We were betrayed in 2007

The Truths Behind the Media Spin

noreply@blogger.com (Hurting Inside) — Mon, 18 Aug 2008 17:36:00 +0000

In an article by Emily Lambert & Klaus Kneale on Forbes.com you get a typical 95% view of relational marketing. It even seems to me as if the writers are anti-capitalism. If they are pro-communism, or pro-socialism, or even truly anti-capitalistic then why work for such a pro-capitalism company?

I will attempt to shed some light on the facts behind the article, and I hope that you find this an interesting read at the least. Before you continue; however, if you don't know why I am pro-capitalism, or why the U.S.A. was founded as a Free Enterprise Republic, then please watch this thirty minute video I found on the web. It does more than an excellent job of explaining why the U.S.A. is great and why Free Enterprise works. I also highly recommend anything by Bob McEwen.

Now let us take a look at the article:

Hope, for most of Woodward's audience, is a fruit juice gussied up in a wine bottle labeled MonaVie and sold for $39. Unload enough of this stuff on friends, recruit them to do the same, and you can be rich.
[Forbes.com]

Of course what they don't tell you is that the MonaVie blend is creating positive results for many people who drink it regularly, and there are years of scientific backing to show what antioxidants do for the human body to fight an abundance of free radicals. They also neglect to tell you that this juice you are "unload[ing] on friends" (in my case friends bug me to get it for them faster) has higher ORAC values and a more balanced blend than anything available in the traditional markets. I won't go into the benefits of the product too much as there are many other places it can be found on the web outside of www.MonaVie.com.

Woodward, by contrast, doesn't have to sell a drop of the concoction to make a killing.
[Forbes.com]

Is that not the point of a relational marketing business? To help those that choose to build a network large enough to have a Robert Kiyosaki defined "B Type" business where a system works for you rather than selling the product yourself? Oh, I get it, you were saying the fact that Orrin and Laurie Woodward (among hundreds of others) have residual income from their MonaVie business, and don't have to sell the juice themselves, shows that the business model works! Awesome!
(Not making income claim, please see the MonaVie Income Disclosure Statement.)

Team, rather, sells things that help people sell things like MonaVie. Team sells "tools"--$258 sets of motivational compact discs, $69 Team shirts and books like Woodward's Launching a Leadership Revolution, all of which filled the Nationwide Arena's hockey rink.
[Forbes.com]

I'm not going to get into a huge discussion about the necessity/value of tools when building a community; however, I found it neat that they simply mentioned the most expensive tool set that Team/Leadership Inc. has to offer (The $258 set of 50 CDs with the best of the best when it comes to leadership and instructional talks over the past 8 years.) and failed to mention the rest of the information. Even though I doubt one would be able to find a new 50CD set of music for as inexpensive as $258, I hardly see the value in comparison. These CDs (to me at least) have been a priceless commodity in building my community. I mean honestly, $5.00 for a CD or $25 a month for an ongoing training system is not an excessive cost. In fact, when we canceled our cable television (by choice) we saved over $70 per month. It becomes a matter of priorities, not a matter of cost, even when the cost is reasonable as it is with Team. On a side note the Launching a Leadership Revolution book is not meant to help sell MonaVie and is meant to help anyone in any industry better themselves and sharpen their leadership skill while all the time rating themselves on Character, Task and Relationships. Just read the comments and reviews of the book on Amazon.com. LLR has sold over 200,000 copies, when most books are luck to sell 30,000 copies in their first year. Lastly, I would strongly urge some of the upper management at Forbes Inc. to pick up the book and give it a shot. If you learn nothing from it then you either know everything, are not open to learning, or just don't understand the timeless principles contained within. But even if you give it a shot and don't implement it, what are you out? A few hours reading that has the possibility to open your eyes to where you may need work?

In the distributional art form known euphemistically as "multilevel marketing" and more crassly as a pyramid, a seller attempts to recruit other sellers, who recruit still others, and so on. Members get a percentage of revenues hauled in at some or all points below them in the pyramid, so those close to the top can do very well for themselves.
[Forbes.com]

Let's put things into perspective. Does not a brand new franchise owner of, lets say a restaurant, hire management who in turn hire employees. Now does not the employee get compensated for hours worked, the management individual get compensated for hours worked and bonused on employee/restaurant performance, and the franchise owner not compensate for hours worked; however, compensated by how well his/her management performs at motivating employees and how much the restaurant takes in? Oh wait, we forgot that the franchisee also makes money off of the franchise owner's restaurant which is one more reason for the franchisee to make sure the rest performs well. Each higher level in the pyramid known as... a typical fast food franchise dun dun duuunnnnn! has a vested interest in how their subordinates perform. In my humble opinion the difference is that in the restaurant example the manager generally does not want to help the employee move up and take his/her position, rather he/she wants to help the employee do the best he/she can in their own position without moving up. Relationship marketing is the only field I have seen where most (it may be idealistic to say all, but certainly Orrin and most others) truly want to see people they have registered not only succeed, but even surpass them in income. WAIT! Someone not at the top can earn more money than someone at the top!?!?!? Then how is it a pyramid if people at the top can earn less than people below them? It isn't, because in MonaVie and in Team individuals are compensated on their individual performance in addition to the performance of others in their community. Lastly, lets take a look at Forbes since it seems they would make a good example. Is not Steve Forbes worth over 400 million dollars? Of course he is! Are all 700 employees below Mr. Forbes worth 400 million? Of course they are not! We don't go around calling Forbes Inc a pyramid even though the top 1%(guess) of the company's employees make the most money.

Team is one step ahead of all these juice selling schemes. It is a pyramid atop a pyramid. It is selling motivational aids to help MonaVie vendors move the juice. But wait. If you can't earn back the $258 you've spent on the motivational lectures by selling $39 juice bottles, you could earn it back in another way--getting people to buy $258 motivational lectures.
[Forbes.com]

So let me get this straight, Orrin sharing the tools income with those that helped create the volume in a fair manner is somehow worse than keeping it to himself? I'm really confused at this theory, because as well know training materials can make or break an individual's success. I know from my experience with Quixtar that I made no money trying to do things my way. When I got onto a training system (which happened to be InterNET by Dexter Yager) and followed it closely I started to make small amounts of money. What I didn't know was that Mr. Yager and his family keep all the tool profit, and one of the recent statistics I saw showed them making $44 million a year in tools income which blew their Amway income of much less out of the water. When I started using Team training materials and following the Team system I saw a very small jump in income, but when my team started buying into the training system themselves as well, most of them saw jumps in income an I went from making just a little to making quite a bit more by my standards. (Like from $30/month to $100/month if memory servers correct. Remember this was Quixtar) So the fact that Orrin does not want to keep $44 million a year from tools income for himself and has opted to have team profit share with those who produce the volume seems to me that the system is not only better for generating loyalty (Isn't that what every business wants, consumer loyalty?) it is a more benevolent way of utilizing profits.

Everybody gets rich. Everybody, that is, except the last round of buyers. That's the theory, anyway. The reality is that a mere 1% of Team members make any money from involvement with the firm.
[Forbes.com]

First I would like to say there will never be a "last round of buyers." There are more people being born each day than dying, and not everyone will want what Team and MonaVie have to offer, but there will always be thousands who do.

