Quixtar had a judge put a gag order on the Mighty 15 for revealing “confidential information and trade secrets which the Defendants could only have learned as a result of their membership and activities on the IBOAI Board.”
I believe that Quixtar is claiming that the 48 page legal complaint filed in Los Angeles revealed trade secrets of Quixtar. Well, I hate to break it to them, but it was not really all that much of a secret. Anyone who rummaged through Quixtar's site to see what the prices were like knew everything was overpriced. Maybe they are referring to the trade secret that they knew that IBOs could not retail their products and comply with the 10 customer rule. Everybody else knew it, I would assume they would too.
I remember reading the "business manual" (I forget exactly what they call it) with all the official legal instructions in it. I came across the "10 customer rule" and ran to my (then) Platinum concerned that I would not make any money until I could get 10 customers every month. He told me that they didn't enforce that rule and that no one really had 10 customers, so they couldn't enforce it, or chance losing everyone.
Well, it looks like they are chancing losing everyone now. I wonder how many auto-renew's have been turned off (log in : Build & Manage My Business : Register and Renew : Auto Renew : Way down at the bottom, check "cancel auto renew"). They are trying to strong arm Platinums and above into affirming their loyalty to Quixtar (against all Quixtar rules from what I understand). Some of these Platinums and above will stay with Quixtar. Some will reluctantly stay, for now. Some will leave as soon as all the legal mess is cleared up. Some will just get fed up and leave. There are very few actual leaders that will stay and not have a bad taste in their mouth.
If all they had to do was lower the prices, wouldn't it have been worth it? Instead, they risk losing 30% (they say these groups represent 40% of the IBOs, but I don't think all will follow them) of their most valuable IBOs. I would think a 10% cut in prices would be better than losing 30% of your business, plus all the bad feelings and resentment being built up.
In the complaint filed in Los Angeles, they say there is a "Jay Factor," (probably the real trade secret they are referring to) or about a 30% cut that goes to the families of the founders. They are now risking having 1/3 of that disappearing. Huh, that would be 10%, the 10% they could have given in good will as a price discount. The 10% that would have sparked belief in the leadership that Quixtar is a viable business that listens to its customers. That the IBOAI board still has some influence.
Well, my guess is that in the short term, those families would lose 1/3 of their income in either case. Maybe they should have taken the high road of customer satisfaction. Maybe they should have trusted the people actually in the field. The people who had their fingers on the pulse of the "customers."
Its a shame to see them paint themselves into a corner, and then feel like they have to viciously try to hold it all together with threats. Maybe they should have read some books on Leadership. Anybody want to send them a copy of Launching a Leadership Revolution?
Monday, August 20, 2007
TEAM: Letter from Bill Newton
Original Source
Letter from Bill Newton
To Business Friends and Associates,
There is much information circulating about “The Business” and leaders that are navigating their teams. I feel the importance of giving you my understanding and position. I will tell you up front everyone looks at discussion and events through lenses of their own perspective. Therefore I will tell you about my perspective so there is reduced chance for misunderstanding.
What brought me to “The Business” are events and experience I gained from our family farm equipment business, along with our manufacturing companies, and our 24 hour truck stop, and farming operation etc., etc., etc... At least 13 companies Jann and I owned either out right or in partnerships of some sort.
The most compelling event that drove my inquiry of the board was the demise of our farm equipment business. Nov, 1981 Allis Chalmers farm equipment Company convened a regional dealer meeting to lay out its plans to fix the troubled farm equipment business. I was 28 years old and had been managing our equipments business 2 years for my father-in-law. What Allis Chalmers did was change the deal in March of 1982. This materially affected all its dealers. Most of the dealers shut down business. All of the dealers that stayed in business lost a lot of money. Our company over night lost millions in value. Jann and I looked at ways to stay in the game to reduce or overcome the losses. I knew immediately we were in business with a company that I couldn’t trust because they changed the deal. I made the decision to stay in business just long enough to find a way out. My trust that Allis Chalmers would do the right thing for its dealers was gone. Now we operate in a mode of self preservation, and how can I lose less. Jann and I worked tirelessly for 4 years, sacrificing many things to work around the problems that Allis Chalmers unloaded on us. At the closing of our dealership April 1st of 1986 we lost over 3 ½, million dollars, and every asset we had.
