Orrin Woodward Leaves Quixtar

I don't believe anything of what you say. It seems to me since you can't attack the business model, you then resorted to attacking the education system set to help one build the business and now given that you couldn't succeed at that either, you are now resorting to a third method of attack, that of playing on people's situations and since it's easy to pick on the its subtle aspects, it's also easier for you create more fear and confusion by mixing fact with fiction just as you used to do before. A lot of people will buy into your crap. Just not me. I'm going Diamond!

Posted by: An IBO | August 11, 2007 3:52 PM

Man, what exciting times we live in! Qblog, I would respectfully disagree that the Team has turned a blind eye to the problem. If you've read the complaint, Orrin tried to turn things around while he was on the IBOAI. I guess he saw the company's true colors when he got an up close and personal view of the company. When he figured that the company would never change, he decided to take a stand. I don't believe that crap from the company about terminating Orrin. Come on...don't you find it a huge coincidence that the company terminated Orrin AFTER he tried to work out a departure. Check out this link:

http://team_orrin_woodward.typepad.com/

The company is going into spin mode, and they're desperate. The "Go Team, Go" article was disgraceful and immature. Orrin, you've got your hands full. Go get 'em!

Posted by: Steve | August 11, 2007 4:38 PM

Events like these are just the reason you should continue this blog! It's funny to read Orrin Woodward try to spin this like he "quit" and all of a sudden embrace the critics claims after ignoring them for years, in a cheap attempt at saving face (and likely a whole lot of almighty dollars).

This is an exciting time for people like you who've been on the forefront of exposing Quixtar's questionable business practices. Either the split between the IBOIA and Quixtar/Amway forces the whole business to collapse on itself, or Amway will seriously clean up its business practices. Well, one can only hope it'll end up that neatly!

Posted by: Jon | August 11, 2007 4:50 PM

Well, well, well, it all comes down. I've been a team member for several years, and believe me, they have been aggressively leaning on Quixtar, trying to get them to address the holes in their business that developed over the last 15 years. This all may be shocking and sudden, but the TEAM leaders have been consistently taking steps to fix these issues ever since I joined. I noticed how they fell out of love with the Quixtar name and reputation a couple of years ago, and have stayed true to the vision of creating a cutting edge leadership development system combined with a simple and highly profitable product flow. Put on your seat belts, this could be a bumpy ride.

Posted by: Scott Schrock | August 11, 2007 11:13 PM

I think we'll see a lot more of the criticspeak vindicated in the upcoming months.

Way to go QBlog. I firmly believe you were instrumental in what has transpired, just by facilitating open and honest talk.

It's easy to see now why everything was so hush hush in Amway/Quixtar prior to the internet.

Posted by: rocket | August 11, 2007 11:15 PM

Well, well, well, the Team of Destiny has finally realized its own destiny--to be disbanded and discredited. Not instant enough karma for me, but so satisfying now that it's here. Poor, brave Orrin and his valiant struggles with the monster that created him--it's positively mythic. I hope it doesn't slow down his (Time Warner presents!)book sales. With big bad Quixtar out of the picture, he can focus on what he was always best at, selling himself via personal appearances, books, CD's, the internets, and whatever other media (buy me now!)he can infect with his particularly charming, boyish, gung-ho style. Line up, lemmings, we have a new cliff to climb.

Posted by: truebeliever | August 12, 2007 1:22 AM

I worry for the IBO's that are under TEAM right now because they are techically still quixtar IBO's. Im not part of the team or quixar but my father inlaw is and he seems to be a smart business man but i feel this is the one business he is pouring and investing his time into that will get him nowhere especially now he thinks that by investing more time into Team after this lawsuit that hes going to make more money because team is not affiliated with Quixtar and his "upline" is telling him that Quixtar was stealing most the downlines money so if he stays with The TEAM hes going to be even richer then promised before.

Posted by: Bert | August 12, 2007 9:30 AM

The Team leadership, led by Orrin Woodward, has embarked upon the first true steps in leading the consumer rebellion. The first chapter has begun and what an exciting time awaits his loyal IBO's. Requesting that Quixtar make pricing more reasonable for retail sales has gone upon deaf ears long enough. Orrin has visions of going to a million people and beyond. The only way to do this is to continue developing leaders through an educational system and create a new shopping portal that has reasonable pricing. He wouldn't leave without having something in place. In the months to come we will see just what that is and let the history lesson begin in building a true community online in which appropriately priced good and survices flow.

Posted by: Kurt McQuesten | August 12, 2007 11:40 AM

Holy Cow!! I was wondering what the average IBO with TEAM was being told and whether or not they were going to follow Orrin over the cliff??

This guy must be pretty charismatic, because I see almost a Jim Jones attitude here..........

So tell me, "true believers": what new MLM is so much better than Amway that you'll be ready to throw out EVERYTHING in your overloaded Ama-home and immediately restock with new product???

Deb

Posted by: Deb | August 12, 2007 3:28 PM

Having "enjoyed" a similar situation with Team in Focus, I feel for the Woodward's group. Maybe Orrin will be better at explaining why yesterday "this is the best business opportunity in the world period", but today, "the products are overpriced, and the opportunity is no longer viable."

Good luck to those that stay close to the kool aid pitcher. Take a good look at the thousands of dollars you have spent on (now) worthless tapes, seminars, travel, and brochures. Think about all the times Woodward warned you about all of those that will approach you about a "new business, just like Amway, only better." Now you are going to be going to your downline with the very same line.

Team in Focus crumbled because the founders lost all credibility with their downline when they spit from Quixtar. The same will happen in Woodward's group.

Good riddance to bad rubbish. Hope Quixtar/Amway et al will be following shortly.

Posted by: George | August 12, 2007 5:20 PM

Having "enjoyed" a similar situation with Team in Focus, I feel for the Woodward's group. Maybe Orrin will be better at explaining why yesterday "this is the best business opportunity in the world period", but today, "the products are overpriced, and the opportunity is no longer viable."

Good luck to those that stay close to the kool aid pitcher. Take a good look at the thousands of dollars you have spent on (now) worthless tapes, seminars, travel, and brochures. Think about all the times Woodward warned you about all of those that will approach you about a "new business, just like Amway, only better." Now you are going to be going to your downline with the very same line.

Team in Focus crumbled because the founders lost all credibility with their downline when they split from Quixtar. The same will happen in Woodward's group.

Good riddance to bad rubbish. Hope Quixtar/Amway et al will be following shortly.

Posted by: George | August 12, 2007 5:21 PM

Wonder if Am/Quix would have been able to reduce prices if they hadn't been spending $millions in legal fees defending itself over the last decade in the P&G lawsuit caused by Mr Idiot himself, Randy Haugen.

Posted by: CouchCoach | August 12, 2007 6:34 PM

Yes, the Alticor blog seemed to have been written by a bitter teen and not a professional. The "Team's" comments though? Please

It is probably the weakest arguement ever to claim overpriced products. The core-line products are all great values. Artistry is consistently far less than its competitors Estee Lauder, Clinique, and others. SA8 is dirt-cheap per load compared to others. The same goes for LOC, Satinique, and Khave.

MLMs don't grow by offering 'cheap' products. The most successful MLMs offer one or more products with a competitive advantage over store brands OTHER THAN price.

Posted by: Javert | August 12, 2007 9:05 PM

Orrin and Team's leadership stayed with Quixtar to get on the IBOAI board to try and improve the business (i.e pricing etc.) If Quixtar did not want to change its ways, then it is time that Orrin cuts himself off realizing that Quixtar was not going to change. To say that he is now trying to 'save face' by alligning himself with the internet critics is silly, as he has been fighting on the board for the past few years to make changes that would make this a competitive business and he may have held those same convictions all along and just now realized that enough is enough. It is still too early to see what will unfold, however, it is unlikely that Team will go down in defeat. The 47 page complaint that they filed to the district court in LA is pretty compelling to say the least.

Posted by: Jay | August 13, 2007 1:39 AM

I feel some pity for those who seem so elated at the thought that this will in some way threaten Orrin Woodward or Team. And kind of funny that anyone thinks this happened on a whim. After a very long time of fighting for quixtar to make the business better for all IBO's, it makes sense that he wanted free. But to criticize his efforts, that would have benefited ALL business builders if the corp had made the changes...? Honestly, he sacrificed a lot for the rest of us. He could have turned a blind eye and never looked back. And the performance bonuses would have kept rolling in.

And do you really think it's quixtar who made the move to terminate Orrin and the others? NO! They're saving face and setting the stage for their defense by saying that they were protecting themself from legal reprecusions, etc. Funny how they didn't mind the volume/revenue TEAM was creating for them before this went public. No terminations before this week. Interesting. There are lots of manufacturers out there who would be happy to have a loyal online based customer base. Offers are probably flying in.

Posted by: Jen | August 13, 2007 4:53 AM

Team has been giving Quixtar/amway a bad name for a long time. The last time I heard OOrin speak he was teaching on ways to increase product sales along with his tool sales. Why would he do that if the products were not worth the money. His real problem is that the Quixtar Corp. is cleaning up the biz from stackers like him. When he found out new IBOs would have to answer questions on the biz practices they were being taught he got scared. My only other question is TEAM has always stated they are not part of Quitar so how can you "resign" be terminated!

Posted by: Jen | August 13, 2007 4:05 PM

Wow, thank you my brothers and sisters of the TEAM. It looks to me as if at least 80% of this blog is viewed and commented on by real 5% thinkers. I guess we can't expect the 95% world to understand what is going on right now, but for us Veterans in the TEAM know exactly what is happening. This is no over night decision as some have already said.

For example, during Y2K, did you fill your den with food and water??? But why, the problems have not happened yet, the year 2000 in not yet here, why stock up? It was all in preparation. And turns out that you are just now finishing off you last canned good and nothing devastating happened. As so have Orrin and Chris stocked up on and new way of shopping, along with a good amount of evidence to fight a WAR.

So the last decision is yours. The facts here are 80% here believe in a good outcome. I guess you have to ask yourself why? Is there something they know that you don't? I would guess so!!!!

Posted by: Aaron | August 13, 2007 4:55 PM

DON'T DRINK THE KOOLAID !!!!!!!!!!!
Thank God I saw the writing on the walls and bailed months ago. Soooo, now that our Fearless Leader along with his cohorts have filed a class action law suit, does that mean MORE money in Orrins pocket? Will he allow hhis followers to share in that wealth??? I think not.