Next I would like to say how much I absolutely hate the twist that the 1% statistic has. Lets look at this a few ways. First, I invite you to read Orrin's take on "1%" statistics from his blog. Now that you have read that, here is my take on the "1%" statistic. Not only is it true that just because the other 99% aren't making whatever amount doesn't mean they wont, but when they do it would stand to reason they would each have a group the similar size and so the statistic would remain the same. It is also true that 40% are making average weekly checks of $42 and 38% are making average weekly checks of $37 (IDS). I don't know about what kind of car you drive, but that fills my gas tank each week. (At least for now) I would also like to say that after 4 weeks as a MonaVie distributor, and starting from scratch with zero people in my downline teams, I achieved the rank of Star 500. Only 12% of the distributors in MonaVie in 2007 were Star 500 and average $83 per week. (IDS) Does that mean I am special? or better than the 78% of distributors that haven't made Star 500? Absolutely not! We set a goal, had an amazing training system of books, CDs and live meetings, and we went for it. Our next goal is to go Bronze which only 5% of distributors have achieved each week in 2007. (IDS) Guess what!? There is no way we are smarter or better than 34,000 other distributors, simply further along on our path.

Now lets look at some more sales data, when comparisons are applicable I will use Forbes again. The 2007 MonaVie Income Disclosure Statement shows that a total of 18 distributors averaged over $1 million, 65 distributors averaged over $450k and 143 distributors averaged over $100k and less than $200k. My question then would be to Forbes, or the writers of the article. How many Forbes employees made over $100k last year, how many made over $400k, how many made over $1 million? I honestly don't have this information. I do know however that after 90 years in business Forbes annual sales topped out at $78.8 million (est.) whereas MonaVie with just over 3 years of history is projected to top out over $1 BILLION in sales for 2008 had several hundred million (don't have exact number in front of me) in sales in 2007. Where does all that money go? Well MonaVie guarantees that it will pay 50% back to distributors in the field, that means that if they hit projections in 2008 of $1 Billion field distributors will earn a minimum of $500 million! And that does not count the salaries paid to the employees behind the scenes that help the company evolve and move forward. Another question for Forbes, how much of Forbes' sales are paid back to its employees? Did the 700 employees at Forbes earn a total of $39.4 million last year? I guess the point I am trying to get across is that the network marketing industry, and more specifically MonaVie is helping many people get out of debt, pay for gas, bring their spouses home from work, and is even helping a few (in its first 3 years as a company) become millionaires.

Team hauled in $42 million last year and boasts 60,000 mostly middle-class members. Last winter 15,000 of them braved an ice storm to assemble in St. Louis for speeches on "Overcoming Obstacles." About 90% of Team's sales tool revenues come from people who also sell MonaVie juice.
[Forbes.com]

So we are on our way to affecting one-million lives in a positive way! Wait, we have affected 6% of our first goal! That is much higher than that eirie "1%" success statistic!

But lets take an actual look at these numbers that "Team hauled in." The $42 million that Team brought in was not profit, it was revenue! Also, this means that the $42 million in tools produced a $200 million product business. This means with the > 30% profits Quix/Am makes, they earned > $60 million on a business (Team tools) that didn't even revenue that much. Team(Sell $42m tools) + IBOs(Utilize tools sell > $200m product) = Amway(profits > $60m on Team's sales of $42) This just shows that the real scam is how much Quixtar/Amway keep versus paying out. This was a 20% business producing 80% results and then the 80% business turns around and only pays back 20% of the money.

Woodward's Web site shows the 41-year-old on his 72-foot yacht and grinning with Pastor Robert Dickie Jr.
[Forbes.com]

It is stuff like this I don't understand. Why include it in the article at all? If people want to know what is on Orrin's website they can go to it. Is money evil now? Is owning a yacht a bad thing all of the sudden? This is what makes me wonder if the writers may be slightly anti-capitalism as they seem to portray this in a negative light. Well just so we are clear here, Forbes has a yacht too (actually its fifth):

(Source)

"What I try to give most of all is hope and encouragement," says Woodward. Hope is an expensive commodity.
[Forbes.com]

I want to take the liberty and pseudo-quote Orrin. Are you the type of parent who tells their children they can't amount to much, or that the chances are too small for them to achieve whatever dream they have, or are you the type of parent to encourage them and give them hope so they at least have a shot of overcoming the odds? What is wrong with helping people to believe in themselves? To borrow a page from George Lucas, "Luke: I don't believe it. | Yoda: That is why you fail." Belief may not be absolutely everything, but without it nothing will be accomplished.

Most Team members spend more buying its motivational aids and MonaVie's juice than they ever take in. [Name Removed], a Michigan alarm company employee, says his wife has rung up $20,000 in debt buying Team sales tools and Amway products and is now on to selling MonaVie juice. Their marriage has fallen apart as a result. "She still thinks Team is going to set her free one day," he says."
[Forbes.com]

Now this is not meant as a personal attack on anyone in anyway; however, I find it odd that someone would spend their time giving comments to writers about how debt and Team may have played a factor in their marriage falling apart behind their wife's back RATHER THAN taking responsibility and working out marital differences with their spouse in the privacy of the home or with a trusted counselor. I'm not saying what or who is at fault for a marriage falling apart, but I know that talking about it on open public forum certainly wont help the situation. What is more, Team training materials has helped put more marriages together than I care to count so I'll use a personal example. I'll keep it brief. My partner and I were fighting constantly, we love each other but we were unable to stay happy for more that a half hour it seemed. A monthly book came through our system entitled the "Five Love Languages" by Gary Chapman. She talked me into reading it with her and our perspectives were changed greatly. Since then we fight much less often (from like every 30 mins to maybe once a month if that) and have a new outlook on our relationship. We have since been engaged and will be married before year end. We also are continuing to purchase materials from Team to specifically improve our relationship, soon to be marriage. Every one has helped in some way or another and some of those materials include: "Love & Respect (book)," "Becoming the Woman of his Dreams (booK)," "The Power of a Praying Husband (book)," "Wild at Heart (book)," "What the Bible Teaches about Marriage (book)," "Building Your Mate's Self Esteem (book)," "Dreams of a Woman (book)," "Personality Plus (book)," "Relationship CD Pack (CDs)," "Love, Respect and the M1 Tank (CD)" and many more all of which were well worth the $10-$25 investment!

On a side note if someone went $20k in debt to build a non-traditional business then possibly they needed to consult a mentor about their financial situations before doing so. Twenty-thousand is not a lot of debt in terms of starting a traditional brick and mortar business, but it is a large chunk of change and perhaps that could have been avoided.

As far as her still believing Team will set her free someday, that is a good start, but of course it will take a lot of hard work. Not only that I am sure that having a husband who mocks her and demeans something she believes in rather than being supportive is not helpful in building her business nor her self esteem.

Woodward studied engineering at General Motors (nyse: GM - news - people ) Institute (now Kettering University) and later designed fuel pumps for the automaker. Frustrated with gm, in 1993 he began selling products on the side for Amway, the granddaddy of multilevel marketers (2007 revenues: $7 billion). Five years later Woodward quit gm to become a full-time distributor for Amway (now known as Quixtar in North America).
[Forbes.com]

Don't forget to mention the Nationally Recognized Benchmarking award and four patents in production that came out of it he earned at age 26. How many 26 year olds do you know with benchmarking awards and patents in production? Where were you at in life at age 26? I know I wasn't that gifted. With talents like Orrin's he could have made it big in any field or company, he chose to stay in Relationship Marketing so that he could help others do the same with their own unique talents.

Woodward quickly realized how important sales tools are to multilevel marketers. Tools encourage recruits to reject doubters and, if money fails to materialize, to blame themselves and keep trying. Tools can themselves be a gold mine. That was a lesson Woodward learned from Dexter Yager, a former beer salesman and Amway distributor who set up a highly successful sales tools business."
[Forbes.com]

As I have already said, I don't know anyone who can be successful without sales aids and training materials. There is no way with out them that one person could train thousands of people. The difference here is still that Orrin decided to share the profits fairly to those that built the volume rather than keeping them like the other 99% of network marketing gurus.