Ten months later I see the IBO plan from Jim McAnarney. I told him how Allis Chalmers changed the deal. He told me that I am going to love and appreciate this plan, because it is operated by a board of IBO’s and the vendor can’t change the deal unless we elect. When I heard this, if true, “I’m in”. This board governance issue has been repeated thousands of times by most all leaders. My goal from the beginning of my business was to be on the board to help govern our business. This was my dream. Knowing I’m in for life and my family will operate our business after me was the ultimate inspiring vision I had. As I brought new business owners into business with us, I told them the value of the IBOAI board and what that means to us and them for the accomplishments of the dreams through “The Business”. In the fall of 2005 I got a call from a mentor and friend Jody Victor. He asked me if I would accept an elected position on the IBOAI. I was elated. A major part of my dream was coming together. I am on the Business Operations Committee, and also serve as a hearing panel member for the dispute resolution process. I was just voted to Chair the Proactive Communication Committee to let the board tell its own story. The board felt our perspective is critical to the IBO’s.
While serving on the business operations committee, we discuss what IBO’s need, and what should change or improve. When I attended my 2nd board meeting and saw Quixtars response to our request with little or no good reason (my perspective) I start to get the inkling the board has a more limited ability to govern than what I understood. Most IBO’s have the same understanding that I HAD!
The folks that served a long time on the board knew the board was weak. They never let the IBO’s know how ineffective or powerless the board really is. Please fellow board members don’t get defensive on this matter. Most all IBO’s believe the IBOAI govern the plan or company etc...
As the truth is revealed Board Members may want to resign from the board or at the very least give disclosure to IBO’s how toothless the board is. They can then make an informed choice whether to send the board dues. Knowing that the board is covering up their real abilities to recommend, govern, direct or how ever you want to spin it.
When Quixtar Inc. said they are going to put 60 millions plus dollars into new bonuses we all cheered, then later added material changes to our business model. The changes may include new policies and rules not approved by the IBOAI, new SA4400, this is entrapment by association. When Allis Chalmers changed the deal on its dealers the interest rate was 18%. Allis Chalmers advertised 6.4% financing to the public on equipment purchases. The problem was the dealers were on 100% recourse financially at the low rate of interest. (Dealers were trapped into complying) etc. etc. etc.
The board shouldn’t allow Quixtar to do a joint statement to the field that they are solidly behind Quixtar’s actions to terminate Orrin and Chris. Full and accurate perception to the field should come from the board to correct this cloaking reality. The remaining board members that were submitting to Quixtar's rolling over them possibly are behind this action. There are some very capable men who see things very differently than Quixtar on these issues. Where is their voice to the IBO’s? That is one reason I am sounding off. The new communications team at the IBOAI that Melissa is working with should be in hi gear with the whole story. IBO’s want full disclosure of what happened and who is actually behind this action and who isn’t. I will be looking forward to that communication.
When I called into Quixtar customer support and was told they are changing the name to Amway I called several leaders for their take on it. I was told that the founder’s council was behind this action. My first call was to Founders Council Jim Dornan. He told me he was not in favor at all the Amway business change. Dornan’s son, a new emerald, said this would devastate his business making it almost impossible to build. Jim is one of the best business builders in the world. Why would he and his son talk this way about the change in business unless it’s true?
Here is Orrins logical look at all the changes that Quixtar is forcing implementation on. When you try to fix a machine or company to get a better result you adjust 1 knob or 1 thing at a time. Then you track results. When you change 2 things you can’t determine an outcome.
We are being forced to adjust about 10 things jammed at us by Quixtar. We go into a living room tonight and say here’s the result you will get. That is not a respectable representation.
Many leaders had dialog about changing vendors from Quixtar to a more accommodating environment or vendor. Some discussions went from “yes we should”, to “How can that happen”, to, we are trapped because of rules”, to my talk with Jody Victor. My understanding is Jody personally hates this. If you throw Amway into this environment, it puts undue hardship on them. Every leader has discussed a strategy to boot Quixtar and replace them with something we can work better with.
When my son, Cody, heard the news about Amway the following dialog took place. “So… Dad, the board won’t be behind that! I’m not doing Amway!” No one in my group signed up for Amway!?*!” Cody believes the board will stop this stupid thing from happening. The board meeting is about a week away. After the Board meeting, Cody read on blog that 100% of the Board stood against the Amway action, but Quixtar was going ahead with it anyway. It was at that time Cody saw that his dad had been working, living, and educating all of us differently than what was real. He was duped. Cody remembers Allis Chalmers. He told me he won’t spend anymore of his life dealing with Quixtar, knowing they can go unchecked and make material changes without the Boards’ governance.
Randy Haugen said when you change our name to the New Amway it will have similar effect to building a ship and calling it the New Titanic!
My word and beliefs are very important to me. The reason I resigned from the IBOAI is the perception that most IBO’s have of its function and effectiveness are not the same. This in no way means the men and women serving are not giving their best. As smart and great quality leaders they are; they were totally ineffective at fixing a problem that most all IBO’s felt was in their jurisdiction to administer and solve. Knowing of the Boards’ inability on this issue indicates they are neutered on other vital issues of our business. Don’t get the wrong idea about the board and its great participants. This is about a controlling corporation. Since I have thrown 20 years of my life into my business to figure this out now, I feel compelled to enlighten those that care as I do, sooner than later.