Posted by: kath | August 13, 2007 6:26 PM

Are the team IBOs now "broke losers"?

Are they lacking in intestinal fortitude to build the business?

This is the beginning of the end.

A great victory for critics, having diamonds confirm what has been said all along for years now.

Posted by: Joecool | August 13, 2007 8:41 PM

"In the beginning of a change the patriot is a scarce man, and brave, and
hated and scorned. When his cause succeeds, the timid join him, for then it costs nothing to be a patriot." -- Mark Twain

It is not a mark against someone if they are ignorant, for at one time or
another we are all guilty of it, however, it is really stupid if they choose to remain that way ~ unknown

Posted by: Just an IBO | August 14, 2007 12:01 AM

Wow, there really are a lot of lemmings willing to follow this guy over the cliff. I was being caustically sarcastic about poor little Orrin, but I can see now that he is just as dangerous with his head cut off.

Posted by: truebeliever | August 14, 2007 2:56 AM

"DON'T DRINK THE KOOLAID !!!!!!!!!!!
Thank God I saw the writing on the walls and bailed months ago. Soooo, now that our Fearless Leader along with his cohorts have filed a class action law suit, does that mean MORE money in Orrins pocket? Will he allow hhis followers to share in that wealth??? I think not."

Does anyone else seem to notice that the "Team members" are showing some maturity in this forum, and basing their comments on fact, while others are full of speculation and even more "lack of information". I would at least read up if I were going to comment...point being, and why I noted the above post: THE LAWSUIT SEEKS NO DAMAGES! Not a penny. Just freedom to move on to something better.

Posted by: Jen | August 14, 2007 3:17 AM

If you don't know the whole story keep your mouth shut. at least the great 8 as they are known on the alticor blog site had the balls to do what many before has wanted to do. Go TEAM! it's going to be a great ride gettting bettter. good luck and God's blessings to those who choose to stay with the A word

Posted by: me | August 14, 2007 6:39 AM

Interesting how a great opportunity can fall prey to a few individuals with high egos.

Posted by: Jay | August 14, 2007 2:09 PM

As a longtime former IBO, I am so relieved to have seen the light years ago on this scam. There are many nice well-intentioned people trying to build this business.
But sadly, there are many who couldn't give a rat's you know what about what they pressure their downline into doing in order to achieve "the dream."
Hey since Orrin et al are so into The Secret, and asking the universe for what they want in life I guess logic would dictate that they brought this all on themselves right? On some subconscious level, they actually desired for this to happen. Isn't that how it works? Snicker.
As for the claim the products are too expensive, that is laughable.
Sure Quixtar products are higher priced than what is in the stores. But at least when I bought a box of SA8, I had a use for it--washing my clothes.
That is more than I can say for the money I spent on hundreds of cellophane wrapped tapes containing Stuart Smalley-esque messages from Diamonds
whom I personally witnessed backstage behaving like petulant, arrogant idiots. These tapes now sit in a closet and are a testament to the colossal waste of money and greed of those whose businesses have now been terminated.
Anyone who actually believes that their businesses were terminated after they were advocating for their distributors needs a serious head check.
I suspect soon, as we did with Don and Ruth Storms (now appearing on YouTube on behalf of Mannatech) we'll soon see this group of Quixtar exiles extolling the virtues of the next "best business on planet earth, period."

It is, to laugh.

Posted by: EdwardRMurrow | August 14, 2007 2:41 PM

The TEAM robots, errr, members are sure out in force after they got their marching orders. My old upline is trying to get me to come back saying "the leaders are stepping up to the plate" by suing A/Q and that the products are not competitive.

Funny, that's a 180 degree turn from just not a few months ago when he was still saying Q* was still exploding in growth.

I'd rather have a wealthy person teach me how to be wealthy then have a TEAM robot teach me how to be broke.

Next!!

Posted by: Free from Q* | August 14, 2007 4:11 PM

If Orrin and company really cared about their IBOs, they could move their sale force into a commission and non MLM type business.

What they really want is another quixtar parallel business so they can continue to sell tapes books and seminars to their downline.

Posted by: Joecool | August 14, 2007 6:56 PM

Well this is very interesting. I believe that the truth will come out and Team will be the winner. Orrin has taken the hit for the Team. Everbody needs a Dream and Wants to be Important. Team gives you this chance through Education. Most people will not take the responsibilty to do this on there own because of 95% thinking.
Team is a winner and will always stay that way. All the rest that dont believe. Wake up and try to Educate your selfs.
Mike

Posted by: mike | August 14, 2007 7:25 PM

Thank you Jen for that comment; It is true that critics till push down what they can will little knowledge to back it. The message is to stay strong and hold fast to your beliefs, for no hope means to just wait for death to knock. I like what “Just an IBO” but down for the excerpts.

I have few as well:

“It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man in the arena, whose face is marred by dust and sweat and blood; who strives valiantly... who knows the great enthusiasms; the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who have never known neither victory nor defeat.” – Teddy Roosevelt

“Move out man! Life is fleeting by. Do something worthwhile, before you die. Leave behind a work sublime, that will outlive you and time.” - Alfred A. Montepert

“Only those who dare to fail greatly can ever achieve greatly.” -Robert F. Kennedy

“When you go in search of honey you must expect to be stung by bees.” -Kenneth Kaunda

“Remember to always dream. More importantly to make those dreams come true and never give up.” -Dr. Robert D. Ballard

“The follies a man regrets most in his life are those which he didn't commit when he had the opportunity.” -Helen Rowland

“If A is a success in life, then A equals x plus y plus z. Work is x; y is play; and z is keeping your mouth shut.” -Albert Einstein

“I have learned that success is to be measured not so much by the position that one has reached in life as by the obstacles which he has had to overcome while trying to succeed.” -Booker T. Washington

“Shall no man die till he has achieved something that lives on beyond him” -unknown

So in ending, a man of great character goes where no man dare, and will fail more than any man can dream, just for that chance at success, which most men can only wish for.

Posted by: Aaron | August 14, 2007 7:55 PM

As an IBO in an organization which had begun to adopt the TEAM ideology, I was sad, mad, and digusted when I heard about the lawsuit. I have always believed that God has his hand on the Amway/ Quixtar business. I pray that he will continue his work, even if it's with a sugeons scalpel. Has the F T C taken any interest in this lawsuit?

Posted by: Grace | August 14, 2007 10:53 PM

It's nice to see all the people that are not productive with their lives be so happy about the new events. If you think about it, while your sitting on your couch watching reality tv, your still no further along! Some people may get a blackeye over this but at least they are out doing SOMTHING!
It's a real shame when others sit back and make fun of possibly a family losing their business, if it did come to that. And I don't mean Orrin or the big guys. I am talking about the Mom and Dads who have families and started to make a decent profit in the biz. And some of you are happy to see them lose out. Hope you feel like you got redemption. Hope you try to build something someday and others tear it down-no actualy I don't cause then I would be just like all of you. I hope instead you succeed at whatever it is your trying to proove.
Thanks,
J

Posted by: johny | August 15, 2007 2:09 AM

I wonder if Quixtar will go after Jody Victor now? As far as I know his Markeman system is based on Woodward's where stacking is encouraged. We'll see what happens, but good for Quixtar it's about time they grew some cahones.

Posted by: quiksilver723 | August 15, 2007 3:04 PM

Seriously....while the partner stores have agreed to keep thier prices under Quixtar at the same price as you would buy anywhere else with them, then it seems reasonable to EXPECT that our exclusive line of products be as comparable as any of the other products out there...right? Think about it, if we are to suppose that the internet will be the best way to shop,and remember now that the internet is a baby yet, than the bigger picture is volume of sales....think about it....we will not be able to contain the explosion...think a little further now,can you imagine the service and distribution jobs that will be created?-- Dan Richards..future 5%er!!!

Posted by: Dan Richards | August 15, 2007 11:23 PM

How can quixtar terminate team? Aren't they "independent business owners"? Quixtar is just their supplier right?

*smile*

Posted by: Joecool18 | August 15, 2007 11:48 PM

I would just like to recommend to those posters who are slamming either side of this conflict that they do some research before posting. I'd hate to see you look ignorant.

Posted by: rpr7768 | August 16, 2007 12:16 AM

I recommend to anyone posting about this topic to do some research before posting.

Posted by: rpr7768 | August 16, 2007 12:31 AM

WOW! how many things have you "critics" succeeded in? Or is this just another excuse you can ride for your malcontent. I admire the winner's attitude regardless of their PV, althought the two are usually pretty close. we have'nt done jack in years, yet still get a nice residual check every month - name another business that will do that for you. In fact, we just may go "active" again after reading all the babble on this site. Rather be in a bad deal with good people, than in a good deal with bad people - 95% of our upline would qualify as very good people - but that's a result of WorldWide DreamBuilders, not Quixtar itself, they are only the vehicle/serviceing company, dont forget!!
aloha nui loa!!

Posted by: jeffb | August 16, 2007 12:59 AM

My wife and myelf are new to TEAM and inspite of all that is happening, we have decided not to tuck and run at the first sign of trouble. If i had known that Amway was a close to Quixtar/Team i may have not signed up, but now that i see Team wanting to seperate (for thier own good/moal reasons) themselves from Qui/AM, i am glad cuase just those names alone make people NOT want to sign up and do business. I hope both sides can work this out ammicablly and we IBO's should not be made to wait 6 months to leave ourselves, that is just dumb. If you quit your job, your boss doesnt say to you, "Ok Fine, your done here...but you cant take OR look for any other work out there for at least 6 months"!!! Thats just wrong on so many levels. Orrin is far more respected by the several thousands that he has taught, than the millions of people who think Qui/AM is a joke. We have heard it all before AND yet we still saw something that Orrin/Chris had something different and genuine to offer a whole NEW way of doing business and we continue to see great things for TEAM with out the rosie glasses. We could not be more proud of TEAM and look forward to October! God Bless
a sincere Wolverine.

Posted by: Proud IBO | August 16, 2007 7:08 AM

"...we have'nt done jack in years, yet still get a nice residual check every month - name another business that will do that for you."

Um - a savings account that pays interest? CD's (not the TEAM type)? Bonds? Any guaranteed interest returning venture? Write a book and sell it?...

