Wednesday, October 31, 2007

Monday, October 29, 2007

Welcome to the latest installment and report from "Behind the Walls of Quixtar." I hope you all enjoyed your weekend. I certainly did, as I was able to share a few cups of coffee with some Quixtar employees. The latest information I learned from these rendezvous is nothing short of devastating to the Quixtar war machine. Unfortunately for many Alticor employees this information is quite frightening. So what did I learn from my "close warm personal friends?"My CWPF's are telling me that the damage to Quixtar, both directly and collaterally, from the ongoing battle with TEAM is mounting quickly. The losses at Quixtar are piling up at a rate that could total more than 125 million dollars by the end of the fiscal year. I am sure the doubters and haters will just discount this information as an insignificant loss for a billion dollar company. Keep watching if you want to reserve judgment, but a company bleeding at this rate can't hide it for long. Additionally there is no end to these losses. Instead, as more and more people lose confidence in Quixtar or become disgusted with the entire situation more volume losses will result. The other thing to consider is that Quixtar desperately depends on sponsoring for survival. The importance of sponsoring and the volume associated with it are magnified due to their abysmal retention rates. I couldn't even imagine showing the plan and attempting to put a good face on the present day Quixtar.If you don't believe how severely crippled a TEAM-less Quixtar is how about this. I have been told that early retirements and layoffs are now being discussed. This is not some reflex action. These talks are part of an overall internal evaluation of Quixtar. Quixtar is contemplating what it sees as serious "overcapacity" in warehousing and other areas of their business. Many people have speculated that Alticor / Amway / Quixtar are no longer committed to their North American business. Could this battle hasten their exit from North America and provide AAQ with a convenient scapegoat that being TEAM?Quixtar's problems are chronic and are not isolated to the fact that they have failed to heed the dawn of Walmart and failed to adapt their business practices. Quixtar displays certain schizophrenic behavior by portraying itself as a cutting edge internet business all the while embracing antiquated thinking by denying the age of the consumer. As I have stated before in this blog, Quixtar currently suffers from systemic dishonesty. There is a pattern of deceit that emanates from its core. Whether these problems are fatal largely depends if their corporate leadership can make the needed decisions away from its currently navigated path and back to an ethical course.Lets look at the current battle with TEAM. Quixtar, led by its legal department, has created a public relations nightmare of monumental proportions. From all accounts Alticor General Counsel Mike Mohr is calling the shots in the TEAM dispute. Well how is he doing? I don't know Mr. Mohr, but I would suggest that if he is calling the shots, that he lacks any degree of emotional intelligence. From the start of this conflict the animosity displayed by Quixtar has been over the top. This likely reflects their General's (Mohr's) attitude. Assuming Quixtar losses of 125 million dollars are correct, is Mohr worth the 125 million dollars? Indianapolis Colts quarterback Peyton Manning signed a 7 year contract in 2004 for 99.2 million dollars. Manning delivered a Super Bowl title, and is consistently one of the top two quarterbacks in the NFL. That is what 100 million dollars will buy you. In effect Mike Mohr has cost AAQ 125 million or more. What did AAQ get for their money? AAQ got a frumpy fellow, who appears to be orchestrating one of the biggest debacles in American business history. Can Mohr orchestrate AAQ out of existence?From the beginning Mohr completely ruled out diplomacy as an option. I know you are reading this Mr. Mohr so let me help you. Diplomacy is defined as: skill in handling negotiations, handling people so that there is little or no ill will; tact. Quixtar has and continues to make this out to be about the "evil" Woodard, Brady, and TEAM. But face it Mr. Mohr, you took this tack in spite of 40% of the IBOAI board sounding the alarm. Those were some of the largest business builders you slammed the door on. May God have mercy on you because the market won't.In closing, I would suggest that we all pray for the employees of AAQ who find themselves in possible peril. Layoffs and early retirements are potentially life changing moments. In the case of AAQ it didn't have to be this way. Decision makers inside of AAQ made choices and the employees will likely face the consequences of those decisions. By the way... I paid for the coffee!
Posted by The IBO Rebellion at 5:28 PM 20 comments

Thursday, October 18, 2007

Yep, I'm being sued.