Now for Quixtar/Amway and its actions: There has been over 15 million IBO’s registered since they started. Add spouses and you have approximately 25-30 million people. Now add 3-4 people that are very close to each IBO – the total people that have had the opportunity to buy Quixtar and Amway products could be 70-100 million people, conservatively. Why are there only about 300,000-400,000 people buying products today? Stand by for the problem and solutions.
When a new IBO registers and looks in catalogs, or goes online and takes their first glance at products – a perplexed look comes to them. The pricing on most items is higher than what they have been paying prior to becoming an IBO. Their thoughts generally take them down the path of, “now I know how the upline in the pyramid make so much money”. They get a feeling like they are the one paying the price for all those bonuses. It really puts the new IBO and their sponsor in an uncomfortable situation. One, being “you’re taking advantage of me, or why didn’t you tell me these aren’t good deals”. The new IBO is emotionally leaving the business because of high pricing within 30 seconds. The upline hasn’t had an opportunity to get them to a training conference, nor have they purchased any business support materials yet. The new IBO was probably lent materials to help with training. This period is what I call the churn. Good builders build depth in teams, and do it fast. The goal is to re-engage hope for the new IBO after he sees high prices. “Maybe if I get enough bonuses, the prices will be tolerable, therefore I will suffer with my sponsor awhile if depth is built in my group”. If very little happens from their upline team in the early stages, the new IBO will exit. And exit they do with an opinion about Quixtar/Amway product prices being high.
I and most leaders have discussed this process and real problem of high prices with the executives of Quixtar and Amway over many years. This is the main reason for Quixtar and Amway’s poor reputation. Quixtar is in denial about this reputation issue because of high prices. Instead, Quixtar barks at IBO’s about their behavior and sets up encumbering rules of which we don’t control, but have to abide by, thus, making the effort index too great for most men and women. I’m watching The Team growing in this challenging environment, while most other groups are backing up. Envious leaders explain to their own groups that The Team is just better trainers, or have a better system, or something. If the leaders can’t handle the truth they generally will throw darts at what The Team is doing and make them look like they are doing something wrong. I called Jim Payne, Managing Director of Quixtar, about mid-July 2007. I asked him specifically if he was aware of problems with The Team. He said all teams have issues at some time or another. He said Orrin Woodward has always been good to work with and he anticipated that anything that should come in the future could easily be worked through. I just saw blogs from Corporation Communication that says it totally different. I don’t think Jim Payne, Managing Director, was lying to me. I do believe some out-of-control small-minded employee with an axe to grind wrote the crap about those fine principled men that stand on what is right.
Where do we go from here…
I had to voice my opinion in a strong way. I do not agree with Quixtars encumbering and overbearing changes they are making in the business. They are:
1. Name change to Amway
2. New SA440 that tells a new IBO starting Sept 1st that Quixtar
will turn into Amway in 18 months. Gives lip service to
selling. Just lipstick on a pig in there.
3. The new money is a 2 year program and is not in our plan. It
is doled out at Quixtars whims.
Most people can’t come up to speed in time for the big bonuses. (More lipstick)
4. Quixtar cancelled their contract with the IBOAI board
Effective November then they want to go month to month. This action came after the board sent them a letter that states we are 100% not in agreement on the Amway business change. So if the board makes Quixtar feel good they may continue month to month.
5. Quixtar has not produced the 20 products the board asked
for a year and a half ago.
6. High priced products. Many leaders have requested
reduction in prices since 1995. We got a grin and a head
shake. (more lipstick)
7. The company wants to change the business model that we
signed up for. The board’s opinion didn’t change their mind
or plans.
I counted another 5 things that are in the works that because of a contract I made when I went on the board prohibits divulgence. The above information is already out on memos and blogs.
Since I recognize the perception from Ibo’s is mostly that the board governs our business, I feel its necessary for me to tell the truth and not be a party to a board that I thought governed, but doesn’t.
This is why I resigned from the board that I so much wanted to participate in.
You will get accurate information from the-team.biz
I love and appreciate all business owners we affiliate with. I will continue to support your businesses. Stay hunkered down and do what we all do best. We build communities.
Since 95% of us can’t sell the Quixtar products for a retail profit stay hunkered down during these times and do what we do best. We build communities. A better commerce environment will come.
All of you in business today looked at the plan to move down the tracks in one direction, then woke up and found that Quixtar changed the tracks and we are now headed a different direction than what we signed up for. It's not right that we should have to stay in a different business that most of the leaders and board don’t agree with. Quixtar should let free enterprise have its way. If you want to pursue a better option in business for your family at this time the 2 year rule should be nixed for all the afore mentioned reasons. Quixtar should negotiate a settlement with who ever wants to pursue a different business and take their friends and family with them with out any action against them. Quixtar did not build your company nor did it know your friends that you put in business with you.