His Amway divorce left Woodward with motivational tools but no product to motivate people to sell. Members defected. Sales plummeted. Woodward tried selling his tools to customers like Kettering University, a Michigan pizza franchise and a Phoenix car dealership.
[Forbes.com]

I don't know where all Emily and Klause got their information; I'm sure the correct source, Orrin, was interviewed, but they certainly didn’t care much what he had to say, but rather printed what they want to believe or what perhapse they were coaxed into printing by a certain IBOAI member who had a contact. But I know for a fact that entire banking branches in Texas had enrolled to use Team's training system for all of their management. I also know of several other small businesses in Illinois and Wisconsin who use the Team Leadership Development system to train their employees, and have expressed that they are quite happy with it.

Last spring he contacted Dallin Larsen, MonaVie's founder. Larsen formerly headed sales at Usana Health Sciences, an Amway rival. He founded MonaVie in 2005. The men met at Larsen's 8,900-square-foot home in Largo, Fla. and struck up an alliance.
[Forbes.com]

Again it seems like the size of Dallin's house is mentioned to imply that he is in some way greedy without mentioning the M.O.R.E projects that Dallin and his wife take the lead in. Also I would like to mention that Forbes has one of these:

Chateau de Balleroy

"I don't want to build a business on hype," Woodward says. Hype apparently doesn't include Woodward's blog's claim that the juice has "incredible" word-of-mouth marketing potential. No question, it's a great deal--for Woodward. He figures he'll pocket $6 million this year off MonaVie and Team.
[Forbes.com]

I think this may confuse the readers as to the definition of hype. Hype is generally something that people believe that can't or won't turn out to be true. I would say that Orrin's "blog's claim that the juice has 'incredible' word-of-mouth marketing potential" has already been proven 817 times by the end of 2007, (people making near 30k per year or more), and not only that those statistics were produced BEFORE Orrin joined MonaVie with the aggressive goal of producing 25 new Black Diamonds this year!

As far as Orrin making "6 million this year from MonaVie and Team," they seem to have implied that Team is Orrin's main business rather than MonaVie. Or at least some people such as Chuck Lia on his "Speaking of Amway" blog seem to think that it is all Team income. Just to set the record straight, based on Orrins current ranking in MonaVie he will make over 4 Million from MonaVie which implies that he will make near 2 million or less from Team to total the near 6 million figure. On top of that his legal fees, because Amway has to act like tyrants and just not let him go peacefully, are near 2 million! So the 2 million Orrin would have made from Team this year will go straight to his legal fees! Not to mention, that Orrin and Laurie in their best year in Quixtar/Amway made no more than $750 thousand, compared to over $4 million this year in MonaVie with a smaller organization! This just shows that Quixtar refused to lower prices and refused to put more money into the pay plan simply because of the Jay Factor.

In summation I believe the article had one line that stood out above all others and rang the truest, that line was:

Orrin Woodward's organization is one step ahead of them all.
[Forbes.com]

And the truth, shall set you free!

Well, now that between all my blabbing and all the links and references you have a small book to read I will leave you with this: Sometimes we decide our own truths. But that doesn't make them true. The old adage, "If I tell you the truth and you don't believe it, what does that make it? [...] No that doesn't make it a lie, it makes it the truth you don't believe."

A Way to Decide

noreply@blogger.com (Hurting Inside) — Thu, 10 Apr 2008 00:00:00 +0000

"A simple way to take measure of a country is to look at how many want in... And how many want out."
[Tony Blair]

That being said, let us take a look at the more recent activity of both Amway (Quixtar.com) and Mona-Vie (monavie.com) to see if we can help make a determination.

(CLICK TO ENLARGE)

Now please see my disclaimer about statistics in my previous post about graphs from this web traffic tracker. Now that you have looked at that again you realize that Amway had over 100k hits in June/July 2007 and is down over 70% at its lowest point in February. (2 months ago and still declining) If you take rough averages it is down on average just over 50% on monthly site hits, or number of IBOs, customers (as if they really have any) and casual site lookers. If their business doesn't reflect a 50% reduction you can be assured it soon will. This just goes to show what I read today in Colonel Jeff O'Leary's "Centurion Principles" is more true than Amway thinks.

If you or your leaders are in the habit of conveying an attitude that says, "If I wanted your opinion, I'd ask for it," (sounds like Amway telling the IBOAI board it refuses to follow the board's unanimous vote) expect to get very little feedback. Even if your ship is sinking, your team may go down in silence (sounds like those remaining with Amway secretly wishing they were not) while desperately seeking the nearest exit.
[Col. Jeff O'Leary (RET.)]

The leaders of TEAM and the 1/3 of the IBOAI board that left did not go quietly as the ship sinks. The rest of you desperately looking for freedom from Amway will soon be in luck as the court rules the IBO contract null and void piece by piece, and you too will have your freedom.

"Freedom is nothing but a chance to be better."
[Albert Camus]

Let's all be better together! Now lets take a look for the first time at Mona Vie's site traffic:

(CLICK TO ENLARGE)

Looks to me like Mona Vie has more than doubled its site traffic in the same amount of time Amway lost over half. Also note that Mona Vie did not gain the same rough numbers that Amway lost, so it was NOT just a shift of distributors from an illegal pyramid to a valid business opportunity. It was more like over 40k IBOs jumping ship from a dangerous endeavor, and several thousand new distributors choosing to join the world of network marketing while the majority of the 40k that left Amway sit out an illegal non-compete clause.

The facts speak for themselves.

Amway Arbitration Clause Doesn't Hold Any Weight

noreply@blogger.com (Hurting Inside) — Sat, 09 Feb 2008 01:32:00 +0000

Hey all!

Great news on the IBO Rebellion Blog today! United States Circuit Court of Appeals rules the Amway Arbitration Clause to be "ILLUSORY" AND "UNENFORCEABLE"

Court Documents:
Court Decision
Plaintiff's argument
Amway's Arguments

Now this would be really nice if it means that anyone who was ever forced to take their case against Amway/Quixtar to arbitration since the beginning would have a chance at appeal. Can you imagine how fast Devoss' and VanAndel's pockets would dry up with thousands of old lawsuits being brought back up and possibly won?

Benchmarking MLMs

noreply@blogger.com (Hurting Inside) — Wed, 16 Jan 2008 17:19:00 +0000

According to Orrin Woodward's Blog, Orrin has been benchmarking MLMs and will be sharing his findings soon. Please see excerpt from Orrin's blog below:

In a previous career, I won a National Benchmarking Award for technical benchmarking. I was an engineer at the time at GM and enjoyed benchmarking and the learning associated with it. As part of my continuous life learning assignment, I benchmarked many companies in the MLM/Networking field recently.

In another month, I will share the results from my benchmarking study. I developed numerous criteria to determine the best and worst in each category. I believe it is my responsibility to ensure people have the facts to choose wisely in all of life’s decisions. Would a benchmarking study of the MLM/Networking industry be of value to you?
[Orrin Woodward]
(Emphasis Added)

One month ladies and gentelmen, then we can have a professional and informed view on what some good choices to make may be for us!

More Proof the Trust is Lost

noreply@blogger.com (Hurting Inside) — Wed, 09 Jan 2008 20:45:00 +0000

The ship is sinking!

(CLICK TO ENLARGE)

I know these are the extremes on either end, but it looks like back in June or July (probably June 30th/July 1st due to everyone trying to meet volume) Quixtar.com had over 100k hits. Then at one point in October it was down to only 40k hits for a 60k swing. But to be more fair let's look at Oct 31st/November 1st, it shows approximately 65k unique hits to Quixtar.com. Does this mean they have lost 35k IBOs? Probably not entirely, but it is a very good estimate of how many people are starting to figure out their shenanigans.

I can't wait until they get the postings for December 2007 and January 2008 (after this month is over) I'm sure it will continue to show a strong decline. Still don't think there is anything wrong with the Amway corporation?

