Stability in the Business

Today, I read a fascinating post by xbeliever, a former IBO in Australia who spent 13 years at founders platinum or above. Compared to me, xbeliever has had much more experience building an Amquix business. In the excerpt below, he talks about what it means to have a stable business:

As for the stability of the business – when we first qualified platinum, we were told (by our upline and “the system” in general) – “welcome to the bottom, you are now just getting started”. As we went on to higher pins and began breaking legs we were then told – “a leg isn’t secure until you have an emerald backed up by an another emerald in it”. The strange thing is that in our experience our upline had such a leg in our case .. an emerald backed up by an emerald with approximately 50 silvers or above, including about 30 platinums, in the leg. Today, that leg is almost completely gone. Both emeralds are gone and all but one of the platinums. In fact – I would not be surprised if the leg is struggling to qualify platinum at all.

This is scary stuff… not for the critics but for anyone building the business today. I remember hearing a similar quote years ago that a Diamond business is not really solid unless there’s another Diamond backed by another Diamond.

If what xbeliever is saying is true, that being a Silver means that you’re just getting started — and if only 1% of IBOs reach Silver — I’m not liking anyone’s chances at building a stable business! A few years after I left, my upline Silvers quit as well. While I don’t know the exact reason for their departure, I do know that they spent many years on the cusp of going Direct without ever breaking through. I also know that there were very dedicated and hard-working in building their business, so System-believers can’t pin lack of effort on them.

Every month in Amway’s own Achieve magazine, new pin level winners are announced. How many of these IBOs have built stable businesses that will last the test of time? I remember flipping through the pages of the Amagram (what Achieve used to be called) and looking at all of the new Direct Distributors (i.e. Platinums), Emeralds, and Diamonds. Today, I wonder how many of those smiling and happy pin winners are still in the business? If I had to bet, I would wager that very few of them have (1) moved up to higher pins and (2) the vast majority are no longer involved with Amquix.

I often read comments on other blogs from overeager IBOs who emphatically state that they’ll soon be going diamond or crown and relaxing on the beaches of the world. My heart goes out to them, as they clearly do not know what’s in store for them. They’ll learn eventually, but I’d hope that they learn sooner rather than later.

To current IBOs, I asked the following questions:

1. How stable is your business today? Do you have facts to back up your claims?
2. How stable are the businesses of your downline? Can they say the same in question #2 as you?
3. What are you ultimate goals in this business? Extra income on the side? Replace your job’s income with the business? Relax (forever) on the beaches of the world? Do you know exactly what kind of business you’ll need to have in order to achieve these goals?

Sadly, I don’t know many IBOs today who can answer these questions truthfully and with detailed facts. Please don’t say that “the facts don’t count when the dream is big enough.” Try saying that after you’ve spent years of your life and thousands of dollars only to be no closer to your goals.

Visiting a Diamond Mansion

I remember qualifying on an incentive to visit Diamond Clark and Diana Broome’s house in Loomis, California. Here’s what I wrote at the time in my journal:

It took almost 2.5 hours to get there but I made it finally. His house, to make an understatement, was huge. It was a 13,000 square foot mansion in every sense of the word. So, I guess Amway can buy these things for people if they are willing to do the work. And, after seeing what is possible, I want to make this work.

Boy, was I deep in the System’s clutches at the time! Little did I know where and how the real money was made in the business.

I wonder if they are still living in the same house. Out of curiosity, I looked up Floor’s humble 5,532 square foot mansion in Granite Bay on Zillow after seeing the address listed in the Genie SEC Filings. I see that they sold the house in 2001 for $1.7 million. I wonder if all of the Diamonds in my LOS are still living the life of luxury or if they have downscaled their lifestyles into smaller homes.

A birds-eye view of an Executive Diamond's Former Home

Did any readers ever visit their upline Diamond’s home? How was it, and do you know if they are still living there today?

All-In Gold Rush to XS

I recently learned of a new drink called All In Energy. The owner of the company is none other than WWDB Triple Diamond Greg Duncan. But wait, there’s more! Duncan is also part-owner of XS, which just happens to be the exclusive energy drink of Quixtar.

I’m not here to debate whether or not Duncan is violating any form of non-compete clause he made have signed as part of being an IBO with Amway Global. I’ll leave that debate to the lawyers. Rather, I’d like to point out a connection the Amway business opportunity has with the California Gold Rush in the mid 1800s.

