Thursday, February 28, 2008

QUIXTAR: Email on 2007 sales, protecting the LOS, building for the future

Original Source

Important news from Steve Lieberman – 2007 sales, protecting the LOS, building for the future
To qualified Platinums, Sapphires, and Emeralds

Dear Leader:

Thank you for your ongoing commitment to the QUIXTAR® business opportunity. 2007 was a year of great change as well as great success for the QUIXTAR business, and 2008 promises to be no less exciting.

As you know, we took steps in 2007 to protect the integrity of the QUIXTAR business for all IBOs by terminating the businesses of 15 Independent Business Owners who refused to change unacceptable practices and/or blatantly violated our rules. The businesses affected were part of the Team training organization or other training organizations using Team’s training materials.

Certain leaders of these organizations recently announced their intent to align themselves with a competitive direct selling business. It’s important to remember that they remain subject to significant restrictions related to their termination from Quixtar and remain exposed to potentially significant sanctions should they violate them.

It’s critical that all QUIXTAR IBOs and former IBOs understand the importance of protecting the foundation of the QUIXTAR IBO Compensation Plan – the Line of Sponsorship (LOS). We have rules in place to protect the use of the LOS within your business, which provides significant value to the IBOs who are committed to the QUIXTAR business and the time and effort of IBOs in building the LOS. Quixtar’s Rules of Conduct require IBOs to wait six months after leaving Quixtar to join or start another direct selling business and prevents them for two years from soliciting other IBOs to compete with Quixtar.

The "non-compete" clause was added to Quixtar’s Rules in 2004 with IBOAI input and recommendations. It was communicated broadly to all IBOs through various vehicles.

We take LOS issues very seriously because the LOS is the root structure of the QUIXTAR business. If you or anyone in your group is approached by any former QUIXTAR IBO regarding another direct selling opportunity, please take the time to make Quixtar aware of this contact. You may email the details of any such solicitation to HYPERLINK "mailto:qbcr.department@quixtar.com" qbcr.department@quixtar.com

Your assistance in this matter serves to protect the integrity of the QUIXTAR business for all IBOs and helps ensure the long-term success of your independent business. The hard work and dedication of hard-working IBOs like you would be in vain if we did not make every effort to protect the LOS. We appreciate your partnership in preserving the LOS, just as we value all that you do for the QUIXTAR business.

The efforts of hard-working Independent Business Owners like you propelled Quixtar’s 2007 sales to more than $1 billion for the fifth straight year. Thanks to the sales you generated, Quixtar was the #1 online retailer in Health & Beauty for the fourth consecutive year, according to  Internet Retailer magazine’s 2007 guide to the Top 500 on the web.

2008 is now in full swing and so is our business transformation, leading to unprecedented improvements in all aspects of this business opportunity. A major part of that transformation is rebranding our North American business to better leverage the awareness and power of the nearly $7 billion AMWAY® global business.

The rebranding is much more than just a name change. We’re looking at how we can improve every aspect of our business, including products, compensation, training, and reputation.

We’re creating more products that customers want to buy and that IBOs want to sell. We’re supporting these brands – and the business opportunity – by investing in a multimillion-dollar advertising campaign, and through high-profile sponsorships, podcasts, web ads, and other multimedia vehicles.

To help you make the most of the increased awareness of the QUIXTAR business opportunity and our product brands, we’re offering more training than ever before. QUIXTAR University offers both instructor-led and online training, along with our training, selling, and presentation kits, all designed to help your retailing efforts.

To better reward you for your efforts and incentivize you to take your business to greater heights, we’ve invested an additional $60 million in the QUIXTAR Business Incentives Program.

We’re committed to telling our story and sharing why this business should be the business opportunity of choice in North America. We’re proud of our global One by One Campaign for Children, through which more than $52 million and more than 800,000 volunteer hours have been donated to over 5.5 million children since the campaign’s launch in 2003. We’re proud to be a member of both the Direct Selling Association and the Better Business Bureau. And we’re especially proud of the 49 years of history behind our company and our proven sales plan. For all of these reasons and more, we’re creating a new Amway – one that you will continue to be proud to be associated with and eager to share with others.

Please look for more exciting news in the coming days and weeks about all the innovative ways we’re transforming this business, supporting you, and making this opportunity stronger and more profitable for all IBOs.

Thank you for your dedication. We look forward to working together to preserve and strengthen your business for years to come.


Steve Lieberman
Managing Director
Quixtar Inc.

7 comments:

Anonymous said...

I thought the point to the LOS was to cut the 7million in advertising?

Anonymous said...

I love how Quixsand makes the LOS sound like McDonalds "secret sauce" Hello its Thousand Island! LOS. Hello it's your friends and families names! Yes the "structure" of the LOS can be compared to a passenger jet. It still needs people to buy a ticket to keep it going. Quixsand acts like their LOS is something new. I've been advertising to my friends and family for years now. Now they are attacking an old IBO in another business, and I bet it has to do with the "secret sauce". Whats next? Quixsand will claim that people never even spent money on goods and services before they came along. They need to give it rest they are the new "K-Mart" of the 21st century and the TEAM in time will be the new "Walmart". OMG putting some names on a spredsheet is "Top Secret".