…it’s not like you’ve discovered something that can’t be done a million other ways.

So, with all this ‘research’ going on and the pros telling us all to ‘hold on’ and just see what’s coming…what is the ‘new supplier’ that is all lined up? Anyone know? Are you just fired up without really understanding what or where you’re going?

Must be scary. I sure hope your leadership puts sufficient due diligence into the next venture so you’re not all bailing after many years of being told it’s the greatest thing on the earth – only to be told that you’ve all been hosed by your ‘supplier.’ How many times does that have to happen before maybe you consider it’s not the ‘supplier’ that is the problem?

Posted by: Porkchopjim | August 16, 2007 3:08 PM

Keep posting "inspirational" quotes and using elementary school playground-type questions like "What have you acheived??"

You just vindicate the critic position even more...

P.S. - I've acheived quite a bit in my life, but thanks for asking!

Posted by: FreeFromQ* | August 16, 2007 4:14 PM

WOW! Quick question so what what then happens to the skeptics when the "New" Amway fixes all this mess. They are determined and it is looking good. Yes the tools were first. Well it was Fixed! Make sure your accredited. Now the Prices and Products! Fixed! Just Devos needs a few months to get it all rolling and the people in place. He is determined to make things right. The Corporation is working way overtime and being paid for that matter to fix things. Watch out. Its coming so stay patient. Cleaning house is never easy but always worth the time and effort.

Posted by: Bill | August 16, 2007 4:49 PM

Aaron,
I also got some nice quotes as well:

"Frauds! You're like manicured grave plots, grass clipped and the flowers bright, but six feet down it's all rotting bones and worm-eaten flesh. People look at you and think you're saints, but beneath the skin you're total frauds." - Jesus Christ

Posted by: rlaurens | August 16, 2007 7:48 PM

Hats off to Orrin and the Team Leadership for moving mountians. After over 4 years of negotiations with Quixtar to improve their policies, Quixtar has decided not to lower their prices and on Sep 1st will revert to using the AMWAY name. Quixtar does offer quality products but at a premium and they can not be retained as Quixtar says IBO's should. Would you join AMWAY? I would not.

The TEAM is leading the way, facing the Giants. The TEAM is not about products but is about Leadership Development and making a difference.

Orrin, Chris, Tim, Randy, Billy and all the others are genuine leaders and the TEAM is going to a million people as the TEAM and not Quixtar.

Remember is was Quixtar's choice not to lower their prices and become more competitive, it was their choice to be indifferent and their choice not to step up to the plate to become a giant in the ecommerce industry. It will be there loss, nearly 40% of their sales!

Posted by: Chris G | August 16, 2007 9:23 PM

If the corporation fixes everything so that AmQuix is a legit MLM with an abundance of retail sales, more profitable IBO's, and a system that doesn't suck people dry while attaining a .005% success rate (platinum ratio), I'd stop being a critic of AmQuix. That's what most critics do when the things they critized are fixed. There will always be those uber-negative types, but I don't think most of us here are those kind.

And here's a question for Proud IBO. You weren't told up front that TEAM was affiliated with Amway/Quixtar. Did you know that was against the rules of AmQuix, and by not telling you, TEAM was breaking the rules? Did you also know that by not being told, you were effectively lied to? A lie of ommission when doing a business deal is often a huge one!

Last, one other thing. Non-compete clauses are often included when you are opening up a true franchise. They are usually 2 years standard, so six months is nothing. The reason is franchisers don't want to train their owners just so the owners can jump ship, start another business, and profit from the training they received from the first franchise. With the Quixtar non-compete, it was much the same reasoning. And most non-competes hold up in court because courts usually protect protietary information.

Posted by: dmm | August 16, 2007 10:25 PM

deb,
no one was planning to throw EVERYTHING AWAY and "restock with new products"

Joecool18,
your somewhat right :)

George,
tapes, brochures a waste? not by any means those things taught me how to become better a business man, they speak their message on a larger scale, while they reference "the business" what they teach can be used for other businesses.

Javert,
You're quite right about some of the products being better than others. I believe that as well, but that's not their claim..moreover their claim is that Quixtar is not keeping up with the economy...ever wondered why "the business" is exploding so rapidly in other countries?

Jen (the first one),
you put forward a very good point.

Joecool,
I would think not, if you are/did then it's probably a good thing your not in business...

truebeliever,
Your name is ironic.

I am a TEAM IBO,I don't want to leave Quixtar, but I think Quixtar also has some things they need to work out. I don't think that anyone will make huge amounts of money due to the engagement of the lawsuit.

To be firm-minded and not believe anything is being close-minded and that is not a good habit of being in to if you're in business. You may want to look around check you sources. Don't look at just one side, check both.

Quixtar is the distributer, TEAM helps us learn to be better businessmen. Through their teaching I owned my own successful production business at age 18. their business practices aren't wrong. This engagement will only make the TEAM stronger. As a TEAM, I believe we will stick this out together.

Posted by: Matt Sawyers | August 17, 2007 12:48 AM

First and foremost, my prayers go out to the loss of our leaders of the IOBAI, Quixtar Corp and all others who have felt the effects of this stiuation. I'm a active IBO that make far more than $115 per mo; probably because I have shown the plan more than once and have gotten some NO's; yes I do listen to CD'S, read BOOKS, and attend Seminars that I DO NOT RECEIVE MONEY FROM, but those TOOLS are directly related to why I'm not an average IBO making $115. I am not affiliated with Team or any of the IBOAI members. But I do know that as IBO's, not matter what the organization name or leader, I believe we teach NO NEGATIVE as the number 1 cardinal rule, I just encourage you all to go back to that way of thinking, especially if we plan and claim to have that type of integrity in the houses of new IBO's. The only one who can add further doubt to those who look at OUR business and research it on the WEB is ME. I too respect the First Amendment of OUR countries great constitution. However, how does my reaction or response to this situation effect the belief of those I personal or second handly sponsored. Who are looking to offer this opportunity to the next new person.

Questioning is always a great thing, but can we do it with some tact and respect for all other IBO's that are not interested in who is "RIGHT" to the point of letting the naysayers sit back and watch US do all the work. WE ARE BUILDING THEM A B-QUAD BUSINESS.

Posted by: kj | August 17, 2007 1:41 AM

Correcting the Record
By Ron Simmons

As CEO of Legacy Business Group, LLC for over three years, I have had the unique perspective of observing and participating in the inner workings of both the "Field" (IBOs) and the "Company" (Quixtar/Amway). This is in addition to my 12 plus years as a business building IBO. Over the last year I have also been closely involved in the transition of Legacy affiliated IBOs into the Team training system. Finally, I have been the primary "liaison" between the Company and Team (including Legacy) regarding issues of Business Support Materials ("tools") and other Quixtar rule related issues. The role that I have played has therefore given me a special perspective of being a part of the challenges Orrin and Quixtar have faced with creatively building a growing business. Finally, I was present in many of the meetings that led up to the recent termination of Orrin and Chris as well as the coinciding resignations/terminations of Randy Haugen, Don Wilson, Tim Marks, Billy Florence and other Team affiliated leaders.

I have been in receipt of the various releases from Quixtar concerning Orrin and Chris, I attended the meeting on Thursday, August 9, 2007 between Quixtar and Team, and I was an active observer in the separation. The written releases from Quixtar and the IBOAI can best be described as incomplete with multiple inaccuracies and at worst as propaganda with specific intent to create unwarranted fear within the hearts and minds of families like yours and mine.

I write this communication to set the record straight.

As the CEO of Legacy since early 2004 I have been involved in multiple discussions with Don Wilson and Randy Haugen regarding the changes that needed to be made in order to make our business the best opportunity available. Their positions as members of the IBOAI Board gave them unique perspectives in the challenges and opportunities that have faced our business for years. Our discussions focused on two areas - Company issues and Field issues. In the Field we needed to improve our training and educational system so that it was easy to access, reasonably priced, transparent and specifically focused to help the new IBO as well as the seasoned veteran. We did this by implementing a compensation system that was transparent and fair to all eligible participants; by developing a web based ordering and communication system easily accessed by the affiliated IBOs and by developing tools with particular purpose, for particular people. On the Company side we held many, many discussions with the Company regarding what was needed from the Company to move the business forward. Our consistent message was that we needed; quality, everyday products that were competitively priced and a successful strategy to combat the negative image of Quixtar and Amway on the Internet. While it appeared that Company personnel were listening (at least in the meetings I attended) there has been no measurable movement in the product lineup or pricing. Nor has there been a successful strategy by the Company to combat the negative on the Internet. Even with the changes that we made as a "Field" organization our success in growing Legacy affiliated IBOs businesses in 2004 - 2006 was minimal at best - primarily because of the negative connotation associated with the Amway/Quixtar name on the Internet and in the minds of the public and the virtually insurmountable obstacle of product pricing on virtually every core line products.

When Legacy aligned with Team in late 2006 the Legacy affiliated IBOs found what Randy and Don had known for a while. Team had developed a business building system that, even with the constraints of the negative Quixtar/Amway brand and the unreasonable product pricing, an IBO, affiliated with Team, could in fact make progress. During the time period of 2004 - 2006 while Legacy and almost all other Anglo organizations were having minimal or no growth, Team was in fact having double digit percentage growth year in and year out. In fact they were so much the "poster child" for the Company that just a couple of years ago Orrin and Laurie Woodward were asked to be keynote speakers at the Company sponsored and produced event, Quixtar Live! The business building system they had developed was very similar to what Randy and Don had during the exponential growth years they experienced in the late 80's and early 90's - but with the added benefit of systems thinking provided by former engineers Orrin and Chris and the proper positioning of the various business components to give an IBO the best chance for success. We all know this as Team Approach.

When Jim Payne joined the Quixtar management team in mid 2005 he visited the Legacy office in Salt Lake City and met with Don Wilson, Randy Haugen, John Sims and myself. This meeting was for Jim to introduce himself and for all of us to get to know each other better. During this meeting, Randy described to Jim how we thought the business could be built under the current environment. Because Randy had known Orrin and had communicated with him briefly about business building methods he described to Jim what we now know as Team Approach whereby you might register a person down in depth but you coach/mentor him. Jim stated that this method was acceptable and appropriate. In addition, in July 2007 (just a few weeks) ago I again sat down with Jim (as well as Gary VanderVen and others at Quixtar) and explained to them Team Approach and how we build depth. It was confirmed by Jim and others that our approach was appropriate. Of course we understand that while Team Approach calls for the sponsor to be introduced to their new downline prior to registration it is possible for a few of the tens of thousands of IBOs affiliated with Team to make a mistake in this area. Having said that, Jim also told me in July of 2007 that even if an IBO did not know their sponsor prior to registration it is NOT ILLEGAL, but that some other organizations within Quixtar were complaining. Any communication to the contrary by the Company to you is patently false.

