Orrin Woodward (circa 2008) on Joining MonaVie
As Orrin Woodward pushes his LIFE barge full steam ahead, I’d like to take a moment to review his announcement when TEAM and MonaVie joined forces in February, 2008. While the article no longer exists on his old blog, I found an archive of it here1.
Orrin’s posts from 2008 help people connect the dots as to why he did what he did after getting kicked out of Amway/Quixtar.
The section in which he lists the 28 reasons why he, Laurie, Chris and Terry Brady, chose MonaVie is telling, especially because he forgot to list the 29th reason: A $3,000,000 “loan” from Dallin Larsen and MonaVie that Orrin didn’t have to pay back if he met certain recruiting goals.
Here is the post in its entirety, which the exception of two broken images.
MonaVie – The Beginning of Making the Vision a Reality
by Orrin Woodward on Fri 15 Feb 2008 10:12 PM EST
Here is the long awaited announcement from Chris and Terri and Laurie and I. Thank you to Chris Brady for his incredible servant leadership in writing the final article! This is the first step on our journey to our destiny! God Bless, Orrin Woodward
A Long Term Vision
Here is a bit of a vision for where we think the industry can, should, and must go! This won’t all happen tomorrow, but it is ripe for the picking, and we plan on doing it, when the timing is right!
The Hedgehog Concept of the Future
Author Jim Collins writes about what he calls a “Hedgehog Concept” in his book Good to Great. He represents this as the core competency at which an organization can become the best in the world. He said it would be the intersection of several other competencies. Using Collin’s model, let’s look at what could and should be done in this industry.
Collins asks three questions:
- What are you deeply passionate about?
- What can you be the best in the world at?
- What drives your economic engine?
Let’s dig into these questions.
Community building has been our passion; building communities in order to make a difference in people’s lives. A business to us is about people, and it’s the lives of people we want to affect in a positive way. We want to figure out how to serve the most people possible to help them prosper and get what they want. To do this, we’ve had to think systematically. How could we make success more systematic for everyone? Michael Gerber in the book E-Myth wrote, “It is literally impossible to produce a consistent result in a business that depends upon extraordinary people. Develop a system that leverages your ordinary people to the point where they can produce extraordinary results over and over again.” That’s exactly what our community building philosophy is all about. Helping people earn, change, and grow internally is the key to helping them become effective externally.
Field Profit Only
It doesn’t get any better than a company that keeps NO profit for itself and instead puts it ALL back out to the field. Don’t get us wrong. There are many companies that have very fair compensation programs and share liberally with their business owners in the field. But the best, craziest scenario for the future would be to go all the way to the extreme and share ALL the profits with the field. Perhaps the company itself would simply be owned by the field. We’re not sure; it’s never been done. We call the concept “Field Profit Only,” because the field would be the only place where there would be Profits. Others have called this “Open Source,” drawing a parallel to free-access software that is better served by everybody having access and control of it rather than a company at the top. Whatever the name for it, the concept is one that should be attempted. As Sir Edmund Hillary said in response to the question of why he climbed Mount Everest: “Because it was there.”
Always Competitive Prices
A philosophy of competitive pricing means that an organization will be willing to make up in volume what they lack in margin. Instead of small sales with high margins, the model would require large sales with small margins, akin to the Wal-Mart philosophy. This, of course, would be enabled by the Field Profit Only component described above, where all “middle men” have been eliminated and there is more room to push prices lower. Think about it: prices are lowered because everyone wants a successful business and that has to be driven by customer sales. Since everyone is sharing in the profits, anyway, it makes total sense. The more competitive the pricing, the easier it is for the average business owner to make retail sales. The easier the retail sales: the higher the volume. The higher the volume: the higher the rewards to the business owners.
Continual market analysis could be used to keep product pricing on track and in line with market forces. This would eliminate “competitive drift,” where a product that was once competitive gets left behind by price decreases in the market.
