Original Source
POSSIBLE INVESTIGATION OF QUIXTAR UNDERWAY IN MISSOURI???
Monday, March 10, 2008
The IBO Rebellion has just learned that some high-level elected officials in the state of Missouri have become extremely interested in the actions of the Quixtar Legal Department, the selective enforcement of rules, the validity of the arbitration process and the business practices of one former particular long-time IBO Board member.
This could get interesting. Ironically, these issues caught the attention of the state of Missouri before the TEAM situation ever came about. Imagine the impact if the state of Missouri was made aware of just how many people have been affected by the unethical practices of Quixtar?
It’s time for citizens of Missouri to rise up and make your thoughts known to your elected officials. Later this week, the Rebellion will begin posting names and addresses of elected officials in Missouri for your convenience. Elected officials are there to represent the people of their state and actually enjoy getting feedback from citizens. The only way they know there is a problem is for people to write them and let them know. This is your country.
Posted by The IBO Rebellion at 3:25 AM
Showing posts with label Lifestyle. Show all posts
Showing posts with label Lifestyle. Show all posts
Monday, March 10, 2008
Friday, February 29, 2008
Tuesday, February 26, 2008
TEAM: BEHIND THE WALLS OF QUIXTAR PART 6
Original Source
BEHIND THE WALLS OF QUIXTAR PART 6
Tuesday, February 26, 2008
Hey folks, I am just back from yet another blog filling lunch with two of my CWPF's (Close Warm Personal Friends) from Alticor / Amway / Quixtar. I must say I was very happy my friends wanted to eat for a change. The coffee routine was getting old. Even as good as the food was at filing my stomach it was nothing compared to the "MEATY" information my friends provided today.
There are two big stories to discuss in today's installment of Behind the Walls of Quixtar. The first story is straight out of Hawaii and the latest Diamond Club. The second is some big news on possible employee unrest within Alticor. Employees are keenly aware of the entire TEAM fallout and are starting to fear the ripple effect.
The biggest story is certainly out of Hawaii and Diamond Club. I am thinking they should really rename the entire event Diamond Cluster. It more appropriately describes it and the situation. In case you hadn't heard there was a mere 65 diamonds at this years Diamond Cluster. I am sure our friends in Ada will somehow find the silver lining in this. But really, is that all they could muster is 65 diamonds after 50 years of business? Quixtar reportedly went all out and hired the music group the Motels in recognition of their incredible shrinking company. Click here to hear the Motels performing at Diamond Cluster 2008.
With all that extra elbow room at the Grand Wailea I am sure it felt much more exclusive this year. How much extra elbow room you ask? Well in recent years there have been somewhere in the neighborhood of 260 diamonds or so. On the Alticor blog Ada-tudes there was a lot of conversation about the 160 or so diamonds for 2007. So as you can see Quixtar is now minus another hundred diamonds for 2008. At this rate of demise, well, you can do the math. Quixtar is involved in a complete free fall.
Another big story from Diamond Cluster 2008 was that Mike "MonaVie" Mohr addressed the diamonds in attendence. During his speech Mr. Mohr took the time to engage in MonaVie bashing from stage. Yes this is the same Mike Mohr who considers price comparisons to be disparagment. But somehow his conduct is just fine. Mr. Mohr, after trashing MonaVie, told the diamonds that if anyone approached their cattle with MonaVie, that they would have the full weight of the company behind them. This of course was code for, don't get any ideas or we will sue you! Mike Mohr is really Quixtar's version of Kathy Bates / Annie Wilkes from the movie Misery. Encouraging folks to succeed or, as in the movie get the book written, all the while waiting to break your legs so you can NEVER leave. In case you were wondering what it all looked like, here are some pictures for your enjoyment.
Picture 1, Picture 2, Picture 3.
Well enough of Diamond Cluster 08. The other big story from my CWPF's is quit alarming. Alticor has long been known as a great place to work with good pay. Well it seems that employees are trying to prepare for the worse. It was hinted to me that since the North American business continues to shrink that some employees are considering a union organizing effort in order to protect their jobs. I was almost shocked to hear such a thing. It wasn't clear in what part of the company these rumblings were coming from but I am sure it will be met with stern resistance.
Well that is it for this installment of Behind the Walls of Quixtar. Information continues to pour from inside the company so I will have more when the information merits your attention.
Posted by The IBO Rebellion at 1:51 PM
BEHIND THE WALLS OF QUIXTAR PART 6
Tuesday, February 26, 2008
Hey folks, I am just back from yet another blog filling lunch with two of my CWPF's (Close Warm Personal Friends) from Alticor / Amway / Quixtar. I must say I was very happy my friends wanted to eat for a change. The coffee routine was getting old. Even as good as the food was at filing my stomach it was nothing compared to the "MEATY" information my friends provided today.
There are two big stories to discuss in today's installment of Behind the Walls of Quixtar. The first story is straight out of Hawaii and the latest Diamond Club. The second is some big news on possible employee unrest within Alticor. Employees are keenly aware of the entire TEAM fallout and are starting to fear the ripple effect.
The biggest story is certainly out of Hawaii and Diamond Club. I am thinking they should really rename the entire event Diamond Cluster. It more appropriately describes it and the situation. In case you hadn't heard there was a mere 65 diamonds at this years Diamond Cluster. I am sure our friends in Ada will somehow find the silver lining in this. But really, is that all they could muster is 65 diamonds after 50 years of business? Quixtar reportedly went all out and hired the music group the Motels in recognition of their incredible shrinking company. Click here to hear the Motels performing at Diamond Cluster 2008.
With all that extra elbow room at the Grand Wailea I am sure it felt much more exclusive this year. How much extra elbow room you ask? Well in recent years there have been somewhere in the neighborhood of 260 diamonds or so. On the Alticor blog Ada-tudes there was a lot of conversation about the 160 or so diamonds for 2007. So as you can see Quixtar is now minus another hundred diamonds for 2008. At this rate of demise, well, you can do the math. Quixtar is involved in a complete free fall.
Another big story from Diamond Cluster 2008 was that Mike "MonaVie" Mohr addressed the diamonds in attendence. During his speech Mr. Mohr took the time to engage in MonaVie bashing from stage. Yes this is the same Mike Mohr who considers price comparisons to be disparagment. But somehow his conduct is just fine. Mr. Mohr, after trashing MonaVie, told the diamonds that if anyone approached their cattle with MonaVie, that they would have the full weight of the company behind them. This of course was code for, don't get any ideas or we will sue you! Mike Mohr is really Quixtar's version of Kathy Bates / Annie Wilkes from the movie Misery. Encouraging folks to succeed or, as in the movie get the book written, all the while waiting to break your legs so you can NEVER leave. In case you were wondering what it all looked like, here are some pictures for your enjoyment.
Picture 1, Picture 2, Picture 3.
Well enough of Diamond Cluster 08. The other big story from my CWPF's is quit alarming. Alticor has long been known as a great place to work with good pay. Well it seems that employees are trying to prepare for the worse. It was hinted to me that since the North American business continues to shrink that some employees are considering a union organizing effort in order to protect their jobs. I was almost shocked to hear such a thing. It wasn't clear in what part of the company these rumblings were coming from but I am sure it will be met with stern resistance.
Well that is it for this installment of Behind the Walls of Quixtar. Information continues to pour from inside the company so I will have more when the information merits your attention.
Posted by The IBO Rebellion at 1:51 PM
Saturday, February 16, 2008
TEAM: Mona Vie Update
Original Source
Taken from: A History Lesson - Winston Churchill
by Orrin Woodward on Sat 16 Feb 2008 07:45 AM EST
Content omitted
Update: In just over three years MonaVie has nearly matched what Quixtar/Amway has accomplished in almost 50 years in North America. There is a reason for this and when I can share the benchmarking study you will know why. I am not a gambling man and prefer safer incremental improvements - with an eye to the future, than a "Swing for the Fences" gamble that puts the vision at risk. We ALL want to be the "Walmart of the Internet" except a dozen lawyers at a competing company. Michael Dell said, "The community is the key to the internet." Therefore; a leaders number one job is to keep his community alive so we can fight another day - this we have done! I have learned in leadership to play the hand you are dealt. Like the old saying goes, "If you knew what I knew, you would do what I do." I believe in the product and leadership team at MonaVie and know they play a part in our long-term vision. I have put all on the line for this vision: my life, my fortune, and my sacred honor. You choose what you will put on the line for this vision. Thanks, Orrin
Taken from: A History Lesson - Winston Churchill
by Orrin Woodward on Sat 16 Feb 2008 07:45 AM EST
Content omitted
Update: In just over three years MonaVie has nearly matched what Quixtar/Amway has accomplished in almost 50 years in North America. There is a reason for this and when I can share the benchmarking study you will know why. I am not a gambling man and prefer safer incremental improvements - with an eye to the future, than a "Swing for the Fences" gamble that puts the vision at risk. We ALL want to be the "Walmart of the Internet" except a dozen lawyers at a competing company. Michael Dell said, "The community is the key to the internet." Therefore; a leaders number one job is to keep his community alive so we can fight another day - this we have done! I have learned in leadership to play the hand you are dealt. Like the old saying goes, "If you knew what I knew, you would do what I do." I believe in the product and leadership team at MonaVie and know they play a part in our long-term vision. I have put all on the line for this vision: my life, my fortune, and my sacred honor. You choose what you will put on the line for this vision. Thanks, Orrin
Friday, February 15, 2008
TEAM: Tim & Amy Marks: 2008 Will Be GREAT!!!!!!
Orignal Source
2008 Will Be GREAT!!!!!!
Friday, February 15, 2008
The question of what to do next in our lives has been a big one for Amy and me, and it required careful consideration and considerable research. Our chief goal was to make sure our energies went into an activity that would be rewarding, fun, significant in the lives of others, and glorifying to God. We have been blessed, and we want to use the gifts we have been given to do something worthwhile and positive.
We also have a long term view for the future, which involves pioneering some concepts on Internet business that could and should become something that would resemble a “Wal-Mart of the Internet.” Events and conditions, however, dictate that this step cannot be taken immediately. A more immediate solution was needed first, upon which we could build up to the bigger vision.