Keith E. said...

Anonymous,

This is NOT meant to be a bash on you, so I will appologize up front if what follows offends you or anyone else out there.

It's getting kind of silly out there, even to the point of saddening, that so many people are screaming foul over such triffle things. Don't get me wrong here... what Q is "doing" is reproachable! The problem is that as far as the No Compete clause is concerned, it "is" in their contract and while there is a "slight" possibility that their slipping it in after some had already been IBOs could raise questions... that fact does not automatically make the clause void. Remember, "ignorance" of the rules or laws does not remove the responsibility to obey them. Each of us upon renewing were required to put a little check mark in the box labeled "I have read and understand". Unfortunately, too many people simply check the box, enter their name (their "electronic" signature) and hit submit. Additionally, let's not make the same mistakes we are accusing the Q of making... ensure that what you are posting is accurate and factual. For the vast majority, the six month non-compete is exactly that: six months then you can do as you choose. For a select few, like the Woodwards and the Bradys, it has been extended by the legal system... whether right or wrong. The above mentioned have chosen to do the right thing and simply wait out the extra 45 days, would you not think that is the right thing to do? As for the non-solicitation, again, check the facts. the rule states that you cannot use your connections with the Q and the knowledge gained through "their" LOS to "approach" people whom you would not have otherwise been associated with. Pretty simple in fact, if the only way you know them is because they became part of your downline then they are off limits for "you" to "approach them". The exemption to that would be one of two things... 1) if they were "personally" sponsored by you, meaning you already had a relationship with them "prior" to their (or your) becoming an IBO you are allowed "after the 6 month wait" to approach them. 2) If "they" approach you with no coercion(sp?), meaning they come to you and ask what "you" are doing with no prodding from you or anyone else on your behalf.

Believe me, I am just as irritated as you at the antics from Ada. There is ABSOLUTELY no excuse for their behaviour! But, as we have all been tought by "true" leaders: Right will stand up against wrong and in the end will be the only one left standing. temptation will try to get you to "react", which is what Q wants us to do... react without thinking and show the rest of the world that we are no better than they. We are to be a light for a flailing world and as such "must" be very careful to keep our feet firmly planted on the side of right, no matter how long or how difficult.

Anonymous said...

Keith, Sorry to dispute the non-compete issue with you but you came to the wrong conclusion. My original contract did not contain the non-compete. Neither did the 400 or so people we put in the business that year. They renewed me with my Platinum bonus and did not notify me of a change. Sure the company published the new rules on the bathroom walls in Ada, but did not notify me. Once dependant on their income you are trapped into the “new” contract. How would you like your bank to do that with your mortgage? Sure everyone since 2004 should have read their contract but we have a huge team that was developed before the wall of socialism was written. I have sat by and waited my 6 months and it is now time to tear down the wall and let out everyone move on. Johnny-D

Keith E said...

Johnny-D,
Not a problem "disputing" with me. That's the difference between "us" and "them". We can speak freely and express our thoughts and opinions without fear of recourse. As for your argument, You are correct... if you have sat out the 6 months then your wait "should" be over. (that is as long as Q/A plays by the rules they are so vehemently trying to enforce! and just for the record, I am NOT a Q/A spy or sympathyzer... I am one of the damaged "cattle" like the rest of you. Just wanted to make sure nobody thought I was taking their side in this!). While their "may" be a legal argument over the "notification" issue with individuals who are automatically renewed by virtue of their level in the business, I am not real sure that would be something I would bet the farm on. Historically, the courts have found that the responsibility rests with the person signing the contract to ensure that they fully understand that contract before actually signing it. I believe that part of the problem here is the fact that Q/A has had the "authority to change" clause in the contract for many years. that in and of itself allows them to change the rules at will without having to prove notification. I could be wrong (and it wouldn't be the first time either!) but I seem to recall hearing or reading about a similar issue where the simple fact that a "terms and Conditions" agreement was posted on a site and it's existence there being common knowledge was enough to satisfy the notification issue. As well, I will refer back to the "ignorance" statement... "ignorance of the rules or laws does not relieve you of the responsibility of adherence to..." This is something that holds true across the whole spectrum of law and can be as simple as being ticketed for making a U turn in a town you have never been to before even though you didn't know it was illegal to do so. the courts hold "you" responsible for knowing the laws of the area you are in.

Lastly, your example of a mortgage company does not apply... unless of course they have a clause in the mortgage that specifically states that they can change the contract at any time. Again, even if this was a valid comparison, if I don't "read" the document and make sure that "I" understand "everything" in it then "I" am the fool for signing it. The bottom line in all of this argument is that we were ALL fed a line of junk by Q/A as to their true intents and now all we want is out... peacefully. If they don't want to honor the peacefully part, fine. We are still leaving.

Anonymous said...

How can Mona Vie's fruit blend drink be in direct compteition with A/Q/A? A/Q/A did not have anything like it that I knew of as of 6 months ago.....

Free man of the United States, A slave not to any company no matter how hard they try! said...

Because anyone with a better product is in competition.