In early 2007 Randy Haugen and I met with the company rules and regulation department as well as Jim Payne and reached an agreement whereby I would work with the Company to address any concerns they had with the tools and other training system related issues with Team and other organizations utilizing the Team training system (such as Legacy and now others). Orrin and Chris wholeheartedly approved this arrangement. I began working with Gary VanderVen and Christine Tuttle in this area and we developed and worked out a game plan that was both acceptable to the Company and Team. During this time I received numerous communications from the Company approving of our tools and methods which described Team Approach. We even went the extra mile (no other organization has done this) by developing and online survey for new Team affiliated IBOs to complete to help make sure we were meeting our goals of understanding their new business and the various components. Any time there has been an issue brought to my attention by the Company we have addressed it AND we have addressed it to their satisfaction. Therefore to say (as the Company has) that Team's business building methods were inappropriate or questionable are not true.

We have felt really good about where we have been going regarding any concerns the Company has had regarding Team Approach and in fact I have enjoyed the working relationship I have developed with Gary VanderVen and Christine Tuttle in this area. I have also had a very good relationship with many other employees of the company including Jim Payne and Alticor’s chief legal counsel, Michael Mohr. This is all the more reason why some statements made in the meeting on Thursday and the subsequent communications from the Company have been so disappointing. I can only draw the conclusion that these employees are either totally misunderstanding the facts or are being directed in their actions by the owners of Alticor. Either way it is sad, very sad.

The entire business changed this past June as the owners of the Company decided to change the Quixtar name back to Amway, without seeking advice and counsel from the IBOAI Board on which Don, Randy, Orrin, Chris, Chuck Goetschel and Billy Florence sat as members along with other IBO leaders. Even though they said it would be a change in 18 -24 months, it was released it to the press and then the Company prepared a new brochure that must be given to all new IBOs beginning September 1, 2007 stating we are essentially now in Amway. In addition, although pressed by the above Board members, there has been no movement on improved product pricing on current products or new products introduced that are competitively priced. Other proposed rule changes by the Company were obviously targeted to reduce the opportunity to build large organizations and to aggressively reduce the "Independent" portion of the term Independent Business Owner. All of this led the leadership of Team and other affiliated organizations such as Legacy to conclude that the new Amway business is not something that they felt can be built. Perhaps Chris Brady said it best when he stated recently: "I owe these people the business I told them they could achieve when I brought them in and that is not possible with the new organizational changes."

All that Randy, Orrin and Chris asked for in the meeting this past Thursday was to not be forced on the new Amway train and to be allowed to leave amicably and give other IBOs affiliated with Team to have the option to do so if they choose. Freedom, that is all that we wanted and all that we asked for. Randy eloquently told the Company that we respect the right of the owners of Quixtar to make the changes going forward they deem appropriate and that we appreciate the relationship that they have had over the years but he could not, in good faith tell a new IBO that he could build a large and successful business based on the new model. Therefore Randy, Orrin and Chris asked for their release along with the right for YOU to have the same choice. As you know by now the Company replied in draconian, tyrannical fashion towards some of their most successful and veteran field leaders. This forced Orrin, Chris, Randy and others to ask the Federal court system to require Quixtar to release them and give you the same option. They are not asking for money, or for the requirement for you or anyone else to leave - just the option for everyone to really participate in free enterprise. Long ago this country outlawed personal indentured servitude and the same thing should apply to IBOs and their business.

One final thought, the Company immediately started a "communication" campaign that placed ultimatums on some IBOs (they actually called some IBOs and gave those 24 hours to decide if they were in our out!), disparaged Orrin, Chris, Randy and other Team affiliated leaders and falsely implied legal and regulatory issues in relation to Team. If the new Amway business is so exciting and such a great opportunity as they keep saying then why are they trying to force people to stay involved by using these, undesirable and unprofessional tactics? Maybe it will be great, maybe not. All that Orrin and others have asked is to let people make that choice and don't force us on to a business train that is not what we originally signed up for. This certainly seems like free enterprise to me…………..

Posted by: rpr7768 | August 17, 2007 4:34 AM

What I would really like to know is if Orrin and Chris really believed that the Quixtar business was really corrupt why in the world would they continue to have their down line keep getting new recruits, Orrin can you answer that?

If Orrin had any morals at all he would have resigned right away and not gotten anyone else so deeply involved by leading them to believe that through the team of destiny OOP's I mean the team of teams OOP's I mean the team (why all the name changes), anyway if he really cared about people he would have put a stop to recruiting and focused on fixing Quixtar (if they are really the problem).

I was a member of the original team of destiny OOP's I mean the team of teams OOP's I mean the team and when I began to ask questions about the tool compensation they shut me down and I resigned. I spoke to my up line he would not give me a straight answer, I called the TOD office and left messages and never recieved a return call to clear things up. I didn't want to believe what I found out and just wanted some answers

There is a difference between hype and excitement and the team of destiny OOP's I mean the team of teams OOP's I mean the team seminars were mainly hype to get you through to the next seminar.

Anyone in the team needs to ask themselves three questions
1: how long have I been in the team
2: what was my last bonus,not by biggest bonus
3: how much do I spend on tools

Orrin say all you want about the Quixtar business but you and I both know that it really was never the focus of the team of destiny OOP's I mean the team of teams OOP's I mean the team, it was always about the tools. We were told by our upline that if any new recruit could not afford the new membership fee and the system sign them up on the system first HUH?

Just want to let you know that since I have left the team of destiny OOP's I mean the team of teams OOP's I mean the team I have gained a wealth of knowledge on how to succeed at a much lower cost and have begun to apply it to my life and my wife and I are moving up in life and don't feel like we are doing it at the expense of others like in the team of destiny OOP's I mean the team of teams OOP's I mean the team

Orrin how can you even have the nerve to talk about Quixtar and know that most of your money came from your tools you promoted at the expense of others. Or if Quixtar was so corrupt why would you promote buying from them, you should have resigned and moved on, I believe it was because of the vacations, and the bonuses you received because of the growth in your business.

Interesting enough if I am correct you have been in Amway since 1993 and all I see is around 4 people, Chris Brady, Tim Marks, Bill Lewis, Doug Stroh who are Diamonds, not a very good track record for bragging about growth, 14 years and 4 success stories what about duplication? Thousands of people and few successes get a new line of work face it you are not a success if you have not helped others succeed

Proverbs 13:11 wealth from get rich schemes quickly dissappears, wealth from hard work grows

Proverbs 16:8 It is better to be poor and Godly thatn rich and dishonest

I hope that Pastor Dickie can get Orrin to see his wicked ways and that orrin will repent and turn his life around

Posted by: big pappa | August 18, 2007 12:02 AM

What I would really like to know is if Orrin and Chris really believed that the Quixtar business was really corrupt why in the world would they continue to have their down line keep getting new recruits, Orrin can you answer that?

If Orrin had any morals at all he would have resigned right away and not gotten anyone else so deeply involved by leading them to believe that through the team of destiny OOP's I mean the team of teams OOP's I mean the team (why all the name changes), anyway if he really cared about people he would have put a stop to recruiting and focused on fixing Quixtar (if they are really the problem).

I was a member of the original team of destiny OOP's I mean the team of teams OOP's I mean the team and when I began to ask questions about the tool compensation they shut me down and I resigned. I spoke to my up line he would not give me a straight answer, I called the TOD office and left messages and never received a return call to clear things up. I didn't want to believe what I found out and just wanted some answers

There is a difference between hype and excitement and the team of destiny OOP's I mean the team of teams OOP's I mean the team seminars were mainly hype to get you through to the next seminar.

Anyone in the team needs to ask themselves three questions
1: how long have I been in the team
2: what was my last bonus, not by biggest bonus
3: how much do I spend on tools

Orrin say all you want about the Quixtar business but you and I both know that it really was never the focus of the team of destiny OOP's I mean the team of teams OOP's I mean the team, it was always about the tools. We were told by our up line that if any new recruit could not afford the new membership fee and the system sign them up on the system first HUH?

Just want to let you know that since I have left the team of destiny OOP's I mean the team of teams OOP's I mean the team I have gained a wealth of knowledge on how to succeed at a much lower cost and have begun to apply it to my life and my wife and I are moving up in life and don't feel like we are doing it at the expense of others like in the team of destiny OOP's I mean the team of teams OOP's I mean the team

Orrin how can you even have the nerve to talk about Quixtar and know that most of your money came from your tools you promoted at the expense of others. Or if Quixtar was so corrupt why would you promote buying from them, you should have resigned and moved on, I believe it was because of the vacations, and the bonuses you received because of the growth in your business.

Interesting enough if I am correct you have been in Amway since 1993 and all I see is around 4 people, Chris Brady, Tim Marks, Bill Lewis, Doug Stroh who are Diamonds, not a very good track record for bragging about growth, 14 years and 4 success stories what about duplication? Thousands of people and few successes get a new line of work face it you are not a success if you have not helped others succeed

Proverbs 13:11 wealth from get rich schemes quickly disappears, wealth from hard work grows

Proverbs 16:8 It is better to be poor and Godly than rich and dishonest

I hope that Pastor Dickie can get Orrin to see his wicked ways and that orrin will repent and turn his life around

Posted by: big pappa | August 18, 2007 2:30 PM

Congrats I am excited, Thanks You Orin,

This is not any different than my Medical job. I did medical sales and had to switch Employers at one time a while back and it is funny to see all they do in those times. Gosh it is worse than what you talk about via Team and Quixtar issues. If people need to wait six month to switch so be it. Orin should have thought about that before pulling the lever. Man Medical Employers are all over you like you would not believe with trade secrets and account tips from hospital to hospital. Man they will throw a law suit at ya fast in that arena. This is no different! The only sad thing is it sounds like Orin is not sticking it through to see all the changes that he help get rolling along with others not bailing to soon on the board. These North American guys are not going to let these guys make all these silly claims and then not go ahead and fix them. Problem is these were already in the works. Actually I think Orin just single handedly made the best fix to Amway that they have seen in since the 80's or speed it up fast. First it was fix the tools and they did and now we need retailable items at a bargain and price cuts, well here it comes. Seriously the skeptics might still say what ever but they have reached the pinnacle in what all critics have always asked for and are getting it. What you did not here at all is why orin tool system did not want to reform like the others on the board. Enjoy that Team guys. What to complain about next? I am excited for the future of where they are going with all this. Just watch, Orin might end up getting reinstated and a mend made if he fixes his tools and depth issues just like everyone else. If not he sure has an up hill battle since the Corp heard the people and has made and started making the changes. I heard prices are changing. We are going to have good competitive retail products and they are keeping the yearly $20,000 Q-12 Bonus for the 07-08 year. Just do the math. $50,000-60,000 for platinum income is a part-time good paying deal. I am stoked. In any civil war the end is usually is better than the past. Thus we have America and Amway.