Fighting for what I believe is right!
Bill Newton
Since composing this letter I received a letter from Quixtar saying they will not accept my resignation from last week but they are terminating me.
Blessings Bill
Letter from Bill Newton
To Business Friends and Associates,
There is much information circulating about “The Business” and leaders that are navigating their teams. I feel the importance of giving you my understanding and position. I will tell you up front everyone looks at discussion and events through lenses of their own perspective. Therefore I will tell you about my perspective so there is reduced chance for misunderstanding.
What brought me to “The Business” are events and experience I gained from our family farm equipment business, along with our manufacturing companies, and our 24 hour truck stop, and farming operation etc., etc., etc... At least 13 companies Jann and I owned either out right or in partnerships of some sort.
The most compelling event that drove my inquiry of the board was the demise of our farm equipment business. Nov, 1981 Allis Chalmers farm equipment Company convened a regional dealer meeting to lay out its plans to fix the troubled farm equipment business. I was 28 years old and had been managing our equipments business 2 years for my father-in-law. What Allis Chalmers did was change the deal in March of 1982. This materially affected all its dealers. Most of the dealers shut down business. All of the dealers that stayed in business lost a lot of money. Our company over night lost millions in value. Jann and I looked at ways to stay in the game to reduce or overcome the losses. I knew immediately we were in business with a company that I couldn’t trust because they changed the deal. I made the decision to stay in business just long enough to find a way out. My trust that Allis Chalmers would do the right thing for its dealers was gone. Now we operate in a mode of self preservation, and how can I lose less. Jann and I worked tirelessly for 4 years, sacrificing many things to work around the problems that Allis Chalmers unloaded on us. At the closing of our dealership April 1st of 1986 we lost over 3 ½, million dollars, and every asset we had.
Ten months later I see the IBO plan from Jim McAnarney. I told him how Allis Chalmers changed the deal. He told me that I am going to love and appreciate this plan, because it is operated by a board of IBO’s and the vendor can’t change the deal unless we elect. When I heard this, if true, “I’m in”. This board governance issue has been repeated thousands of times by most all leaders. My goal from the beginning of my business was to be on the board to help govern our business. This was my dream. Knowing I’m in for life and my family will operate our business after me was the ultimate inspiring vision I had. As I brought new business owners into business with us, I told them the value of the IBOAI board and what that means to us and them for the accomplishments of the dreams through “The Business”. In the fall of 2005 I got a call from a mentor and friend Jody Victor. He asked me if I would accept an elected position on the IBOAI. I was elated. A major part of my dream was coming together. I am on the Business Operations Committee, and also serve as a hearing panel member for the dispute resolution process. I was just voted to Chair the Proactive Communication Committee to let the board tell its own story. The board felt our perspective is critical to the IBO’s.
While serving on the business operations committee, we discuss what IBO’s need, and what should change or improve. When I attended my 2nd board meeting and saw Quixtars response to our request with little or no good reason (my perspective) I start to get the inkling the board has a more limited ability to govern than what I understood. Most IBO’s have the same understanding that I HAD!
The folks that served a long time on the board knew the board was weak. They never let the IBO’s know how ineffective or powerless the board really is. Please fellow board members don’t get defensive on this matter. Most all IBO’s believe the IBOAI govern the plan or company etc...
As the truth is revealed Board Members may want to resign from the board or at the very least give disclosure to IBO’s how toothless the board is. They can then make an informed choice whether to send the board dues. Knowing that the board is covering up their real abilities to recommend, govern, direct or how ever you want to spin it.
When Quixtar Inc. said they are going to put 60 millions plus dollars into new bonuses we all cheered, then later added material changes to our business model. The changes may include new policies and rules not approved by the IBOAI, new SA4400, this is entrapment by association. When Allis Chalmers changed the deal on its dealers the interest rate was 18%. Allis Chalmers advertised 6.4% financing to the public on equipment purchases. The problem was the dealers were on 100% recourse financially at the low rate of interest. (Dealers were trapped into complying) etc. etc. etc.
The board shouldn’t allow Quixtar to do a joint statement to the field that they are solidly behind Quixtar’s actions to terminate Orrin and Chris. Full and accurate perception to the field should come from the board to correct this cloaking reality. The remaining board members that were submitting to Quixtar's rolling over them possibly are behind this action. There are some very capable men who see things very differently than Quixtar on these issues. Where is their voice to the IBO’s? That is one reason I am sounding off. The new communications team at the IBOAI that Melissa is working with should be in hi gear with the whole story. IBO’s want full disclosure of what happened and who is actually behind this action and who isn’t. I will be looking forward to that communication.
