Usana and Robert Allen

A few weeks ago I was contacted by a gentleman affiliated with Usana. I received an extensive series of autoresponder messages from Robert Allen, author of "Multiple Streams of Income" and co-author of "The One-Minute Millionaire".

Aside from typical recruitment into the Usana business, the autoresponder messages were promoting their "system of duplication". The messages related the reasons why Robert Allen decided to affiliate and endorse the Usana business (seems his wife has been involved for some time). In all actuality however, I saw that Mr Allen was trying to market his extensive and expensive contact management program and autoresponding system. There was also a connection to a preferred leads supplier that has some sort of exclusive with the Allen group.

So, when I was reading a new blog the other day with a post about Robert Allen, it caught my attention.

I am glad to see lawblawg is blogging as I believe the information is sorely needed and would likely prove helpful to many evaluating the networking business opportunities. I look forward to reading what I hope will be many informative posts.

Skinny-Dipping In The Tape Pool

My last post was a picture of a tape used in TOD. This photo was sent to me by a former TOD member. Despite the blurry picture quality, the copywrite information on the tape reads as 2002. Unfortunately, the photo is of the reverse.

So what, you may ask?

Let us consider who the listed speaker is on this tape. Bo & Sandy Short.
Title of this particular tape. "This Day We Sailed On".

I have this same speech on tape from the AQMO I once belonged, ProNet. The date of my tape was 1999. If prodded, I can post a copy of this tape as well. PN2177 is the SKU.
(This tape, along with all other tapes by The Shorts were removed from active circulation in ProNet in January 2002 approximately. I was still in the business at that time and attempted to order all Bo Short tapes that appeared in the active catalog.)

A little background of the tape business in many of the AQMOs, at least within the Yager tree. As I understand it, when speakers are criss-crossing their way through the country at the various BBS and Major Conventions, they typically record these speeches. These recordings are warehoused at the duplication facility, in this case, more than likely the sprawling Yager plant. The raw tape is archived, cataloged, and a list is circulated through the major "kingpin" groups that run their own BSM networks. I don't know whether any actual licensing occurs in terms of purchasing the duplication rights, but these "kingpins" can choose from the collection of tapes available. (I have also heard that speakers, if designated as one of the weekly tapes, receive a portion of the total sales from that tape similar to a performance royalty.)

Due to this practice, it is not uncommon to see the same speech offered in various groups not directly related under several different SKUs. I saw this happen with a tape by Doug Wead not long ago. The title of that tape was "The Reluctant Diamond" and was produced under two different SKUs from two different organizations, both under Yager.

Toward the end of my time in Quixtar, I had begun a side business of buying and reselling old tapes through auctions. (No, I was not in violation of competing business restrictions because Quixtar does not market motivational tapes. Whew!) As a side "benefit" of this, my personal tape collection grew to over 3000 tapes purchased from sellers all over the country. I discovered this practice while I was creating my selling lists as I tried to weed out duplicate tapes.

Ok. Back to the rest of the post.

TOD, a downline somewhere in the Yager group, was obviously a participant with the "tape pool" and that would explain how a Bo Short tape would wind up in their library. Bo & Sandy had spoken for at least one TOD function prior to their resigning the business.

Bo & Sandy Short resigned their Quixtar business in 2001.

So, The Shorts leave the business and, at least the ProNet groups, discontinue all availability of tapes by this couple. Obviously, Orrin must not have gotten that memo. Or perhaps, he was trying to corner the market on Short tapes under the impression that they might resume their business?

This tape was part of TOD's Top 50 tape set until about August of 2003 according to my TOD source. TOP 50! What may have occurred in or around August 2003 that suddenly made Orrin realize that one of his "hand-picked" TOP 50 tape selection should be removed?

I seem to recall hearing, for the first time, a report that NBC Dateline was working on a story about Quixtar and that Bo Short was to be one of the people appearing on air. My recollection is that I heard about this sometime last summer. Perhaps August.

What I find mildly amusing is the fact the Orrin must have seen the value of having a Bo Short tape in the "preferred" listening collection. I am nearly certain that Orrin feels differently about it these days though I believe a Bo Short tape would greatly improve the value of any tape set sold in TOD.

One other possible explanation for Orrin having a Bo Short tape in his Top 50 nearly two years after The Shorts resigned is that he wouldn't have to pay any royalties. Sort of like, public domain property.

Despite the best efforts by the TOD leadership to distance themselves from Quixtar other than a distribution partner, a Bo Short tape coupled with the Dateline appearance, would have exposed the true relationship.

This is purely speculation on my part and there may be no connection whatsoever. Just a mighty strange coincidence.

This tape was recently used in TOD. Despite the blur, I believe you can read the speaker's names. More to follow.

A Fine Fettle Of Kish

I read, with great interest, a recent post on MLMblog. Seems I am not the only one asking questions via email these days. There was one question that I found particularly interesting.

From MLMblog:

7. Did Joe Land sign up as an associate in Passport?
"In my position, I
believe that it would be improper for me to say who are Independent Associates
of Passport. They know who they are...and so do I."

Certainly this proves or authenticates nothing. It makes me curious however.

Hypothetically speaking, if this proved to be true, that is, IF it turned out that Joe Land actually had signed up in Passport; there are two immediate questions I would ask.