After considering many, many fields, opportunities, and companies, Amy and I finally selected, as our choice of personal involvement, a company called Mona Vie, (http://www.monavie.com/) which satisfies all the areas we were interested in. Here is a brief list of reasons why we have selected Mona Vie:
1. their Binary pay plan is easy to understand, teach, duplicate
2. their Binary pay plan is fair, rewards teamwork and “depth”, and leaves no one behind
3. the levels of STAR and STARMAKER are extremely duplicate-able and easy to teach for everyone
4. the compensation plan, including the 8 ways to make money, is the most exciting we could find in the industry
5. 50% of the product revenue is paid back out to the distributors in the field. Not only is this one of the highest totals we could find in the entire industry, but it is an ACTUAL 50%, not a THEORETICAL 50%, this is because:
6. there is no BREAKAGE in the pay plan (Breakage is where there is earned bonuses that don’t make it into the paychecks of distributors, this can happen any number of ways, and most MLM pay plans have multiple layers of breakage that benefit the parent company). In part, this is made possible because:
7. any left over volume that doesn’t get figured into a distributor’s bonus in the current pay week, automatically gets applied to the next week
8. people are experiencing financial success with this pay plan
9. the product is exactly in line with the wellness trends of today
10. the product creates excitement of its own in the marketplace and has a tremendous following of individuals who have experienced benefits
11. the product is being used successfully to contact others about the business itself
12. the product tastes absolutely great!
13. harvesting of the product protects trees in the rain forest and preserves the environment
14. the marketing and integration of Mona Vie as a company are world class
15. there is a plethora of brochures, magazines, and other such aids provided by the company that do a wonderful job of explaining their product and opportunity
16. Mona Vie’s website is top notch and specifically designed to help distributors sell its product, including a free “personalized” website interface to be used with customers
17. there has been a lot of press about the product from famous business figures to professional, championship level professional athletes
18. their policies and procedures are fair, honest, and understandable
19. when sharing the business opportunity, Mona Vie mandates the display of their Income Disclosure Statement. This statement not only shows average incomes, but it shows them clearly at each level in their business. Further, it shows highs and lows at each level. And finally, it shows exactly how many individuals are currently qualified at each of those income levels. This amount of clarity and disclosure, as well as the success that it represents, is extremely exciting.
20. their pay plan pays its distributors WEEKLY. We love this idea and think the average distributor can benefit a lot from an idea like this.
21. weekly payment is credited to a ready-to-use Mastercard.
22. qualification periods are either weekly or, for larger levels, monthly. This is nice for anyone setting goals to be able to reach in a short, reasonable time-frame.
23. there are incentive trips, lease luxury cars, jet travel time, diamond rings and pendants, money toward motor coaches, and conferences for achievers.
24. the product volume (PV) is easily calculated (100PV represents one case of four bottles) which makes the entire pay plan extremely easy to understand and teach
25. there are bulk order discounts which allow for increased profits on retail sales
26. there is an excellent Preferred Customer program
27. the business can be built in many countries without any complicated procedures. In essence, volume is volume, no matter which participant country it is generated in
28. the company founded and supports the MORE project dedicated to helping orphaned children in South America.
Tim & Amy
Posted by Tim Marks at 7:04 PM
2008 Will Be GREAT!!!!!!
Friday, February 15, 2008
The question of what to do next in our lives has been a big one for Amy and me, and it required careful consideration and considerable research. Our chief goal was to make sure our energies went into an activity that would be rewarding, fun, significant in the lives of others, and glorifying to God. We have been blessed, and we want to use the gifts we have been given to do something worthwhile and positive.
We also have a long term view for the future, which involves pioneering some concepts on Internet business that could and should become something that would resemble a “Wal-Mart of the Internet.” Events and conditions, however, dictate that this step cannot be taken immediately. A more immediate solution was needed first, upon which we could build up to the bigger vision.
After considering many, many fields, opportunities, and companies, Amy and I finally selected, as our choice of personal involvement, a company called Mona Vie, (http://www.monavie.com/) which satisfies all the areas we were interested in. Here is a brief list of reasons why we have selected Mona Vie:
1. their Binary pay plan is easy to understand, teach, duplicate
2. their Binary pay plan is fair, rewards teamwork and “depth”, and leaves no one behind
3. the levels of STAR and STARMAKER are extremely duplicate-able and easy to teach for everyone
4. the compensation plan, including the 8 ways to make money, is the most exciting we could find in the industry
5. 50% of the product revenue is paid back out to the distributors in the field. Not only is this one of the highest totals we could find in the entire industry, but it is an ACTUAL 50%, not a THEORETICAL 50%, this is because:
6. there is no BREAKAGE in the pay plan (Breakage is where there is earned bonuses that don’t make it into the paychecks of distributors, this can happen any number of ways, and most MLM pay plans have multiple layers of breakage that benefit the parent company). In part, this is made possible because:
7. any left over volume that doesn’t get figured into a distributor’s bonus in the current pay week, automatically gets applied to the next week
8. people are experiencing financial success with this pay plan
9. the product is exactly in line with the wellness trends of today
10. the product creates excitement of its own in the marketplace and has a tremendous following of individuals who have experienced benefits
11. the product is being used successfully to contact others about the business itself
12. the product tastes absolutely great!
13. harvesting of the product protects trees in the rain forest and preserves the environment
14. the marketing and integration of Mona Vie as a company are world class
15. there is a plethora of brochures, magazines, and other such aids provided by the company that do a wonderful job of explaining their product and opportunity
16. Mona Vie’s website is top notch and specifically designed to help distributors sell its product, including a free “personalized” website interface to be used with customers
17. there has been a lot of press about the product from famous business figures to professional, championship level professional athletes
18. their policies and procedures are fair, honest, and understandable
19. when sharing the business opportunity, Mona Vie mandates the display of their Income Disclosure Statement. This statement not only shows average incomes, but it shows them clearly at each level in their business. Further, it shows highs and lows at each level. And finally, it shows exactly how many individuals are currently qualified at each of those income levels. This amount of clarity and disclosure, as well as the success that it represents, is extremely exciting.
20. their pay plan pays its distributors WEEKLY. We love this idea and think the average distributor can benefit a lot from an idea like this.
21. weekly payment is credited to a ready-to-use Mastercard.
22. qualification periods are either weekly or, for larger levels, monthly. This is nice for anyone setting goals to be able to reach in a short, reasonable time-frame.
23. there are incentive trips, lease luxury cars, jet travel time, diamond rings and pendants, money toward motor coaches, and conferences for achievers.
24. the product volume (PV) is easily calculated (100PV represents one case of four bottles) which makes the entire pay plan extremely easy to understand and teach
25. there are bulk order discounts which allow for increased profits on retail sales
26. there is an excellent Preferred Customer program
27. the business can be built in many countries without any complicated procedures. In essence, volume is volume, no matter which participant country it is generated in
28. the company founded and supports the MORE project dedicated to helping orphaned children in South America.
Tim & Amy
Posted by Tim Marks at 7:04 PM
TEAM: Historical Reminscences & A Vision for the Future - Part II
Original Source
Historical Reminscences & A Vision for the Future - Part II
by Orrin Woodward on Fri 15 Feb 2008 10:21 AM EST
Here is Part II of my mini-book. I apologize for this history first before the announcement, but I feel people need to know the history to understand the constraints and criteria for the decisions leading to the Future of the Internet. I appreciate your patience and I will get back to writing after I post this. This could be four of five parts by the time it is done! God Bless, Orrin Woodward
Laurie and I went direct in the Amway model in March of 1995 and plateaued for the next four years. Chris and Terri joined our business a little over a year after we started and they went direct and leveled off also. We literally worked 6 to 7 days a week night after night. We may not have been the best or most talented, but we were not going to let anyone outwork us. The definition of insanity is continuing to do the same thing while expecting a different result. We were taught in our training systems to duplicate not innovate—I agree with this statement when what you are duplicating is working. When it is not working, then duplicating failure is insanity. We saw many of our heroes fall on hard times. In North America, the Amway business peaked in 1995 and then started a free fall backwards. From somewhere around $1.6 billion in the US in 1995 it fell to just over a billion dollars in the US market by 1999. Something was drastically wrong! The multi-cultural market building in the US was exploding, so the actual fall back of the (English speaking as a first language) was worse than the numbers explain. Many big leaders lost fifty to seventy-five percent of their groups attending functions. In late 1998, Chris and I decided we would quit the Amway business and start an internet company. This was during the internet bubble craze and start-ups companies were selling for millions of dollars.
There were two things that held us in the business during these frustrating times. First, we still believed in our small group and the cause to change our country. We believed the training systems were an incredible educational tool to bring personal responsibility and free enterprise principles back to the American people. Second, our upline came back from a diamond club all excited that Amway was going away and an entirely new business was forming. They had not announced the name, but it would be an internet model that would revolutionize the how business was done on the web! Chris and I looked at this as a Providential move as Amway was moving into the internet age and we got excited to help in the transition to the new business. They announced the name of the new company (Quixtar) and we put off our plans to build our own internet company. Perhaps Chris and I were not ready to start our own company yet and I have no complaints with the education I have received since 1999 in building the Quixtar business.
Our attitude during the formation of the new Quixtar business was to innovate and see what needed changes we could bring to the MLM/Networking Industry. We had watched so many groups go backward and were so close to quitting personally that we felt no risk in innovating. We were only platinum’s at the time and began to develop a building methodology called Team Approach. Both Chris and I were over 20 wide at one point in our businesses. We had watched the majority of our personals quit after a year or two due to lack of results. Team Approach was an answer to the lack of results by leaving no one behind. When a person starts 10 to 15 people personally in width—they have no way of helping all of them. A person does not have enough time in the day to serve 15 new people and help them achieve success. Chris and I discovered the new people go through three steps on their way to developing into interdependent teammates. Information, Progress and Profit are the three steps in that order. A new person first learns about the products and interpersonal skills first. Secondly, they review monthly to see if any progress is being made in their business. Lastly, they ask, “Am I making any money?” If they are only learning with no progress or profit, they might make it 30 to 60 days. If they are learning and making progress—they will last 6 month to a year in the business model. But if they have all three, they will stay in and become a loyal part of the community.
