Monday, October 29, 2007

BEHIND THE WALLS OF QUIXTAR PART 4
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
Labels: Behind the Walls of Quixtar Abysmal Mohr

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.

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 what...it turns green! We all know it...it 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 not...in 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...

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

Tuesday, September 18, 2007

HOW QUIXTAR STACKS UP
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 amquix.info 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
Labels: Quixtar Office Depot Walmart oh my

Two New Updates!!!!

Saturday, September 15, 2007

ARBITRATION QUIXTAR PANACEA
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
Labels: ARBITRATION QUIXTAR PANACEA

CALIFORNIA CASE UPDATE
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

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

Wednesday, September 12, 2007

CALIFORNIA COURT CASE UPDATE!
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
Labels: California case update press release

New Updates

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

Saturday, September 8, 2007

BEHIND THE WALLS OF ALTICOR / QUIXTAR
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
Labels: Inside the walls
Friday, September 7, 2007

ALTICOR / QUIXTAR COMMITS TO MORE LEGAL
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
Labels: Lawyers Alticor Amway Sucking Sound

Questionable Times

I felt that now would be a time for me to share my feelings now about where I feel the TEAM is headed and hopefully put some fellow team mates at ease. I realize that a lot of you may have questions in regards to whats going on and so on. For starters I am not going to speculate on any of that because frankly I don't know. I will however state that Orrin, Chris, Tim and the rest of the TEAM leaders have all of our best interests first and foremost and are only going to make the best decisions possible on our behalf. I am so grateful that we have these great men of integrity representing us and know that no one can do it better. Right now is an exciting time and I feel that only good things are coming so hang tight, stay positive, focused and keep your businesses growing!!:) God Bless

No Retreat,No Surrender That is TEAM Law!

TEAM: Letter from Bill Newton, Great Insite!!

Just read this letter from Bill Newton and it is great!



Monday, August 20, 2007

TEAM: Letter from Bill Newton
Original SourceLetter from Bill NewtonTo 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 Amway2. New SA440 that tells a new IBO starting Sept 1st that Quixtarwill 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. Itis 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 boardEffective 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 askedfor 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 headshake. (more lipstick)7. The company wants to change the business model that wesigned 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.bizI 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 NewtonSince 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
Posted by Tom Morris at 9:33 AM