1. Will the Quixtapo send the Lands a letter like the one they sent to the other Passport associates?
2. Would this make Joe part of the notorious "gang of ten" we've heard so much about?

Comment About Comments

A couple of days ago, I sent emails to the authors of two different blogs. I asked the same question of each of the authors.

My question:

Why have you chosen to have comments disabled on your blog?

So far, I have received a reply from only one of the authors. Here is the response I received,

"Dave,

"Thank you for your email. I will be happy to address this issue.

"Yes, I have been asked by other bloggers about this feature. Additionally, I do understand why levelheaded, well-intentioned people would inquire. These people, whether they agree or disagree with my point of view, only want to discuss the issues. I believe their intentions are sincere, regardless of their point of view.

"Unfortunately, in my case, I attained a small level of prominence in the A/Q business. When I resigned, for the reasons I resigned, and then proceeded to go public about the information I was privy to, I attracted a flurry of people that did not want to discuss the facts but only wanted to impugn my character. This reaction was expected.

"There are a small number of about 20 tenured-pins (kingpins) in the A/Q business that own and/or run the BSM business. They exert a tremendous amount of influence and control over a trusting army of distributors, many of which follow them blindly. These kingpins have spent decades disseminating half-truths as well as complete falsehoods about their critics. Many exude a great deal of hate toward people that are critical of them. In fact, some are well trained at inciting vitriolic reactions from their army as they hide behind the "illusion of goodness" they have created. In my opinion, these are not good people. To my great sadness the corporation seems to stand with them out of their own fears.

"My disclosures are not necessarily new. My meetings with corporate officials are though. There have been a number of web sites dedicated to sharing the truth about what is actually happening behind the scenes. I found these sites following my resignation. An overwhelming amount of their information is true. These people have always been marginalized because the rationale has been, “They never mad any money in the business. They are just whiners.” I have learned they are not. For the most part, they are good people willing to tell the truth. My situation only bolsters their argument as I attained the level of diamond and spoke around the world in that business. I sat in private meetings with the company as they revealed what they’ve known and how long they’ve known it. My role on Dateline NBC did not help their situation either.

"I launched my former diamond sites to share my opinions and experiences based on my previous decade-long involvement in A/Q. Due to the nature of the attacks on me, as fueled by the diamonds and kingpins themselves, my opening the comment section only serves to detract from the information I am attempting to share.

"Additionally, I have not used these sites for any other reason than to discuss my opinions and experiences in A/Q. I would be uncomfortable if anyone attempted to use the comment section to discuss any other company I may be involved in. Out of respect to the audience, I do not want to use this forum to promote or discuss any other business. That would be contrary to my intentions for launching the former diamond site in the first place.

"Quite frankly, if I thought that I could discuss these issues on my own site, in an adult fashion with levelheaded people, whether they agree or disagree with me, I would. Unfortunately I do not believe that is the case.
It is easier for some to hide behind ficticious names and spew hate than it is to discuss the facts.

"That is the reason that I openly discuss these issues on other sites that are not dedicated to my opinions alone.
I may be wrong. I may be misjudging the situation. This is my perception however. I will continue to think about this and appreciate any feedback from you and your readers.
Thank you for asking.
Have a great day.

Sincerely,
Bo"

Thank you Bo for your response and offering your explanation.

As I wrote at the beginning, I sent emails to TWO blog authors. Bo Short, of Former Diamond, replied and was forthright.

Oh, the other blog?

He's nothing really.

The Qrush Identity

Subtitled: Blogging Imitating Life Imitating Art

I really enjoy a good mystery novel. By far my favorite author is the late Robert Ludlum, who wrote the original "Bourne" series of books. "The Bourne Identity", the first book in the series was recently adapted (poorly in my opinion) in movie form starring Matt Damon a couple of years ago. For those that may not have read the book, the basic premise is a super-secret covert government agency is seeking to apprehend the premier assassin-for-hire in the world, Carlos. The plan is to take one of the highly trained operatives, create a false identity, and then have him create a reputation of a competitor in the assassin business. Through the process he even begins to take credit for kills made by Carlos in hopes of drawing the prey into a confrontation and remove him from the physical realm. My poor attempt to summarize does the story and the premise no justice, so, if you haven't read it, go get it and I doubt you'll be disappointed.

Now for real life, or perhaps it is unreal.

Blogger Qrush appeared on the scene a short time ago amidst much pomp and circumstance as the self-proclaimed righter of all wrongs ever assessed to Quixtar/Amway. He set about to create an almost schizophrenic persona, perhaps out of personal confusion or just to confuse the reader. It seems that both could be true. For the beginning, in private conversation, I never took him or her to seriously. I initially thought this person was a fake due to the over-the-top performance on display throughout the blog posts.

As I noticed the apparent endorsement from a couple of pro-Quixtar blogs, I began to change my belief reluctantly. The endless litany of patently false statements, without a shred of proof to support any of the claims, reads as confused as this person admits to being. After a time, reading the blog transformed into sport. (The posts are now starting to repeat themselves. A clear indicator of self-delusion. Repeat the lie until it becomes real in your mind. You have to do this a lot if you imagine yourself to be two people.)

The days are numbered for the Qrush blog.

Not only does he have a nemesis, Qrushed, but now information is beginning to surface about him and the people that have placed him into service. In the "Bourne" book it was "Treadstone 71". It appears that the Qrush command center may be called "Fulton 7575".