Sadly, the Amway Transformation is Underway

noreply@blogger.com (Hurting Inside) — Sat, 05 Jan 2008 01:18:00 +0000

Disclaimer: I claim no ownership to any of the images within this post.

The Amway transformation finally begins. Take a look at the new logos that will be used over the next year to ease the transformation from Quixtar to the more hated name of Amway.

Present Day Logo

Logo as of March 2008

Logo as of September 2008

Logo as of May 2009

Don't believe it? Just direct all your questions to Steve Lieberman, after all he signed the notice that was kept from anyone under Platinum:

So why such a slow roll out of the name change? What are they afraid of? Why not just announce it and change it? Let's see what all they have to say:

As noted above, March 2008 also marks the start of media advertising and public relations for the new AMWAY Global brand. We’ll be giving you all the details of the multimedia, multimillion-dollar campaign – messaging, media, and dates – during the coming weeks and months.
[E-Mail to "Qualified Diamonds, Emeralds & Platinums"]

Last question: Why spend "multimillion[s of]dollar[s]" (I heard almost 1/2 billion) on a campaign to make a branding name (Amway) seem like a good thing when they already claim there is nothing wrong with it in the first place, hence switching back to it, when that could be distributed in bonuses to Quixtar IBOs who unanimously voted (by proxy of the IBOAI) not to change the name?

Quixtar Employees Pose as Team Employees

noreply@blogger.com (Hurting Inside) — Mon, 17 Dec 2007 15:58:00 +0000

From IBO Minute Man's Blog @ http://ibominuteman.blogspot.com/

If you were at ladies leadership last Friday night at the Lansing center you probably witnessed one of the lowest points that Quixtar/Amway has stooped so far in their ongoing quest to build a case against team, where there is no case. Remarkably Quixtar had an employee banquet scheduled at the Lansing center the same night as ladies leadership. Their banquet room was set up with tables and chairs but no banquet. Quixtar employees were milling about the common atrium area trying to spy on, and pump TEAM lady leaders for information that can be used against the TEAM.

One of their favorite haunts believe it or not was the ladies rooms (how low can you go). Now the TEAM employee’s who organize and man the event (You guys and girls are awesome by the way) wear red shirts to make it easy to recognize them in case someone needs help. which apparently Q legal needs all the help they can scrape the bottom of the barrel for. Amazingly some of the Q spy’s changed into red shirts to trick TEAM ladies into divulging information about a competing business that doesn’t exist. YOU GUYS AT Q PICKING UP WHAT I’M PUTTING DOWN, NO COMPETING BUSINESS.

What amazes me is how low this company is stooping, I mean the ladies room?? Come on! Setting up a banquet room adjacent to the ladies leadership room? What’s wrong with these people? I think they must be addicted to bad PR. Can’t wait to read all the blogs on this one. Wonder how many new blogs will pop up because of it? Hope it comes up in court somewhere, what Q made their employee’s do, I mean talk about embarrassing.

My dad was a business man all his life, He always told me never ask your employee’s to do anything that your not willing to do yourself. This is just another example of the so called management at Q’s cowardice. I believe most everyone who here’s about this will loose whatever shred of respect they have for that company. How can you respect people that don’t respect themselves. Q has hit an all time low. Mr. Mohr just what rock did they find you under anyway.

Just thought y'all should know! Thank you IBO Minute Man!

Renewal Time Fast Approaching

noreply@blogger.com (Hurting Inside) — Sat, 15 Dec 2007 15:52:00 +0000

Hello all!
I just wanted to do my duty and remind you that it is time to renew your Amway business! I just didn't want anyone to forget!

Below is quoted text from an email sent from Amway. (surprisingly enough no threats or disparaging remarks were made in the email) Anything in RED is not a quote from the email, and is not necessarily the words, views and opinions of Quixtar/Amway et al. Rather they are just edits I made for clarity and emphasis.

Dear Independent Business Owner,
Dear owned independent,

Our records show that as of the date of this message, you have not renewed your QUIXTAR® Amway® business. Really? I knew there was something ~~I forgot~~ I don't care to do this year. To preserve your business rights and benefits, Do I even have to say anything about that one? I will anyway: "To preserve your employment privileges and lack of benefits," you have to renew it by December 31, 2007 and abide by everything we say regardless of morality. In addition you must build a width model where many people will not succeed and be let down, and you may not EVER under any circumstances try to train your group or develop leadership within people. Just so we are clear DO NOT try and positively affect culture in any way. Don't wait until it's too late! Renew your business today. Because we will show absolutely no leniency in any situation, even if it was an honest mistake. You will be free to start again at the bottom in six months.

You can also renew by touch-tone phone or when you place your next order (yes, we really need your money now more than ever) at 800-253-6500.

When you renew online or by phone, Quixtar will charge $59* to your credit card. To pay by check, download and print the Renewal Agreement (SA-469Q), then mail the completed form with your check to:

Quixtar Inc.
58-C2A
7575 Fulton St. E.
Ada, MI 49355-0001

To make renewal even easier next year, sign up for Auto Renew, this way you can just automatically agree to all of Amway®'s contract changes regardless of what they are. This will make it easier on both you and the corporation, you don't have to read a long piece of paperwork, and we don't have to tell you what you are agreeing to.

All the best for a profitable 2008 (for Amway® of course! cuz we rnt gonna pay yer QBI!!!1!!11!111 one one),
Your QUIXTAR AMWAY Sales Team

PS. Be sure to remind your downline to renew, too. (Even though you cannot recommend what is in their best interests, or we will sue you.) For a list of those who haven’t yet renewed, go to View & Manage Line of Sponsorship and select "Have not renewed," then click the “Display” button. There you will see a list of probably 30,000 to 100,000 people from TEAM alone. (If you are privy to that trade secret information.)

*Includes $50 renewal fee plus $9 IBOAI fee (This is a pointless fee that you pay to support a board that has no power to help you with your business, or protect your employment privileges. Also we need to mention here that it seems as if all of the members of this board who truly care for your best interests, and not only about themselves, have either quit or been fired from this board, thus rendering the board itself pointless to you the owned).

Well all, I hope that helps so that no one misses their renewal date!
Dude, wait... what?

QBI Bonuses, You may not get them!

noreply@blogger.com (Hurting Inside) — Wed, 05 Dec 2007 00:19:00 +0000

This was on Q'Reilly's blog today, and I just thought you all should see it if you havent:

----------------------------------------------------
November, 29, 2007

Quixtar/Alticore
7575 Fulton St. E
Ada, Mi 49355

Re: QBI Bonus and Founders Platinum Bonus

To whom it may concern,

We are writing you today to inquire about our Founders Platinum and QBI bonuses. To date, we have not received either of these bonuses. We have called your company several times to inquire about these bonuses. Each time we have encountered a similar response, “all bonuses affiliated with Team IBO’s are under review”. I didn’t realize the IBO’s affiliated with Team had different qualifications of those not affiliated with Team.

In May of ’07 my husband and I attended your Platinum Conference. We had a wonderful time, and your company laid out the red carpet for us. Your staff and the service went above and beyond to make our stay informative and enjoyable. We were informed there, by one of your staff members, that we were right on track for our QBI and Founders Platinum bonuses. According to our QBI tracking report for August of ’07, we are eligible for that bonus. To the best of my knowledge, 12 qualified months in 1 fiscal year also qualifies us for a Founders Platinum bonus.

We were independent business owners with your company for almost three years. As far as we know, we were business owners in good standing. Therefore, we fail to understand why you are holding our bonuses. As you know, the end of the year is rapidly approaching and we would greatly appreciate a response to this correspondence, in writing, which explains what exactly is being reviewed about our qualifications for these bonuses.

We appreciate your attention to this matter.

