didn't (and still don't) have any real advice for this person. I guess I'd advise against getting a divorce. Beyond that, I just don't know what to say right now. If this is true, and I have received indications that it is, then it's truly tragic.

    Asking Questions
    If you're a Quixtar IBO ask yourself some questions:

    1. Is it good for my business that Quixtar can change rules without my input or the input of representatives that I help elect?
    2. Do I know the people who passed this new rule and can I be sure that they are concerned about what's in my best interest?
    3. Why did I learn about this rule change from this blog (if you did learn about it here)?
    4. Am I operating a secondary business that is now considered a violation of the Rules of Conduct with the addition of rule 6.5?

    I've spoken with a few IBOs who are furious with this new rule. Like the message I posted above, they feel somewhat betrayed by a business they've been loyal to for years. And yet, I've spoken to other IBOs who think the rule is great because they don't plan to violate it and if they do break it, Quixtar won't come after them. They say that the rule is only for people like Bo Short and Quixtar would never enforce such a rule on some lowly IBO doing his 4000 pv.

    Why have a rule if you only plan to selectively enforce it?

    Free Enterprise
    Here's an interesting quote that I think sort of relates to this post. It's from the Quixtar Response site:

    ...neither NBC nor anyone else can deny IBOs their right to free enterprise and to pursue their goals through Quixtar-powered businesses or through the legitimate sales aids and training programs some IBOs purchase and market.
    What is your definition of "free enterprise?"

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