An Answer To An Earlier Post

Recently I posted an open question regarding the oldest MLM currently operating in the industry. See A Question About MLM. I received an email reply to my question from David Robison. David has allowed me to post his response here and I wish to first thank him for that and for the thoroughly researched answer.
You can read more from David Robison at On The Road With Dave. I highly recommend reading his blog as it is very well written, entertaining, and informative. Thanks again Dave.

This response was originally posted as a comment on a blog forum.

"PART 1
I thought about this question a long time before responding. It seems a simple enough question, but is much more complex upon examination. Audrey’s answer addresses what is the negative in most people’s minds. A bad experience with a direct seller colors the perception towards all direct sellers. But woven into our social fabric is a pre-conceived notion that selling or direct selling is bad. We associated from an early age that salesmen are “hucksters” “slick” “conniving”…even in everyday language we say someone was dishonest by comparing them to ‘an used car salesman” This certainly predates any MLM company, or bad experience with Amway. The pendulum has swung twice in the history of direct sales. Once it was considered an elite career to be envied. It then suffered a collapse due to societal changes; it recovered in the days of urban sprawl and now suffers at the hands of change once more. The weight of the pendulum now hangs suspended momentarily awaiting how the change may be handled.
In the mid-19th century, as the Industrial Revolution took place, Direct Sellers were looked upon as a link to the big city for thousands of people still living in rural areas. They distributed not only products, but also urban ideas and culture. The agent, peddler and drummer traveled from city to the rural areas carrying products representing the urban manufacturers and wholesalers. To the rural youth he was the representative of the CITY Par Excellence, and in a period when mobility and success pointed to the urban areas, the traveling salesman became an instructor, a guide, and a handbook of city life and manners to all those anxious to cleave from their rustic background.
By the 1920s some 200,000 door-to door salesman were working for companies such as W.T. Rawleigh Medicines and Fuller Brush. “Scientific Homemaking” was introduced and time saving management principles were being put in place. Housewives thrived on laborsaving devices and companies such as West Bend Pots and Pans and Electroloux had legions of salesman answering the call. Sears Roebuck split off their catalog sales of Encyclopedia Brittanica into Direct Sales, to sell directly to the enlightened masses. Direct Sellers were bringing innovation and education to the masses It’s interesting to note that the Great Ponzi scheme took place in 1919 involving international postal reply coupons, most alive today do not know one “specific” involving the case, and yet equate Ponzi with a scam. He has become woven in the fabric of sales mythology. But popularity of Direct Sales suffered at the hands of politics, depression and war. Retail shops feeling the squeeze of competition lobbied for regulations for direct sellers, citing “fly by night” companies collecting deposits but never delivering products. A sales agent was nothing more than “ advance agents for burglars”. Chambers of Commerce spoke at PTA meetings claiming 87% of sales agents were dishonest or suspect” The Great Depression brought a general distrust of businesses located out of the local area. Many had invested in companies that were in the “Big City” and had lost all their money. Children of the thirties grew up knowing to only trust the people you know in your own town. Those children of the 30s grew up to be adults of the 40’s and post World War II. Their influence on their children of the Baby Boom can not be ignored. Our American values and beliefs and also perceptions of the door to door salesman persist because of that.

More to Follow
David Robison Quote: If I'm correct about the reality of this negative perception then my question is Why Does That Perception Exist? Where did it originate? Why does it continue?

PART 2
By the time the 1950s were over, we had fled to the cities in search of success in the corporate world. We had embraced television advertising, rock and roll, and looking forward to retirements in style. Rural areas were being gobbled up by the concentric growth of our cities. We were as close to the city as we had ever been and we loved it. Stores were plentiful, shops were full, and the direct seller was passé’ But the turbulent sixties brought dissatisfaction. Our youth were involved in “evil practices” and communists were on every corner looking to destroy our way of life. We longed for simpler times. We discovered suburbia. We could work in the city and retreat home to the suburbs. But this brought new needs. I remember as a child, the phrase “going to town”. Saturdays were blocked off to travel into the city to do grocery shopping, and to check out the new department stores. Our need for privacy and seclusion battled with our desires to shop. Ding-dong! “Avon Calling”. An Avon lady could show a suburban housewife how to look lovely in her own home, and provide a social outlet and a chance to catch up with the “goings-on” in the neighborhood. A chance to shop again at home arrived again. Tupperware parties! A chance to socialize in the suburbs and shop at the same time. Direct Sales were once again as welcomed as the morning milkman. But retailers once again saw their sales decline due to do urban flight from the inner city and fought back.
The 1970s brought the innovation of the shopping mall. The City could once again come to the people. The malls provided shops and social situations for Mom, Dad, AND the kids. At this same time you had the youth of the 60s finding their way in the employment scene. They were searching for a way to make income, but trying to stick to their 60s principles. They wanted to provide for their families but did not want the corporate life as their parents. They sought ways to express independence while making a living. The social dynamics of a direct sales organization attracted them to new environmental products, health care, and products to improve the earth. These “fringe” businesses attracted “fringe” people. The Amway freaks in mini-buses.
By the time the 80s arrived, and profit and cash were desirable once again, the small business owner was popular again. Everybody was seeking extra income to enjoy the 80s lifestyle. MLM became the popular vehicle to fulfill the need and desires of those longing to be rich. With the legal hurdle of establishing MLM as legit in 1979, the industry flourished. And with that popularity came the problems Audrey refers to. It was 1920 once again, and “rural farm boys” were becoming agents for W.T. Rawleigh once again (figuratively speaking) seeking the “good life” in sales. But like their 1920 counterparts…. these new MLMers had little experience with business principles. They worked a short time and became “fly by night” As I said in Part 1, the issue is complex, feel free to ask more questions. As you clarify your position, I will try to do the same.
Thanks for this topic!
David Robison Quotes in these posts are attributed to "Charismatic Capitalism" by Nicole Woolsey Biggart
Dave, if your still with me....your direct question..................Nicole Woolsey atrributes The California Vitamin Company, that later became Nutrilite, with the first MLM compensation plan. The plan was named the C&M Marketing Plan after Casselberry and Mytinger, The designers of the plan and distributors for California Vitamin."