Sincerely,

Dominic & Terry Zettel
4093360

------------------------------------------------------
(AMQUIX RESPONSE:)

From: Julie.Savara@quixtar.com
To: TNZETTEL@YAHOO.COM
Sent: Monday, December 3, 2007 2:53:46 PM
Subject: QBI Bonus

QBI money and trips are offered and paid at Quixtar's sole discretion. If you would like to appeal Quixtar's decision not to pay, you may seek conciliation through Quixtar's dispute resolution process.

Julie Savara

Looks like they are still messing with people's lives and withholding bonuses. I know there are some TROs out saying that they cannot withhold the bonuses, but not everyone is protected by them.

UPDATE: Check out SisterSam's great analysis of this on QSSR by clicking the link: http://qssr.blogspot.com/2007/12/sole-discretion.html

Alticor's New MLM

noreply@blogger.com (Hurting Inside) — Tue, 04 Dec 2007 04:11:00 +0000

Note: Please read "Why Bother?" first.

Alticor, the parent company of Amway and Quixtar (which will soon be known as Amway also), is now funding a new MLM company… But wait, it’s not an MLM, it’s a CIC.

That’s like saying it’s not Multi-Level Marketing, it’s Network Marketing.

Here is what the new CIC company, Fanista, has to say about what CIC is:

CIC – DON'T WORRY, NO ONE KNOWS WHAT CIC IS, WE INVENTED IT. So here's what it's all about:

It's short for Common Interest Commerce. It's a way to get paid for things you usually do for free.

Sign up for CIC, free of charge, and right away you can make money doing exactly what you already do anyway – feeding and sharing your passion for entertainment. No strings … it doesn't cost anything to join, and subscriptions to magazines like Birds N' Bloom and Horse Illustrated aren't going to start flooding your mailbox.

Signing onto CIC means you could earn real cash, in three ways:
5% of purchases by friends you refer to Fanista
5% of purchases made by people they refer to Fanista
5% discount on everything you buy at Fanista
[Source: www.fanista.com]

They also admit: “That's where CIC comes in. It's similar to other “refer-a-friend” programs you've probably seen."
[www.fanista.com]
Normally this wouldn’t be something to worry about, but considering Amway’s track record with how they treat its distributors (and in light of recent events) this is not the case. Alticor funding this company means they probably have a strong legal control over the way the company will run.

Before I get into the contract of Fanista I would like to ask some questions and give a disclaimer. Why would Alticor/Amway decide to fund a separate and possibly competing MLM business as opposed to just adding the opportunity as an available option for existing distributors? Will distributors be able to use this opportunity and promote it to their downlines, or will that violate the no compete clause? Why was this company developed entirely in secret? How long have you known that Amway’s parent company was funding a new MLM venture? My Disclaimer: I am not a lawyer, I am in no way making judgment on the legality of the Fanista.com terms and conditions nor am I making recommendations to anyone. That being said here is my opinion on the contract:

One of the first things that caught my eye:

Whether you are a “Visitor” (which means that you simply browse our Site) or you are a “Member” (which means that you have registered with Fanista), this Terms of Use Agreement sets forth the legally binding terms for your use of our Site. YOUR USE OF OUR SITE CONSTITUTES YOUR AGREEMENT TO BE BOUND BY THE FOLLOWING TERMS AND CONDITIONS. PLEASE READ THEM CAREFULLY BEFORE USING THE SITE. IF YOU DO NOT AGREE WITH ANY PART OF THESE TERMS OF USE, YOU MUST NOT USE OUR SITE.
[Source: www.fanista.com]

Now I’m sure this is just legal mumbo jumbo; however, I did find it interesting that not only are they trying to control the “Members” who have stated they have read and agreed to the terms, but also just the casual site visitors. Also as a side note, one must “use the site” in order to even access the terms thus violating that they must read the terms before using the site.

Our Site is intended for access and use solely in the territory of the United States, and we will not ship product outside of the United States.
[Source: www.fanista.com]

The Fanista opportunity will only be available in the U.S.A.

We reserve the right, in our sole discretion, to refuse service, terminate accounts, cancel orders, refuse to post or remove any posting by you, or to restrict, suspend, or terminate your access to all or any part of the Site at any time, for any or no reason, without notice or liability.
[Source: www.fanista.com]

Now again I’m sure this is probably a pretty standard contract; however, doesn’t it make you feel warm and fuzzy inside knowing that if you build up a significant income through Fanista and decide to make it your sole source of income that they can easily terminate you “for any or no reason, without notice or liability[?]”

Members may not provide false, inaccurate, deceptive, misleading or deceitful reviews or recommendations.
Source: www.fanista.com]

The same way Amway sent out an email to tens of thousands of IBOs with the “inaccurate, deceptive, misleading [and] deceitful review” of Orrin Woodwar, Chris Brady, and Team’s business building practices? Just curious…

In addition, you may not create or post reviews or any other content on the Site that (1) contains threatening, libelous, defamatory, obscene, indecent, lewd, or inflammatory material; […] (5) consists of or contains political messages, commercial solicitation, chain letters, mass mailings, or any other form of "spam";
[Source: www.fanista.com]

Why not? Oh, I get it! This is one of those do as I say not as I do things. Let’s read on:

You agree to compensate, hold harmless, and defend us from any claims, damages, losses, liabilities, costs, and expenses, including attorneys’ fees, resulting from your use or misuse of the Site in violation of these Terms of Use.
[Source: www.fanista.com]

So let me get this straight now we have to defend you even if you are in the wrong? That sounds familiar.

You accept sole responsibility for any unauthorized use of this Site conducted with your Identifiers.
[Source: www.fanista.com]

If your security fails to thwart a hacker/cracker, and my login name is stolen and utilized, Fanista will do nothing about it? I know that is a stretch, but why should I be responsible for the actions of a cracker?

WE MAKE NO REPRESENTATION OR WARRANTY WHATSOEVER REGARDING THE COMPLETENESS, ACCURACY, CORRECTNESS, INTEGRITY, RELIABILITY, CURRENCY, ADEQUACY, SUITABILITY, FUNCTIONALITY, AVAILABILITY, OR OPERATION OF THIS SITE OR THE CONTENT, FEATURES, OR APPLICATIONS PROVIDED ON, OR ACCESSIBLE FROM, THIS SITE.
[Source: www.fanista.com]

Well we already know that correctness and integrity are not Amway’s best areas of focus, but I wonder if features includes payment to distributors.

IN NO EVENT WILL WE BE LIABLE, NOR DO WE ASSUME RESPONSIBILITY, FOR ANY DIRECT, INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN CONNECTION WITH THE USE OR INABILITY TO USE THIS SITE (OR THE CONTENT OR SERVICES PROVIDED ON, OR ACCESSIBLE FROM THIS SITE), OR OTHERWISE, EVEN IF WE ARE ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
[Source: www.fanista.com]

Now this sounds exactly like Amway. Chris and Orrin: We are giving you warning of the possibility of damages to your company and to all the IBOs. If you don’t make adjustments to the pricing and the business model things may end up very bad for the IBOs you’re supposed to care about. Amway: Not only do we not care, we accept no liability for any harm done. We, like Pontius Pilate, wash our hands of this.

any suggestions, ideas, concepts, material or other information you submit to, or send via, this Site (“Submissions”) shall become, and shall remain, our exclusive property.
[Source: www.fanista.com]

So they plan on owning your intellectual property here as well as trying to control and approve who can write and sell books in Amway.

Posting Comments, comments on other Members’ Comments, your profile, and other comments on the Site grants to Fanista a royalty-free, perpetual, irrevocable, and fully transferable right to use, reproduce, modify, adapt, publish, translate, create derivative works from, distribute and publicly display such content, in whole or in part, throughout the world in any media now known or later developed.
[Source: www.fanista.com]

So now not only do they own your intellectual property and comments, but they also have the right to “modify [and] adapt” them twisting your words as the see fit. B-E-A-utiful.