Just so everyone knows I am one of the bloggers being sued by Quixtar, John Doe #12. Just want to be clear here so that even the lawyers that are representing Quixtar on this blogger suit know where I am coming from.
Let me start with a real basic freedom from the US Constitution because obviously they missed this one. I am an American, born and raised here. Therefore I have first amendment rights under the US Constitution that protects my free speech to express my opinions freely. I also have not been paid by Orin, Chris or anyone from the TEAM to post my blog site!!! They also have not contacted me in any way to coax me into creating or posting on my blog site. Also everything posted on my site is the TRUTH!! and public domain knowledge on top of that. You know I would love to continue and say some real desparaging comments but that would be stuping to Q's level. Sorry Q.

Friday, October 12, 2007

California Case Update

Saturday, October 6, 2007

California Case Perspective...
Ok folks...30,000 foot view here...The California case...the Texas cases...etc...what do you think the TEAM is trying to do? They aren't asking for damages (although I personally think they should!). They are simply trying to shorten the amount of time between when people resigned (or in some cases were terminated) and when they can start something new...something that represents a business for the masses...something that is fair and equitable...something that you would be excited to share with your friends and family...and something that has NOTHING to do with AMWAY!Don't get caught up in the court case scoreboard of "wins" and "losses". It don't really matter folks! It's like sitting at a traffic light with concerned anticipation...will it ever turn green?...what does "yellow" mean...oh no?! Guess turns green! We all know is just a matter of time. The only scoreboard you need is a good old fashioned calendar. On August 9th, some highly successful business builders started the countdown...February 9th will come. No court case can prevent that from happening.By the way...if you are still clamoring for the specifics of what was determined in California...the Judge decided to let an arbitrator figure it out. He did any way...refute any claim made in the suit. He simply said...and I am putting this in my own words..."you guys signed a contract that says you are willing to have disputes arbitrated...go do that..."Fine. Not a problem.Tick...Tock...

Wednesday, September 19, 2007

H.A.M. still upset with Q'!!!

Tuesday, September 18, 2007

H.A.M. seems to have created quite a stir by merely reporting Amway / Quixtar's own reported sales numbers. Only in this discussion could Quixtar and their puppets get upset about their own numbers. Amazing. So how does Quixtar stack up in the real world of business? They love to spin things to make themselves look better than they are. In 2003 the Detroit Tigers had a record of 43 wins and 119 loses. This was by far the worst record in baseball. If we apply Quixtar logic to the Detroit Tigers of 2003 it would go like this: The Detroit Tigers finished the season with 43 wins and are the best team ever with a .265 winning percentage. I am all for making lemonade out of lemons but reality gets lost along the way with Q.To give you some perspective I have included a graph of two other companies to see how Quixtar's 1 billion dollars in sales stacks up to other companies. Global sales for Alticor (Amway and Quixtar combine) was 6.3 billion. This is after approximately 50 years in business. Quixtar / Amway is represented by the line only called Quixtar. According to the site some 70% of Amway's sales come from Asian markets. Could another name change be on the horizon? Maybe Asway? The two other companies used were Walmart and Office Depot.I can already hear the cry babies now. How can the IBO REBELLION use Walmart for a comparison? It is my post so get over it. Secondly, the words "number one" comes out of Quixtar's mouth all the time so lets compare them to a real number one. I know this is difficult because according to all the ambackers out there, Amway deals in premium products and Walmart deals with white trash brands. Again, I remind you that quality abounds in the the U.S. market place. If it isn't quality it is out of business. Something Alticor will find out about. Obviously, Walmart is a small margin (3%), high volume business model. This is the exact opposite of Amway (17% margins or more). Again, the market will decide who is right. In short here is the story of Walmart sales. In 1979 Walmart had 1.2 billion in sales. By 1996 Walmart had it first 100 billion dollar year with sales of 118.1 Billion. By 2005 Walmart had sales of 312.4 billion. The graph provided for Walmart only has data points for 1982 and 1989. In order to provide a smaller graph and keep Quixtar's anemic figures on a detectable graph, nothing above 28.5 billion dollars is displayed.Office Depot was founded in Florida in 1986 and had three stores. In 1986 Office Depot reported sales of 2 million dollars. Amway had been in business for some 27 years at this time. This would commonly be called a head start. Two years later in 1988 Office Depot reported sales of 132 million dollars. In 1990, Office Depot opened its 100th store and reported sales of 626 million dollars. One year later in 1991 Office Depot reports sales of 1.3 billion. Fast forward to 2006, Office Depot celebrates it's 20 year anniversary with reported sales of 15 billion dollars. 15 Billion!, isn't that close to 15 times that of Quixtar and more that twice that of all of Alticor's 6.3 billion? Quixtar lets on that Office Depot is partnering with them. This may be semantics but they act as if they are the big dog when they clearly are not. The graph for Office Depot reflects only the data points I mention here in this paragraph. The rest are estimated.In closing you can see the difference between companies with leadership and ones that flounder in the sea of mediocrity. I purposely include Office Depot here because of their relationship to Quixtar and that a company with a limited offering of products (office) handily dwarfs a mediocre company offering a wide variety of items. I have not studied Office Depot's business model extensively but say it is yet another safe bet to conclude they are a high volume low margin retailer. It is really no wonder IBO's are running away from Q. People looking for a business opportunity must have products priced to compete with companies like the Walmarts and Office Depots of the world. Spin or no spin.
Posted by The IBO Rebellion at 9:44 PM 13 comments