When I called into Quixtar customer support and was told they are changing the name to Amway I called several leaders for their take on it. I was told that the founder’s council was behind this action. My first call was to Founders Council Jim Dornan. He told me he was not in favor at all the Amway business change. Dornan’s son, a new emerald, said this would devastate his business making it almost impossible to build. Jim is one of the best business builders in the world. Why would he and his son talk this way about the change in business unless it’s true?
Here is Orrins logical look at all the changes that Quixtar is forcing implementation on. When you try to fix a machine or company to get a better result you adjust 1 knob or 1 thing at a time. Then you track results. When you change 2 things you can’t determine an outcome.
We are being forced to adjust about 10 things jammed at us by Quixtar. We go into a living room tonight and say here’s the result you will get. That is not a respectable representation.
Many leaders had dialog about changing vendors from Quixtar to a more accommodating environment or vendor. Some discussions went from “yes we should”, to “How can that happen”, to, we are trapped because of rules”, to my talk with Jody Victor. My understanding is Jody personally hates this. If you throw Amway into this environment, it puts undue hardship on them. Every leader has discussed a strategy to boot Quixtar and replace them with something we can work better with.
When my son, Cody, heard the news about Amway the following dialog took place. “So… Dad, the board won’t be behind that! I’m not doing Amway!” No one in my group signed up for Amway!?*!” Cody believes the board will stop this stupid thing from happening. The board meeting is about a week away. After the Board meeting, Cody read on blog that 100% of the Board stood against the Amway action, but Quixtar was going ahead with it anyway. It was at that time Cody saw that his dad had been working, living, and educating all of us differently than what was real. He was duped. Cody remembers Allis Chalmers. He told me he won’t spend anymore of his life dealing with Quixtar, knowing they can go unchecked and make material changes without the Boards’ governance.
Randy Haugen said when you change our name to the New Amway it will have similar effect to building a ship and calling it the New Titanic!
My word and beliefs are very important to me. The reason I resigned from the IBOAI is the perception that most IBO’s have of its function and effectiveness are not the same. This in no way means the men and women serving are not giving their best. As smart and great quality leaders they are; they were totally ineffective at fixing a problem that most all IBO’s felt was in their jurisdiction to administer and solve. Knowing of the Boards’ inability on this issue indicates they are neutered on other vital issues of our business. Don’t get the wrong idea about the board and its great participants. This is about a controlling corporation. Since I have thrown 20 years of my life into my business to figure this out now, I feel compelled to enlighten those that care as I do, sooner than later.
Now for Quixtar/Amway and its actions: There has been over 15 million IBO’s registered since they started. Add spouses and you have approximately 25-30 million people. Now add 3-4 people that are very close to each IBO – the total people that have had the opportunity to buy Quixtar and Amway products could be 70-100 million people, conservatively. Why are there only about 300,000-400,000 people buying products today? Stand by for the problem and solutions.
When a new IBO registers and looks in catalogs, or goes online and takes their first glance at products – a perplexed look comes to them. The pricing on most items is higher than what they have been paying prior to becoming an IBO. Their thoughts generally take them down the path of, “now I know how the upline in the pyramid make so much money”. They get a feeling like they are the one paying the price for all those bonuses. It really puts the new IBO and their sponsor in an uncomfortable situation. One, being “you’re taking advantage of me, or why didn’t you tell me these aren’t good deals”. The new IBO is emotionally leaving the business because of high pricing within 30 seconds. The upline hasn’t had an opportunity to get them to a training conference, nor have they purchased any business support materials yet. The new IBO was probably lent materials to help with training. This period is what I call the churn. Good builders build depth in teams, and do it fast. The goal is to re-engage hope for the new IBO after he sees high prices. “Maybe if I get enough bonuses, the prices will be tolerable, therefore I will suffer with my sponsor awhile if depth is built in my group”. If very little happens from their upline team in the early stages, the new IBO will exit. And exit they do with an opinion about Quixtar/Amway product prices being high.
I and most leaders have discussed this process and real problem of high prices with the executives of Quixtar and Amway over many years. This is the main reason for Quixtar and Amway’s poor reputation. Quixtar is in denial about this reputation issue because of high prices. Instead, Quixtar barks at IBO’s about their behavior and sets up encumbering rules of which we don’t control, but have to abide by, thus, making the effort index too great for most men and women. I’m watching The Team growing in this challenging environment, while most other groups are backing up. Envious leaders explain to their own groups that The Team is just better trainers, or have a better system, or something. If the leaders can’t handle the truth they generally will throw darts at what The Team is doing and make them look like they are doing something wrong. I called Jim Payne, Managing Director of Quixtar, about mid-July 2007. I asked him specifically if he was aware of problems with The Team. He said all teams have issues at some time or another. He said Orrin Woodward has always been good to work with and he anticipated that anything that should come in the future could easily be worked through. I just saw blogs from Corporation Communication that says it totally different. I don’t think Jim Payne, Managing Director, was lying to me. I do believe some out-of-control small-minded employee with an axe to grind wrote the crap about those fine principled men that stand on what is right.