As you can see, David has done a fair amount of research on this topic. Thanks for the hard work you obviously endured and for allowing me to post your answer.

13 Rules

This is not intended to be any sort of a political statement or endorsement.

I was sifting through some old papers and found a newspaper clipping I have been saving. The article dates back to the retirement of General Colin Powell when he held the position of chairman of the Joint Chiefs of Staff. It outline 13 rules that then General Powell said he had collected over the years and kept written on a small white card. Some may be familiar with these rules but I felt they bore repeating.

1. It ain't as bad as you think. It will look better in the morning.
2. Get mad, then get over it.
3. Avoid having your ego so close to your position that, when your position fails, your ego goes with it.
4. It can be done!
5. Be careful what you choose. You may get it.
6. Don't let adverse facts stand in the way of a good decision.
7. You can't make someone else's choices. You shouldn't let someone else make yours.
8. Check small things.
9. Share credit.
10. Remain calm. Be kind.
11. Have a vision. Be demanding.
12. Don't take counsel of your fears or naysayers.
13. Perpetual optimism is a force multiplier.

Regardless of your political leanings, I believe these 13 rules are a great start toward maximizing your personal effectiveness and fulfillment, in business and in life.

Duplication Works - Sort Of

Much is made of the concept of duplication in MLM and recently I have read several statements on both sides whether it is an actual and viable concept.

I believe that duplication, as a MLM business concept, does work and in fact, is working but not for Joe Lunchbucket MLMer. I further submit that duplication is not the process of the "how-to" education for the average networker but almost exclusively for the benefit of those that hold the reins of the education or training system.

By far, the largest concentration of such systems operate under the protective umbrella affiliated with Alticor/Amway/Quixtar, who have refined it with perfection to a near science.

At first glance, when I read a recent post on quixtarblog titled "Platinum Index 2004", the performance data shows an outrageously high failure rate among IBOs with a little more than one-third of IBOs even sponsoring 1 new person before quitting. Is duplication working here? Yes.

You may ask, "How can duplication be working if so many people join and quit without sponsoring?" Fair question, if the goal is actually to create a business network. Then you could reason that it is a failed concept. But, is that really the intent from the standpoint of the various AQMOs? The folks at Alticor are trying to move products and these numbers don't bode well for them. However, the income stream for the AQMOs is derived from the "value" of their education system of books, tapes, and seminars.

Does the high rate of "failure" alarm these AQMOs? I doubt it since they tend to adopt a sneering reaction to those that leave the business as "losers" or "quitters". Funny, they certainly didn't have an issue cashing the checks of those that were dedicated followers of their "proven" system. If most leave, they continue to get people to "plug into the system" and the lost revenue continues. No muss, no fuss.

And for those that, after having learned through their own experience, this training system was actually weighted against their own best interests and values; these outspoken critics are reviled and labeled as part of some conspiracy to attack "core American principles". Give me a break.
No one would criticize a buyer who was angered by the Used Car salesman that sold them a lemon but yet, there are some folks within these AQMOs that want to portray anyone critical of their Quixtar business as people with fundamental character flaws. I believe there is a righteous rage that wells up in people, particularly after they have been screwed. I would never deny that right.

In the words of Peter Finch in the movie "Network":

"I'm mad as hell, and I'm not gonna take it anymore."

There. Now duplicate that!

Using Leads

Buying leads, for the past few years, have been a commonly encouraged practice in many MLMs. A quick Google search will reveal a near endless list of companies with a wide array of price plans, not to mention the promise of possessing the "freshest leads" on the planet.

When I started my Passport business, I knew my "warm list" was not likely to be very effective and I would need to seek out cold contacting methods wherever they could be found. I tried my luck buying leads and a subscription autoresponder. From various sources, I purchased about 50,000 leads, drafted a 17 letter campaign, and then waited for all the new associates to rush into my waiting arms. I tried to maintain a realistic expectation for the results I sought. I reasoned that if I could get a positive response rate of just 1% that would mean 500 people may seek more information. I thought that 1% of that group would want to enroll and that would add 5 people to my organization. What that realistic? From everything I had read, I believed I was being extremely conservative in my estimates. So what happened?

From the initial 50,000, about 30% opted out within the first 3 letters. At first this alarmed me but I learned that this was considered normal. This still left me with about 35,000 active subscribers in my campaign. At this point, I had NO requests for additional information and had no evidence that ANY had even followed embedded links to my website. Letters 4 - 14 whittled my subscription base down to 23,000 readers. By the time the campaign had ended, I had 4 people respond for a free product promotion I had offered and 2 people request more information.

