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August 11, 2007
Orrin Woodward Leaves Quixtar
By QBlog in TEAM
Orrin Woodward, the charismatic Diamond leader of the TEAM motivational group, has resigned from Quixtar (though Alticor says he was booted).
The news came to me by a phone call from a friend who advised that I visit the Team Orrin Woodward blog to read the resignation announcement. The announcement (which I've archived in case it's yanked) explains why several IBOAI board members (including Woodward) decided to leave the business.
Today, August 9th, 2007, eight current members of the IBOAI board from North America, representing a combined average experience of twenty seven years in the business, approached Quixtar/Alticor to express deep concern with the current condition of the Quixtar business. For years, we’ve all been concerned that Quixtar’s products have been hopelessly overpriced and were virtually not retailable. Quixtar has known this, too, because over the last few years we have repeatedly informed them of this fact and have literally begged them to correct the problem. They did nothing...
In addition to leaving Quixtar, Woodward and others have filed a complaint (pdf) against Quixtar.
Among those filing the complaint against Quixtar are:
- Billy Florence
- Don Wilson
- Fred Harteis
- Tim Marks
- Randy Haugen - "Mr. P & G"
- Chuck Goetschel
What's funny to me is that they're basically suing Quixtar for things that so-called Quixtar critics have been "screaming" about for years and yet until now leaders like Woodward have publicly turned a deaf ear to those screams and continued "business as usual."
I haven't had time to read the complaint or do much research on this so take some time and see what else you can dig up and leave it in the comments.
My prediction, this clearly marks the end of Quixtar (and Amway) as we know it in North America. Don't forget that the Postma Memo predicted this over 20 years ago!
Postma predicts that "...anything that is done by the corporation that will cause conflict or competition with this business could cause a major split. This business will crumble under its own weight..."
UPDATE: I received the following email yesterday:
Friday, August, 10, 2007 at 16:17:46
name: AlticorCorpComm
message: http://media.alticorblogs.com /2007/08/10/ just-go-team/
OK to repost.
So, I guess I'll repost some of it. Go read the blog entry and the comments. Some interesting stuff. Looks like Quixtar may really be cleaning up the business after all.
We terminated Orrin Woodward yesterday, along with several other leaders of his field organization, named Team. We’ll post our formal statement when it’s ready. Informally, here’s the story:
We terminated Orrin Woodward for philosophical reasons. We did it for legal reasons.
But the main reason we did it is because the way Orrin Woodward ran his organization was a disgrace to every person who’s ever tried to build a Quixtar or Amway business the right way.
Again, those comments sound a lot like what Ed Postma said over 20 years ago.
UPATE Part II: The following letter is posted at the Forum and is reportedly from Jim Payne, former Executive VP and Managing Director of Quixtar.
To Team affiliated IBOs
What Team has taught you regarding business building may put you at legal and regulatory risk – but we can help.
We are in an exciting period in the history of this business. We are making unprecedented investments to make your businesses better – more than $60 million in new money in Quixtar Business Incentives, launch of training to help make IBOs more successful, and exciting new product and category launches. Overall, the Company is spending more than $200 million in product development, brand building, training and compensation enhancements to make this business bigger and more successful than ever.
We also are taking steps to address issues that have plagued our business and hampered our success, which is why we are contacting you today.
After working with Team training organization founders, Orrin Woodward and Chris Brady, on issues related to the teaching by the organization on positioning of the business as the Team opportunity, the practice of “stacking,” or inappropriate depth-building, the use of unauthorized business support materials, and because they told Company executives that they intend to begin soliciting IBOs to join their new competing MLM, the Company has terminated Woodward and Brady’s Quixtar businesses. These issues put the Company and IBOs at serious and immediate risk of legal and regulatory actions and needed to cease immediately. And, we should note that no IBO has left Amway or Quixtar and successfully launched a competing business. Moreover, they, together with other Team, Legacy and Team 5K IBOs plan to file a class action lawsuit in Federal Court against Quixtar.
Quixtar recently provided an opportunity for Woodward and Brady to work with the Company to cure their contract breaches, but they were unwilling to even listen to the plan. The Company now finds Woodward and Brady to be in default of their agreement with the Company and, as a result, their businesses were terminated.
Quixtar acknowledges that the vast majority of IBOs affiliated with Team have conducted their businesses as taught by the Team organization. As a result, there are Team-related IBOs who do not have an accurate understanding of the importance of positioning the business properly with prospects and building depth within the Rules. We can help you through that.
Quixtar remains committed to the support of all IBOs and will work with those who agree to abide by the Company’s rules and maintain high ethical standards. That includes all Team-affiliated IBOs who wish to continue building their Quixtar businesses in compliance with the rules and by correcting positioning and stacking behaviors.
We hope you accept our invitation to remain a valued and productive member of the Quixtar business. We will be following up with more information soon and encourage you to call your Quixtar Sales Advisor with any questions.
Sincerely,
Jim Payne
Executive Vice President and Managing Director
Quixtar Inc.