Where do we go from here…
I had to voice my opinion in a strong way. I do not agree with Quixtars encumbering and overbearing changes they are making in the business. They are:
1. Name change to Amway
2. New SA440 that tells a new IBO starting Sept 1st that Quixtar
will turn into Amway in 18 months. Gives lip service to
selling. Just lipstick on a pig in there.
3. The new money is a 2 year program and is not in our plan. It
is doled out at Quixtars whims.
Most people can’t come up to speed in time for the big bonuses. (More lipstick)
4. Quixtar cancelled their contract with the IBOAI board
Effective November then they want to go month to month. This action came after the board sent them a letter that states we are 100% not in agreement on the Amway business change. So if the board makes Quixtar feel good they may continue month to month.
5. Quixtar has not produced the 20 products the board asked
for a year and a half ago.
6. High priced products. Many leaders have requested
reduction in prices since 1995. We got a grin and a head
shake. (more lipstick)
7. The company wants to change the business model that we
signed up for. The board’s opinion didn’t change their mind
or plans.
I counted another 5 things that are in the works that because of a contract I made when I went on the board prohibits divulgence. The above information is already out on memos and blogs.
Since I recognize the perception from Ibo’s is mostly that the board governs our business, I feel its necessary for me to tell the truth and not be a party to a board that I thought governed, but doesn’t.
This is why I resigned from the board that I so much wanted to participate in.
You will get accurate information from the-team.biz
I love and appreciate all business owners we affiliate with. I will continue to support your businesses. Stay hunkered down and do what we all do best. We build communities.
Since 95% of us can’t sell the Quixtar products for a retail profit stay hunkered down during these times and do what we do best. We build communities. A better commerce environment will come.
All of you in business today looked at the plan to move down the tracks in one direction, then woke up and found that Quixtar changed the tracks and we are now headed a different direction than what we signed up for. It's not right that we should have to stay in a different business that most of the leaders and board don’t agree with. Quixtar should let free enterprise have its way. If you want to pursue a better option in business for your family at this time the 2 year rule should be nixed for all the afore mentioned reasons. Quixtar should negotiate a settlement with who ever wants to pursue a different business and take their friends and family with them with out any action against them. Quixtar did not build your company nor did it know your friends that you put in business with you.
Fighting for what I believe is right!
Bill Newton
Since composing this letter I received a letter from Quixtar saying they will not accept my resignation from last week but they are terminating me.
Blessings Bill
Don't Compete, Don't Talk To Your Family and Friends
The first thing you're told to do after you register is to make a list of all the family and friends you have ever known. Then you find out which ones want to join you on your quest for freedom.
There are two rules that Quixtar is reminding the Platinums, via the email previously mentioned, that they cannot solicit these family and friends to join them in any other ventures for two years after they leave Quixtar. That makes Thanksgivings awkward.
"So how are things going?"
"Legally, I can't tell you."
Why do they think they can tell you who you can solicit. How do they get control over your family and friends, more control than you have? Didn't you go out and talk to them, help mentor them? How does Quixtar get an exclusive on them for two years? They wouldn't even be registered with Quixtar if it had not been for you.
I hope the lawsuit in California can fix some of these problems. If they have a lock on you, they have control. I think that even if you are going to stay with Quixtar, you should have the freedom to leave whenever. That way they have to provide first class service to make sure you stay. They are then forced to be the best. Free Market would ensure they are doing well, because it is a matter of survival.
I think Quixtar could do very well, if they lowered their prices. Make DeVos and VanAndel families get the same income structure that the IBOs get, and put the 30% back into price cuts. It would make them more competitive, and prevent many people from leaving with their *leaders*.
There are two rules that Quixtar is reminding the Platinums, via the email previously mentioned, that they cannot solicit these family and friends to join them in any other ventures for two years after they leave Quixtar. That makes Thanksgivings awkward.
"So how are things going?"
"Legally, I can't tell you."
Why do they think they can tell you who you can solicit. How do they get control over your family and friends, more control than you have? Didn't you go out and talk to them, help mentor them? How does Quixtar get an exclusive on them for two years? They wouldn't even be registered with Quixtar if it had not been for you.
I hope the lawsuit in California can fix some of these problems. If they have a lock on you, they have control. I think that even if you are going to stay with Quixtar, you should have the freedom to leave whenever. That way they have to provide first class service to make sure you stay. They are then forced to be the best. Free Market would ensure they are doing well, because it is a matter of survival.