Team Approach allowed us to help the new person make progress and nearly doubled our retention rate of the new people. I am in business to help people win first. I only desire to benefit from any business if it is win-win. If there is no benefit for the new person, they will quit. If there is no benefit for the leader, they will not serve. The proper business marries the interest of both the new people and the leaders to generate massive success. Our business rocketed to the fastest growing business in the entire Quixtar world. We went from platinum to diamond in 17 months. Laurie and I went on to EDC in 2003. We had growth rates of over 100% in several of those years. Ken McDonald, the Quixtar Managing Director and I developed a close relationship. He helped me immensely and taught me how to navigate through the usual politics associated with any success. When you succeed you have three types of responses:
1. People who are happy for you and desire to learn.
2. People who are indifferent and continue to do what they have always done.
3. People who are envious and wish to stop the new techniques.
Ken McDonald warned me of the people against the new methods and helped Chris and I develop processes to ensure Team Approach was above reproach. I am very thankful for Ken taking me under his wing and encouraging me to develop the Team Approach methodology. Ken asked if we would share Team Approach with other organizations and we said yes. Laurie and I were also asked to speak at the prestigious Quixtar Live event in 2003. We shared a vision of Quixtar becoming the Wal-mart of the internet. I believe anytime you learn something of value that we should share the blessings with others. Many groups were taught the new methods and started achieving more success. Jim and Nancy Dornan are excellent examples of the first group of people. They have achieved phenomenal success in life and business, but are still hungry to learn and grow. Jim and I sat down at Achiever’s and he implemented the Power Player program and Team Approach. Jim told me at a later Diamond Club that his business was growing and he had achieved the incredible level of Founders Crown Ambassador. This couple deserved their success as they continually focus on serving others.
As a leader of a growing Team, I was invited to participate in meeting to help solve why the overall business in North America was not performing to expectations. I volunteered without pay to do this throughout 2003 and 2004. My goal was to improve the opportunity for all organizations and leaders in Quixtar. In late 2004, I was exposed to the first hard data on the lack of results from the new Quixtar model. Leaders do not get depressed when they confront reality, but do get depressed if they are not allowed to fix the reality. I agreed to go on the board and dedicate three years of my life with this specific intent: To fix the Quixtar business and make it the opportunity we all believe it could and should be. I still believed we were sitting on the potential best opportunity in America. I told my mentor and Pastor that I would openly share any ideas to improve the business and pray that Quixtar management would openly confront reality for the good of all. They had developed the Quixtar model to improve on the lackluster results of the previous five years, but the results were even worse in the next five years in my opinion. I didn’t go on the IBOAI board to punch the clock, make money, or politic with the company and other leaders. My goal was to improve the business and give the new person an even better opportunity to win than the one given to Laurie and me. I still believe in my heart that most of the other leaders on the IBOAI feel the same way. All of us wanted to improve the business for the new people.
Historical Reminscences & A Vision for the Future - Part II
by Orrin Woodward on Fri 15 Feb 2008 10:21 AM EST
Here is Part II of my mini-book. I apologize for this history first before the announcement, but I feel people need to know the history to understand the constraints and criteria for the decisions leading to the Future of the Internet. I appreciate your patience and I will get back to writing after I post this. This could be four of five parts by the time it is done! God Bless, Orrin Woodward
Laurie and I went direct in the Amway model in March of 1995 and plateaued for the next four years. Chris and Terri joined our business a little over a year after we started and they went direct and leveled off also. We literally worked 6 to 7 days a week night after night. We may not have been the best or most talented, but we were not going to let anyone outwork us. The definition of insanity is continuing to do the same thing while expecting a different result. We were taught in our training systems to duplicate not innovate—I agree with this statement when what you are duplicating is working. When it is not working, then duplicating failure is insanity. We saw many of our heroes fall on hard times. In North America, the Amway business peaked in 1995 and then started a free fall backwards. From somewhere around $1.6 billion in the US in 1995 it fell to just over a billion dollars in the US market by 1999. Something was drastically wrong! The multi-cultural market building in the US was exploding, so the actual fall back of the (English speaking as a first language) was worse than the numbers explain. Many big leaders lost fifty to seventy-five percent of their groups attending functions. In late 1998, Chris and I decided we would quit the Amway business and start an internet company. This was during the internet bubble craze and start-ups companies were selling for millions of dollars.
There were two things that held us in the business during these frustrating times. First, we still believed in our small group and the cause to change our country. We believed the training systems were an incredible educational tool to bring personal responsibility and free enterprise principles back to the American people. Second, our upline came back from a diamond club all excited that Amway was going away and an entirely new business was forming. They had not announced the name, but it would be an internet model that would revolutionize the how business was done on the web! Chris and I looked at this as a Providential move as Amway was moving into the internet age and we got excited to help in the transition to the new business. They announced the name of the new company (Quixtar) and we put off our plans to build our own internet company. Perhaps Chris and I were not ready to start our own company yet and I have no complaints with the education I have received since 1999 in building the Quixtar business.
Our attitude during the formation of the new Quixtar business was to innovate and see what needed changes we could bring to the MLM/Networking Industry. We had watched so many groups go backward and were so close to quitting personally that we felt no risk in innovating. We were only platinum’s at the time and began to develop a building methodology called Team Approach. Both Chris and I were over 20 wide at one point in our businesses. We had watched the majority of our personals quit after a year or two due to lack of results. Team Approach was an answer to the lack of results by leaving no one behind. When a person starts 10 to 15 people personally in width—they have no way of helping all of them. A person does not have enough time in the day to serve 15 new people and help them achieve success. Chris and I discovered the new people go through three steps on their way to developing into interdependent teammates. Information, Progress and Profit are the three steps in that order. A new person first learns about the products and interpersonal skills first. Secondly, they review monthly to see if any progress is being made in their business. Lastly, they ask, “Am I making any money?” If they are only learning with no progress or profit, they might make it 30 to 60 days. If they are learning and making progress—they will last 6 month to a year in the business model. But if they have all three, they will stay in and become a loyal part of the community.
Team Approach allowed us to help the new person make progress and nearly doubled our retention rate of the new people. I am in business to help people win first. I only desire to benefit from any business if it is win-win. If there is no benefit for the new person, they will quit. If there is no benefit for the leader, they will not serve. The proper business marries the interest of both the new people and the leaders to generate massive success. Our business rocketed to the fastest growing business in the entire Quixtar world. We went from platinum to diamond in 17 months. Laurie and I went on to EDC in 2003. We had growth rates of over 100% in several of those years. Ken McDonald, the Quixtar Managing Director and I developed a close relationship. He helped me immensely and taught me how to navigate through the usual politics associated with any success. When you succeed you have three types of responses:
1. People who are happy for you and desire to learn.
2. People who are indifferent and continue to do what they have always done.
3. People who are envious and wish to stop the new techniques.
Ken McDonald warned me of the people against the new methods and helped Chris and I develop processes to ensure Team Approach was above reproach. I am very thankful for Ken taking me under his wing and encouraging me to develop the Team Approach methodology. Ken asked if we would share Team Approach with other organizations and we said yes. Laurie and I were also asked to speak at the prestigious Quixtar Live event in 2003. We shared a vision of Quixtar becoming the Wal-mart of the internet. I believe anytime you learn something of value that we should share the blessings with others. Many groups were taught the new methods and started achieving more success. Jim and Nancy Dornan are excellent examples of the first group of people. They have achieved phenomenal success in life and business, but are still hungry to learn and grow. Jim and I sat down at Achiever’s and he implemented the Power Player program and Team Approach. Jim told me at a later Diamond Club that his business was growing and he had achieved the incredible level of Founders Crown Ambassador. This couple deserved their success as they continually focus on serving others.
As a leader of a growing Team, I was invited to participate in meeting to help solve why the overall business in North America was not performing to expectations. I volunteered without pay to do this throughout 2003 and 2004. My goal was to improve the opportunity for all organizations and leaders in Quixtar. In late 2004, I was exposed to the first hard data on the lack of results from the new Quixtar model. Leaders do not get depressed when they confront reality, but do get depressed if they are not allowed to fix the reality. I agreed to go on the board and dedicate three years of my life with this specific intent: To fix the Quixtar business and make it the opportunity we all believe it could and should be. I still believed we were sitting on the potential best opportunity in America. I told my mentor and Pastor that I would openly share any ideas to improve the business and pray that Quixtar management would openly confront reality for the good of all. They had developed the Quixtar model to improve on the lackluster results of the previous five years, but the results were even worse in the next five years in my opinion. I didn’t go on the IBOAI board to punch the clock, make money, or politic with the company and other leaders. My goal was to improve the business and give the new person an even better opportunity to win than the one given to Laurie and me. I still believe in my heart that most of the other leaders on the IBOAI feel the same way. All of us wanted to improve the business for the new people.
TEAM: cal Reminscences & A Vision for the Future - Part III
Original Source
Historical Reminscences & A Vision for the Future - Part III
by Orrin Woodward on Fri 15 Feb 2008 12:31 PM EST
Let me step back to late 2003 and share with you my experiences with the Amway/Quixtar criticisms on the web. All of the major organizations were taught to avoid the negative associated with the name Amway by what is called the curiosity approach. This is an approach to people without referring specifically to the Amway or Quixtar name. For example instead of saying, “I would like to come over and show you the Amway plan”, people would say, “I am building a business in your area and would like to come over and share the details.” The goal was to get the meeting and explain all the details there. With the advent of the internet age, sharing Amway or Quixtar during the plan was a death knell. People would Google the speaker and business during the plan and literally walk out without hearing all the facts. I was so committed to the cause that I never stopped and analyzed the criticisms on the web with an open mind. The CD’s said to avoid negative and taught that everything on the web were lies or just criticisms of non-achievers. I focused on serving people and built our business very fast without much direct criticism through the end of 2003. In late 2003, Laurie and I hit EDC and began receiving criticism personally online. At first I was hurt personally. Some of the things stated and suggest motives for my behavior were simply not true. But I am thankful that it happened to me. It was the first time I read the criticisms online with a spirit of confronting reality. I asked myself, “What parts of the criticisms have an element of truth and what can we do to fix them?” This was a humbling exercise, because I had to admit our business was not perfect and needed to be reformed in several areas. The criticisms online were right in many areas. I told Ken McDonald back in 2004, “It’s not the negative lies online that are killing us, but the negative truths.” He agreed and said we needed to fix them.