There are so many variables that could account for my lackluster performance using leads. Here are a few things to consider about leads that may help.

How are the leads being cultivated?
If survey responses, can you get a copy of the survey?
If surveyed, what websites are these surveys listed?
(Site offering anything FREE do not usually produce leads for business developers. Most of the respondents are looking for.....Anything Free!)
How many times are the leads being sold to other people?
Watch for email addresses that reside with services like Yahoo. (This is not an indictment of Yahoo but rather, email addresses are free with Yahoo and often used for casual contacting or concealment.)
Will you be refunded for fake email addresses?
How old are the leads?
Have they been filtered through the Do Not Call registry? (If you are buying phone leads or intend to use them as such.)

Yesterday I read a post on a new blog that talks about leads. You can read this post at
Confessions of a Network Marketing Junkie.

MLM - History, Science Or Art?

Lately, I have been evaluating my experience in MLM in determining my personal effectiveness. I have poured myself into books on technique, sought out information at various websites, and purchased audio programs promising to reveal some elusive component in my business approach. I admit that, from most, I did learn something new. I have tried my best to integrate these new skills and concepts.

I am developing this conclusion about what I view as central themes in a great deal of this information. Perhaps, not surprisingly, I see these elements are used within the "pitch" of many MLMs as well.

History
I admit that I am fascinated by history and I have a strong interest in the origin and evolution of MLM. In much of the information I have reviewed, there is usually some historical perspective offered to assist (prepare) the reader for what is to follow. And what follows, in most of what I have read, is the unveiling of a "radical" new technique or the introduction of some new "scripting" for the business developer. MLM companies use history as a method of validation for their pay plan, their training system, or their unique products. Have you ever heard any of these?

Our compensation plan is the oldest and most widely recognized for fairness and stability.

Our system is responsible for sponsoring more new people than any in the last 20 years.

Our company has produced more new millionaires in the U.S. than any other business.

Revisionist history meet hype.

Science
The companies I have been involved with have each had specific recommendations on "how" to build your business. This is good, I guess, because this is the second most asked question by anyone getting started in this type of business. The first being, "how much does it cost?" These companies have presented logical and compelling arguments for developing their respective "things to do" lists for new recruits. I agree that it is important to have defined steps as part of the goal setting mechanism. I also agree that it is necessary to provide a starting point for "first-timers" in the business. I suppose the issue I have with this "scientific" approach is the assumption that MLM is a "one size fits all" type of business. Whether a company uses an 8-step pattern or a 6-step approach or whatever they choose to call it, I believe they neglect to consider marketplace evolution. By that I mean, the consumer or prospect becomes more sophisticated, more particular, and more aware of this methodology and now has the ability to see it coming a mile away. Companies using these "patterns" tend to clutch tightly to them because they have enjoy some level of success in the past and may actual draw their corporate identity from teaching a system of "duplication". This will start the whirlpool of ineffectiveness for more and more new recruits that experience an antiquated system being applied to a more progressive target market.

Art
This brings me to my belief that, to be truly effective in MLM, one needs to be creative. Seek out innovative new approaches and utilize new technologies. Most importantly though, I believe it is critical to present yourself as the key component of your business. After all the historical significance of your company wears away and all the science of the vaunted training system crumbles, what do you have left? Exactly what you started with - YOU. You can have the best product, the best system, the richest history behind your business but people are going to make their final decision on how they perceive you. I suggest you lose the stuffiness of being the oldest MLM in the universe. I suggest you integrate your training to solve core competencies you may need as a business person. I suggest you reject the notion that attempting to clone yourself according to any standard presented in your companies continuing education.
Do you want to have fun in this business? Do you want to establish stronger relationships with your associates? Do you want to feel pride in deserving the income you are earning?

My belief is that you stand a much better chance of achieving success and answer those questions by simply allowing yourself to be you. A good friend once said to me, "you just need to follow your muses". Being yourself, and presenting your business honestly, will garner you far better results than molding yourself into a "proven" formula.

Circle The Wagons

I just finished listening to a 3-part voice mail message believed to be from Randy Haugen. I do not know the date of origin of this message but it sounds like it may have been shortly after the NBC Dateline story about Quixtar. There is about 18 minutes worth of dialog in this message and my transcription skills are not very good. My hearing, however, is excellent.

Here is a few items I heard from part 1 of this message:

The speaker, believed to be Randy Haugen, states there are 4 categories of critics.

1. IBOs that quit and place blame on the company.
2. Competing businesses that don't want to see Quixtar grow.
3. Previous IBOs starting their own business.
4. People with an agenda.

He also adds the following comment, "most of the negative on the internet is orchestrated by only 8 or 9 people".

He continues, "We know there are several problems inherent to our business and others like it. We understand the importance of getting these solved".

Further in the voice message, he discusses the creation of Wilson Organization, LLC. I assume that is the name of the new business structure headed by Don Wilson. The speaker describes that this information is not widely known to everyone and that only Sapphire and above have prior knowledge of this new structure. Within this new organization, the speaker explains that there will be a board created and they will vote on pertinent issues and they will all be on the same pay scale for "system money and any other benefits that there are".

This new organization is described, in the speaker's words, as "It's gonna be awesome and cool".

As I said, my transcription is far from complete at this time but I am "efforting" the next few days to provide a full recounting of this message.