While there were a number of people who struck it rich discovering gold, the vast majority of people who came to California during the time left or died without nary finding a single nugget.

All In Energy Drink, owned by Triple Diamond Greg Duncan of WWDB and XS

You see, there was more money to be made during the Gold Rush, yet it wasn’t in gold. Some savvy business people struck it rich by providing goods and services to the gold propsectors! Most everyone knows the story of Levi Strauss, who outfitted miners with durable denim pants, but there are countless other opportunistic people who found fame and fortune selling proverbial “stuff” to the anxious forty-niners.

Is there still gold to be found building an Amway Global business? I’m sure, like in California today, there’s some amount of gold (or diamonds) yet to be discovered. Realistically, however, you may have a better chance of creating and selling a product that IBOs will buy than of building a Diamondship where you live.

To current IBOs, look around you and ask who’s making more money off of you and your fellow IBO prospectors? More often than not, it’s the people selling you stuff you need to build (Amway) and fuel (System) your business.

Whether you like it or not, people like Greg Duncan are triple-dipping! He’s selling you tapes, books, and functions (WWDB System), selling you products that offer PV and BV (XS Energy Drinks), and selling products to your friends who aren’t interested in the business (All In Energy Drinks). I’m not ready to call him the Levi Strauss of the Amway Global world, but he does seem to be making the most of this opportunity.

What side of the Amway Global Gold Rush are you on?

Believe The Movie

Believe the Movie

Believe is a mockumentary on multi-level marketing. From the movie’s web site, Believe is “set in the anywhere-USA town of Springfield” and tells the story of “Adam Pendon (Larry Bagby) a struggling steel mill truck driver trying to support his family. When the mill unexpectedly closes, Adam’s world is thrown upside down by his new unemployment. While worrying about the loss of his job, Adam is approached by a slick, well dressed and confident salesman, Mark Fuller (Lincoln Hoppe), who, it would seem, has a business opportunity and quick fix to Adam’s financial problems.”

I originally heard about the movie a year ago; the trailers of Lincoln Hoppe as the upline were hilarious when I first saw them. Not able to see the movie when it was shown theatrically, I was excited when I saw that it was now available on DVD.

I definitely could relate to a number of the scenes in the film. The movie was written and directed by Loki Mulholland, who parlayed four years of being a hardcore Amway distributor into making the film. He spares no one in Believe, poking fun at the kingpins, the distributors who’ve been in the business for years with nothing to show, the crazy uplines, and yes, even the critics.

The movie is shot reality-tv style, and while it rightly focuses on the characters, I wish the actors and actresses didn’t address the camera so much. That’s probably my only nitpick in what was otherwise an enjoyable film. Regardless of which side you are on in the debate, you’ll find many things to laugh at in Believe!

Remembering the Shaq Bar

Back when Shaquille O’Neal was a member of the Orlando Magic, the professional NBA team owned by the DeVos family, Amway sold a product called a Shaq Bar. I bought case of these energy bars, and let me tell you, they were digustingly bad. Think dry cardboard, and you’d have a good sense of what they tasted like. Deb, a frequent posted on the QBlog Forums, agrees:

I guess that ANYTHING, when compared to the “Shaq Bar” – tastes OK. The Shaq Bar, besides being a marketing nightmare, was without a doubt the nastiest tasting, tooth-yanking thing on earth.

In fact, the Shaq Bar was sooo bad, there’s barely any mention of it on the Internet anymore, and I could find no photos of it. I can understand the desire to buy from your own business, but there are limits, even to the most hardcore and devoted IBO! I was beyond saving at the time, however, and I probably bought a few extra cases just in case I learned to love them.

Fortunately, Shaq left town for the Lakers, and Amway quietly — and to the cheers of IBOs stomachs everywhere — thankfully discontinued the Shaq Bar a year or two later.

What other Amway products were memorable to you — perhaps for the wrong reasons?

Orrin Woodward, Climbing to the Top

Orrin Woodward (source: his website)

… or bottom, depending on the way you look at it in this Forbes article on the Supreme TEAM Leader himself. I found this link at the end of the comment stream on this QBlog post. It’s also being discussed on ibofightback’s Amway Talk forum.

