I was on a plane flying home from a meeting in Detroit, Tuesday, November 20, the person sitting in front of me was reading the New York Times and I found myself in shock by what I was seeing on the front page of the business section.. “No way!” I kept thinking once I was able to read the entire article. “Developed in secrecy over the last two years” the article explained, the new web business was finally launching. “Think of it as part Amazon (online retail), part My-Space (social network) and part Amway (direct pitch from somebody you know).”    more »

As Dr. Phil McGraw regularly says, “What were you thinking?” followed by, “So, How’s that working out for you?” He has become famous using these questions since they get people thinking and realizing that the miserable results they are experiencing are do to their poor choices that lead them there. My question is when you make some poor choices that lead to undesirable results, doesn’t it make sense to take ownership of them sooner than later? Yes, nobody likes to admit that they made poor choices. However, isn't it true that trying to cover them up just seems to dig a deeper hole?   more »

On Aug. 9th, 2007, the original proposal to Quixtar from the TEAM leaders was the following.  This proposal was open to negotiation and was the first draft presented.

 

1. Peaceful exit

2. Joint positive communication – no disparagement

3. IBOs currently within the Team system will have until December 31, 2007 to resign from Quixtar and sit out from any other MLM for a period of 60 days. After December 31, 2007, Team system IBOs will revert to Quixtar rules in effect at that time.

4. Bonuses will be prorated to the resignation date, including any year end bonuses.

5. Any LOA that is currently not affiliated with the Team system will not be approached or communicated with by any Team representative. Quixtar can prepare a statement that Team personnel/leadership will state if approached by any IBO not covered by this agreement.

6. Team will continue to operate their current training system.

7. No legal action of any kind against Team or affiliated IBOs will be instituted by Alticor or any of its subsidiaries, employees or representatives. Also, Alticor/Quixtar will not use any of its connections with any federal, state or local governmental agencies to cause harm to Team.

8. No communication or otherwise forecasting to current Quixtar IBOs that Team’s methods are unlawful or legally questionable.

9. Neither side to communicate with any press entity regarding the separation beyond an agreed upon written statement.

 

After having the proposal for over an hour and a half, Quixtar’s attorneys returned to the room. With no discussion or open dialogue whatsoever, they presented termination papers.

 

John Maxwell was asked a few years ago if he’d care to write a book about business ethics. He responded, “There’s no such thing as business ethics. There’s only ethics.” The “ethical chaos” seen recently in the high-profile corporate scandals develop because people make unethical choices.  Maxwell observes: “One of our problems is that ethics is never a business issue or a social issue or a political issue. It is always a personal issue.”  The fact that ethics is always personal, Maxwell contends, suggests a single, simple way that each of us “can move from ‘mostly ethical’ to ‘always ethical’ … based on the Golden Rule.” That way is “asking the question ‘How would I like to be treated in this situation?’”

I received an email Oct 17th from a business friend in the UK.  In this email, he told me about his situation.  Since then, he has posted his story on his personal web site:  http://www.jerryandmandy.com/.  It once again reminded me that often big businesses are so concerned with growth or preservation that humanitarian decision making becomes something of the past.  Let’s never forget the Golden Rule.

It can only happen to the other guy, right? It could never happen to you. Your ideas, beliefs, perspectives would never be challenged. After all, you are honest, ethical, aligned with the company and they love you. You are golden. Yours is practically a modern-day Cinderella story. You started out like most people; newly married, employed, working hard to get by and dreaming of a brighter future for you and your family. You realize the only way to live your dreams is to own your own business so you register as an Independent Business Owner and begin your journey. You invest the next 15 years of your life (25 – 40 years old) working to build a business. You gave it your all; nights, weekends, holidays, whatever it takes. All the while, you find yourself regularly defending the concept of the networking/mlm business model as well as specifically defending the Amway/Quixtar names. Since 1997, the Company has been struggling as reflected in overall volume, sponsoring, etc. Consequently, in addition to building your own business, you spend thousands of hours building a system that will increase the new person’s chance for success. Your efforts pay off, in 2003, you are asked to speak by Quixtar at their national convention (Quixtar Live!) as the key-note speaker. In 2004, the managing director of Quixtar, Ken McDonald, sends you a letter of great praise and acknowledges that you are the fastest growing IBO in North America. Then, in 2005, Quixtar hires a new managing director, Jim Payne. Suddenly, you realize that Quixtar has made significant changes in regards to their stance on positioning as well as depth. Now rather than being golden, you are a significant obstacle to an apparent hidden agenda.    more »

What do you do when you learn that what you have been promoting isn’t working? Do you simply complain about it? Do you keep telling everyone that the good times are coming? Or, do you do something about it? Let me complicate it: What if you learn the supporting facts of this business failure after you’ve invested 17 years of your personal life, and your parents have invested over 35 years? What if you find yourself financially dependent upon the business income; the basis of which was built years ago? What do you do? This is the story of where I found myself and why I chose to do what I have done. First, some facts: In 1982 Amway of N America did $1 Billion in volume (interestingly, so did Wal-Mart). Twenty-five years later, Amway/Quixtar of N America recorded approximately $1.1 Billion in volume. Considering inflation, the relative volume has plummeted over the past 25 years; most significantly in the last ten. Currently, out of 10,000 people that register in this business, only 833 will remain after three years. That is, 91.6% of people will be gone within 36 months of registering. From 1999-2000, 600,000 English speaking people as a first language registered in the business in North America. By end of 2005, of those registered business owners, only six have achieved the Founders Emerald level (in 2005, the average income was less than $90,000/year) or above. That is, 1/100,000 achieved an income of $90,000/year or more. Nearly 50 years of community building for Amway/Quixtar and the qualified Diamonds in North America fit in one ballroom with tables. These are the facts. Perhaps, you relate to them. How’s it working for you? In addition to these horrifying statistics, the business is riddled with litigation including very significant court cases threatening the very existence of the company in the US, England and India. The core issue in these cases is the same core issue behind the current failure of the business—over-priced products. Everything stems from this root problem. A very unfortunate domino effect resulted in one negative thing leading to the next till now we find ourselves in the current situation. After years of attempting to correct this within Quixtar, it finally became apparent that if there was ever to truly be change, then a more dramatic stance would need to be taken. As much as I felt like David stepping up to the plate to meet Goliath, the time had come to take a stand for what I believe in.   more »