One last item from Part 1 of the message. The speaker, Randy Haugen, I believe, states the mission of the new "LLC" is "committed to having a transparent business".

I wonder if he means transparent as being invisible.

End Of The Day Questions

I just returned from a weekend trip to see my family back home. Other than a conference call presentation I hosted, it gave me a couple of days away from my business to recharge. I did, however, take some reading material that I have been trying to review.

Some time ago, I bought several back issues of Upline Magazine on Ebay. To my knowledge, this magazine is now out of print. Too bad, as I find there is a lot of good information that could be helpful for anyone in the networking business.

One article that caught my eye was titled, "End of the Day Questions for Professional Networkers", written by Karl Jacobsen. Here are just a few from the list of questions offered by Mr. Jacobsen.

"Did I start this day with a map, game plan, and goals?"

"What are 10 reasons I should be grateful today?"

"Did I remind myself of my purpose and mission today?"

"Did my words and actions allow others to see how much I value them?"

"Did I read for 30 minutes?"

"Was I focused on helping others succeed and grow?"

"How can I grow from what I learned today?"

"What can I do better tomorrow and in the future?"

There are several other questions in this article that could find their application in our daily lives, not just in how we approach our business pursuits. This stands to remind me that there is much more to our business than just the bottom line. I think the bottom line needs to include the quality of the relationships we can and should build with our associates.

Quixtar Takes The Fifth

I remember the day I told my upline that I was leaving the squatter business. In a calm, clear voice they said, "Well, you know that Passport business hasn't been around very long. Are you sure that it is a stable business? After all, look at Quixtar; they're an established business with a proven track record." Hmmm.

As I have written in another post, I am part of a current lead list that has been sold, sold again, resold, and sold yet again. When I have informed the caller that I was actively building my business, they would make a similar statement when they heard the name Passport. "Passport, hmm, are they a new company? Well, you know that most MLMs fold within the first 5-7 years and our company has been around for X years." Hmmm.

Quixtar's 2-5 Year Plan?
Here's a couple of questions to set the stage:

1. Is Quixtar Amway?
2. How old is Quixtar?

I started in Amway in 1998 and went through the Quixtar launch in September 1999. Let's see, that's almost 5 years ago. (I'll come back to that later.)

When Quixtar launched, my upline group hammered home the following: Quixtar is NOT Amway. Quixtar is a totally different company. Do not mention Amway is any presentations. If your prospects ask, "Is it Amway?" you say NO, it's Quixtar. Amway is a sister company.
This made me very happy because I felt that I could now stop deceiving my contacts since, after all, Quixtar was OBVIOUSLY not Amway. But.....

I noticed that the name had changed but all the products I was buying still had the anyway labels on them. I noticed that all the tapes I was buying from my upline still taught the same business plan, were all the same speakers, and some still said the word Amway in the presentation. This did not offer much reassurance that Quixtar was really anything different other than the letterhead and website. And there was another odd thing that hasn't changed to this day. At the open meetings, after the would "spin the circles" (another carryover) they described the company and would brag about having 40 years experience in this industry.

So.......

1. If Quixtar is NOT Amyway
2. Amway is a sister company
3. Quixtar website launched on 9199

How old is Quixtar?
FIVE YEARS OLD.
How then does a five year old company claim to have over 40 years experience?

Here's another one.
All active IBOs, at the time of launch of Quixtar, were given the option to pick their primary business affiliation. This later evaporated and all active IBOs that did not convert to Quixtar, were moved there by Alticor ceasing a North American presence for the Amway business. This was done to provide a safety net for the established business groups in case the website experiment failed. (The jury is still out on that one.) My point is that all active IBOs were "grandfathered into the Quixtar comp plan at their current RECOGNIZED pin level. If you were a RECOGNIZED Diamond in Amway, with active status, you were suddenly a RECOGNIZED Diamond in the Quixtar business. Nothing better for tired legs than a name change.

This brought me to another question, which I realize probably cannot be answer by anyone that doesn't have access to the Quixtar IBO database, but here goes.

How many people that signed up in Quixtar, that is, since it became a company, in Sept 1999 have gone Diamond? They could not have been any part of the Amway business prior to 9/1/99.
Since this is Quixtar's Fifth Anniversary, I would assume, according to the fabled 2-5 year plan, there should be pantloads of Diamonds busting out.

How many of the "grandfathered Diamonds or Emeralds" have qualified during the existence of Quixtar? I have heard rumors that the Diamond in my former group hasn't qualified in years. A side note: I heard this attributed to my former Emerald AFTER they changed their affiliation to a larger upline EDC. I do not know to this to be true as I was told by my former upline. (There's an irony there.)

I dare say that Quixtar has not actually produced even ONE NEW Diamond that started after September 1, 1999 that did not have some previous involvement in Amway immediately prior. (Note: I will post an addendum on this point if anyone knows of any Diamonds that dispute this.)

Obviously, this is pure speculation on my part as I do not have access to the IBO database. Perhaps, this may be the year that all changes, since after all, they are NOW five years old. Happy Birthday Quixtar.
I bet I know what you'll be wishing for on your birthday.

Oh. .....almost forgot. Quixtar is five; Passport nearly three. Hardly a tenured advantage. Quixtar is also still in that 5-7 year bracket for business failure. I'll give them their due if they get there. Otherwise, I suggest that, based on the actual ages of both companies, Passport and Quixtar are running neck and neck.

