8.22.2008

Clear As Mud

Quixtar's IBOAI has posted their official response about concerns that Triple Diamond, Greg Duncan, is in violation of Quixtar's Rule 6.5, a.k.a. The Bo Short Rule. There has been much written about this rule and the questionable legality of a non-compete for distributors in any networking company.

IBOAI Blog:
A recent article on the Internet connected Greg Duncan, a successful IBO powered by Quixtar, with All In Energy Drink. It resulted in a rumor that Mr. Duncan was in violation of Rule 6.5 of the Quixtar Rules of Conduct. While it’s true Mr. Duncan is a principal of XS Energy Drink, and is associated with All In Energy Drink, the rumor is false.

The fact is, XS Energy Drinks are marketed to Quixtar for sale exclusively by IBOs and All In Energy Drink is marketed to an entirely different market not in competition with Quixtar or IBOs. The manufacture and sale of All In Energy Drink does not violate either the letter or the spirit of the Rules of Conduct.


Whew! That's a relief. I, for one, am glad that the IBOAI addressed that issue but I am still confused about Rule 6.5.1 -

Rule 6.5.1 For purposes of this Rule 6.5., "Compete" means to own, manage, operate, consult for, be employed by, or participate as an independent distributor in (a) any other direct sales program using multilevel or "network" marketing structure, or (b) any other enterprise that markets, through independent distributors, products or services functionally interchangeable with those offered or marketed by the Corporation.
This means an IBO may engage only in other business ventures that do not compete with an independent business powered by Quixtar, and they may only solicit IBOs they personally register in order to promote or expand such other non-competing business ventures.


Isn't All In Energy Drink "functionally interchangeable" with XS Energy Drink?


The IBOAI concludes with this assurance:
“As many IBOs know, the principals of Alticor manufacture for and invest in brands and other entrepreneurial ventures beyond their direct roles with Quixtar/Amway products. Like the principals of Alticor the principals of XS Energy Drinks pursue similar ventures for the purposes of reducing costs and enhancing the effectiveness of products for IBOs and to empower opportunities for IBOs. The positive proof of the effectiveness of such an approach has clearly shown through with not a single penny of increase in XS pricing in nearly six years. Additionally, the XS team has been unparalleled in their generosity to IBOs and IBO events with support staff, product sampling, literature, gear and gifts at absolutely no cost to the IBOs. Such commitment to the product and IBOs will continue to be our utmost priority.”

There you have it. I guess the answer is: Shut up or we'll raise the prices, you ungrateful bastards!

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