Saturday, September 15, 2007

Two New Updates!!!!

Saturday, September 15, 2007

As you are likely aware, Quixtar is a big fan of arbitration. A read of Quixtar / Amway's dreaded Rules of Conduct includes the use of arbitrators in case of disputes. Quixtar stated the following on its Alticor Media Blog in regards to a courts decision ordering both parties into arbitration, "Arbitration was fine with us. The facts remain on our side." There seems to be two absolutes in the Quixtar / Amway world, overpriced products and the love of arbitration.So why would Quixtar prefer this method of dispute resolution to that of due process administered by the State and Federal Court systems? The obvious answer is to keep their activities private or secret. They would love to get away with saying what they say, and not have it come back to bite them in the pants later on. They don't want to go on the record in court or better yet in the court of public opinion. In the light of day Quixtar is vulnerable to their own words and beliefs. Let us not forget one galvanizing statement made in the Kent County proceedings, the calling of IBO's "Property of Quixtar.' These are these the things that will destroy their company in the eyes of third party citizens. One other polarizing comment made by Quixtar legal during those same proceedings concerned a written statement by Billy Florence. In the statement Florence said, and I am paraphrasing, "I can not in the presence of my creator continue to go forward with Quixtar." Please forgive me Billy if this is not close enough... but I think you all get the point. Billy made reference to his creator aka GOD to many of us. The Quixtar attorney jumped all over his opportunity to say that Mr. Florence had violated some rule about bringing God into it. I haven't taken the time to look that one up but I find it interesting that a rule like that even exists, especially with this particular company. But irregardless of whether the rule exists or not, how smart was it for Quixtar legal to jump all over that one?As you can see arbitration is a place where Quixtar can hide all its short comings. All their gaffes, and screw ups behind closed doors. They can be as rotten as they want to be and no one will know. As I stated in an earlier post concerning the Grand Rapids case:
Quixtar's last desire is to argue in the the light of day. Instead you hear words like, sealed, and confidential. Make no mistake about it, the 15 martyrs have turned on the lights, and as they do, the cockroaches are running for cover.
Yes Quixtar / Amway is a company desirous of secret, closed door sessions, and sealed final reports. As reports came in from Grand Rapids I couldn't help but laugh at all I heard. Much of it surrounded Quixtar and the IBOAI's demand that Woodward and Brady return any confidential documents to them. Of course none of these secrets were really secrets at all. One supposed secret was that Doug Devos stated that the business was an internal consumption model. That certainly was not a secret to the IBO's I know. There were no secret formulas, in fact there were no secrets at all. Just a bunch of hot air.There are still other things to consider. In this article in FINDLAW
Arbitration v. Litigation In Court: Which To Choose If You Have The Choice