The first major criticism that needed to be fixed was the good old boy club surrounding the tool businesses. People were given a discount on tools based on how much the upline liked them and how hard they negotiated. I did not want to be a hard negotiator with Chris Brady and the other leaders one day and then turnaround and be partners the next. The only solution that I could see would be to create a profit sharing plan. The profit sharing plan would take all revenue minus expenses and pay out to the Team based on performance. By having a per group performance, anyone could make the most money and it didn’t matter if you were the first person or the last person in. All that mattered was how big you built your groups. This revolutionized the pay and allowed us to be transparent about the sources of income. In the old school model, people at the top made most of the money and people at the bottom had to break away and run their own systems to be compensated properly. The only problem is they would become the new “Kingpins” and the antiquated system perpetuated hard feelings, lawsuits, and division. There were so many good leaders that have left the business today, not because they are bad people, but because there were systemic issues that caused dissension. The best analogy to use would be the water follows the riverbed every time. Until we deal with the structural issues (riverbed), the problems will continue to occur. We can tell the water to go to the right, but if the riverbed turns to the left the water will follow. We must fix the structures or problems will be endemic. This was a major fix and the reason that no leader has ever left to form another system on the Team. There is no need to unless it was purely ego driven.
Another riverbed issue was the old pins continued to be recognized even after they had fallen out of qualification. What kind of credibility can an organization have if they bring up people and call them “Diamonds” when they are actually Sapphires or lower? In the Team culture all speaking is based on current qualifications based on numbers (influence). It doesn’t matter what they accomplished in the past, the key is what are they doing currently? The goal is to serve the new people and Dexter had a saying, “Get your best in front of the best.” By basing it on numbers we fixed the riverbed and ensured the best were in front of the best. By having a performance based system, this also fixed unqualified pins receiving the majority of the tool profits from the work of others. As you perform, so shall you bonus was our motto. The criticisms on the business not growing did not apply directly to the Team, but I did agree that selling a success system was hypocritical if people were not succeeding. The Team had grown from 200 people attending majors to over 12,000 in six years and with groups merging into the Team over the next year we grew to over 20,000 strong at majors Another factor that improved our unified Team was the system stayed pure. Because we were all on the same page and went to the same conventions, the teaching stayed pure and duplicatable. This was not true in other systems where each diamond ran their own majors and taught different techniques.
By all staying together and running a performance based system, we were able to gain incredible volume discounts and leverage our numbers to the benefit of all. For example, in St. Louis if there are 25k people in attendance that means we have 40k plus seats still available. When we fill those seats everyone benefits. The new person get a phenomenal show at a lower price, every leader receives more in profit sharing and the Team reaches its goal of 1 million people. We went through and researched every piece of the criticisms online and attempted to the best of our ability to fix every area we could. The one we could not fix was the Pyramid issue. The criticisms online amounted to this, “You get people motivated and loyal to your Team’s and then convince them to buy products at a higher price than they can buy at a store.” I was taught that the products were of a much higher quality and the higher quality and value justified the higher prices. It wasn’t until I and other top diamonds paid for our own analysis of the products that we began to doubt if our answer was genuine. The doubts would have started in 2004 and this is why the Board started the 15 to 20 value based products initiative. We didn’t expect all of the products to be priced competitively with the market, but asked for some. I felt confident that we could get there in 2004 and felt all we needed to do was confront the facts and fix the issue. When a leader identifies a problem, they do not run away from it, deny it, or pass the buck. They address and fix. This is what we attempted to do through the IBOAI board.
The confronting of reality that Fred Harteis, Billy Florence, Don Wilson, Randy Haugen, Joe Markiewicz, and others were placing on Quixtar led to promises of better pricing. Many leaders were tired of watching high quality leaders come and go out of there organizations. Many went on to successful careers outside of the business and would praise the training systems for teaching them to think right about business. I have lost count of how many stories I have heard about successful entrepreneurs who learned the principles from the various Amway training organizations. The leaders felt that if the training was that good, how come they could not succeed in this business? Why do we have to cycle through nearly half our group every year and to work incredibly hard just to maintain the same size organization? These were the issues on the table to Ken McDonald and Doug Devos. The answer was to do a regime change and this brought Jim Payne and Rob Davidson into the positions of Quixtar Managing Director and Quixtar Sales Manager. I respected Ken McDonald greatly and was told by him that he had planned to retire and that it was time for him to bow out. I was excited to be working with Jim Payne and Rob Davidson. Ken had led us to Rob Davidson when he was head of the rules department. Rob had graciously dedicated his time and energy to help us with the Team Approach methods. I was only 6 months into my first term on the board and the future looked bright for some much needed (in my opinion) riverbed changes to the structure of the Quixtar business. The IBO Board leaders wanted a business we could be proud of and represent to the people with assurance that the business was the best thing for them. I felt confident that in the next two years we would get there and change America for the better! I wanted to make my three year term on the Board count.
Historical Reminscences & A Vision for the Future - Part III
by Orrin Woodward on Fri 15 Feb 2008 12:31 PM EST
Let me step back to late 2003 and share with you my experiences with the Amway/Quixtar criticisms on the web. All of the major organizations were taught to avoid the negative associated with the name Amway by what is called the curiosity approach. This is an approach to people without referring specifically to the Amway or Quixtar name. For example instead of saying, “I would like to come over and show you the Amway plan”, people would say, “I am building a business in your area and would like to come over and share the details.” The goal was to get the meeting and explain all the details there. With the advent of the internet age, sharing Amway or Quixtar during the plan was a death knell. People would Google the speaker and business during the plan and literally walk out without hearing all the facts. I was so committed to the cause that I never stopped and analyzed the criticisms on the web with an open mind. The CD’s said to avoid negative and taught that everything on the web were lies or just criticisms of non-achievers. I focused on serving people and built our business very fast without much direct criticism through the end of 2003. In late 2003, Laurie and I hit EDC and began receiving criticism personally online. At first I was hurt personally. Some of the things stated and suggest motives for my behavior were simply not true. But I am thankful that it happened to me. It was the first time I read the criticisms online with a spirit of confronting reality. I asked myself, “What parts of the criticisms have an element of truth and what can we do to fix them?” This was a humbling exercise, because I had to admit our business was not perfect and needed to be reformed in several areas. The criticisms online were right in many areas. I told Ken McDonald back in 2004, “It’s not the negative lies online that are killing us, but the negative truths.” He agreed and said we needed to fix them.
The first major criticism that needed to be fixed was the good old boy club surrounding the tool businesses. People were given a discount on tools based on how much the upline liked them and how hard they negotiated. I did not want to be a hard negotiator with Chris Brady and the other leaders one day and then turnaround and be partners the next. The only solution that I could see would be to create a profit sharing plan. The profit sharing plan would take all revenue minus expenses and pay out to the Team based on performance. By having a per group performance, anyone could make the most money and it didn’t matter if you were the first person or the last person in. All that mattered was how big you built your groups. This revolutionized the pay and allowed us to be transparent about the sources of income. In the old school model, people at the top made most of the money and people at the bottom had to break away and run their own systems to be compensated properly. The only problem is they would become the new “Kingpins” and the antiquated system perpetuated hard feelings, lawsuits, and division. There were so many good leaders that have left the business today, not because they are bad people, but because there were systemic issues that caused dissension. The best analogy to use would be the water follows the riverbed every time. Until we deal with the structural issues (riverbed), the problems will continue to occur. We can tell the water to go to the right, but if the riverbed turns to the left the water will follow. We must fix the structures or problems will be endemic. This was a major fix and the reason that no leader has ever left to form another system on the Team. There is no need to unless it was purely ego driven.
Another riverbed issue was the old pins continued to be recognized even after they had fallen out of qualification. What kind of credibility can an organization have if they bring up people and call them “Diamonds” when they are actually Sapphires or lower? In the Team culture all speaking is based on current qualifications based on numbers (influence). It doesn’t matter what they accomplished in the past, the key is what are they doing currently? The goal is to serve the new people and Dexter had a saying, “Get your best in front of the best.” By basing it on numbers we fixed the riverbed and ensured the best were in front of the best. By having a performance based system, this also fixed unqualified pins receiving the majority of the tool profits from the work of others. As you perform, so shall you bonus was our motto. The criticisms on the business not growing did not apply directly to the Team, but I did agree that selling a success system was hypocritical if people were not succeeding. The Team had grown from 200 people attending majors to over 12,000 in six years and with groups merging into the Team over the next year we grew to over 20,000 strong at majors Another factor that improved our unified Team was the system stayed pure. Because we were all on the same page and went to the same conventions, the teaching stayed pure and duplicatable. This was not true in other systems where each diamond ran their own majors and taught different techniques.
By all staying together and running a performance based system, we were able to gain incredible volume discounts and leverage our numbers to the benefit of all. For example, in St. Louis if there are 25k people in attendance that means we have 40k plus seats still available. When we fill those seats everyone benefits. The new person get a phenomenal show at a lower price, every leader receives more in profit sharing and the Team reaches its goal of 1 million people. We went through and researched every piece of the criticisms online and attempted to the best of our ability to fix every area we could. The one we could not fix was the Pyramid issue. The criticisms online amounted to this, “You get people motivated and loyal to your Team’s and then convince them to buy products at a higher price than they can buy at a store.” I was taught that the products were of a much higher quality and the higher quality and value justified the higher prices. It wasn’t until I and other top diamonds paid for our own analysis of the products that we began to doubt if our answer was genuine. The doubts would have started in 2004 and this is why the Board started the 15 to 20 value based products initiative. We didn’t expect all of the products to be priced competitively with the market, but asked for some. I felt confident that we could get there in 2004 and felt all we needed to do was confront the facts and fix the issue. When a leader identifies a problem, they do not run away from it, deny it, or pass the buck. They address and fix. This is what we attempted to do through the IBOAI board.