Posted by: Jonny | August 18, 2007 4:32 PM

Maybe they are all turning on quixtar so the heat is off them. After all they have ran the illegal tools busines for years and it's all starting to crumble around them so lets point the finger at the product prices

Posted by: looloo | August 20, 2007 2:07 AM

Here is what some of us who are not a part of TEAM sees at the forefront. (With these issues being a part of TEAM or not is irrelevant)
The decision back to Amway without the IBOAI being present or the views of IBOs in the field being taken into consideration, the pricing issue on the products, a valid and warranted concern ignored by the corporation, the corporation working with and approving Team’s approach to building depth prior to this situation and now disapproving Team’s approach, and the increasing control of the corporation over the IBOs with these and other issues. It appears that things are moving further in the direction of a dictatorship as though the IBO were an employee. The Distributors of Amway have “always” had a voice that was listened to and heard by Rich DeVos and Jay VanAndel. Our hope is that the second generation will keep the same values, principles, and care for the IBO as their fathers Rich & Jay.

Posted by: GoGetter | August 20, 2007 6:05 PM

kj said:

"But I do know that as IBO's, not matter what the organization name or leader, I believe we teach NO NEGATIVE as the number 1 cardinal rule, I just encourage you all to go back to that way of thinking, especially if we plan and claim to have that type of integrity in the houses of new IBO's."

Ignoring problems - and even actively hiding them - is integrity? Even better - it allows you to 'claim' integrity?

Umm...that's not integrity. At all.

Posted by: Porkchopjim | August 20, 2007 7:37 PM

The TRUTH they don’t want you to know. Chuck Goetschel

What do you do when you learn that what you have been promoting isn’t working? Do you simply complain about it? Do you keep telling everyone that the good times are coming? Or, do you do something about it?

Let me complicate it: What if you learn the supporting facts of this business failure after you’ve invested 17 years of your personal life, and your parents have invested over 35 years? What if you find yourself financially dependent upon the business income; the basis of which was built years ago? What do you do? This is the story of where I found myself and why I chose to do what I have done.

First, some facts: In 1982 Amway of N America did $1 Billion in volume (interestingly, so did Wal-Mart). Twenty-five years later, Amway/Quixtar of N America recorded approximately $1.1 Billion in volume. Considering inflation, the relative volume has plummeted over the past 25 years; most significantly in the last ten. Currently, out of 10,000 people that register in this business, only 833 will remain after three years. That is, 91.6% of people will be gone within 36 months of registering. From 1999-2000, 600,000 English speaking people as a first language registered in the business in North America. By end of 2005, of those registered business owners, only six have achieved the Founders Emerald level (in 2005, the average income was less than $90,000/year) or above. That is, 1/100,000 achieved an income of $90,000/year or more. Nearly 50 years of community building for Amway/Quixtar and the qualified Diamonds in North America fit in one ballroom with tables. These are the facts. Perhaps, you relate to them. How’s it working for you?

In addition to these horrifying statistics, the business is riddled with litigation including very significant court cases threatening the very existence of the company in the US, England and India. The core issue in these cases is the same core issue behind the current failure of the business—over-priced products. Everything stems from this root problem. A very unfortunate domino effect resulted in one negative thing leading to the next till now we find ourselves in the current situation.

After years of attempting to correct this within Quixtar, it finally became apparent that if there was ever to truly be change, then a more dramatic stance would need to be taken. As much as I felt like David stepping up to the plate to meet Goliath, the time had come to take a stand for what I believe in.

How did we get here?
When I registered in Nov 1989 and really started building my business in May of 1990, things were different. The big box stores had been building in acceptance but the Super Wal-Mart’s hadn’t appeared yet. Furthermore, the internet was not used yet for commerce so there were no consumer options there. A product could be higher in price and still sell because consumers didn’t have many of options. However, the big box stores continued to grow in numbers and acceptance. The Super Wal-Marts launched and in 1994 internet commerce began. As a result, the world of shopping changed quickly. The Wal-Mart business model drove prices down. The internet gave us a world of options without leaving our chair. Entire web sites were developed to search the web and find the best prices for various products. As a result, competition dramatically increased. Suddenly in order to sell products in this world, clear value had to exist. Businesses that survived responded to this pressure. Businesses that didn’t respond or couldn’t respond, failed. One exception to this the Amway/Quixtar business.

While the rest of retail business struggled to survive through this sudden increase in competition, Amway/Quixtar continued to increase product prices more in alignment with inflation than with the changing market economy. This caused the prices to get further and further from the consumer’s “good deal” perception as it was easily noticed that they weren’t keeping up with what was available in the marketplace.

So, why was Amway/Quixtar able to survive when others businesses who didn’t respond to the market failed? The products in the business were still purchased by the business owners for personal use in order to achieve bonuses. The primary reason the FTC looks for retail sales in our business is to validate the price a product is selling for. If the public is not buying our product but the people within the network are buying it, then something is wrong. In such a case the people in the network are buying the product not on the merits of product value but rather for a compensation bonus. The FTC declares such an operation a pyramid. Therefore, a legitimate business opportunity can slowly and unnoticeably slide into a pyramid status.

The Dominos begin—one fall causing the next…

Pricing-Width-Failure:
A person has a dream to make money and registers into the business. They quickly realize that the prices are too high to successfully retail the products. Consequently, they look to the compensation plan for profit. Since the compensation plan is predominately a width-focused compensation plan, a focus on sponsoring in width is the only remaining way to initially profit. This leads to the philosophy of “get wide and see who the hungry ones are. Register 9-12 and you’ll find your three.” The other “less-hungry” ones fall out as they are not able to retail products, and without anyone registered below them they see no reason not to quit. With this ratio of fallout/failure, a negative image grows. With a negative image (made very obvious by certain websites), it becomes even harder to sponsor people while continuing to be near impossible to retail the products. This reinforces the fallout, adds to the negative image and the cycle continues.

Failure-Lawsuits:
Eventually, after enough failure occurs, business analysis is done and lawsuits are filed. This is the current situation of the Amway/Quixtar business. Currently, the DTI in England has a court date scheduled to determine whether Amway in England represents a legitimate business opportunity primarily due to the fact that most people are not making money, retail sales are not occurring and people are spending money on training. If people spend money on training but still are not able to retail the products, then the opportunity is questionable. Amway of India is in court over similar challenges. A class action lawsuit seeking significant damages has been filed in California (Porkony vs. Quixtar) over the same challenges as well.

The continued erosion of the product pricing over the years has put this business in a legally vulnerable place, since a network without retail sales is deemed illegal. Currently, Quixtar’s retail volume is approximately only 3% of its total volume. Members of the IBOAI board have diligently worked with the company to change this situation. However, ironically, although they are the ones working the hardest to change the situation, they now find themselves with the greatest legal liability given their high level of knowledge and business influence.

Lawsuits-Lawyers in Charge-Reputation Focus:
As a result of all the lawsuits that threaten the very existence of the business, Amway/Quixtar attorneys are now running the show. Their perspective is their legal position, and their decision making process runs towards whatever makes the business more secure. Although this sounds great initially (and to a certain extent it is), the general reality is that the greater an institution’s regulations, the less an individual’s freedom. For example, although some laws are very valuable, each law limits our freedom. With no laws we would have ultimate freedom (along with ultimate chaos—imagine no driving laws?). With the other extreme of all law we would eventually have no freedom (and yes, no chaos). The new rules with Amway/Quixtar will limit even more freedom and make it even more difficult within an already difficult business. And, unfortunately given their current legal vulnerability, they need to. Consequently, the company’s primary focuses is to tighten things legally and attempt to improve upon reputation. Their key question is, “Is it better for the reputation?” If it is, then it will be the course of action. Unfortunately, not all reputation decisions lead to better results—especially for the new person.

Reputation Focus-Amway Business Transformation-Increased IBO Difficulty:
In order for the attorneys to secure the business, they continue their movement towards whatever will decrease risk and improve reputation. As a result, on September 1, 2007 the “Business Transformation” to a global Amway will begin. Although I agree with the idea of decreasing risk, the transformation unfortunately will be to the detriment of the IBOs’ desired results. This will make a very difficult business even harder. Consider the upcoming changes:

Quixtar name change to Amway
It is a shame that the DeVos and VanAndel families made this decision without any communication with the field, including the IBOAI board. This name change creates obvious challenges to growing one’s business. It is a hurdle that was placed in the in front of already struggling people. Furthermore, the name change dramatically hurts the trust between the field and the company—not a good thing. For the past eight years IBOs have been telling people that this is not Amway; that it is an independent corporation being a subsidiary of Alticor Corp and a sister company to Amway. Many were told Quixtar is just Amway online and we were all taught to point out that Quixtar is actually a unique business model designed specifically for the internet. Although it takes many aspects of the Amway business and incorporated them, it is its own unique business. With Quixtar now folding back into Amway, it makes everyone look like a liar. How do you tell those people that you actually are in Amway online? What do you tell those people who asked, “Is this Amway?” before registering, and you said, “No?” Now they are in Amway. These uncomfortable and frankly unnecessary situations the IBOs will find themselves in will be difficult. The feelings will not be good. And, the trust with the owners for suddenly “changing the deal” is definitely damaged.

