Monday, August 20, 2007

Quixtar/Amway's Trade Secrets Revealed!

Quixtar had a judge put a gag order on the Mighty 15 for revealing “confidential information and trade secrets which the Defendants could only have learned as a result of their membership and activities on the IBOAI Board.”

I believe that Quixtar is claiming that the 48 page legal complaint filed in Los Angeles revealed trade secrets of Quixtar. Well, I hate to break it to them, but it was not really all that much of a secret. Anyone who rummaged through Quixtar's site to see what the prices were like knew everything was overpriced. Maybe they are referring to the trade secret that they knew that IBOs could not retail their products and comply with the 10 customer rule. Everybody else knew it, I would assume they would too.

I remember reading the "business manual" (I forget exactly what they call it) with all the official legal instructions in it. I came across the "10 customer rule" and ran to my (then) Platinum concerned that I would not make any money until I could get 10 customers every month. He told me that they didn't enforce that rule and that no one really had 10 customers, so they couldn't enforce it, or chance losing everyone.

Well, it looks like they are chancing losing everyone now. I wonder how many auto-renew's have been turned off (log in : Build & Manage My Business : Register and Renew : Auto Renew : Way down at the bottom, check "cancel auto renew"). They are trying to strong arm Platinums and above into affirming their loyalty to Quixtar (against all Quixtar rules from what I understand). Some of these Platinums and above will stay with Quixtar. Some will reluctantly stay, for now. Some will leave as soon as all the legal mess is cleared up. Some will just get fed up and leave. There are very few actual leaders that will stay and not have a bad taste in their mouth.

If all they had to do was lower the prices, wouldn't it have been worth it? Instead, they risk losing 30% (they say these groups represent 40% of the IBOs, but I don't think all will follow them) of their most valuable IBOs. I would think a 10% cut in prices would be better than losing 30% of your business, plus all the bad feelings and resentment being built up.

In the complaint filed in Los Angeles, they say there is a "Jay Factor," (probably the real trade secret they are referring to) or about a 30% cut that goes to the families of the founders. They are now risking having 1/3 of that disappearing. Huh, that would be 10%, the 10% they could have given in good will as a price discount. The 10% that would have sparked belief in the leadership that Quixtar is a viable business that listens to its customers. That the IBOAI board still has some influence.

Well, my guess is that in the short term, those families would lose 1/3 of their income in either case. Maybe they should have taken the high road of customer satisfaction. Maybe they should have trusted the people actually in the field. The people who had their fingers on the pulse of the "customers."

Its a shame to see them paint themselves into a corner, and then feel like they have to viciously try to hold it all together with threats. Maybe they should have read some books on Leadership. Anybody want to send them a copy of Launching a Leadership Revolution?


Tour de Life said...

Actually they should read "An Enterprising Life".

Ed Manley said...
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