What do you see when you read the article? If you are a critic, you might see a well-written article that accurately summarizes the Woodward’s rise in Amway/Quixtar, his downfall at the hands of the corporation, and ultimately his lateral move (along with his real business, the tools) over to Mona Vie. If you are a supporter of the business, but an opponent of TEAM, you might point out inaccuracies as it relates to Amway/Quixtar but agree on the lying, cowardly actions of Woodward. Finally, if you are a TEAM supporter and Mova Vie distributor, you may think this article is a complete hack job on the the wonderful leader that is YOUR Orrin Woodward.

Team hauled in $42 million last year and boasts 60,000 mostly middle-class members.

Woodward stated on his own site that he made 4-5 times more income from the tools business than from Amway bonuses. Granted, some of the money above went to other Diamonds and Emeralds on TEAM, but whoa nelly, that’s still a lot of tools money!

His Amway divorce left Woodward with motivational tools but no product to motivate people to sell. Members defected. Sales plummeted. Woodward tried selling his tools to customers like Kettering University, a Michigan pizza franchise and a Phoenix car dealership.

It would have been nice for the article to explain in more detail how effective (or ineffective) he was at selling his tools to outside businesses and organizations.

Woodward is a polarizing character in this debate. He’s currently the poster-boy for a fallen Diamond in the Amway/Quixtar universe, a lying, cowardly, tool-scam kingpin for critics, and a wonderful human being for his TEAM followers. It’s even better that he posts frequently on his own blog, which allows critics and supporters alike to further confirm their suspicions and opinions about him.

The Products I Still Have Today

I suspect many former IBOs have had such a bad experience with their System that when they leave the business, they want to have nothing to do with Amway/Quixtar, even if they may have liked the products. Count me as one of those people, but I’m not stupid to throw away everything. Tools were an easy choice because their value became zero upon leaving the business. Everything I kept continues to hold value for me to this day.

Without further ado, here’s a list of things I still have from my time in the Amway/Quixtar business:

• Amway Queen Cookware: I must say that the cookware lasts a long-time and continues to work very well. It is very pricey, however, and I don’t know how it compares to the mid-range to high-end cookware you can get outside of the business.
• Amway/Rubbermaid Food Containers: These are great for storing dried goods in the cupboard and food to be frozen or refrigerated in the fridge. The only downside is that you can’t use the tops in the microwave. They provide a couple microwaveable tops, but I’m constantly misplacing them, so I usually just put a paper towel or saran wrap on top.
• Amway/Wedgewood Plates: The plates I continue to use the most often. One of them has a chip on it, but otherwise, they’re fine.
• Amway/Oneida Flatware: The quality of the forks, spoons, and knives is pretty high. We’ve had no problems with them, and they look like they’ll last for many more years.
• Amway Cooking Knife Set: The paring knife and 6-inch knife have chips on them, which have reduced their effectiveness over the years. The bread knife still functions well. I haven’t used the larger 8-inch knife all that much. I have another knife set from J.A. Henckels which I’ve been using more and more lately.
• Oreck Vacuum Cleaner: Probably my worst purchasing decision from the business. I’m constantly having to clean out the rollers of hair and other debris. I need to replace this with a Dyson.
• Whiteboard and stand: Repurposed from showing the plan, the whiteboard now holds my weekly to do list.

Evidently, my kitchen is still stocked with a lot of product! It’s interesting to note, however, that many of them were produced in partnership with an well-known outside company like Oneida, Wedgewood or Rubbermaid. For water filtration, I use a Brita filter instead of the Amway one (the product before the eSpring). Finally, I get my snacks, personal hygiene products, cleaning supplies, vitamins and other consumables from CostCo or the supermarket.

Ex-IBOs, do you have anything left from the product side of the business?

The Four Personalities and Business Attire

My System (INA) often spoke of people fitting into four personality quadrants. On tapes and in training sessions, the leaders would discuss how you to approach, prospect, and work with each type of person:

• Drivers
• Expressives
• Amiables
• Analyticals

Despite recognizing that people fit into one of four personalities, the Systems strongly encouraged uniformity when it came to business dress code. Men were told to wear slacks, jackets, shirts, and ties. Women were often told to wear skirts and dresses. They said that it was to display professionalism and authority, but personally, I always thought it was kind of hokey². I realize it may be different elsewhere, but where I live, business casual (or sometimes even casual) rules the fashion roost.

Uniformity of dress (photo by Chris Potter)

When I saw a photo of Orrin Woodward’s TEAM members protesting outside of a courthouse last year, I had to laugh. I saw first-hand why people have such a strange impression of the typical Amway/Quixtar distributor. It’s the same strange feeling I got when I saw photos of the polygamist sect women from West Texas. They simply looked out of place. My System taught how to deal with different personalities, yet they pushed uniformity and duplication of dress among its members¹.