The confronting of reality that Fred Harteis, Billy Florence, Don Wilson, Randy Haugen, Joe Markiewicz, and others were placing on Quixtar led to promises of better pricing. Many leaders were tired of watching high quality leaders come and go out of there organizations. Many went on to successful careers outside of the business and would praise the training systems for teaching them to think right about business. I have lost count of how many stories I have heard about successful entrepreneurs who learned the principles from the various Amway training organizations. The leaders felt that if the training was that good, how come they could not succeed in this business? Why do we have to cycle through nearly half our group every year and to work incredibly hard just to maintain the same size organization? These were the issues on the table to Ken McDonald and Doug Devos. The answer was to do a regime change and this brought Jim Payne and Rob Davidson into the positions of Quixtar Managing Director and Quixtar Sales Manager. I respected Ken McDonald greatly and was told by him that he had planned to retire and that it was time for him to bow out. I was excited to be working with Jim Payne and Rob Davidson. Ken had led us to Rob Davidson when he was head of the rules department. Rob had graciously dedicated his time and energy to help us with the Team Approach methods. I was only 6 months into my first term on the board and the future looked bright for some much needed (in my opinion) riverbed changes to the structure of the Quixtar business. The IBO Board leaders wanted a business we could be proud of and represent to the people with assurance that the business was the best thing for them. I felt confident that in the next two years we would get there and change America for the better! I wanted to make my three year term on the Board count.
Wednesday, January 30, 2008
TEAM: Fred Harteis Resigns
Original Source
Statement From Fred Harteis: 01/30/2008
As an IBO I have entered into many discussions concerning issues I have had with Quixtar i.e.: product pricing, the IBO compensation plan, negative on the web. I have been open about my opinions. When the DTI situation became public, I became very concerned about our future, in the USA based on the DTI complaint. I discussed these issues with several people including my attorneys, my leaders, Orrin Woodward and Chris Brady. However I never talked to D.J. Poyfair or anyone from his firm.
In July of 2007 I along with many others were very concerned about our future in business with Quixtar as was consistent in August of 2007.
Although I agree with the issues I would have hoped Orrin and Chris and the others were not terminated on August 9th of 2007 and the lawsuit would have not been served.
I do not have any question of the character of Orrin Woodward or Chris Brady, or doubt their motive to help people. I see them as leaders with a vision and passion to do great things for America and people on their Team.
I have resigned from Quixtar and I am working with Team Leadership. I would like to see Quixtar and Team resolve their differences soon, so everyone can get on with their lives and focus on the future.
Sincerely,
Fred Harteis
Statement From Fred Harteis: 01/30/2008
As an IBO I have entered into many discussions concerning issues I have had with Quixtar i.e.: product pricing, the IBO compensation plan, negative on the web. I have been open about my opinions. When the DTI situation became public, I became very concerned about our future, in the USA based on the DTI complaint. I discussed these issues with several people including my attorneys, my leaders, Orrin Woodward and Chris Brady. However I never talked to D.J. Poyfair or anyone from his firm.
In July of 2007 I along with many others were very concerned about our future in business with Quixtar as was consistent in August of 2007.
Although I agree with the issues I would have hoped Orrin and Chris and the others were not terminated on August 9th of 2007 and the lawsuit would have not been served.
I do not have any question of the character of Orrin Woodward or Chris Brady, or doubt their motive to help people. I see them as leaders with a vision and passion to do great things for America and people on their Team.
I have resigned from Quixtar and I am working with Team Leadership. I would like to see Quixtar and Team resolve their differences soon, so everyone can get on with their lives and focus on the future.
Sincerely,
Fred Harteis
Wednesday, December 26, 2007
TEAM: Quixtar Website Visits Down
Original Source
Reference to Original Source
Here is a snapshot of the Daily Unique Visitors to Quixtar.com from June through November of 2007 as reported by QuantCast.com (thanks to q-less for pointing this out).
I couldn't find similar data for the 2006, so I don't know if this is seasonally normal for Quixtar. I know in the group I was in, they did a big push in October, November and December for Christmas shopping from Quixtar.
q-less notes that the pattern changes pretty dramatically in October and November. No more end of month spikes. To misquote the poem: This is how the month ends. This is how the month ends. This is how the month ends. Not with a bang, but a whimper. It looks like Quixtar is dealing with "Hollow Months."
Notice that September still has a spike at the end. I don't know about other teams, but my mentor was telling me to keep going and was still encouraging me with Quixtar. It wasn't until after I noticed several big Team leaders were resigning Quixtar and I approached him and talked about me possibly leaving Quixtar that he told me he had resigned Quixtar. As far as my leaders, they didn't push me to leave Quixtar. In fact, they never even brought it up.
Below is a live updating version of the same graph (as the months go by, it will automatically be updated with the latest information. It will be interesting to watch over the coming months.
Reference to Original Source
Here is a snapshot of the Daily Unique Visitors to Quixtar.com from June through November of 2007 as reported by QuantCast.com (thanks to q-less for pointing this out).
I couldn't find similar data for the 2006, so I don't know if this is seasonally normal for Quixtar. I know in the group I was in, they did a big push in October, November and December for Christmas shopping from Quixtar.
q-less notes that the pattern changes pretty dramatically in October and November. No more end of month spikes. To misquote the poem: This is how the month ends. This is how the month ends. This is how the month ends. Not with a bang, but a whimper. It looks like Quixtar is dealing with "Hollow Months."
Notice that September still has a spike at the end. I don't know about other teams, but my mentor was telling me to keep going and was still encouraging me with Quixtar. It wasn't until after I noticed several big Team leaders were resigning Quixtar and I approached him and talked about me possibly leaving Quixtar that he told me he had resigned Quixtar. As far as my leaders, they didn't push me to leave Quixtar. In fact, they never even brought it up.
Below is a live updating version of the same graph (as the months go by, it will automatically be updated with the latest information. It will be interesting to watch over the coming months.
Tuesday, November 27, 2007
TEAM: Who damaged whom? (Chuck Goetschel's perspective on Fanista)
Original Source
Who damaged whom?
by Admin on Tue 27 Nov 2007 08:40 AM PST
I was on the plane flying home Tuesday, November 20, 2007 from mediation meeting with Quixtar attorneys, the person sitting in front of me was reading the New York Times and I found myself in shock by what I was seeing on the front page of the business section.. “No way!” I kept thinking once I was able to read the entire article. “Developed in secrecy over the last two years” the article explained, the new web business was finally launching. “Think of it as part Amazon (online retail), part My-Space (social network) and part Amway (direct pitch from somebody you know).” The products: “DVDs and CDs…and in the coming months it plans to add video games, digital downloads and books.” “More consumers shop online for books, DVDs and music than any other product, according to iCrossing.” The bottom line: Alticor (parent company of Amway/Quixtar) has decided to launch a competing multilevel business named Fanista. They are even attempting to promote a new coin name to the industry, “common interest commerce” to replace multi-level marketing. The big question is why wasn’t Fanista added to Amway/Quixtar rather than launched as a competitor? Once you answer that question, you will understand why I, along with five other IBOAI board members, said without change we could no longer support the Company. In my opinion, and supported by the Fanista launch, they are not leading with the best intentions of the independent business owners (IBOs) in mind.
In my previous paper, “The truth they don’t want you to know”, I talked about how it appeared to me that the Company was going to sell around the IBOs. Several web sites have been set up where the general public can purchase directly. New rules were being passed allowing products to be sold to the public through certain venues. And, great success has occurred in China where products are sold in stores yielding rumors that the “China model” will be seen elsewhere starting in India. However, I honestly never believed that the Company would go so far as to launch a competing multi-level business to Amway/Quixtar. Given Fanista is a direct competitor, it makes one wonder if Amway/Quixtar IBOs register, refer people and earn a profit from Fanista, are they in violation of the non-compete clause of their contract.? If they refer people to their Fanista community from their own or other lines of sponsorship of the Amway/Quixtar business, are they in violation of the non-solicitation clause of their contract? If IBOs can do these things, how is it not in violation of their contract? Is that part of the contract void only if the competing business is also owned by Alticor? And, if IBOs cannot participate, how is it ethically acceptable for the rest of the world to profit with Fanista while the IBOs that created Alticor’s wealth are left out?
Currently, I, along with Randy Haugen, Don Wilson, Orrin Woodward, Chris Brady and Billy Florence, am being sued for damages by the IBOAI board for breaking their confidentiality agreement. In the oath we agreed to “keep all things confidential.” However, we also agreed to “serve and protect” the IBOs. When the IBOAI board UNANIMOUSLY agreed and informed the Company that the “Amway Transformation” was going to be harmful to the IBOs but no change occurred to the direction being taken, then the only way to serve and protect the IBOs was to tell them the truth. I took that responsibility seriously to the point of loosing my business, my income and everything I had worked years to create. Everyone also agreed that we believed in the promise of Rich DeVos that the board gave people security. That is, he “guaranteed” the business owners that the Company would never make a change without the support of the board—our security was that nobody would ever “change the deal.” We all bought into his promise, promoted it, and it was never discounted by any leader or Corporate representative.
Specifically, Rich DeVos said, “…There is no other company in the world that ever set up an association like this one… Everything we do is done in consultation with your representatives who meet with us four times per year…We did that so you would feel secure when somebody like Jay or myself got fat and happy or something and tried to change the deal. And so we said before we even got it going, we set up a guarantee that we can’t change the deal. Because if we know we can’t, we won’t even think about trying…You have that assurance and that protection for your plan because a lot of you have been without it and they changed the deal just about the time you were to make it live for you! We wanted to make sure that didn’t happen to you.” (For the actual recording of Rich DeVos, either click on the following link or copy and paste it into your browser: http://www.musicwebtown.com/theiborebellion/playlists/114468/884361.mp3).