Why would this decision be made? Most all business owners are against it and the IBOAI board unanimously voted against it. So, then why did they do it? I believe their answer has a few platforms. First of all, it makes for a simpler business from a world wide perspective with the use of one name—Amway. It will eliminate the possibility of anyone misinterpreting what the relationship of the business is to Amway once it just is Amway. This clarity is good for risk and reputation even though it may be very damaging to IBO results. However, when asked why the name change, the company will regularly recite their research that yielded two findings.

The first finding is that the Amway brand name is better known by far in N. America than the Quixtar name. This, of course, is no surprise, nor is the fact that the better known Amway name comes with a much lower approval rating by the public. That is, Amway not only has a higher “Awareness” factor, it also has a much higher “Bewareness” factor. However, their research tells them that it is better to start with a high awareness factor name like Amway, even with the negative reputation, than to build the awareness factor of a lesser known Quixtar name. Personally, that makes sense to me if it were just a product that the company wanted to sell. However, when it is a business that we are going to build involving friends and family, the conversion is much more complex. Why would I choose a business with a negative reputation as my business of choice when I have other businesses (perhaps lesser known names) that I could choose? The company’s goal is to end up with such a great reputation that you can just walk up to someone and ask if they want to see the Amway business plan and people would be positive. A great thought, but currently it is light-years away from that point, if it’s even possible. Further, it isn’t necessary. The original concept of Quixtar was to have a fresh start, to try again to do it right—new business format (online), new name, and a new result! Even the company’s research said that it would be devastating to go back to the Amway name before making changes to dramatically improve the business model.

The second finding their research discovered is that the more they advertised Amway in the state of Michigan, the slightly better approval ratings Dick DeVos received during his campaign for the Governor of Michigan. In fact, I was told that if they had been running the advertising longer, it might have made the difference in winning the election. I can see where advertising can contribute to persuading the general public during an election. However, I certainly don’t want to believe that the name change with which most everyone disagrees, and the timing of which consultants warn about, could really have anything to do with votes towards future elections.

New Mandatory Leave behind brochure (New SA4400).
Starting September 1, 2007 all IBOs will be required to give prospects a new brochure that will replace the current SA4400. Although it is a nice piece, it fully describes the return to the Amway name by 2009. (I agree this should be disclosed since it is coming). Even though the official name change is a matter of months away, the necessary dialog about it effectively makes it happen now. At a board meeting I asked the company about the situation since their own studies showed that it would be “devastating prior to major business improvements.” I asked what they expected the business owners to do during this potentially “devastating time?” I was told: “They will need to be patient”. Patient for how long? Two years? Five years? Ten years? Forever? What a difficult position that puts the people in!

The brochure also does a great job promoting the training and support provided by the Amway/Quixtar company yet referred to the IBO training system more like a warning on a pack of cigarettes.

New IBO Amway/Quixtar Orientation & First 120 day requirements
Starting September 1, 2007 all new IBOs will be required to review an Amway/Quixtar Orientation which currently explains to new IBOs the history of Amway, the focus on product sales and the philosophy of building the business around finding others who want to sell products with you. Of course this philosophy takes us right back to the original product pricing problem. In addition, new IBOs are required to sell 50 PV of products to documented customers three of their first four months in the business in order to receive various benefits. Also, it appears that Platinums will need a specific percentage of their new IBOs (probably 10%) to achieve this in order to receive their year-end bonuses. This unfortunately will cause the Platinums to have to become more of sales team managers, likely to put excessive pressure on new IBOs’ sales performance. This will dramatically change the chemistry of the field from how it operates today.

In coming months all new IBOs will have a specifically monitored first 90-120 days upon their registration. The details are being finalized but if it is to follow suit with other countries, we can expect several things including a limitation of what business support materials a new IBO can purchase. These limitations could include what information a new IBO can review, whether they are corporate or field produced, as well as the amount one could spend on them. Given that most new IBOs who quit in their first year do so within the first 90-120 days of their registration, this is by far our most coveted time with our new people. To have the company involved and making decisions defining the new IBOs experience during this period is alarming to say the least. All of the business effort that leads up to the registration of a new IBO, and therefore the growth of the entire team, can be totally lost if the company exercises something with an adverse effect during this period. This program is flirting with disaster at the point of all business growth. From the Company’s viewpoint, having control over this period decreases their legal risk as they can document their early emphasis on sales. It also bodes well for net incomes of the new IBO if they choose to limit the new IBO’s expenses; good for the Company’s reputation. However, without products that are retailable, this process will only magnify failure to a new IBO.

New “Stacking” Policy
Starting September 1, 2007 this new policy takes effect. The implementation of this policy is a dramatic representation of a corporate agenda without apparent IBOAI board input. I was on the legal and ethics conference call with the company discussing this policy, and after 2 ½ hours of explaining IBO’s concerns to the company, it was as if the call never happened. Without further contact with the board, the company sent an email to the field explaining their new policy. Personally, I believe that people should have a choice to build in width or depth as makes most sense for an individual’s business. “Stacking,” as the Company commonly refers to it, is simply the process of registering someone directly below someone they don’t know before seeing the business.

There are many examples where someone may not know their sponsor but it would make sense to sponsor them. Example 1 – A person lives in CA and registers a friend in Florida. They cannot fly out to Florida regularly so they register a CA neighbor under the Florida business owner. These people don’t know one another, but now the original business owner can help their Florida friend by driving depth in CA. Since this wouldn’t be permissible, the Florida person is left on their own without this help. Example 2 – A person is as wide as they want to be but they know someone that wants to register into the business. Since the person with the contact doesn’t want to start any new legs, they register the new person in depth. However, the contact and their sponsor wouldn’t know each other before hand, so this wouldn’t be permissible. Example 3—The Corporation sends me a new person “lead”, which they do from time to time, so I can register them. But, I don’t know them, do I? Example 4 – People don’t renew and now someone is registered by someone they don’t know. Obviously, they aren’t in violation but that seems to be how it is written. These are random examples of situations that would lead to sponsoring someone without a previous relationship.

A team-approach strategy to depth is a strategic focus of combining team resources and talents to successfully drive depth while apprenticing new IBOs. From all my research and after directly questioning the legal team at the Corporation, there isn’t a legal risk with team approach to depth. It doesn’t violate pyramid or security laws. So, why did the company send out an email stating, “…our complaint history confirms that the absence of a relationship [between an IBO and their sponsor] often is accompanied by high-risk representations that trigger pyramid and securities law issues.”? Their concern is not the actual registration of people who don’t know one another, but rather forcing someone to register people in depth when they don’t want to, or prospecting people with promises of rewards without effort. Obviously, if someone forces an individual to register people in a place that they don’t want to, then there could be an issue—customer allocation laws. If someone prospects people by suggesting team approach will allow them to register, do nothing and still make money, that could also be an issue—pyramid concerns. However, neither of these practices are a part of the team approach to depth.

Most of the “complaints” the Company is referring to are from people calling in wondering who the person is that they just sponsored. They wonder because they receive an email from the company notifying them of the new person and the responsibilities of being their sponsor. Typically, their confusion and fears of responsibilities are not actually a complaint but rather an inquiry. This inquiry could easily be promoted positively since their business just grew because of the efforts of someone in their business support team. How awesome is that? Instead, the company records it as a complaint and the new sponsor feels confused and often concerned with the responsibility to “train, supply and motivate” as the rules state.

Years ago, a sponsor had to supply all the products to their IBOs and pay bonus checks. Today products are ordered online and bonuses are paid by the Company. In addition, the training and motivation are typically done by an education system and specialists in the business support team. Times have changed. Think about it, how much does your sponsor train, supply and motivate you? It is arguable that the business has never really depended upon the relationship between and IBO and their sponsor, but it clearly does not today. Relationships are vital for success but not necessarily with one’s sponsor. In fact, the team approach to depth actually allows the new person to build more relationships and receive more support as they inherit a larger support team than they would have naturally received. That is, the people between you and the one who sponsors your original contact is an additional support team of people who have an invested interest in the new IBOs’ success.

Finally, the new policy is the first policy or rule that I’m aware of where someone who has done nothing wrong can be penalized. For example, say business owner A is crossline from you within the same Platinumship and they violate this policy. The first time this happens, everyone new in the Platinumship may be called and questioned. No one will be allowed to sponsor until a re-training has occurred. In this example, you would also have to pay the consequence for business owner A’s actions. How is that right when business owner A is neither in your upline or your downline? You just happen to fall within an unlucky Platinumship. Furthermore, the Platinum may lose bonuses and/or be terminated for something they didn’t do. Because someone unwittingly violates this policy or because one simply doesn’t understand who their “sponsor” is, innocent people will be hurt.

As a side note, I also found it interesting, given such dramatic consequences to violating this policy, how loosely it is defined. On the conference call, Billy Florence repeatedly asked the Company to define “to know” one’s sponsor. Since the entire policy revolves around knowing one’s sponsor, Billy’s question seemed like a good one to me. Does a phone call constitute knowing someone? Does it take a face-to-face meeting? Is it a matter of a certain amount of time with someone? The Company never answered Billy’s question and now has a policy that can have a changing meaning at their discretion. Given the policy’s consequences, that’s a scary realization.

This policy is directly targeted to discourage the team approach depth philosophy to building the business. However, since the team approach has produced most of the results in the business since 1999 (five of the six Anglo business owners who achieved Founders Emerald or above) and since it doesn’t seem to create any legal risk to the business, why would it be targeted? Team approach has shown to yield a lower average income at Platinum than the traditional width approach. Given that so many more people achieve Platinum with team approach, the average income statistics are being brought down. This is not good for reputation. It is a shame that the company statistics don’t include the fact that with team approach it takes about half the time to achieve the Platinum level when compared with the traditional approach. Team approach also resulted in the majority of recent higher awards as noted above. Too bad the statistic shared isn’t the total income over time earned by an IBO. It should be. If that were the case, the reputation focus would lead the company to promote team approach.