Oh, by the way, think that they have to notify you when the get “fat and happy” and decide to change the deal?

We reserve the right, in our sole discretion, to change these Terms of Use at any time. Updated versions of the Terms of Use will be posted here on our Site and are effective immediately. […] Continued use of the Site after any changes to the Terms of Use constitutes your consent to such changes.
[Source: www.fanista.com]

Nope! If you continue to “use” the site you automatically agree to any new terms they cook up… Like a name change from Quixtar to Amway? Or like a change in commission from 5% to .005%? Who knows?!

Those sections of the Terms and Conditions apply to the members (like Quixtar/Amway customers) and visitors (everyone who ever types www.fanista.com into their browser and looks around) only. The regular and premium participants in the CIC program must also abide by those guidelines, yet have a set of even further guidelines they must adhere to. I will take a look at some of these “Rules of Conduct” below:

These Rules are designed to preserve the benefits available to all Participants under Fanista’s CIC Plan.
[Source: www.fanista.com]

I thought that is what the IBOAI was created for until they failed to have the power to protect the IBOs. Well, at least it is in a contract this time, for participant protection, and that can't be changed right?

The relationship formed between Participants and the Company includes, without limitation, the following: (1) the terms and conditions set forth in the Fanista CIC Registration Agreement; (2) these Rules of Conduct, including the CIC Plan and agreement to arbitrate, and (3) the Terms of Use posted on the Fanista.com Web site. The same, along with any pricing and fees, may be modified, supplemented, or amended from time to time by Fanista without prior notice.
[Source: www.fanista.com]

Oh that's just great, not only can they still change the rules at any time without giving prior notice, but the participants cannot take them to court, they still must arbitrate. "Preserv[ing] the benefits available to all Participants" my shorts!

2.4 Company shall mean Power of Entertainment LLC dba Fanista, or any of its affiliates, subsidiaries, and related companies, unless otherwise specified.
2.5 Customer shall mean a person who makes a purchase from Fanista, but who is not registered within Fanista as an RU or as a Participant.
2.7 DownLink shall mean any persons beneath a Participant in Fanista CIC. A Premium Participant’s DownLink may include RUs, Customers, and Regular and Premium Participants. A Regular Participant’s DownLink may include only RUs and Customers (Regular Participants may not sponsor other Regular or Premium Participants).
2.10 Participant shall mean a Participant in Fanista CIC. Participants are classified as Regular or Premium.
2.19 UpLink shall mean the Participants above a given Purchaser who are in such Purchaser’s LOS, and therefore entitled to receive commissions as a result of such Participant’s activity, subject to these Rules.
[Source: www.fanista.com]

Just so we are clear, when the contract says "company" that means the LLC that owns Fanista, but it also says that it means "any of its affiliates, subsidiaries, and related companies." So that basically means that Fanista is Amway, Quixtar, Alticor and Power of Entertainment LLC. (Or at least just Alticor and PoE LLC) So whenever they say, "the company" decides this and that it may mean Amway put pressure on them to choose this, or Amway flat out decided it. (You have a lot of power when you are worth billions and say either do it our way or you lose your funding. So it would seem.) On a small side not I like the flashy new terms of "uplink" and "downlink" to replace Amway's terms of "upline," "downline" and "legs." (In keeping with replacing MLM with CIC)

2.8 [...] (ii) the First Tier Commission will generally be 5% of the Purchase Price. If the purchaser is a Premium Participant, the First Tier Commission is the discount granted to the Premium Participant on his/her purchase.
2.17 [...] The Company anticipates that the Second Tier Commission will generally be 5% of the Purchase Price.
[Source: www.fanista.com]

Wow! Don't you just love that YOU can "anticipate" to make "generally" five percent?

3.3 Acceptance or Rejection of Registration. The Company reserves the right to accept or reject any Participant registration without cause. The Company may terminate any Participant’s CIC participation or status at any time in accordance with Rule 6.6.
[Source: www.fanista.com]

Blah, blah, blah... We already know that you can terminate whoever you want for no reason other than to cover up your wrong doings. You did it with plenty of your IBOAI board in Quixtar, you did it with the Diamonds in GB with Amway. WE GET THE POINT! YOU OWN YOUR PARTICIPANTS!

3.5 Resignation. A Participant may resign at any time by sending written notice to the Company. A Participant who resigns may immediately register as a Fanista registered user without complying with the Six-month Inactivity Rule. However, a Participant who resigns may not register again as a CIC Participant under a different Sponsor unless such resigned Participant remains inactive for six months (Rule 6.5).
[Source: www.fanista.com]

So a participant can be terminated without cause or warning, but to resign written notice must be given. I wouldn't want to be "resigned" if some random person called up, but why no appeal and written notice of termination? Also I see that the six month clause is still in effect with Amway's new venture.

3.7 Use of Companies, LLCs, LPs and other legal entities. A Premium Participant may own and operate his or her independent business through a legal entity, such as a corporation, limited liability company, limited or general partnership, or trust (collectively, a “Legal Entity”), provided the Participant complies with the requirements and conditions of this Rule 3.7. To do so a Premium Participant must initially register as an individual, and then transfer this registration into a permitted entity in accordance with this Rule. Regular Participants are not permitted to own or operate their Fanista business through Legal Entities.
[Source: www.fanista.com]

This may not mean a whole lot other than you have a lot less self protection when operating as an individual rather than LLC. Also the IRS will generally look at your taxes differently with a schedule C. (I don't know much about this and again am not implying or giving advice.)

3.7.2 The sole business purpose of the Legal Entity must be the operation of the independent business allowed under these Rules. The Legal Entity may conduct no other business.
[Source: www.fanista.com]

This means that if you did choose to have an LLC own your Fanista business you must do nothing else with that LLC.

3.7.4 No change in ownership or management of the Legal Entity may be made, and no agreement or arrangement affecting control of the Legal Entity by the Participant seeking approval of such Legal Entity may be adopted, without application to, and the prior written approval by, the Company.
[Source: www.fanista.com]

So not only does Fanista/Amway now own the participant, they own any company or LLC that acts as a participant. That's right, your company cannot fire any management, they also can't quit, you cant change ownership either, Fanista/Amway owns your company and all of its employees if your company holds the Fanista Partisipantship. Sounds like that would violate the employment rights of your management, but appartently Amway, the company that use to tout free enterprise, doesn't care. They want free enterprise for themselves and none other now.

4.1 Abide by the Business Guide/Amendments/Duty of Good Faith.
[Source: www.fanista.com]

Where was the good faith when Orrin and Chris asked for a peacefull seperation from scAmway? Woops... It's getting late and I slipped and said "scAmway" instead of "Amway." Something I have never believed until mid August 2007.

4.2 Use of Media. Participants may not use any broadcast communication methods including mass mailings, telemarketing, national or international advertising, radio, television, facsimile services, computer communication networks including the internet, or any other means by which personal contact is not present to secure Customers or DownLinks or to solicit the sale of Products.
[Source: www.fanista.com]

Again, do as I say not as I do. Also this means that "computer communication networks" such as like MySpace.com or facebook.com cannot be used to advertise your Fanista venture. Oh wait it didn't say "like MySpace.com or Facebook.com" it did say "including the internet." Well I guess Fanista participant's cannot show the plan, or contact, or recruit, or advertise in any way over the internet, and that must include email, instant messaging and websites. Ouch.

4.6 Professionalism. A Participant shall at all times conduct himself or herself in a courteous and considerate manner and shall not engage in any high-pressure tactics, but shall make a fair presentation of the Company’s products, services, and/or CIC Plan, when and where appropriate.
[Source: www.fanista.com]

Why should your participants not engage in "high-pressure tactics" when you, like Amway, are just goint to do it later on anyway. You are either with Quixtar or with Team, give us a signed statement of your loyalty to Quixtar by our deadline. Ring any bells?