I know we on the board all believed in this promise. From my understanding, the June 2007 board meeting was the first time in board history that a unanimous vote was taken against the direction of the Company. I also believe that the August 2007 emergency board meeting was the first time in board history such a meeting was called. However, in the end, no promise was upheld as the Company marched forward unaffected. At the August board meeting, I believe when the pressure was put on each of us to individually state to Doug DeVos, Steve VanAndel and Jim Payne where we stood with everything, had we all maintained a firm posture that was in alignment with our unanimous negative vote against their agenda, we may have had a chance to stop it. It was sad to me to see the flip-flop personas of the remaining board members. I truly don’t mean to be critical of those remaining board members but our only chance was to stay strong and unified. How can they sign a document to the Company vehemently opposed to an Amway transformation one day and sign a document to IBOs thoroughly excited about it the next day? I am not one to say anything of negative nature of others, particularly people I would consider friends and business leaders, however, now that they chose to sue me and the other five for damages, it motivates me to open up. Whose business is damaged by whom? In my opinion, hundreds of thousands of IBOs will have a significantly worse business opportunity than they could have had because the remaining board members didn’t stand firm.
This situation reminds me of the story of when Henry David Thoreau was put in jail for not paying his taxes. He refused to pay his poll tax to a government that supported slavery. He said, "I cannot for an instant recognize . . . as my government [that] which is the slave's government also." While in jail (the non-documented story says), he was paid a visit by Ralph Waldo Emerson who asked Thoreau, “Why are you on that side of these bars?” To which Thoreau responded, “Why are you on THAT side?” The other board members want to sue us and silence us in jail and I question them why they are on that side?
As a final note for thought, if one isn’t convinced that firm pressure from the right source can’t evoke change, then take a look at some of the price reductions Amway of UK has made due to the pressure from the DTI. Although Alticor has expressed the DTI investigation as a training systems--business support materials (BSM) problem, the main root issue all along has been the lack of income people can make due to the pricing of products being too high (See London Times article regarding the current court case). Do you think this couldn’t happen in North America and elsewhere too?
BODY SERIES™ Concentrated Liquid Hand Soap 250 ml
UK price: £1.75 was Retail £7.95
BODY SERIES™ Fresh Scent Deodorant and Anti-Perspirant Spray 200ml/130 g
UK price: £2.95 was Retail £6.50
BODY SERIES™ 3-in-1 Bar Soap 6 bars - 150 g
UK price: £4.50 was Retail £12.25
SA8 SOLUTIONS™ Pre-Wash Spray 400ml
UK price: £1.65 was Retail £5.90
L.O.C. ™ Mini Wipes 4 travel packs each with 24 wipes
UK price: £4.25 was Retail £10.90
GREEN MEADOWS™ Air Freshener 150 ml
UK price: £1.25 was Retail £4.30
PURSUE™ Toilet Bowl Cleaner 750ml
UK price: £2.45 was Retail £5.50
L.O.C. ™ Plus SEE SPRAY Glass Cleaner 500 ml
UK price: £1.45 was Retail £5.85
L.O.C. ™ Plus Soft Cleanser 500 ml
UK price: £1.35 was Retail £5.80
AMWAY™ Wax Furniture Polish 400 ml
UK price: £1.45 was Retail £6.65
BODY SERIES™ Concentrated Liquid Hand Soap Refill 1 Litre
UK price: £5.95 was Retail £26.40
We stood up to the Company to evoke change in the interest of all IBOs. We felt it was essential that the Company lower the prices as now has happened in the UK. We were concerned about the concept of the Company selling around the IBOs as it would be devastating to the individual business owner. Fanista is beyond what anyone ever imagined. We felt the Amway Transformation was going to take a very difficult business and make it a next to impossible business. That transformation is underway. The board, according to Rich DeVos, was the people’s security. It was designed such that the elected representatives would stand firm in their beliefs to the Company and the Company would listen. The board had a united opinion. After an emergency board meeting no change was happening. It was the final hour. We stayed firm with our convictions while the others claimed, “There is nothing we can do” and flipped over. I so wish they would have stood with us. Instead, their current lawsuit for damages against us is now in process. Who damaged whom? I hope all can be resolved soon.
Who damaged whom?
by Admin on Tue 27 Nov 2007 08:40 AM PST
I was on the plane flying home Tuesday, November 20, 2007 from mediation meeting with Quixtar attorneys, the person sitting in front of me was reading the New York Times and I found myself in shock by what I was seeing on the front page of the business section.. “No way!” I kept thinking once I was able to read the entire article. “Developed in secrecy over the last two years” the article explained, the new web business was finally launching. “Think of it as part Amazon (online retail), part My-Space (social network) and part Amway (direct pitch from somebody you know).” The products: “DVDs and CDs…and in the coming months it plans to add video games, digital downloads and books.” “More consumers shop online for books, DVDs and music than any other product, according to iCrossing.” The bottom line: Alticor (parent company of Amway/Quixtar) has decided to launch a competing multilevel business named Fanista. They are even attempting to promote a new coin name to the industry, “common interest commerce” to replace multi-level marketing. The big question is why wasn’t Fanista added to Amway/Quixtar rather than launched as a competitor? Once you answer that question, you will understand why I, along with five other IBOAI board members, said without change we could no longer support the Company. In my opinion, and supported by the Fanista launch, they are not leading with the best intentions of the independent business owners (IBOs) in mind.
In my previous paper, “The truth they don’t want you to know”, I talked about how it appeared to me that the Company was going to sell around the IBOs. Several web sites have been set up where the general public can purchase directly. New rules were being passed allowing products to be sold to the public through certain venues. And, great success has occurred in China where products are sold in stores yielding rumors that the “China model” will be seen elsewhere starting in India. However, I honestly never believed that the Company would go so far as to launch a competing multi-level business to Amway/Quixtar. Given Fanista is a direct competitor, it makes one wonder if Amway/Quixtar IBOs register, refer people and earn a profit from Fanista, are they in violation of the non-compete clause of their contract.? If they refer people to their Fanista community from their own or other lines of sponsorship of the Amway/Quixtar business, are they in violation of the non-solicitation clause of their contract? If IBOs can do these things, how is it not in violation of their contract? Is that part of the contract void only if the competing business is also owned by Alticor? And, if IBOs cannot participate, how is it ethically acceptable for the rest of the world to profit with Fanista while the IBOs that created Alticor’s wealth are left out?
Currently, I, along with Randy Haugen, Don Wilson, Orrin Woodward, Chris Brady and Billy Florence, am being sued for damages by the IBOAI board for breaking their confidentiality agreement. In the oath we agreed to “keep all things confidential.” However, we also agreed to “serve and protect” the IBOs. When the IBOAI board UNANIMOUSLY agreed and informed the Company that the “Amway Transformation” was going to be harmful to the IBOs but no change occurred to the direction being taken, then the only way to serve and protect the IBOs was to tell them the truth. I took that responsibility seriously to the point of loosing my business, my income and everything I had worked years to create. Everyone also agreed that we believed in the promise of Rich DeVos that the board gave people security. That is, he “guaranteed” the business owners that the Company would never make a change without the support of the board—our security was that nobody would ever “change the deal.” We all bought into his promise, promoted it, and it was never discounted by any leader or Corporate representative.
Specifically, Rich DeVos said, “…There is no other company in the world that ever set up an association like this one… Everything we do is done in consultation with your representatives who meet with us four times per year…We did that so you would feel secure when somebody like Jay or myself got fat and happy or something and tried to change the deal. And so we said before we even got it going, we set up a guarantee that we can’t change the deal. Because if we know we can’t, we won’t even think about trying…You have that assurance and that protection for your plan because a lot of you have been without it and they changed the deal just about the time you were to make it live for you! We wanted to make sure that didn’t happen to you.” (For the actual recording of Rich DeVos, either click on the following link or copy and paste it into your browser: http://www.musicwebtown.com/theiborebellion/playlists/114468/884361.mp3).
I know we on the board all believed in this promise. From my understanding, the June 2007 board meeting was the first time in board history that a unanimous vote was taken against the direction of the Company. I also believe that the August 2007 emergency board meeting was the first time in board history such a meeting was called. However, in the end, no promise was upheld as the Company marched forward unaffected. At the August board meeting, I believe when the pressure was put on each of us to individually state to Doug DeVos, Steve VanAndel and Jim Payne where we stood with everything, had we all maintained a firm posture that was in alignment with our unanimous negative vote against their agenda, we may have had a chance to stop it. It was sad to me to see the flip-flop personas of the remaining board members. I truly don’t mean to be critical of those remaining board members but our only chance was to stay strong and unified. How can they sign a document to the Company vehemently opposed to an Amway transformation one day and sign a document to IBOs thoroughly excited about it the next day? I am not one to say anything of negative nature of others, particularly people I would consider friends and business leaders, however, now that they chose to sue me and the other five for damages, it motivates me to open up. Whose business is damaged by whom? In my opinion, hundreds of thousands of IBOs will have a significantly worse business opportunity than they could have had because the remaining board members didn’t stand firm.
This situation reminds me of the story of when Henry David Thoreau was put in jail for not paying his taxes. He refused to pay his poll tax to a government that supported slavery. He said, "I cannot for an instant recognize . . . as my government [that] which is the slave's government also." While in jail (the non-documented story says), he was paid a visit by Ralph Waldo Emerson who asked Thoreau, “Why are you on that side of these bars?” To which Thoreau responded, “Why are you on THAT side?” The other board members want to sue us and silence us in jail and I question them why they are on that side?
As a final note for thought, if one isn’t convinced that firm pressure from the right source can’t evoke change, then take a look at some of the price reductions Amway of UK has made due to the pressure from the DTI. Although Alticor has expressed the DTI investigation as a training systems--business support materials (BSM) problem, the main root issue all along has been the lack of income people can make due to the pricing of products being too high (See London Times article regarding the current court case). Do you think this couldn’t happen in North America and elsewhere too?
