Thursday, March 13, 2008

TEAM: Fixing Quixtar - Amway in North America

Original Source

Fixing Quixtar - Amway in North America

Critics often get criticized for being negative or not offering solutions so I thought I would take some time to offer a (partial) solution for Amway/Quixtar in North America.

Here are what I see as the biggest issues with Quixtar/Amway in North America (not in any order):

1. Outdated Compensation
2. Poor Reputation
3. Lack of Product Focus
4. High Prices

Now for my solution:

1. Break up Amway - Quixtar (North America) into four new Network Marketing companies:

XS Energy
This actually helps solve three of the four major issues, lack of product focus, reputation and compensation. Each product focused company could come out with an updated compensation plan with a focus on balance and the best reward strategy for the product line.

It is should be no secret that the fastest growing companies in Network Marketing over the last five years have been single product or narrow product line focused (such as weight loss). Narrowing the product focus strips away confusion and allows the unique products to shine.

The reputation will be helped by the renewed focus on products and less focus on the "2-5 year plan".

2. Reduce prices and get PV/BV back to a reasonable level ($3 to 1PV is not reasonable). The PV/BV situation overlaps with compensation but it is also needs to be mentioned with pricing. You can't drop the prices by 30% and then drop the PV/BV associates with the products by 50% and claim to now magically have competitive pricing.

Just get reasonable here. Mercedes has proven that you don't have to be the cheapest to be successful, but there is a line where the average consumer will say: "I don't care how good you say (the product) is, I'm not paying that much for (fill in the blank - Amway Product).

3. Update the compensation plan for the 21st century. Adding $60 million in new bonuses and then making them twice as hard to achieve is not updating the plan. Add some money for the newest growing associate. The IBOAI propaganda is suggesting that Quixtar/Amway now has the best compensation plan in the industry.

Uh, yeah. If I was driving a car from 1959 and claimed that it got better gas mileage than a 2008 hybrid, you would laugh at me. In the same manner, people that understand compensation plans within the industry are laughing at the IBOAI.

Lastly, this breakup would help address the core of the reputation problem by nullifying the power of the IBOAI, who haven't really represented the newest IBO in decades.

March 13, 2008


Anonymous said...

I'm done with that evil empire. Move on with the TEAM to a million and beyond. No need to patch the hole in that SINKING ship. LOL

nonprofit said...

I love that your thinking! This is likely a wonderful solution to a long standing problem. But let's not be confused, Team will no longer associate with Quixtar/Amway. I hope they take your ideas and run with them, but again they will run without us. Team will not associate with an ethically and morally bankrupt company no matter what the financial reward. It's totally against all we teach and believe in. Now take your products, market them however you wish, and we hope your successful! But again, don't be naive enough to believe we will return. Bye bye-So long-Farewell-Adieu-Adios-See ya!

Anonymous said...

Team is not connected to any specific MLM. There is no reason someone couldn't stay with Q/A, or sign up in some other MLM. You don't have to go with Monavie, just because others are.

That said, do I think Q/A can be save, yes. They took a big step today by agreeing to let people that were renewed by mistake to have that fixed, with the backing of the IBOAI.

I don't agree with the product focus requiring a breakup. The prices, and reputation could be fixed. I forgot what the 4th item was.

Anonymous said...

Lets see, to fix Q/A, you have to fix the balance between the IBOs and the corporation.

That was to be the board. That is why Rich & Jay started Amway, stayed as distributors with Nutrilite, and eventually purchased Nutrilite. That is why, when they started Amway, they create the "Board" first. That is why they set everyone up in Amway, in their original Nutrilite LOS, keeping their upline their upline.

They fixed it so the Corporation couldn't do anything to the plan or name or performance bonuses, etc. without the board/field approval.

All of the above has fallen flat on its face, at least by 2007.

You either fix the balance or you do what Rich and Jay did...wait a minute, you can't do that, the corporation made that against the rules/contract and they are enforcing it in the courts and also by arbitration.

The 1st generation knew what it meant to "be in the field". The 2nd generation does not, and has got greedy.

How do you fix greed and pride, humility. Can you do it outside the courts, of course.

I do think we need a better product that just Monavie. Now if we could buy out Nutrilite, we would have something...

Anonymous said...

or you all could get jobs,have your nights and weekends, and be content with your lifestyle. but, then there's that lust of money thing.

Anonymous said...

A jobb ?

No, I haven't had a jobb for a dozen years. Don't want one. I would rather be in the S quadrant than the E.
Of course B and I look good.