I think Quixtar could do very well, if they lowered their prices. Make DeVos and VanAndel families get the same income structure that the IBOs get, and put the 30% back into price cuts. It would make them more competitive, and prevent many people from leaving with their *leaders*.
Saturday, August 18, 2007
The War Of Words
I was shown how to change the date and time on the posts, so I posted copies (with link where I could get them) of official releases from Quixtar and Team. I have prefixed the subject line with the source (QUIXTAR or TEAM). Gives you an idea of the volume of information released. Most of the Team releases were released mainly to members of Team. I have set the date and time to the best-guess of when each was released.
Now you can go through the history on this site and see how the War of Words has progressed. This does not include the numerous blogs (not official Quixtar blogs).
If anyone has copies of the emails sent from Quixtar or Team that they would feel comfortable sharing, let me know (I don't want personal, one-on-one emails, but bulk statement emails).
Now you can go through the history on this site and see how the War of Words has progressed. This does not include the numerous blogs (not official Quixtar blogs).
If anyone has copies of the emails sent from Quixtar or Team that they would feel comfortable sharing, let me know (I don't want personal, one-on-one emails, but bulk statement emails).
Friday, August 17, 2007
QUIXTAR: A Response from Fred Harteis
Original Source (Source is somewhat in question, since comments can easily be forged)
A RESPONSE FROM FRED HARTEIS:
1. I did not back out of the lawsuit. I had no knowledge that a lawsuit was being filed and did not authorize anyone to include me as a party to the lawsuit. This fact was conceded by TEAM's attorney to my attorney earlier this week. I had never read or seen the lawsuit. I had never spoken with the attorneys who filed the suit for TEAM. TEAM's intentional and reckless conduct in causing their attorneys to place my name on the Complaint has and will continue to cause substantial damages to me and my family in our Quixtar businesses. The damages that we are sustaining are amply demonstrated by this comment from "TEAM Member."
2. No one exerted any pressure on me to make any decision. I never intended to join any TEAM member in a lawsuit against Quixtar in the first instance.
3. I have never received any compensation from the TEAM training system. And while we're at it, I do not agree with the sale of BSM without the supporting a business that offers consumable products. A system that is promoting the system itself and focuses almost entirely on income from the system is improper and not something in which I will engage.
Fred Harteis
Posted by: Fred Harteis | August 17, 2007 at 02:16 PM
Possible command referred to by Fred in #1 above:
Interesting... All of this. I have just sat down and read all the comments. 5 out of 20 board members lost. One was the vice chairman. At first I thought that Quixtar had a chance, but it is becoming more and more evident to me that they are an old company that is behind the times. I find it interesting that Quixtar keeps touting the fact that they were terminated. What they don't want you to know is that they were quiting anyway. Only they actually wanted to do it peacefully. I also find it interesting to hear Quixtar's response. First - they attack the character and integrity of the TEAM founders, then they spout off about the money that is coming to Quixtar, and how it will be passed on to the consumer. Those are great distraction techniques, but don't be fooled, no one on TEAM is. It is very clear to me that with this global economy, the TEAM is positioning itself in the right place. Someone said that we don't want to compete with Wal-Mart. That's great - don't. We will. Wal-Mart was the largest corporation in the world, until Exxon-Mobil took over. I would say that's a good competition to be in. Maybe you don't agree - that's fine - some of have to settle for less than the best. As I have heard it quoted many times - "Good is the enemy of Great" Right now, Quixtar is good. Do they have the courage and resolve to change? Those 15 members that are a part of that law suit are not suing money, no, they just want fair competition. They have put themselves out on the line for all the IBO's under them to try and make the opportunity the best it can be. For those board members that don't know what this means, read a book called "Servant Leadership" Orrin and Chris have just demonstrated this. This is why they will come out on top. From everything that I have seen and read, from both sides, Quixtar does not live by this model and will ultimately fail unless they can change. They have the complaints. No one likes the name Amway. People working as a TEAM accomplish more than individuals trying to fight over prospects. Prices are too high. Lower prices or be lost in history. K-Mart couldn't figure it out. Wal-Mart had it figured out, but seemingly is unable to change. Will Quixtar be next on this list? Only Quixtar and the IBOIA board have control over this. We will see if you step up to the plate, or shrink into the realm of insignificance. What will you do Jonathan?
Posted by: TEAM member | August 17, 2007 at 05:25 PM
A RESPONSE FROM FRED HARTEIS:
1. I did not back out of the lawsuit. I had no knowledge that a lawsuit was being filed and did not authorize anyone to include me as a party to the lawsuit. This fact was conceded by TEAM's attorney to my attorney earlier this week. I had never read or seen the lawsuit. I had never spoken with the attorneys who filed the suit for TEAM. TEAM's intentional and reckless conduct in causing their attorneys to place my name on the Complaint has and will continue to cause substantial damages to me and my family in our Quixtar businesses. The damages that we are sustaining are amply demonstrated by this comment from "TEAM Member."