A Question About MLM

I am sure there are several people who may read my postings that have researched some of the history of MLM's. I had a discussion recently with someone that had been involved in the business and we were talking about the origins of the MLM concept and structure. A question came up in our conversation and I would like to ask for someone to help me answer it. The context of this question is in the claims made by various organizations regarding the stability and proven track record of their respective businesses versus other competing companies.

My first answer to this question was Avon. They are the oldest member of what is now the Direct Selling Association. Avon started as California Perfume Company and were one of the original 10 members of the Agents Credit Association started in 1910. Through a series of restructuring, the Agents Credit Association evolved into the DSA. The history of this organization is pretty interesting and you can read more about the development of this group at their web site if you are so inclined.

Returning to my question. The context of the question is what is the oldest MLM, in operation currently, where the compensation is derived by multiple level payouts. Since Avon is largely a party plan business, I am not including them in my query.

I've Been Told I Have A Serious Problem

I received an email tonight in response to a couple different google ads I have placed for my Passport-related web site. Here's the main thrust of the email.

"Integrity is not leaching
off somebody elses
business by linking to their site with why would a
diamond quit.That is LOW Life
and not respectable at all.
I would highly
recommend you removing them or you
may create a serious problem for
yourself,"

I must say that I appreciate this individuals concern for my future and, I assume, safety. I only wish they would have included their real name or email address so I could thank them properly. I am trying to imagine what imminent "serious problem" to which they could possibly be referring.

As they speak of my questionable integrity, I suppose emailing a veiled threat is acceptable in their book. How much integrity is required in the "leaching off somebody elses" hard earned money by promoting a deceptive marketing plan where less than .0003% of the participants succeed? Is it respectable at all to conceal a profit center within what is labeled a "training system" that produces far greater income for the elite within that business?

Quixtar 8 Step Pattern Plus 1

Who says the folks at Quixtar aren't innovative. As Quixtar is in the process of unveiling their update web portal for their IBO's (Internet Buying-club Operators), it seems that they are embracing yet more 21st century technology. I haven't seen this in print yet but I'll bet the new literature should be available shortly.

The New Nine Step Pattern

1. Define your dream
2. Make some commitments
3. Write your prospect list
4. Invite your prospects
5. Have a successful meeting
6. Follow through
7. Check your progress
8. Teach the pattern
9. Start a blog pretending to be a Quixtar employee.

Fortunately for the world of blogging, most Quixtar IBOs quit before they reach the last step. Otherwise bandwidth might become a problem. Ahh....but they REALLY don't WANT them to have a way to share their experiences. That would be cross-lining.

And Yet More Google

This story from Search Engine Journal regarding Google.

Google Offering A Contextual AdWords Rebate

In a letter to AdWords advertisers, Google is offering a 20-25% rebate on NEW
Google Contextual AdWords advertisers who run a campaign between August 4th and
September 30, 2004.

To read the rest of this story, click here.

If you are considering jumping into the world of online advertising, this might be the time to investigate and get started.

Is There A Google In Your Future?

I found an interesting article from Reuters this morning about the projected growth of Google. For anyone using or considering the use of Google in advertising and/or investing, you may also find this of interest.

"Advertisers will more than double spending on paid search to $5.5 billion in
2009 from $2.6 billion this year, but the annual growth rate will decelerate to
11 percent in 2009 from 65 percent in 2003, according to a report by Jupiter
Research, due to be released on Monday."

To read this article, click here.

Attention Quixtar IBOs

During the time I was involved in the Quixtar business, I can remember being told that if you want to be successful you need to associate with successful people.

Despite my initial instinct to avoid giving any support to one of the newest members of the Quixtar blogging community, I have decided to let the peer group of active IBOs pronounce their judgment. The site I refer to is authored by someone going by the name of QRush. By all means, check out this site and then ask yourself if this was the reason you decided on joining a company that once prided itself on it's ethics and integrity.

Oh, but it gets better. Billy Florence of the IIOP operates at least 2 different blogs. There are two separate posts that encourage and endorse the content found on the Qrush page. Here are the links for those if you'd like to check it.
Billy Florence blog site
e-Quad News blog site

If you are interested, better check them soon because I doubt they really meant to offer a direct link as it may reveal more about their recent interest in blogging.

Are we to assume that Billy Florence, longtime Amway spokesman and currently seated Vice President of the IBOA Board, actually supports and encourages IBOs to participate in this approach?

If currently active Quixtar IBOs agree and embrace this new blog, then you will deserve the company you are now creating. If you take exception, call ADA.

Bear with me - new look

I am forcing myself to learn HTML code....the hard way. Last night I was attempting to tweak the comment and trackback appearance and totally ruined my page. The more I tried to reconstruct the scene of the crime, the worse the final outcome. SO..... I decided, what the hell, it was time for a change anyway. I should having my links reassembled later tonight and adding a few other elements. At least now my comment section fit better in the page. Wish me luck?

Haloscan commenting and trackback have been added to this blog.

Haloscan commenting and trackback have been added to this blog.

Not Worth The Energy

Just a quick post tonight. I met an interesting character on the web today. After encountering this person, I recalled some dialog from one of my favorite movies, "The Fountainhead".