We have talked about three possible core competencies. Intersecting these three areas forms a new Venn diagram, as shown below:
Look at where the three competencies overlap. That area is what Collins calls the Hedgehog concept. He writes, “A hedgehog concept is not a goal to be the best, a strategy to be the best, an intention to be the best, a plan to be the best. It is an understanding of what you can be the best at. The distinction is absolutely crucial.”
In this case, where we believe the industry can, should, and must go is to a point where these three core competencies intersect and provide people with their absolute best shot at the life they’ve always wanted. As Victor Hugo said, “An invasion of armies can be resisted, but not an idea whose time has come.”
A Virtuous Cycle: The way this all works together is called a Virtuous Cycle. See the diagram below:
A virtuous cycle is basically a situation where things are done right, in the right way, for the right reasons, and because of this the cycle rotates faster and faster. When Sam Walton was running the Wal-Mart virtuous cycle, his limiting factor was multi-million dollar stores that had to be built. The only limit is one’s vision for a brighter future. Sight is seeing with the eyes, vision is seeing with the mind.
First Things First
Obviously, the question of what to do next in our lives has been a big one! The biggest visions still require a first step. Neither of us wanted to take any steps without careful consideration and considerable research. Our chief goal was to make sure our energies went into an activity that would be rewarding, fun, significant in the lives of others, and glorifying to God. We have been blessed, and it is heavy upon our hearts to use the gifts we have been given to do something worthwhile and positive.
Several possibilities were considered. Some involved creating something brand new, from scratch, and launching it when we were able. However, circumstances being what they are, and considering timing and quality of implementation, allegorically this would be a 100% opportunity with a 50% chance. Obviously, it would be much better to take an initial step with 100% chance as a first step in the direction of the overall vision. In turn, this would be a step upon which to build.
This line of thinking led to the idea of getting involved with something already existing. Orrin Woodward’s benchmarking experience came in handy, as we learned to consider the leadership, focus, timing, product, pay plan, and competitiveness of a wide variety of ventures. We wanted something duplicate-able, built on “b-type” business strategies, and with a heavy focus on people and sharing. We also wanted to take advantage of some of today’s biggest trends, such as the wellness industry.
After considering many, many fields, opportunities, and companies, we finally selected, as our choice for future personal involvement, a company called Mona Vie, (www.monavie.com) which satisfies all the areas we were interested in. We have been very impressed with the company’s founders and leadership, and many other aspects of Mona Vie, including:
- their Binary pay plan is easy to understand, teach, duplicate
- their Binary pay plan is fair, rewards teamwork and “depth,” and leaves no one behind
- the levels of STAR and STARMAKER are extremely duplicate-able and easy to teach for everyone
- the compensation plan, including the 8 ways to make money, is the most exciting we could find in the industry
- 50% of the product revenue is paid back out to the distributors in the field. Not only is this one of the highest totals we could find in the entire industry, but it is an ACTUAL 50%, not a THEORETICAL 50%, this is because:
- there is no BREAKAGE in the pay plan (Breakage is where there is earned bonuses that don’t make it into the paychecks of the distributors, this can happen any number of ways, and most MLM pay plans have multiple layers of breakage that benefit the parent company). In part, this is made possible because:
- Any left over volume that doesn’t get figured into a distributor’s bonus in the current pay week, automatically gets applied to the next week.
- people are experiencing financial success with this pay plan
- the product is exactly in line with the wellness trends of today
- the product creates excitement of its own in the marketplace and has a tremendous following of individuals who have experienced benefits
- the product is being used successfully to contact others about the business itself
- the product tastes absolutely great!
- harvesting of the product protects trees in the rain forest and preserves the environment
- the marketing and integration of Mona Vie as a company are world class
- there is a plethora of brochures, magazines, and other such aids provided by the company that do a wonderful job of explaining their product and opportunity
- Mona Vie’s website is top notch and specifically designed to help distributors sell its product, including a free “personalized” website interface to be used with customers.
- there has been a lot of press about the product from famous business figures to professional, championship level professional athletes
- their policies and procedures are fair, honest, and understandable
- when sharing the business opportunity, Mona Vie mandates the display of their Income Disclosure Statement. This statement not only shows average incomes, but it shows them clearly at each level in their business. Further, it shows highs and lows at each level. And finally, it shows exactly how many individuals are currently qualified at each of those income levels. This amount of clarity and disclosure, as well as the success that it represents, is extremely exciting.