4.6.2 A Participant shall at all times make a fair presentation of the products, services, and CIC business opportunity. 4.7 Participant Relationship. Participants are independent contractors whose relationship to the Company is defined by these Rules and the other materials described in Rule 1 (Introduction) above. A Participant may not (i) represent that he or she has any employment relationship with the Company or any of its affiliated companies and/or other Participants, nor (ii) refer to himself or herself as “agents,” “managers,” or “company representatives,” either orally or in stationery or other printed material.
[Source: www.fanista.com]

Just so you know, even though the company owns you once you agree to the contract, you cannot imply that you represent their interests.

4.9 Other Selling Activities. Except as provided in this Rule 4.9, Participants may engage in other business ventures, including other selling activities, involving products, services, or business opportunities not offered or marketed by the Company. However, Participants may not take advantage of their knowledge of or association with other Participants whom they did not personally register, including their knowledge resulting from or relating to their individual lines of sponsorship, in order to promote and expand such other business ventures. [...] Use of the LOS or any other knowledge obtained through the Company’s CIC program to market products, services or business opportunities not offered by the Company constitutes an unwarranted and unreasonable interference with the business of other Participants and the Company.
[Source: www.fanista.com]

So we can pretty much join any other MLM or business or job we want as long as we never, ever tell any Fanista LOS member? I am confused. This means I can't ask my Fanista LOS to join Amway, but according to Amway's current rules not only can I probably not participate in Fanista but I had definately better not ask other Amway ABOs to try Fanista. Wow, so I can work at a retail store, but if I dare ask someone I met on Fanista to shop with me I meet legal risk? This is starting to get complicated. (At least for a simple mind like mine.)

4.9.2 Nothing in this Rule 4.9 restricts, for example, a Participant regularly engaged in the operation of a service or retail establishment from serving clientele who may be Participants or Customers and who have sought them out.
[Source: www.fanista.com]

Well that relieves me, if they seek me out I am good to recomend them to anything... Wait a minute, how can one prove who sought who out? Also didn't thousands of the members of TEAM seek out Orrin and Chris? Amway didn't seem to like that anyway.

4.13 Accurate Personal/Business Information. All Participants shall provide the Company with accurate and current personal and business information [...] The Company may withhold payments from any Participant who fails to provide such information on demand by the Company.
[Source: www.fanista.com]

Don't give Amway... excuse me, Fanista, the information they want... They won't pay you.

5.4 Premium Participants. Premium is the highest publicly available status in Fanista’s CIC system. Premium Participants receive commissions on the purchases of Customers, Regular or Premium Participants sponsored by the Premium Participant. In addition, Premium Participants are entitled to discounts on purchases for personal use equal to Fanista’s then-available Lower Tier Commission. The Company may, but is not required to, provide other customer solicitation tools for Premium Participants.
5.4.1 To achieve Premium status a Regular Participant must earn at least $5.00 in Commissions within a 12 month period. To maintain such status a Premium Participant must earn at least $5.00 in commissions within a 12-month period.
[Source: www.fanista.com]

Still sounds just like MLM (possibly worse due to the commissions not being near as high, and the bonuses being... well.. non-existant) so why try and fancy it up with the coined phrase CIC?

5.5 Other CIC Status Levels. The Company in its sole discretion may provide additional compensation to individuals it selects because it believes they provide unique value to the CIC program.
[Source: www.fanista.com]

WE CAN CHOOSE FAVORITES INSTEAD OF BEING FAIR TO EVERYONE!

6.3 LOS Impact of CIC Participation. Regular Participants may not sponsor other Regular Participants. When an RU or Customer elects to sign up for CIC (a “New Participant,” his/her UpLink will be modified as follows.
6.3.1 When RUs or Customers elect to become Regular Participants (e.g., elect to participate in the Fanista CIC program) a Premium Participant Sponsor of such New Participant will retain such Sponsor status. However if the Premium Participant sits in the LOS two levels up from the New Participant, such Premium Participant can retain such status only if the Sponsor between the Premium Participant and the New Participant is himself or herself a Premium Participant. If the Sponsor between the Premium Participant and the New Participant is a Regular Participant, the Premium Participant sitting two levels up will lose his LOS connection to the New Participant. Premium Participants do not “inherit” New Participants losing their LOS Sponsors as a result of these rules.
6.3.3 The impact of this rule on Regular or Premium Participants is not reversed as a result of changes to the status of the New Participant. For example, if a person becomes a Regular Participant and thereafter loses Regular Participant status, his or her prior LOS is not revived or resuscitated. Upon loss of such status the New Participant reverts to Customer or RU status, and is again free to choose his or her UpLink at any time, and to change such UpLink designation at any time.
6.5.1 When a Participant is inactive for a period of at least six months his or her CIC registration shall automatically lapse.
[Source: www.fanista.com]

Meh, just thought ya'll should know.

“CIC Promotional Activities” shall include any actions that further or promote such person’s CIC status or LOS, such as any of the following activities.
6.5.3.1. presenting the CIC plan to any prospective Participant;
6.5.3.2. making any CIC related filings with the Company (such as registration forms);
6.5.3.3. attending or conducting any recruiting, training, or motivational meeting conducted or sponsored by the Company; and
6.5.3.4. accepting or receiving any commission payments, other than commissions earned prior to the beginning of the inactivity period.
[Source: www.fanista.com]

Two quick things. 1. Remember that when Fanista recruits on its site it says, "Remember, signing up costs zilch. There is no secret handshake, no meetings to attend. Just a chance to earn money doing what you already do," but now it implies that participants will be attending meetings. (Not a huge deal, most of us know that it is imperative to attend leadership development meetings to develop ourselves into the type of good, moral leader who can succeed at network marketing and at life in general.) So let's move on to the next point: "Accepting or receiving any commission payments" will automatically mean that you promote Fanista. Yes, not just cashing the check, but if they issue you one at all you are promoting them. So be carefull not to earn a check.

7.2 Sale of Support Materials. Participants may not sell or offer to sell Support Materials to prospects (including RUs or Customers), nor require the purchase of Support Materials as a precondition to becoming a Participant, RU or Customer.
8.1.5 Participant shall use only Company-produced and Company-authorized Support Materials.
[Source: www.fanista.com]

So, NO you cannot build your income your own way and train your friends and family on the best way to do it. Also, NO you cannot create another TEAM which will become the fastest growing organization in Fanista. Fanista/Amway want you to do it their way or not at all, regardless of whether they would like to promote the broken "width" model instead of something that has actually been proven to work (even with a crappy company with awful prices instead of a good company) over the past eight years.

10.1 Participants waive all rights to jury or court trial to resolve any dispute arising from or relating to these Rules or the CIC Plan except as expressly set forth herein.
[Source: www.fanista.com]

So don't even try it TEAM!

Now, posibly the most important lesson Fanista/Amway should learn for themselves:

Once a trademark is weakened or lost, it is impossible to regain its full value and importance. Therefore, the Company makes every effort to protect its trademarks, its corporate logotype, label designs, and various product names so that others cannot use them.
[Source: www.fanista.com]

O RLY? Then why the heck go to all the trouble to anger all the IBOs in Quixtar and change the name back to Amway in prayers that you can somehow salvage the Amway name in the US, which will never happen, answer that Alticor! Seriously, what is with all this legal, name save, Amway it more well known that Quixtar even though it is hated much more, mumbo jumbo? You just admitted that you can't win, why act like total donkeys about it instead of just sucking up your pride and going what is best for IBO.. now ABOs? You have nothing to be proud of anyway, American Way, or whatever, is not yours. It doesn't even exist anymore. The glorious dream of Amway that belonged to its founders was crushed when the sons or lawyers took over. Who's in charge over there?