Mandatory Contracts between tool companies and Amway/Quixtar
Currently there is heavy discussion regarding the implementation of a contract between the tool companies and Amway/Quixtar. This contract would most likely give Amway/Quixtar the position of licensing the tool companies—and controlling/dictating what business support materials (BSMs) (books, tapes, CD’s, meetings, websites) could be produced as well as to whom they could be offered. Just as with any business, the more governmental restrictions that are applied, the more difficult it becomes for the business to prosper. I’ve always believed in balance—some regulations are healthy but not too many. The global Amway business will be in total control of all aspects of BSMs. Unfortunately, since the company’s perspective is coming from their legal and corporate marketing offices rather than from IBOs in the field who are actually building the business, the content will most likely change dramatically. Although it would be good from a legal perspective, it could be devastating from the IBO perspective. The best way to predict what will happen in N. America is to look at Amway’s actions in other countries. Here are some excerpts from a letter from Ben Woodward, Amway Branch Manager UK.

Effective immediately, Amway will prohibit the production, sale, or promotion of BSM that are not authorized and distributed by Amway; this includes any BSM that have already been approved by Amway. They are now considered unauthorized for use. Any meetings for which an entry fee is charged are suspended until Amway has approved, in writing, the meeting and its content…Failure to comply with the above will lead to a suspension and/or termination of the respective IBO contract. Please also note that Amway is in no way limited to these sanctions, but can impose further corrective or punitive measures…These are important steps, but in some ways, they are not surprising ones. Many of you know that for the past 10 years, Amway has been moving to exert more control over the way we do business globally.

Note: For the complete document, refer to: http://www.webraw.com/quixtar/archives/2007/05you_wanted_changes.php

Mandatory Accreditation for QBI Bonuses
It was announced that the new Quixtar Business Incentives (QBI) that are being offered will only be awarded to accredited teams. This was a surprise to many, because previously it was contractually stated that accreditation was optional. When this was brought to the Company’s attention they responded with, “It is optional. You only need to complete it if you want to receive your QBI bonuses.” Jim Payne responded simply with, “Contracts change.” Like the name change back to Amway, unilaterally changing an optional program to a mandatory program damages trust.

In addition, accreditation is a concern for IBO leaders as many of its upcoming requirements are very unclear. A couple of examples: What restrictions will apply from the contract that will be required between Amway/Quixtar and the tool companies? A big question mark hangs on defining the changes Amway/Quixtar wants to make to business support materials. Next, what will need to be taught regarding the positioning of the business? That is, will a person need to lead dialog with prospects using the Amway name? “Do you want to come to an Amway meeting?” Given the focus on reputation, the curiosity approach (inviting people to a meeting without sharing the business name) wouldn’t appear to have a long shelf life remaining. Some of these unknowns could have a dramatic effect on the results obtained in the business as a team conforms to the new accreditation requirements.

Given the trust concerns established with the Corporation, the vagueness of what future accreditation looks like, statements like ‘other requirements and restrictions apply’ listed on the QBI awards brochure, and hearing stories from diamonds in Australia saying that many of the diamonds who qualified for 6-figure year-end bonuses didn’t receive them last year due to various restrictions, there is grave concern and uncertainty about the reality of QBI awards coming to fruition.

Amway advertising after Business Transformation
Two hundred million dollars is a lot of money. However, it is not enough to change the poor reputation of Amway through advertising. In a recent IBOAI board meeting, Doug DeVos and Steve VanAndel acknowledged that it would take a lot more than $200 million—and allowed that there was probably no amount of money capable of changing the Amway reputation through advertising. In fact, if the advertising happened now, people would see a broken business model and it would only re-confirm their poor perception. Consequently, the Company’s plan is to “change IBO behavior in order to transform the business.” Once the business is transformed, then advertising can begin. The biggest behavior change desired, as it should be, is more retail sales. However, doesn’t that bring us back to the core product pricing issue? Mike Mohr said, “You can’t have competitive retail pricing and support an MLM structure!” If that is so, than this may be a long transformation! The MLM structure and an excessive owner margin.

New rule allowing certain establishments to sell to the public directly
Some leaders are concerned that the Company is moving towards selling directly to the public and going around the IBOs. They currently have websites set up selling to the public directly (although they are still awarding the PV to random IBOs). They have also recently purchased companies such as Gurwich Products which sell products directly to the public in competition with Amway/Quixtar products. I mentioned to Doug DeVos and Steve VanAndel that it seems this business is heading towards becoming an Avon type business. They didn’t make any comment to my Avon reference. Avon’s recent business transformation included the initiation of selling products directly to the public, around their distributors. A new rule is also currently being incorporated that allows certain retail establishments to sell products directly to the public—interestingly, the Amway Arena and VanAndel Arena will both qualify to do direct sales under the new rule.

My Personal Journey
At a Diamond Club several years ago, I was informed that over 1,000 people didn’t renew that year in my business. Even though my team had registered a great deal more than that yielding a net increase in the team size, I was still devastated by the thought of over 1,000 people on my team losing their hope in the business. As I thought more about it I decided that I needed to go on a quest to increase retention. Even Rich DeVos said long ago, “We are in the business of keeping people in the business till they realize the business they are in.” I realized the obvious—that people who had something valuable to lose wouldn’t quit. That value could come from solid relationships, great value in the products and customers, and/or a team of registered business owners in depth. Having someone registered in depth gives someone something to lose and consequently can be an encouragement to stay in the business.

It was then that I decided to call Orrin Woodward. We had been casual friends for several years, enjoying Peter Island, BVI together. I knew he and Chris Brady had been having phenomenal growth with a team depth program. Orrin was gracious and shared his thoughts and insights. I began the implementation of the team approach to depth and we had more IBO success stories result the following year than had happened in a long time. Even my own business qualified as a Founders Diamondship for the first time.

Accreditation was soon brought to the table and I eagerly choose to participate. I was continuing my quest to improve things for the new IBO and felt accreditation would help the new IBO have confidence in the value of our training system. I knew that our system already had many aspects of balance that the Company was looking for, including product training and an emphasis on retail. I had personally made sure that a great deal of our material had been reviewed by Quixtar legal and received a “content reviewed” stamp of approval. Consequently, I was confident I could complete this program without much change to our system. I also wanted to add a level of security to the IBOs on my team. I had been hit with a lawsuit claiming bad business practices citing things such as a missing refund policy on our website and tickets, not reading the proper disclaimer prior to beginning Hotel Open meetings, etc. In addition, the suit claimed that most of the money was made by the BSM business and not through Quixtar; retail sales weren’t happening; nor was Quixtar enforcing the retail rule. I knew that accreditation would bring to light any of these issues of which I was unaware or upon which I could improve, and bring our team to a squeaky-clean status. More importantly, I knew that those considering filing a lawsuit may choose IBOs that are not part of an accredited team over those that are a part of an accredited team; hence, more security for IBOs on our team. After over a year of effort, we became Quixtar’s second accredited team.

As time continued, I realized our system needed to continue to improve. The work effort necessary to grow the business became excessive. People needed better results. Once again, product pricing led the domino effect of challenges that everyone was facing. As a result, I contacted Orrin Woodward again and spoke to him about my thoughts. He was open and we dialoged business philosophy, ethical and moral principles, as well as the vision for the future. We talked about accreditation and the desire to build a business that would stand the test of time. We agreed that the greatest reward of the business, and indeed our greatest strength, was helping people with personal growth. We all have so many stories of people who claim that their success in some work outside of the business came from what they learned through their association with the training system. I kept thinking, wouldn’t it be awesome if these people could apply their new personal growth to the Amway/Quixtar business rather than something else? However, this repeating scenario confirms that the training systems are working well but the Amway/Quixtar business operates at too high of an effort level for success.

As a result of understanding what we do best in our business is to find and develop leaders, Orrin Woodward and Chris Brady have built the best leadership development program that exists today. One’s results from this training can be applied to anything, and within this business it has yielded new IBOs with the majority of results in the Amway/Quixtar business since 1999.

Over time, and particularly while serving together on the IBOAI board the past couple of years, I have really gotten to know the Orrin Woodward that most of the world doesn’t know. Orrin Woodward is a man of character and integrity. He is also a great thinker and a brilliant systems designer. He is one of the most well-read individuals that I have ever met. His decision making process always is based upon specific, solid principle. He is also very misunderstood. When he believes something is right in principle, he will move forward with his belief with unwavering fortitude. Others will often see this without understanding the thinking that is driving his decisions, and just label him as stubborn or rebellious.

I spoke with Orrin for the following year until it came to a point that I knew the best thing for our IBOs would be to be a part of his leadership development program and be a part of his vision to grow a team to 1 million IBOs. Of course this meant initially leaving my system behind, including our accreditation status. I knew that the quality and consistency of Orrin’s information combined with the leverage created through teamwork would far outweigh any part of my system including its accreditation. Orrin and I agreed on the principles of accreditation and after fully reviewing the TEAM system it was obvious to me that it was based on sound principles. Being on the legal committee of the IBOAI board, as well as being one of the few who had completed the accreditation program, I have a very good grasp of the rules. In fact, members of the Corporate legal team have often commented that I could “write the manual” when it comes to understanding the rules as they are applied to BSMs. Consequently, Orrin asked if I would head-up, along with Ron Simmons, CEO of Legacy Inc., the enormous project of getting TEAM accredited. I accepted and began working with Amway/Quixtar again on the accreditation process.

After launching my efforts with Amway/Quixtar, I clarified that the main point to work through was the positioning of the business. Amway/Quixtar wants their name mentioned anytime the TEAM name is mentioned. However, this is not a rule or law that currently exists but rather an opinion that has arisen with the new legal team in charge. Previous managing director of N. America, Ken McDonald had put in writing the Company’s stance on positioning and it wasn’t to force the Amway/Quixtar name to come out in front or even simultaneously with the TEAM name. But, yes, once again, things change.

With the company’s focus on reputation, they argue that saying the Amway/Quixtar name up-front eliminates any potential misunderstandings. However, I would argue just the opposite. People have preconceptions of what the words Amway or Quixtar mean to them. Some people still believe today that Amway is a door-to-door soap sales business. So, to say a company name prematurely may, in fact, be misleading them by triggering reference to their own inaccurate understandings. When I mentioned this to lead attorney Mike Mohr he said, “I don’t understand what you are talking about. My brain doesn’t work that way.”

Further, say Amway/Quixtar to a prospect and you can start a stop-watch to time how quickly they do a Google search and find a plethora of negative website reading. Therefore, if the goal is to grow the team by allowing someone to make a decision based on accurate information, wouldn’t it make sense to educate the prospect and build a trusting relationship with them first rather than prematurely flashing a name up that kills any chance of moving forward? Currently, those leading with Quixtar/Amway (or even simultaneously) have experienced devastating failure. Yes, it looks good on the legal paper, but we have yet to find one English-speaking as a first language team in N. America that is currently growing that uses this approach.