By Edward C. Mengel of White and Williams LLP
Mengel writes:
Your expected witnesses may dictate the choice of a court forum. Courts have the power of subpoena as well as the power to enforce their subpoenas if they are not obeyed (usually by issuing a bench warrant for the arrest of the subpoenaed person). Arbitrators generally have the power to issue subpoenas but probably do not have much authority to back up the subpoenas if they are not obeyed. Thus, if you need crucial witnesses outside of your control in order to present your side of the story, you may wish to choose a court forum where you can compel their attendance (provided that they are located within the territory where the court's subpoenas may issue).
Another consideration is that in a court forum most issues can be determined by a jury at the request of either party. One must consider, in choosing a forum, whether it would be beneficial for the case to be decided by a jury. If your case is one where you feel strongly that a jury would not be beneficial to your case, you definitely want to stick to the arbitration forum where a jury is out of the question.
Given the very sensitive nature of this case I could see again why Quixtar would like to hide in the shroud of arbitration. There is very likely going to be subpoenaed documents and or persons in this case. Will Quixtar comply with an arbitrator who has no authority to enforce the request?Yet another issue is that the use of an arbitrator denies Woodward the right to a jury trial. This is a very important point. This is something specifically requested in the Woodward suit against Quixtar. With a jury you are getting a group of people to come to decision instead of one person who may have his or her own biases. A jury should be preferable to both sides. My biggest guess is Quixtar / Amway's reason for choosing arbitration over a jury is that they would actually have to put their marketing research up for all to see. What I mean is Amway and its incredible name recognition may not be such a good thing for them.Let us not forget what Woodward and company are asking for. Not some huge dollar figure so common in today's litigious society. No, not that, Woodward doesn't ask for ANY money. Just a choice for IBO's to stay or leave the Quixtar world, and to not be bound by a non compete clause that many of those who hoped to be covered by this suit never signed to begin with. Remember this was added without anyone knowing about 3 years ago. So as we continue down this road remember, one of the parties looks to have his day in court for all the world to see and to seek truth in the daylight from a jury of his peers. The other side looks to hide in the shadows of arbitration and dance among words like confidential, and secret and sealed.
Posted by The IBO Rebellion at 4:29 AM 1 comments