Anyway, I was going to go into the Privacy Policy a bit, but it is about time I end this post.

To my readers: I am sorry it is so long in between posts. I am just not good at this blogging thing yet.

One way quixtar betrayed its loyal IBOs

noreply@blogger.com (Hurting Inside) — Tue, 20 Nov 2007 22:15:00 +0000

Note: Please read "Why Bother?" first.

One of the first ways Quixtar betrayed its loyal IBOs:

Some of you (probably not most) may be wondering why I have used the terms Quixtar/Amway together or interchangeably. The reason for this is that Alticor/Quixtar/Amway, or the lawyers possibly controlling the companies, have decided to dissolve the Quixtar name in the U.S.A. and revert to less loved name of “Amway.”
Source: WOOD T.V. Grand Rapids, MI

Yes, that means that over the next 18 – 24 months, from June when the decision was made, Quixtar will become permanently known as Amway. It still does not cease to amaze me how many IBOs (now possibly ABOs) have no idea that the company is changing its name to Amway. These same IBO/ABOs may not even realize how hard an Amway business may be hard to promote in North America. They also probably do not know that when they renew their Quixtar/Amway contracts at the end of the year, many automated renewals, the rules can and probably will be switched on them. Most of them do however, realize what a bad stigma the Amway name carries with the general public of the U.S.A.

Personally I did not feel defeated by this. I knew building an Amway business would be harder due to the negative report circling the Amway name. I also understand that I have goals and dreams for my future and I will not let anything stand in the way of reaching them. I just assumed that the IBOAI board had the best interests of the IBOs they represent. What is that you say IBOAI board? You did not approve the name change of Quixtar back to Amway? I was amazed to discover that the name change was not proposed by the IBOAI board, and not approved by the IBOAI board. What was more amazing was when I discovered that all 20 members of the IBOAI board unanimously voted against the name change and the company moved forward anyway. If the IBOAI board is in place made up of IBOs to protect IBOs, and we pay our yearly fee for their input, and the IBOAI board has the IBOs best interest at heart, then why would the corporation make such a rash and hurtful decision against the wishes and best interests of those that make the company as successful as it has been in the past? What is more is how can they make that decision without approval? Is the IBOAI board not specifically put in place to protect IBOs against bad corporate/lawyer level decisions? Let us see what Amway founder Rich Devos has to say about the purpose of the board:

I will add my own comments to the quote below in red. To be very clear, text in red below are not the words of Rich Devos.

“Do you know that before we formed Amway (Quixtar) we formed an association of all of you? You weren’t in it then, but we did. And we setup the Amway Distributors Association (Independent Business Owners Association International) before we ever formed the Amway (Quixtar) Corporation for one very simple reason. That we wanted to make sure that the people who put their time and effort and energy into building an Away (Quixtar) distributorship would have a voice in the sales policies of this company. […] And there is no percentages changed in this company and there is nothing done to the sales plan unless the board of directors of your association asks us, or we ask them and they approve, then it is done. Everything we do is done in consultation with your representatives that meet with us four times a year. We call it the Amway Distributors Association (IBOAI). We did that so you would feel secure (And I did feel secure until recently.) that somebody like Jay or myself (or your sons or the Quixtar lawyers or Mike Mohr), when they got fat and happy or something might decide to change the deal. And so we said before we even got it going we’re going to setup a guarantee (Guarantee… You keep using that word. I do not think it means what you think it means.) that we can’t change the deal. Because if we know we can’t then we won’t even think about trying. (I sincerely believe Rich Devos and Jay VanAndel never wanted to ‘change the deal,’ but apparently the people currently running the corporation didn’t know that they ‘can’t change the deal’ and so they found a loophole and made it happen.) […] Why do you know in all thirteen years of our history, we have never failed to do what the board of your association asked us to do. […] And it’s worked pretty good. (Way to ruin a great track record Quixtar. And it is obvious from overwhelming negative results that when you decided to not do what the board asked it stopped ‘work[ing] pretty good.’) […] Well I’ll tell ya that’s something. When you have that assurance and that protection for your plan, (and how we yearn for it) because a lot of ya have been without because they changed the deal, (and now the company you founded did it to us) just about the time you were gonna make it live for you. So we wanted to make sure that didn’t happen to you. (You did a great job of this while you were alive, but your system didn’t hold up well when you left us.)”
[Rich Devos]

The recording of this speech can be heard by clicking here. Or by copy/paste this link into your address bar in your web browser:
http://www.musicwebtown.com/theiborebellion/playlists/114468/884361.mp3

I will post again shortly to include some other ways I feel IBOs were betrayed by Quixtar and explanations of them.

Why bother?

noreply@blogger.com (Hurting Inside) — Tue, 20 Nov 2007 17:43:00 +0000

I will generally put all quotes in italic.

WWW. Stands for World Wide Whiners.

Misinformed – I was misinformed for a long time about the power the IBOAI had.

Ignorant – I was ignorant of the fact that IBOs had been pleading with Quixtar/Amway for years to create a competitive pricing structure for their products.

Fired – Over 1/3 of the IBOAI was fired from Quixtar/Amway when they decided they would resign if major changes were not made to bring back the company they once supported.

Failed – I have failed at many things in life, and am not afraid to admit this. But then, who hasn’t failed? I am “failing forward” and continuing to keep my dreams in sight.

Envious – I am envious of those who didn’t have their hopes brought up so high and believed in a company so much only for the lawyers of the company to change the company into something horrible that turns its back on its biggest promoters.

Desperate – The only thing I am desperate for is to understand how what used to be such a great company could turn so foul over such a short period of time.

“The internet is full of gutless, spineless, faceless people that won’t even put their real names on the bathroom wall.”

I am not currently going to reveal who I am either. Gutless, spineless? Yes, probably because I am afraid to get stomped on by the large boots of Quixtar/Amway. Quixtar lawyers decided that they really don’t care for the first amendment to our country’s constitution. Quixtar’s lawyers decided they were going to begin to sue internet bloggers for expressing their opinions on the corporation.

Source: ABC News.
Court Document Here.

So, until they lose the court battle they are waging against the first amendment rights of the internet bloggers I will remain Gutless, spineless and faceless as best I can. I will NOT; however, be called heartless.

Why you should read this blog:

“We think of ourselves a logical, but really what we are is we are emotional beings that use our logic to justify what we’ve decided to do emotionally. Now, we don’t like to admit that. We like to say, ‘Not me, I look at all the facts.’ Well in fact we really don’t look at all the facts.”
[Jerry Meadows]

The reason this blog should be read is because I was so emotionally engrossed in what I was doing and how I felt about Quixtar/Amway that I used to ignore facts on a consistant basis. I have setup this blog for those seeking truth, and seeking facts. I am not perfect, nor will my blog be perfect, but I will strive to bring truth. The reader must just decide to listen.

Remember the biblical story of the day Jesus was sentenced to the cross. Jesus was bringing truth to those who would listen. (Am am in NO way comparing myself to Jesus. It is the point in the story I am getting at.) Many of you believe and would admit that Jesus truly had truth and was willing to share it. However, there were an overwhelming number of people who did not want to listen to the truth Jesus held, and instead screamed for and demanded the release of the murderer Barabaz over the release of Jesus.

“If I tell you the truth and you don’t believe it, what’s that make it? […] No, it doesn’t [make it a lie]. It makes it the truth you don’t believe.”
[Jerry Meadows]

In my next post I will explain how I feel we were betrayed by Quixtar/Amway and the lawyers that are running the company now. After that I will also post more about our story and about how we went from being non-team affiliated IBOs to Team IBOs and possibly very shortly to ex-IBOs still learning to develop ourselves using Team's leadership development system.