2. No one exerted any pressure on me to make any decision. I never intended to join any TEAM member in a lawsuit against Quixtar in the first instance.
3. I have never received any compensation from the TEAM training system. And while we're at it, I do not agree with the sale of BSM without the supporting a business that offers consumable products. A system that is promoting the system itself and focuses almost entirely on income from the system is improper and not something in which I will engage.
Fred Harteis
Posted by: Fred Harteis | August 17, 2007 at 02:16 PM
Possible command referred to by Fred in #1 above:
Interesting... All of this. I have just sat down and read all the comments. 5 out of 20 board members lost. One was the vice chairman. At first I thought that Quixtar had a chance, but it is becoming more and more evident to me that they are an old company that is behind the times. I find it interesting that Quixtar keeps touting the fact that they were terminated. What they don't want you to know is that they were quiting anyway. Only they actually wanted to do it peacefully. I also find it interesting to hear Quixtar's response. First - they attack the character and integrity of the TEAM founders, then they spout off about the money that is coming to Quixtar, and how it will be passed on to the consumer. Those are great distraction techniques, but don't be fooled, no one on TEAM is. It is very clear to me that with this global economy, the TEAM is positioning itself in the right place. Someone said that we don't want to compete with Wal-Mart. That's great - don't. We will. Wal-Mart was the largest corporation in the world, until Exxon-Mobil took over. I would say that's a good competition to be in. Maybe you don't agree - that's fine - some of have to settle for less than the best. As I have heard it quoted many times - "Good is the enemy of Great" Right now, Quixtar is good. Do they have the courage and resolve to change? Those 15 members that are a part of that law suit are not suing money, no, they just want fair competition. They have put themselves out on the line for all the IBO's under them to try and make the opportunity the best it can be. For those board members that don't know what this means, read a book called "Servant Leadership" Orrin and Chris have just demonstrated this. This is why they will come out on top. From everything that I have seen and read, from both sides, Quixtar does not live by this model and will ultimately fail unless they can change. They have the complaints. No one likes the name Amway. People working as a TEAM accomplish more than individuals trying to fight over prospects. Prices are too high. Lower prices or be lost in history. K-Mart couldn't figure it out. Wal-Mart had it figured out, but seemingly is unable to change. Will Quixtar be next on this list? Only Quixtar and the IBOIA board have control over this. We will see if you step up to the plate, or shrink into the realm of insignificance. What will you do Jonathan?
Posted by: TEAM member | August 17, 2007 at 05:25 PM
So how high are Quixtar/Amway prices?
One of the most profitable products Quixtar has is Double X multivitamins. If you go to Quixtar (don't log in if you are an IBO) you can find that the price is quoted as $74.75, and add $8.75 shipping, that gets you $83.50. That's for a 30 day supply (take two times a day).
If you are an IBO (ignoring case discount, since it is going away in September) and you are buying 100 PV from Quixtar that month (minimum to get a rebate) it would cost about $53.05, with shipping, after rebate and factoring in using the Quixtar VISA card.
As a comparison, I went to Amazon. I found the most expensive Centrum I could find (lycopene silver 200 count). I used the quoted retail price, not the discount price, of $35.98 and with $5.50 shipping. If we assume that you take two a day, that would come out to $12.86 for a 31 day supply.
So how can an IBO retail a vitamin for 6.5x the price of other vitamins? Even if the IBO were to break even, that would be 4x the price of other vitamins.
Don't get me wrong. I took my Double X this morning. I love Double X. It is just very expensive. If the "Jay Factor" is true, then for every box of Double X I buy, the "families" get $17.88, more than enough for them to buy some Centrum.
If you are an IBO (ignoring case discount, since it is going away in September) and you are buying 100 PV from Quixtar that month (minimum to get a rebate) it would cost about $53.05, with shipping, after rebate and factoring in using the Quixtar VISA card.
As a comparison, I went to Amazon. I found the most expensive Centrum I could find (lycopene silver 200 count). I used the quoted retail price, not the discount price, of $35.98 and with $5.50 shipping. If we assume that you take two a day, that would come out to $12.86 for a 31 day supply.
So how can an IBO retail a vitamin for 6.5x the price of other vitamins? Even if the IBO were to break even, that would be 4x the price of other vitamins.
Don't get me wrong. I took my Double X this morning. I love Double X. It is just very expensive. If the "Jay Factor" is true, then for every box of Double X I buy, the "families" get $17.88, more than enough for them to buy some Centrum.
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