In this scene, the hero, Howard Roark, is confronted by the villain. The villain, Ellsworth Toohey, says to Roark, "We're alone now Roark. Tell me, in any words you choose, what you think of me".

Roark replies, "But I don't think of you."

Costco And Blogging

With my membership at Costco, I receive a monthly magazine called The Costco Connection. The thing I find interesting about this magazine is that not only are they advertising the current specials available, they have a number of articles I wouldn't expect to find. In this issue, August 2004, the cover story contains profiles of immigrant entrepreneurs. They have some consumer reports stories, a review of a new ship in the Princess Cruise Line, and book club reviews.

On page 21, however, the article that most caught my eye is titled "Are you blogged out?" The author is Lisa Alcalay King. It is a report on how many companies are using blogs to reach out to their customers. The author interviewed a couple different people that have been blogging for a few years and how it has impacted their business growth.

It is a short article but, as I said, not the kind of article I would have expected to read in a magazine of this type. Nice job.

Another New Blog - Not What It Appears

Since my last post about the various new blogs popping up at Blogharbor by Quixtar groups, I noticed a new one today that surprised me.

New blog name: Quixtar Business Analysis

I don't intend to promote this blog but I will tell you that part of the URL is amquix.

At first, I thought this new blog was related to a long running website of the same name. Interestingly enough, the owner of this same website is the subject of pending litigation brought by lawyers representing the folks at Team of Destiny. If you would like to learn more about this case, visit Quixtarblog.

True to form of the other blogs, comments and trackback options have been disabled. There are several posted links of the usual variety for these pages such as Quixtarfacts.

If you would like to see some interesting Quixtar Business Analysis that includes supporting documentation, I would suggest you see the REAL AmQuix site.

If you happen to find this new blog out there, the difference between the two will be painfully obvious.

I am going to share a few lines from a song by the band, Rush, called "Grand Designs".

"There's so much style without substance
So much stuff without style."

- Neal Peart-

System, Science, And Syntax

System
Many MLMs claim to have a system of training and support for new recruits. They have organized a collection of relevant information that claims to aid in the building of profit centers for the enrollees. Some have even refined the business development process into a sequence of actions that claim to offer the best possibility for success. Participants are often taught that adherence to the system is the key to system duplication.

Science
Duplication is a commonly (mis)used term in MLM. Many organizations teach that success in their business is achieved by duplicating yourself and the product of your effort. There are many analogies used to create a visual image of duplication.

Syntax
Carefully designed scripts are employed to provide comfort to the participants when confronted with resistance from their prospects. I liken this scripting to something akin to "talking points".
In my mind, this is much different from developing the "pitch".


I have found that systems are often used to restrict the activities of individuals within the business group and throttle their creativity. The threat of failure from not following the System is emphasized ad nauseam. After all, years of experience by successful people in the business have allowed them to duplicate themselves through using core business activities. Science not art. If you want success, study success. If you want what they have, do what they did. Blue suit, white shirt, red tie. If someone asks, "Is this a pyramid?" you just say..... The function you miss may be the function where the words are spoken that could propel your business..... Amway? It sure is, what do you know about it? Syntax instead of substance. Conditioned responses not intended to actually answer the question.

Let's Keep It In Context

One thing I have noticed that has consistently been utilized in contemporary American culture is the use of quotations from notable authors, teachers, and theorists. This is not a bad thing unto itself. This is key to communication of ideas and concepts. Unfortunately however, the reader is not always aware of the context in which the original statement was made. How many times have we heard our political leaders, when quoted, claim that their statements were taken out of context? A common corollary to contextuality is reputational attribution. Name dropping. Selecting quotes, using them without contextual reference, precisely because they represent some degree of either familiarity to the reader or perceived credibility. Unless the reader is intimately familiar with the works of the quoted individual(s), they may be prone to accredit any quotes as legitimate and viable in the context to which they are offered.

It is of particular interest to me that some organizations in MLM seem drawn to non-contextual quotes to validate their business operations and motives. Multi-level Marketing is arguably one of the simplest entry points into entrepreneurship. Typically, MLM requires the least amount of capital investment and prior business experience. The former may be a point of contention with some people presenting compelling arguments for both sides of the issue. The need for previous business experience has been shown to be of little importance in starting in a MLM-style business.
I am beginning to re-think this for myself however. Though I agree it may not be a qualifying criteria at the beginning, there most certainly is a necessity to develop business experience as one advancing through the building process. Thus, the importance of continuing business education and training becomes a part of the normal business activity. Like maintaining context however, the concept of contextual training is abused, in my opinion, and converted into a profit center.

My advice to anyone currently involved in a training system is to assess effectiveness of the training in an objective manner. It is important to consider quality vs quantity vs cost in order to determine the actual value of that training. If the training consists largely of testimonials, more than likely, this is nothing more than hype. If the testimonials lack the ability for verifiable quantification, it is more than likely hype. If the training system lacks specific training on the mechanics of building your particular business, I believe you are actually part of one big infomercial.

Lastly, do your own homework. There are numerous fallacious claims being made by organizations that are effective due only to the fact they understand most people won't check it for accuracy. Here are some freebees:

Our plan is prepared by The Federal Trade commission.
or
Our company is approved by the Better Business Bureau.
or
Microsoft invested $250 million dollars in our company web site.
or
Our company business model has produced more millionaires than any other business.
or
You don't have to sell, just buy from your own store.