BODY SERIES™ Concentrated Liquid Hand Soap 250 ml
UK price: £1.75 was Retail £7.95
BODY SERIES™ Fresh Scent Deodorant and Anti-Perspirant Spray 200ml/130 g
UK price: £2.95 was Retail £6.50
BODY SERIES™ 3-in-1 Bar Soap 6 bars - 150 g
UK price: £4.50 was Retail £12.25
SA8 SOLUTIONS™ Pre-Wash Spray 400ml
UK price: £1.65 was Retail £5.90
L.O.C. ™ Mini Wipes 4 travel packs each with 24 wipes
UK price: £4.25 was Retail £10.90
GREEN MEADOWS™ Air Freshener 150 ml
UK price: £1.25 was Retail £4.30
PURSUE™ Toilet Bowl Cleaner 750ml
UK price: £2.45 was Retail £5.50
L.O.C. ™ Plus SEE SPRAY Glass Cleaner 500 ml
UK price: £1.45 was Retail £5.85
L.O.C. ™ Plus Soft Cleanser 500 ml
UK price: £1.35 was Retail £5.80
AMWAY™ Wax Furniture Polish 400 ml
UK price: £1.45 was Retail £6.65
BODY SERIES™ Concentrated Liquid Hand Soap Refill 1 Litre
UK price: £5.95 was Retail £26.40
We stood up to the Company to evoke change in the interest of all IBOs. We felt it was essential that the Company lower the prices as now has happened in the UK. We were concerned about the concept of the Company selling around the IBOs as it would be devastating to the individual business owner. Fanista is beyond what anyone ever imagined. We felt the Amway Transformation was going to take a very difficult business and make it a next to impossible business. That transformation is underway. The board, according to Rich DeVos, was the people’s security. It was designed such that the elected representatives would stand firm in their beliefs to the Company and the Company would listen. The board had a united opinion. After an emergency board meeting no change was happening. It was the final hour. We stayed firm with our convictions while the others claimed, “There is nothing we can do” and flipped over. I so wish they would have stood with us. Instead, their current lawsuit for damages against us is now in process. Who damaged whom? I hope all can be resolved soon.
Thursday, November 22, 2007
TEAM: QUIXTAR, THE GRINCH THAT STOLE BLACK FRIDAY
Original Source
QUIXTAR, THE GRINCH THAT STOLE BLACK FRIDAY
Thursday, November 22, 2007
Yet another example of the pathetic quagmire Alticor / Amway / Quixtar finds itself in. What am I talking about? Tomorrow, November 23rd 2007, marks the day commonly referred to as "Black Friday" or the biggest day in retail. In 2006 retail sales for "Black Friday" exceeded 8.9 billion dollars. A simple Google search for "Black Friday" will reveal websites dedicated to this retailing phenomenon. Sites such as www.blackfriday.info, compile sale papers from major players in retail including those exclusive to the internet marketplace. There are certainly bargains to be had not only on Friday but the remainder of the weekend. So big is this event that many analysts are examining how the "Black Friday" effect is creeping into Thanksgiving Day itself. Last year over 8 billion retailing website hits were totaled not on Friday but actually on Thanksgiving.
Next Monday, folks will head back to work to catch up on what they weren't able to do on Thursday and Friday right? Actually no. Monday is when people go back to work to SHOP! Next Monday is referred to as "Cyber Monday." Monday is another huge day in retailing, specifically internet retailing. Last year "Cyber Monday" sales were estimated at a record setting 608 million dollars.
So what am I fussing about? What did Quixtar ever do to take advantage of these repeated and predictable explosions in the marketplace? It is just another example of their detachment from reality and their disregard for the Walmartization of the North American marketplace. I mean really how much smarts does it take? Is the answer that they really don't care? Quixtar sitting the bench on these dates is another example of Quixtar not holding up their end of the deal. This goes hand in hand with products being over priced. They don't play on these dates because they refuse to compete. How much does this cost IBO's year after year? I have never seen a company so afraid of common four letter words. You know like the words "sale" or "good" or "deal." If Q ever does lower the price on something the pv/bv always drops much faster than the price. This being true goes to prove what TEAM is saying. It is about internal consumption not customer sales. If there is no volume what is the point in promoting something if your cut is .7 pv?
So while the rest of the retail marketplace is setting sales records this weekend, Quixtar and their lonely website will be just that.... lonely. I picture Quixtar as the online version of a shuttered auto factory. They don't get it and they didn't change until it was too late. Over the years Quixtar has heralded some of their sales records and I am sure I repeated them myself. Maybe that is what ticks me off. I remember their first 1 million dollar day and then their first 12 million dollar day. When was Quixtar setting these records? Not on "Black Friday," or "Cyber Monday," or the day after Christmas. This should have been and should be a red flag! No their records were set on March 31st and August 31st, you know when people stretched and reached for goals. In other words it was fake volume. Fake volume inspired by a fake company with fake retail sales and fake principles. IBO's were forced to play the game to meet Quixtar's criteria. This is why Quixtar is the Grinch that stole "Black Friday."
In closing I would like to thank all you for making this blog the success it has been. I would also like to wish you all an incredible Thanksgiving Day. We all have so much to be thankful for. Thanksgiving Day 2007 will forever have significance as the first Thanksgiving that we can thank God for our opportunity to move on with TEAM and for our permanent separation from the world according to Quixtar. God Bless you all and enjoy all those high quality products on sale this weekend.
Posted by The IBO Rebellion at 4:07 AM
QUIXTAR, THE GRINCH THAT STOLE BLACK FRIDAY
Thursday, November 22, 2007
Yet another example of the pathetic quagmire Alticor / Amway / Quixtar finds itself in. What am I talking about? Tomorrow, November 23rd 2007, marks the day commonly referred to as "Black Friday" or the biggest day in retail. In 2006 retail sales for "Black Friday" exceeded 8.9 billion dollars. A simple Google search for "Black Friday" will reveal websites dedicated to this retailing phenomenon. Sites such as www.blackfriday.info, compile sale papers from major players in retail including those exclusive to the internet marketplace. There are certainly bargains to be had not only on Friday but the remainder of the weekend. So big is this event that many analysts are examining how the "Black Friday" effect is creeping into Thanksgiving Day itself. Last year over 8 billion retailing website hits were totaled not on Friday but actually on Thanksgiving.
Next Monday, folks will head back to work to catch up on what they weren't able to do on Thursday and Friday right? Actually no. Monday is when people go back to work to SHOP! Next Monday is referred to as "Cyber Monday." Monday is another huge day in retailing, specifically internet retailing. Last year "Cyber Monday" sales were estimated at a record setting 608 million dollars.
So what am I fussing about? What did Quixtar ever do to take advantage of these repeated and predictable explosions in the marketplace? It is just another example of their detachment from reality and their disregard for the Walmartization of the North American marketplace. I mean really how much smarts does it take? Is the answer that they really don't care? Quixtar sitting the bench on these dates is another example of Quixtar not holding up their end of the deal. This goes hand in hand with products being over priced. They don't play on these dates because they refuse to compete. How much does this cost IBO's year after year? I have never seen a company so afraid of common four letter words. You know like the words "sale" or "good" or "deal." If Q ever does lower the price on something the pv/bv always drops much faster than the price. This being true goes to prove what TEAM is saying. It is about internal consumption not customer sales. If there is no volume what is the point in promoting something if your cut is .7 pv?
So while the rest of the retail marketplace is setting sales records this weekend, Quixtar and their lonely website will be just that.... lonely. I picture Quixtar as the online version of a shuttered auto factory. They don't get it and they didn't change until it was too late. Over the years Quixtar has heralded some of their sales records and I am sure I repeated them myself. Maybe that is what ticks me off. I remember their first 1 million dollar day and then their first 12 million dollar day. When was Quixtar setting these records? Not on "Black Friday," or "Cyber Monday," or the day after Christmas. This should have been and should be a red flag! No their records were set on March 31st and August 31st, you know when people stretched and reached for goals. In other words it was fake volume. Fake volume inspired by a fake company with fake retail sales and fake principles. IBO's were forced to play the game to meet Quixtar's criteria. This is why Quixtar is the Grinch that stole "Black Friday."
In closing I would like to thank all you for making this blog the success it has been. I would also like to wish you all an incredible Thanksgiving Day. We all have so much to be thankful for. Thanksgiving Day 2007 will forever have significance as the first Thanksgiving that we can thank God for our opportunity to move on with TEAM and for our permanent separation from the world according to Quixtar. God Bless you all and enjoy all those high quality products on sale this weekend.
Posted by The IBO Rebellion at 4:07 AM
Saturday, November 17, 2007
The Decline of Lifestyle in the United States
I made a comment that has been brought into question:
The percentage of people who fall into the market segment they are targeting is shrinking.
I'm a melancholy-choleric, the wrong kind of person to question the facts on, you're about to get unloaded on.
First, let's start with some common knowledge. Credit Card debt is at an all time high. Personal Savings is at an all time low. While these are not proof positive that people with money are becoming a smaller percentage of the population, it is an indicator of the financial sickness in our society.
The rest of the information, the real meat, is taken from three tables found at Historical Income Tables - Households from the US Census Bureau and Historical Income Tables - People from the US Census Bureau.
NOTE: The charts shown below start with 2006 or 2005 on the left and go further back in time towards the right. That is different than most charts and may take a little getting used to. It puts the most recent information closest to the values on the left, making it easier to evaluate the most recent data (most important in my opinion).
I couldn't quickly find the study done on inflation that stated that when the government reported inflation at 3% it was really 8%, so all the following will use the inflation number reported by the government, which paints a grim enough picture.
UPDATE: Someone pointed me to a website that had the following chart showing the differences in inflation numbers from www.shadowstats.com. The rest of this post has not been updated, so keep in mind that the rest of the inflation numbers may be about 2.5 points lower than they really are.