Here is the promised post regarding the California case. I will do my best to report what I understand. As you are aware it is rather difficult getting information as everyone is tight lipped.The first item is the class action suit filed by Woodward and company v Quixtar. This action has been filed in a United States Federal Court. A class action suit is simply a lawsuit brought by one party on behalf of a group of individuals all having the same grievance. In this case the class Woodward's legal team is referring to are the IBO's doing business with Quixtar. Before this can happen a class action must be certified by the judge. These decisions are governed by the Federal Rules of Civil Procedure of (FRCP). Rule 23 covers Class Actions; subsection (c) covers certification and it says:
(c) Determining by Order Whether to Certify a Class Action; Appointing Class Counsel; Notice and Membership in Class; Judgment; Multiple Classes and Subclasses.(1) (A) When a person sues or is sued as a representative of a class, the court must — at an early practicable time — determine by order whether to certify the action as a class action..(B) An order certifying a class action must define the class and the class claims, issues, or defenses, and must appoint class counsel under Rule 23(g).(C) An order under Rule 23(c)(1) may be altered or amended before final judgment.(2) (A) For any class certified under Rule 23(b)(1) or (2), the court may direct appropriate notice to the class.(B) For any class certified under Rule 23(b)(3), the court must direct to class members the best notice practicable under the circumstances, including individual notice to all members who can be identified through reasonable effort. The notice must concisely and clearly state in plain, easily understood language:* the nature of the action,* the definition of the class certified,* the class claims, issues, or defenses,* that a class member may enter an appearance through counsel if the member so desires,* that the court will exclude from the class any member who requests exclusion, stating when and how members may elect to be excluded, and* the binding effect of a class judgment on class members under Rule 23(c)(3).(3) The judgment in an action maintained as a class action under subdivision (b)(1) or (b)(2), whether or not favorable to the class, shall include and describe those whom the court finds to be members of the class. The judgment in an action maintained as a class action under subdivision (b)(3), whether or not favorable to the class, shall include and specify or describe those to whom the notice provided in subdivision (c)(2) was directed, and who have not requested exclusion, and whom the court finds to be members of the class.(4) When appropriate (A) an action may be brought or maintained as a class action with respect to particular issues, or (B) a class may be divided into subclasses and each subclass treated as a class, and the provisions of this rule shall then be construed and applied accordingly.The next issue, and certainly related to the issue of class, is whether or not the court has jurisdiction over the defendant, in this case Quixtar. There are many issues here but in this case one item is that Quixtar does in fact conduct business in California. I am not a lawyer and I am sure there are many variables here. I can't speak for Quixtar but one would guess since Woodward filed this lawsuit in California he thinks this would be a good place to hold it. Quixtar would probably prefer Grand Rapids, MI but who knows.There is also the possibility of arbitration. This is a binding decision of an arbitrator and is not considered a court. The Construction Sciences Resource Foundation describes arbitration as the following:
Arbitration, however, is basically Litigation Light, and like some of the "light" products for dietary consumption, arbitration too often does not live up to its touting. The primary benefit advanced in support of arbitration is also its chief drawback: it is not litigation.While most arbitrators as well as most judges genuinely seek to do justice, I believe judges are more likely to decide a case on its merits, separated from prejudice, sympathy, personal orientation, bias, and other extraneous considerations,
It is obvious that Woodward would like to keep the matter in court as opposed to arbitration. Quixtar, if unable to head back to Grand Rapids, would prefer arbitration over the courts.I may be missing something but I don't think so. These were the issues before the court on Wednesday September 12th. On this day the judge heard some arguments, made no decision, and requested a legal brief from Quixtar. The judge then scheduled a hearing for Wednesday September 19th. We will have to wait and see how far things get on this coming Wednesday. I hope I have provided some accurate and helpful information. Stay tuned.
Posted by The IBO Rebellion at 2:54 AM 3 comments

Wednesday, September 12, 2007

GOOOOOOOOOOO TEAM!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Wednesday, September 12, 2007

Pyramid Scheme Lawsuit Against Quixtar Will ContinueFederal Judge adjourns case until September 19thLos Angeles, California -United States District Court Judge Gary Feess will continue to hear arguments on September 19th in a lawsuit brought by top ex-Quixtar Independent Business Owners (IBOs) against Quixtar alleging that the company is an illegal pyramid scheme. Quixtar is a sister company of Amway Corporation based in Ada, Michigan. Amway was started by Jay Van Andel and Richard DeVos and is still controlled by their families.A nationwide class of IBOs filed a lawsuit (Woodward et al. v. Quixtar,Inc. CV 07-5194 GAF) against Quixtar August 9, 2007, in the United States District Court for the Central District of California, Los Angeles. The complaint alleges that Quixtar is operating as an illegal pyramid scheme. The complaint asks the court to find the Quixtar uniform distributor contracts unenforceable as they promote an illegal result and the purpose of entering into the contract has been frustrated by the illegal activities of Quixtar. The plaintiffs in the California case are seeking to be released from their contract."Everyday in court is a big win for the IBOs," said D.J. Poyfair, attorney for Denver-based Shughart, Thomson & Kilroy, the firm representing the IBOs. "The more documents and information that becomes public about how Quixtar operate the better it is for my clients.""For the first time in history, the truth about Quixtar is coming out into public view," Poyfair added. "If the Van Andel and DeVos families truly believe in free enterprise they will do the right thing and let my clients go."Documents filed in the case clearly outline the IBO's reasons for filing the lawsuit. The documents state in part:"Quixtar knows its products are priced so high they cannot be sold and yet it continues to recruit distributors in a concerned effort to enrich the founding families at the expense of the rank and file simply trying to earn a living. Quixtar holds itself out as a legitimate, multi-level home-based business opportunity, but in fact operates as an illegal pyramid recruitment scheme. Quixtar leads participants to believe that they can build a viable business retailing Quixtar products; but once the participants sign up and pay their initial investment into the pyramid, it quickly becomes evident that Quixtar's products cannot be retailed because they are hopelessly overpriced. Quixtar no longer makes any pretense of retailing products to consumers outside of Quixtar's network of distributors, but relies entirely on the purchase and internal consumption of products by distributors to fuel its pay plan."
Posted by The IBO Rebellion at 4:05 PM 6 comments