- their pay plan pays its distributors WEEKLY. We love this idea and think the average distributor can benefit a lot from an idea like this.
- weekly payment is credited to a ready-to-use Mastercard.
- qualification periods are either weekly or, for larger levels, monthly. This is nice for anyone setting goals to be able to reach them in a short, reasonable time-frame.
- there are incentive trips, lease luxury cars, jet travel time, diamond rings and pendants, money toward motor coaches, and conferences for achievers
- the product volume (PV) is easily calculated (100PV represents one case of four bottles) which makes the entire pay plan extremely easy to understand and teach
- there are bulk order discounts which allow for increased profits on retail sales
- there is an excellent Preferred Customer program
- the business can be built in many countries without any complicated procedures. In essence, volume is volume, no matter which participant country it is generated in
- the company founded and supports the MORE project dedicated to helping the orphaned children of South America.
Because of these reasons and many more, we have decided to become involved in the Mona Vie business, once we are free to do so. (A court injunction was recently extended 45 days which, to the best we can interpret, precludes our taking such a step at this time, and obviously, we disagree with this extension and our lawyers are filing paperwork to that effect).
We are extremely excited about our upcoming participation in the Mona Vie business. We can’t wait to build Mona Vie businesses that span the continent, and beyond. Our goal is to impress the excellent leaders at Mona Vie with our efforts, results, and contribution to their vision. And at the same time, we are keeping our eyes on a vision of the future that just might get a little crazy!
Update: I will give an analogy for all the people desiring to know the method to our madness. When Winston Churchill was in a battle with Nazi Germany, he did not bother to build new cities. One, it takes capital that was needed in the war effort. Two, why bother building something that will be blown apart by the enemy. Winston knew the logical thing to do was to feed the troops and defeat the enemy. When this is done, there will be plenty of time to build the dream city. Thanks, Orrin
Update II: In just over three years MonaVie has nearly matched what Quixtar/Amway has accomplished in almost 50 years in North America. There is a reason for this and when I can share the benchmarking study you will know why. I am not a gambling man and prefer safer incremental improvements – with an eye to the future, than a “Swing for the Fences” gamble that puts the vision at risk. We ALL want to be the “Walmart of the Internet” except a dozen lawyers at a competing company. Michael Dell said, “The community is the key to the internet.” Therefore; a leaders number one job is to keep his community alive so we can fight another day – this we have done! I have learned in leadership to play the hand you are dealt. Like the old saying goes, “If you knew what I knew, you would do what I do.” I believe in the product and leadership team at MonaVie and know they play a part in our long-term vision. I have put all on the line for this vision: my life, my fortune, and my sacred honor. You choose what you will put on the line for this vision. Thanks, Orrin
Update III: The beautiful thing about being on the Team Leadership Development system is that you do not have to join any MLM. Some will choose to join in Phase I, some in Phase II, or any other Phase as they are rolled out. Chris and I know the journey of a 1000 miles begins with taking the first step. We have taken the first step. What ever anyone else chooses to do is fine with me. My goal is to increase choices for people and give people the freedom to choose when and where. Thanks, Orrin
Update IV: Laurie and I & Chris and Terri have officially joined MonaVie and are excited about building a big business. Many people have signed up as customers to generic leadership material and they will continue to be served. I personally am excited about going into the living rooms of America and building a million people community! I believe this is the only way to stem the decline in our culture and revive the principles that made our country great in the first place. MonaVie provides the business opportunity and Team will provide my leadership and training needs. I would like to personally thank Dallin Larsen for being a man of character and conviction – Dallin’s vision will propel MonaVie to a 20 billion dollar company and I plan to help. I am excited about the jouney to a million people and praise God for the opportunity to compete in free enterprise!
1 The Wayback Machine has an archive of several posts that are now missing from Orrin’s original blog. In the interest of preserving the historical record, I suggest readers download for themselves copies of these articles from the Internet Archive.