I don’t want to deceive anyone. I won’t. Yet, discernment of disclosure is a necessary process to produce the best results. Why haven’t you told your five-year old how babies are really made? I’m sure you have said something on the subject but you have discerned that disclosing too much information at the present time may not be your wisest choice. Obviously this is an extreme example and not exactly applicable in context, but the point is, there are times when some discernment of what to disclose must be considered for best results. Don’t get me wrong, TEAM would love to lead with the Amway/Quixtar name. However the Company would first need to clean-up people’s inaccurate misconceptions as well as its reputation online. This will become a larger issue as all teams come to understand the Company’s non-negotiable stance on this topic.

The other area of positioning that needed resolving for accreditation was that Amway/Quixtar feels TEAM is being positioned as the business opportunity and not Amway/Quixtar. The truth is there is really more than one opportunity interlinked. We have always said that we are not “in” Amway/Quixtar but rather we are Independent Business Owners (IBOs) who are “powered by Quixtar.” Personally, I always felt “powered by” was a bit strong since I have not felt power from the Company as much as I have felt it from other sources, but, nevertheless, there is an established independence of the individual from the Company and the reality is that they do have multiple opportunities available to them.

We have continually requested that the Company allow us to share the income opportunity of the system openly. They have denied us that ability citing that being transparent with the potential system income is wrong, as it could be considered “enticement” to register in the Amway/Quixtar business. Meanwhile on many websites and blogs throughout the internet, the IBO leaders are being painted as crooks by not being open about their system businesses. How ironic is that?

In fact, Ron Simmons as recently as June 5, 2007 emailed the Company attorney Gary VanderVen, requesting that at least on Company blogs they share the truth that the Company “has prohibited IBOs from being transparent about system income.” Orrin and Chris Brady attempted to start this process through their explanations in a book and online and, even without disclosing incomes, were threatened with suspension by the Corporation. Orrin and Chris disclosed that there are really multiple sources of income: Amway/Quixtar products, sales of ticket events and BSMs, and speaking at events. Each of these is based on a compensation plan where any individual can achieve the same or more income than anyone in the upline business support team.

An analogy they used was a car dealership. Say you wanted to sell new cars and started a business doing so creating income. As people wanted to trade-in their cars to buy a new one, you found yourself additionally in the used-car sales business, now with a second income. Next, people came in with their car wanting service so you start a service business—income number three. The service business needs parts so you start a parts businesss—income number four. Certainly, there is nothing wrong with these other sources of income. If you made more income in your service business than in selling new cars (your original business) is there anything morally wrong with that? Is your primary business selling new cars or are you just in the car business with multiple businesses interlinked? Finally, what if someone was considering starting a new car sales business and you were to share your knowledge of it with them? Should you not share the other interlinked businesses in the discussion even though they may never get to that point?

Open disclosure on this topic is a large battle between the field leadership and the Corporation. I believe the Amway/Quixtar reputation suffers less when this knowledge is hidden. They can then discredit the IBO leadership rather than allow the public to learn the truth of how little profit margin remains in the Amway/Quixtar products after the DeVos and VanAndel families take their cut. However, as the Company takes over the BSM business with their new contracts, this will be a moot point, as they will have the power to regulate pricing and profits on BSMs as well.

For the record, the Company stopped communicating with me about TEAM’s accreditation. My last email on the subject was sent to attorney Sharon Grider on June 4, 2007 (with copies to both Beth Hines and Gary VanderVen) requesting direction on the next step regarding “meeting content and positioning.” I never received a response. Only days after that email, I was at the June IBOAI board meeting when the bomb was dropped on us about the name change to Amway and the Business Transformation.

As I began to put it all together and realized the crisis point had come, I knew something had to happen NOW! Amway/Quixtar had slipped into a pyramid status as the products became non-retailable. After years of hearing nothing but “we’re working on it” regarding their promises to provide retailable products, it became obvious that it wasn’t going to change. I know for certain that the Company heard our persistent requests the day I witnessed Rob Davidson, Director of Sales, in a board meeting slam his fist on the conference table, stand up and yell at Don Wilson, “We get it Don! You need those 10-15 retailable products. We’ve dropped the ball on it!” I couldn’t figure out why he was so mad at Don. Don wasn’t the one who kept dropping the ball.

It finally became obvious that either they were lying (they weren’t really working on it) or they were totally incompetent (no results after supposed years of effort). As nice as I try to always be, that unfortunately was the case. There is so much pending litigation against the Company that the attorneys are now at the helm of the ship charting its direction. The resulting Amway Business Transformation has so many unknowns and the Company’s heavy-handed first steps toward implementation have already broken so much trust, nobody is confident that they know what it will look like.

Finally, the IBOAI board, that most everyone believed had significant power, clearly displayed its lack of influence during this crucial time. In fact, as a direct result of the IBOAI board sharing its disapproval with the Company regarding the name change to Amway and casting a unanimous vote of no-confidence regarding the upcoming Amway Business Transformation, the Company responded by canceling the Board’s contract with the company; turning it to a month-to-month contract! That’s right. The IBOAI board was the one thing almost all of us were led to believe provided the IBOs any security. It was the field’s voice and most believed it allowed us to “keep the Company from changing the deal on us.” That certainly was an urban legend. The board voiced an opinion and the Company cut it off at the legs by taking it to a month-to-month contract.

Furthermore, I realized that many “leaders” who knew this information were not going to do anything about it. I heard people who represented thousands of Independent Business Owners (IBOs) commonly say, “I can spin it.” Each time I would think I know I could, but I know that I wouldn’t—ever! I listened to these leaders whose thinking was all about holding on to what they have. However, I listened to others like Randy Haugen say, “If it’s not good for the new IBO than I don’t care what it is for me, I won’t do it.” I heard leaders say, “Well, what can we do? We have no options. We have no power.” Others in private said, “Nobody has ever successfully gone up against the company.”
Don’t get me wrong, it’s not like I didn’t understand those folks who want to hold on to their success, spin the situation to a positive perspective to everyone, be hopeful and continue business as usual. Like Randy Haugen, I just couldn’t do it. Do I want to lose everything I have worked for through this process? Of course not. However, I don’t want success based on the churning of other people’s failure. In fact, when speaking with lead Amway/Quixtar attorney Mike Mohr about my concerns, he told me that he hoped we could work it out since there is a lot of money on the table for me. I know he meant it encouragingly. I was aware that I have one of only four systems that has been accredited and I regularly qualify as a Founders Diamond—the combination of which should result in a new QBI bonus of $500,000.00. However, I responded to him saying that if I didn’t believe that the new IBO starting today could ever achieve with the New Amway what I have achieved with the previous business, then the money felt more like a buy-off than a bonus.

My moral dilemma began; do I stand up to the Giant regarding this disaster and put it all on the line, or do I let things just continue as they may and let my life stay simple? It became apparent that the necessary price changes weren’t coming. The “Amway business transformation” wasn’t going to make it easier for an IBO to succeed, and trust with the DeVos and VanAndel families as well as with Corporate management was gone.

I just couldn’t promote something I didn’t believe in, nor could I leave people unaware of the facts just because I’m set and the company is intimidating. As a result, I was compelled to step up to the plate and make a change. I was willing to put it all on the line because I believe so much in truly leading people to something that they can succeed with. I keep thinking of all the people who need their business to work—they’re counting on it!

I understood the current condition of the business and why it was this way. I also understood who was in charge, what their objective was, and the general direction the business was headed. I knew that the IBOAI board had no teeth and was barely alive. I knew that most people who knew what I knew wouldn’t say anything but would rather just “make the best of it.” I knew that it would expose those making the decisions as well as those who would “spin” those decisions. I realized by sharing the truth that some people would be hurt and leave the business. I knew that I would potentially receive a great deal of abuse by those who were unhappy with my sharing this information.

I realized that some people would wonder how we had been promoting the business yet now announce its flaws; knowing they don’t understand how we always have believed in the business concept which we promoted and were diligently working behind the scenes to invoke disparately needed change within the Company all the while believing positive change was coming. The bottom line is I knew that my life would be a lot simpler if I just stayed quiet. However, I knew that I was asked to be on the IBOAI board to protect and serve the IBOs, and I knew for the new people to have a chance of achieving their dreams I had to expose the truth and invoke change.

I was really hopeful that the Company would come to a peaceful resolution. I was hopeful that it could just be talked through and avoid anything public or mean. However, that wasn’t to happen. When we suggested rolling back the non-compete rule to simply give people a choice to either move forward with this new business transformation or to choose another opportunity, Quixtar attorney Mike Mohr said, “Why in today’s competitive environment would I open the door and let our crown jewels leave?”

This rule (Rule 6.5) was implemented just three years ago; 45 years after Amway started. Simply put, this rule doesn’t allow someone in this business to be in another competing MLM marketers out of our Quixtar camp since the rule would not allow IBOs to register with another MLM business. However, the wall more significantly keeps IBOs trapped inside the Quixtar camp giving the Quixtar Corporation the ability to do whatever they want with their trapped audience.

If the company won’t change, than at least give people a chance to choose a different opportunity. If this business is really so great then nobody would want to do anything else and it would have been a non-issue. The fact that the idea of giving people an option is such a big deal to the Company shows me that they understand that given their freedom, people will go elsewhere. The freedom to leave should always be available. That freedom allows competition to bring the best performance out of each company and keep the focus on what’s best for the new business owner.

Unfortunately, the Corporation won’t allow such options to exist. They effectively have become the ultimate “Hotel California” where “You can check out anytime you like, but you may never leave.” Our lawsuit is not requesting any damages or retribution. The suit is simply a request to the court system to let free enterprise freely operate once again.

As a final note, life has its irony. How interesting is it that approximately 50 years ago, Rich DeVos and Jay VanAndel found themselves in a similar situation with the MLM business they were sponsored in, called Nutrilite. They couldn’t amicably resolve some company decisions that they believed were wrong, so they and some others left and formed Amway!

Posted by: ns | August 21, 2007 4:56 AM

big pappa

After reading your post it's obvious you have absolutely no idea how this business works (Team or otherwise) so why post on a subject you have no information about?

Posted by: ror7768 | August 21, 2007 5:23 AM