Sunday, September 9, 2007

New Updates

Here is some new updates from the IBO Rebellion blog!!:)

Saturday, September 8, 2007

Breaking news from behind the walls of Alticor / Quixtar. I am getting reports of a big blow up inside company walls. As I always try to do, I am attempting to confirm this with multiple sources. Stay tuned.
Posted by The IBO Rebellion at 10:19 AM 11 comments
Friday, September 7, 2007

Apparently Alticor / Quixtar / Amway doesn't have enough evil doers yet. In case you were wondering what could possibly suck up all that money. As it turns out it isn't only the JAY FACTOR that makes a huge sucking sound. The other sucking sound is Quixtar legal. They continue to suck up resources. Apparently not enough as Alticor is looking for more upstanding LSAT'ers. Here are two postings for MORE attorneys. The two postings below are actual job postings listed on August 13th 2007. They must have realized they were in for a fight after their boneheaded moves on the 9th. We always say live your priorities. Raise prices, lower PV, hire more lawyers!
Job title Corporate Counsel-LitigationAutoReqId2055BRPositions Available1 Department Litigation :7416CompanyAlticor : 800Location/WorksiteMI, AdaType of employment Full Time : FShift1Job description
The Litigation Corporate Counsel staff attorney position will provide support to the litigation practice area, which covers a wide variety of legal subjects including large complex matters. The Litigation attorney will assist with the discovery process, the preparation of court pleadings, and the responses to court orders. The Litigation attorney will interact with internal business clients, attorneys in other practice areas of the Legal Department, outside counsel, and other legal staff to complete assigned work.
Minimum Education/Experience Requirements
Qualified candidate must have a JD degree from an ABA accredited law school and be a member in good standing of the Michigan State bar. Candidate must have 2-4 years experience in the litigation practice area.
Other Requirements
Candidate must display independent judgment, be an effective team member, and work well in a cross-functional environment. Proficiency in written and verbal communications is necessary. Experience with discovery in complex matters is beneficial.

Job title Corporate Tax CounselAutoReqId2203BRPositions Available1DepartmentTax Counsel :7117CompanyAlticor : 800Location/Worksite MI, AdaType of employment Full Time : FShift1Job description
As Corporate Tax Counsel for Alticor, the position advises management on all aspects of Alticor’s global tax matters, engages in complex tax planning and research, supports worldwide tax compliance, assists in the management of domestic and international tax audits and manages the implementation of projects. This position achieves the following important objectives for Alticor: increases Alticor’s cash flow and after tax operating income; reduces Alticor’s effective tax rate; minimizes the risk to Alticor and affiliates of the imposition of additional taxes, penalties and interest; and provides support to Alticor’s international affiliates on all tax and related financial functions. Job functions include: researching complex and specialized international, federal, and state tax issues; developing international and domestic planning ideas that exhibit a high degree of ingenuity and creativity, and which reduce Alticor’s global tax liability; successfully implementing complex tax planning ideas or business transactions and restructuring that involve multiple countries, taxing jurisdictions and internal departments within the corporation; developing favorable return positions through research and analysis of the law and the facts; preparing and reviewing necessary compliance documentation, including forms, schedules and reports; assisting in tax controversy matters; and assisting and advising foreign and domestic affiliates with tax planning, tax audits and any other income, VAT, property, capital or other tax issues.
Minimum Education/Experience Requirements
Bachelor’s degree and J.D. required; license to practice law in a U.S. jurisdiction; CPA and/or LLM in taxation not required but helpful; and 5 to 8 years experience.
Posted by The IBO Rebellion at 11:59 PM 3 comments