Where Are You On the Amway/System Grid?

There’s been some great discussion on my site recently. Thank you to everyone who has posted comments. I have been writing a more in-depth post on the different types of critics and supporters of the Amway business, but I realized a picture may be worth more than another long post of mine. With the following diagram, I pose this question to everyone.

Where are you on the Amway/System Grid?

The Y-Axis represents your feelings for the Amway business opportunity and the corporation, while the X-Axis represents your opinion of Amway Motivational Organizations (AMO), or the Systems.

Where do you see yourself on the Amway/System Grid?

I took the liberty of placing certain commenters¹ on this site onto my diagram. If you feel I’ve misplaced you, let me know, and I will update your position on the grid.

Seen this way, I find it fascinating to see how much variety exists between critics and supporters!

Business Owner vs. Employee Mentality

The terms “business owner mentality” and “employee mentality” are thrown around by both sides of the Amquix debate, and I would like to take some time to expound on the topic.

Consider the following quote from ibofightback himself on his Amway Talk forum:

Which is exactly what I was taught from day one. The people who make money are the ones who take personal responsibility for their businesses, and their decisions.

The people who end up on the internet whining are the ones who apparently take advice as if it was orders and then complain they spent too much money.

These are the folk who say things like “you have to do this” and “you must buy this” and “you’re expected to do this”, abrogating their decision making responsibility and pretending it was somebody elses job.

That is the difference between “employee” mentality and “business owner” mentality.

Most new IBOs and prospects are working for someone else when they are approached with the Amquix opportunity¹. If this is the case, how would these new IBOs know anything of having a business owner’s mentality?

Debate on Systems Tools over on Amway Talk

Amway Talk Forum

There’s a debate going on Amway Talk about the Business Support Materials (BSM or Tools) in the Amquix business. Most everyone participating in this thread is a current supporter of the business (and most of whom are active IBOs). This is why I find it fascinating to see such a debate occurring between active IBOs. Before, the most you’d hear about the tool issue would be on various critics sites like Amquix.info or Merchants of Deception. Back when I was a business, the topic of tools and Diamond profits from BSM sales was simply never brought up (or if it was, it was quickly brushed away and hushed up). Now, we’re seeing current IBOs talk about the issue. Who would have thought?

Here’s a quote from a poster named Wearyeyed that I would like to comment further on:

Ros said it best, and I can’t for the life of me figure out why system tools critics refuse to allow for someone finding value in the system, and doesn’t need to know the details of the profits that system generates to do so.

Even as a critic, I concede that people may find value in the tools. Some of the Nuts and Bolts tapes on meeting new people, for instance, impart tips and techniques that can be applied in day-to-day life. Is this knowledge exclusive to the business? No. Could I have learned it somewhere else? Yes.

In my experience, I often finished listening to a tape only to say “What. Was. That?” Sadly, an IBO on Standing Order Tape (SOT) has no choice in the matter regarding next week’s tape or CD. It’s an all of nothing proposition. In my day, you could only return unopened tapes and CDs. If I listened to a useless tape, it’s $6 down the drain.

I’ve written before how Systems should digitize their audio tools and make them available as MP3s. If they insist on continuing to sell these tools at high prices, however they could at least make a short 30-second clip available for free on their websites. Or, they could add in a description that explains the audio content is providing and to whom the tape might most relate to.

Of course, giving IBOs a choice in the matter would be an incredible leap of faith on the part of the System leaders; quite frankly, I do not believe they would put as much faith in their IBOs as they have made their IBOs put into them.

To those people who are happy building their Amway/Quixtar businesses and who enjoy using the Tools, attending meetings, and going to Major Functions, good for you! Like a tape I found to be useless, I’m not talking to you, so feel free to ignore me.

On the other hand, to those people who continue to have that nagging doubt in the back of their minds regarding this business, I encourage you to keep reading and investigating for yourself. There are many reasons why the System and/or the business may not be right for you. Better for you to realize it now rather than later.

Pin Levels

What pin level are you currently at?