And with that, let's start with inflation. Below is a chart of the inflation reported by the federal government from 1968 to 2005.
What I find funny is the last six years. Anyone who has paid for medical insurance or had any medical expenses knows that their overall expenses have increased a lot more than 3% or 4% per year. Also, if you live in a "hot" housing market (like Southern California) you know that your overall expenses have gone up more than 3% or 4% per year. So let's stick with these inflation numbers and call them conservative numbers.
Now lets look at how income is distributed among our population. Here is a chart of the population divided into 5ths. There is an even number of people represented by each 5th. This chart is the income of each 5th, adjusted for inflation.
Notice how the highest 5th pulls away so quickly from the rest. I've included the top 5% also, notice it pulls away even faster. The other incomes are basically flat (relative to the explosive income growth of the top 5th). Basically this chart states that the rich get richer and the poor at least stay the same. It's that 5% that is pulling up the top 5th. It looks like if you pulled the top 5% out of the top 5th, it would be flat too.
UPDATE: I've remembered my algebra, and have updated the graph to show the Highest Fifth, without the top 5%:
This chart alone shows that there is a widening gap between the 5% and the 95%. It also shows that if you are looking for a very large market, target those whose incomes are $50,000 and under, which is 60% of the population. If you want to bump that to 80% target $75,000 and under. 60% of the people probably couldn't afford to spend $800 to $1,200 per month (300 PV in Quixtar), not to mention tools, conferences, seminars, etc.
Now you may argue that with Quixtar, you would quickly be able to become self-sustaining. If that were the case, 60% of the people would not quit after 3 years. The reason they are not in a higher fifth is their thinking. It is going to take more system to help get their thinking to the point that their business will pay for itself, especially in 6/4/2 or 9/4/2 business building. That was the beauty of Team Approach. You could start getting up to 25% back on the products pretty quickly (making the pricing more in line) and have time to get your thinking in line to produce more income. Imagine if the products were a great deal to begin with. It would be a no-brainer for anyone to be a customer, better prices and personalized service. Then you could actually have people getting to break even within a month of getting started. But I digress.
Now let's look at how fast incomes rose for each 5th. The chart below shows what the average yearly increase (after inflation) in income was per year for each 5th. The 2000's should probably be ignored, since we only have the first half of that story (which starts out pretty sad).
Notice that again, the top 5th far exceeds everyone else in growth. The top 5th, on average, got just over 2% raise every year during the 90's. However, the top 5% was pulling that up, since they were getting almost 3% raise every year. Everyone else is sitting there on the low end of 1% (actually, the three lowest got 0.93%, 0.78% and 0.85%, and the 4th Fifth got 1.13%). Now these are the increases in income after inflation, which is probably a little on the low side, so these are actually more likely to be negative growths. Of course if you look at the 2000's, its just not a pretty picture so far.
UPDATE: Again, due to my remembering algebra, I'm able to bring you this updated chart, with the 5% taken out of the Highest Fifth:
Now there are a few reasons I think many people may not have felt this as much. One of which is that we have gone from a single earner per household society to a two earner per household society. The chart below shows the average Household Income and the Income Per Capita (all income in all households divided by the number of people).
The Per Capita number is a bit misleading. Family sizes have been shrinking over the years. That means that a typical family in 1970 might have had a father (the bread winner), a wife and three children. This means his income was divided by 5. Today it may be more like a father (one bread winner), a wife (another bread winner) and two children. This is the combined income of two divided by 4, or each bread winner's income divided by 2.
Notice how the Household income still pulls away faster, even given the information above. There are more two income-earner families, which has taken the brunt of the economic force. But what will the average family do to keep up? Dad works two jobs? Multiple nuclear families living together? What will be the social trend to help bear the brunt of the increasing expense of getting by?
So back to the questioned statement:
The percentage of people who fall into the market segment they are targeting is shrinking.
If you focus on people who make $75,000 and less, you get 80% of the market. Of course, there are people in the Highest Fifth that shop at Walmart, because everyone would rather spend their money on fun stuff, and save money on the everyday stuff to do it. Even Emeralds and Diamonds shop at Walmart (as seen in a few of the Affidavits).
However, if you price yourself so that only the upper end of the 4th Fifth and the Highest Fifth could afford it, that is a 30% market share. While they have more money, I'd rather have 1% of 100 men than 100% of 1 man.
If you would like the full spreadsheet, PDF and images used for this posting, email me at ThomasEvanAnthonyMorris (at) gmail (dot) com, and I will email you everything I used (1.3 MB zip file).
The percentage of people who fall into the market segment they are targeting is shrinking.
I'm a melancholy-choleric, the wrong kind of person to question the facts on, you're about to get unloaded on.
First, let's start with some common knowledge. Credit Card debt is at an all time high. Personal Savings is at an all time low. While these are not proof positive that people with money are becoming a smaller percentage of the population, it is an indicator of the financial sickness in our society.
The rest of the information, the real meat, is taken from three tables found at Historical Income Tables - Households from the US Census Bureau and Historical Income Tables - People from the US Census Bureau.
NOTE: The charts shown below start with 2006 or 2005 on the left and go further back in time towards the right. That is different than most charts and may take a little getting used to. It puts the most recent information closest to the values on the left, making it easier to evaluate the most recent data (most important in my opinion).
I couldn't quickly find the study done on inflation that stated that when the government reported inflation at 3% it was really 8%, so all the following will use the inflation number reported by the government, which paints a grim enough picture.
UPDATE: Someone pointed me to a website that had the following chart showing the differences in inflation numbers from www.shadowstats.com. The rest of this post has not been updated, so keep in mind that the rest of the inflation numbers may be about 2.5 points lower than they really are.
And with that, let's start with inflation. Below is a chart of the inflation reported by the federal government from 1968 to 2005.
What I find funny is the last six years. Anyone who has paid for medical insurance or had any medical expenses knows that their overall expenses have increased a lot more than 3% or 4% per year. Also, if you live in a "hot" housing market (like Southern California) you know that your overall expenses have gone up more than 3% or 4% per year. So let's stick with these inflation numbers and call them conservative numbers.
Now lets look at how income is distributed among our population. Here is a chart of the population divided into 5ths. There is an even number of people represented by each 5th. This chart is the income of each 5th, adjusted for inflation.
Notice how the highest 5th pulls away so quickly from the rest. I've included the top 5% also, notice it pulls away even faster. The other incomes are basically flat (relative to the explosive income growth of the top 5th). Basically this chart states that the rich get richer and the poor at least stay the same. It's that 5% that is pulling up the top 5th. It looks like if you pulled the top 5% out of the top 5th, it would be flat too.
UPDATE: I've remembered my algebra, and have updated the graph to show the Highest Fifth, without the top 5%:
This chart alone shows that there is a widening gap between the 5% and the 95%. It also shows that if you are looking for a very large market, target those whose incomes are $50,000 and under, which is 60% of the population. If you want to bump that to 80% target $75,000 and under. 60% of the people probably couldn't afford to spend $800 to $1,200 per month (300 PV in Quixtar), not to mention tools, conferences, seminars, etc.
Now you may argue that with Quixtar, you would quickly be able to become self-sustaining. If that were the case, 60% of the people would not quit after 3 years. The reason they are not in a higher fifth is their thinking. It is going to take more system to help get their thinking to the point that their business will pay for itself, especially in 6/4/2 or 9/4/2 business building. That was the beauty of Team Approach. You could start getting up to 25% back on the products pretty quickly (making the pricing more in line) and have time to get your thinking in line to produce more income. Imagine if the products were a great deal to begin with. It would be a no-brainer for anyone to be a customer, better prices and personalized service. Then you could actually have people getting to break even within a month of getting started. But I digress.
Now let's look at how fast incomes rose for each 5th. The chart below shows what the average yearly increase (after inflation) in income was per year for each 5th. The 2000's should probably be ignored, since we only have the first half of that story (which starts out pretty sad).
Notice that again, the top 5th far exceeds everyone else in growth. The top 5th, on average, got just over 2% raise every year during the 90's. However, the top 5% was pulling that up, since they were getting almost 3% raise every year. Everyone else is sitting there on the low end of 1% (actually, the three lowest got 0.93%, 0.78% and 0.85%, and the 4th Fifth got 1.13%). Now these are the increases in income after inflation, which is probably a little on the low side, so these are actually more likely to be negative growths. Of course if you look at the 2000's, its just not a pretty picture so far.
UPDATE: Again, due to my remembering algebra, I'm able to bring you this updated chart, with the 5% taken out of the Highest Fifth:
Now there are a few reasons I think many people may not have felt this as much. One of which is that we have gone from a single earner per household society to a two earner per household society. The chart below shows the average Household Income and the Income Per Capita (all income in all households divided by the number of people).
The Per Capita number is a bit misleading. Family sizes have been shrinking over the years. That means that a typical family in 1970 might have had a father (the bread winner), a wife and three children. This means his income was divided by 5. Today it may be more like a father (one bread winner), a wife (another bread winner) and two children. This is the combined income of two divided by 4, or each bread winner's income divided by 2.
Notice how the Household income still pulls away faster, even given the information above. There are more two income-earner families, which has taken the brunt of the economic force. But what will the average family do to keep up? Dad works two jobs? Multiple nuclear families living together? What will be the social trend to help bear the brunt of the increasing expense of getting by?
So back to the questioned statement:
The percentage of people who fall into the market segment they are targeting is shrinking.
If you focus on people who make $75,000 and less, you get 80% of the market. Of course, there are people in the Highest Fifth that shop at Walmart, because everyone would rather spend their money on fun stuff, and save money on the everyday stuff to do it. Even Emeralds and Diamonds shop at Walmart (as seen in a few of the Affidavits).
However, if you price yourself so that only the upper end of the 4th Fifth and the Highest Fifth could afford it, that is a 30% market share. While they have more money, I'd rather have 1% of 100 men than 100% of 1 man.
If you would like the full spreadsheet, PDF and images used for this posting, email me at ThomasEvanAnthonyMorris (at) gmail (dot) com, and I will email you everything I used (1.3 MB zip file).
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