As I have previously noted, I was not successful at building an Amquix busines. It’s been a long time, but I seem to recall my highest level in the business was either 300PV or 600PV, no doubt a result of buying a set of cookware or a couple of water filters during a stretch month. For my efforts, I received a 300PV or 600PV pin for my efforts. Yet, I never wore it. Why? I felt that I didn’t deserve to, because I was not re-qualifying at that level. You see, after my PV splurge, I quickly went back to being a 100PV (or less) a month IBO. When my upline gave me the pin, I even recall telling them, “Why am I getting this? I’m not at that level right now.”

I know now that others in the business have no problems wearing a pin they aren’t qualified to wear anymore. To current IBOs, do you identify yourself with the highest pin level you’ve ever reached or your current pin level? What about your downline IBOs, your crossline friends, and your upline? Are they representing themselves at their high pin level or their current one?

Easing Off the Accelerator

I’d like to take a moment to talk about an issue that affects everyone these days: Gas.

In 1998, average gas prices were really low here in the US. I even have a photo of a station selling regular unleaded for $0.99/gallon around that time! Sadly, those days are but a faint memory with average prices over $4/gallon today.

IBOs have to put in a lot of miles traveling to and from plans, meetings, opens, and Major Functions. As I kept detailed logs for tax purposes, I see now that I spent an inordinate amount of time on the road. In 1997, I only drove 600 business miles (since I was just getting started). In 1998, that figure jumped to 8,680 miles. Finally, I only drove 6,782 miles in my final year in the business. That’s roughly 16,000 miles, and at the end I had nothing to show for it!

I figure my car got 25 mpg back then. That’s 640 gallons at $1.25, or $800. Today, driving that same amount would cost me $2,720, not to mention the additional wear and tear on the car from the accumulated miles. I can easily imagine the hurt in the wallet this is causing all IBOs.

If I were evaluating a home-based business today, I would look for something that is more resistant to rising gas prices and does not involve excessive amounts of driving. Unfortunately, with an Amway/Quixtar business, that’s exactly what you’ll be doing. You have to go out and prospect people, service retail customers, and attend meetings. All of these activities entails driving and lots of it.

Diamonds Are(n’t) Forever?

It’s a common theme across many Amway Motivational Organizations (AMO). During Major Functions, Diamonds speak of having lifetime, will-able, residual income through the Amway/Quixtar opportunity. Reach Diamond, and you can have the lifestyle that you’ve always dreamed of. If this is the case, why are a number of INA Diamonds working jobs again?

I learned about the current career status of some INA Diamonds in the following Quixtar Forums thread:

Dan Boettcher–Real Estate http://www.johnlscott.com/agentdetail.aspx?ic=3450060

Dave Lovett–Generic MLM Training http://www.davelovett.com/

Craig and Carol Holiday–Cooking Classes http://www.ourhousesouthcounty.com/

Tim and Lisa Leets–Children’s Clothing and Toys http://www.bearsandbuddies.com/

Rich Batista–Real Estate and Loans http://www.priority1stmortgage.com/html/rich_batista.html

Jeff Applebaum–Comedian http://www.jeffapplebaum.com/

These Diamonds may very well be doing exactly what they want to be doing. I wonder if they are still building their Amway business in addition to their new careers. If the answer is no, why did they get out of an opportunity that purports to be the perfect business in favor of something more traditional?

Genie INA Bottle

Right around the time I was leaving the business, I recall Internet Associates (INA), my Amway Motivational Organization (AMO), had begun a transition away from Amvox, Amway’s branded voicemail system to this new system called Genie. From the stage, the Diamond leaders lauded how Genie would revolutionize communication within everyone’s organization, and how it was light-years ahead of Amvox in terms of features and functionality. Little did I know, the Diamonds in INA had an ulterior motive for switching to Genie.

I recently came across the article Situational Ethics on Scott Larsen’s Amquix website. Check out who owned stock in EasyTel, the makers of Genie, in the SEC Filings for the company (emphasis mine in bold):

Common Shares James G. Floor 500,000 Shares 4.78
12/31/99 Common 15,000 CBD Int’l Inc. $ 15,000 PSP FBO Clark C. Broome
02/10/00 Common 15,000 Brad & Cheryl Biegert $ 15,000
03/21/00 Common 16,000 Dan Boettcher $ 40,000
03/30/00 Common 6,000 David Lovett $ 15,000
05/29/00 Common 6,000 Robert H. DuBose III. $ 15,000
05/30/00 Common 6,000 Robert H. DuBose $ 15,000
06/20/00 Common 18,000 James Elliott $ 45,000

These individuals were all Diamonds in INA. Now, check out the compensation EasyTel would provide to INA: