The following memo was sent out by Quixtar and Network 21 several days ago. Someone asked me if I had any comments on it. My response? No, not really! It doesn’t say anything new that hasn’t been getting told to N21 IBOs since N21 started using a "Team depth approach". After the memo I’ve posted some text from a "Depth Approach" brochure that’s used in Europe, as you can see copyright 26.
Of course, as with any large organization, people need reminding of the rules and the reasons for them occasionally. Like in the rest of life, there is undoubtedly N21-affiliated IBOs bending or breaking these rules. Hopefully reminders such as those below will help convince them to stop, as they damage the reputations of all IBOs
Joint memo from Quixtar and Network 21 to all
IBOs affiliated with Network 21
As part of our ongoing efforts to assure that Independent Business Owners affiliated with Network 21 are aligned with Quixtar’s Best Practices, we again are communicating our desire to encourage balance and responsibility in building our businesses and training our downline IBOs.
We know there is much excitement concerning the benefits of focused activities in certain active teams through coordinated depth- and relationship-building. However, we must always remember to “begin with the end in mind.” Ultimately, a successful business will require balance between width and depth, a proper emphasis on the sale and use of product, and the commitment to help people become profitable.
The leadership at Network 21 continues to work with Quixtar to assure proper principles are followed when building our businesses. With the recent buzz over the term “stacking,” as opposed to proper depth-building, we felt it wise to again provide clarification on the differences between the two as well as some basic guidelines to follow as you build your business. Below is the latest position from Quixtar, and we believe you will find that what you have been taught, if followed, will lead to acceptable practices and a sound, profitable business.
Guidelines for acceptable business-building using a team/depth approach
“Stacking” is an unacceptable business-building practice. It is defined as the strategic and artificial structuring of an organization by an upline IBO who places new IBOs in depth, regardless of whether there are relationships between those who are sponsored and those who sponsor. It is a method of doing business that creates an imbalance in depth and potentially inhibits profitability.
Characteristics of acceptable depth-building
Quixtar believes acceptable depth-building is an important part of building a balanced, successful business, along with the development of width and the sale of product. Acceptable depth-building articulates the following:
- Any business-building strategy, such as a team approach, is optional and should be so stated.
- Building a balance of both width and depth is vital and must be taught in a group as the basis of profitability. Width is important for profitability, depth is important for stability, and together they make a balanced business.
- The line of sponsorship may not be restructured by use of the transfer rules for strategic realignment of depth.
- Product education is vital and a requirement for a successful business, which is based on building a balance of product sales and recruiting.
- It is important that each IBO has a prior relationship with his sponsor, who agrees to fulfill the obligations of being a sponsor.
- It is every IBO’s responsibility to communicate and clearly educate all who enter the business that profitability comes from the sale of products and the development of both width and depth.
- A team approach does not take away the fact that building a business requires hard work and it is the responsibility of each individual IBO to build his business.
Unacceptable practices associated with stacking
- Claims from IBOs that they have a special deal with or special rules from the Corporation.
- Confusion about the role of Quixtar and the role of the support organization.
- The omission or denigration of the fact that the sale of products is part of the QUIXTAR IBO Compensation Plan or that profitability comes from the balance of selling and sponsoring.
- The new applicant does not know his sponsor.
- Applicants are placed in the line of sponsorship without regard to the sponsor having been involved in the sponsoring activity and being aware of and engaged in fulfilling the responsibilities of a sponsor.
- The applicant is instructed to leave fields blank on the application, which is subsequently filled in by the upline.
- The upline holds the applications until the end of the month to artificially control the volume for qualification or income purposes.
- Guarantees or implied guarantees of swift downline results.
- Requests for transfers or the use of the six-month inactivity rules to realign existing IBOs in groups in depth so that they provide more value.
- Legs are 25, 5, or even 1 deep, with little or no volume or width.
I think we can all agree that these guidelines are proper and sensible and that our goal must always be to assure each new IBO understands the rules and is treated with respect and care so that he/she can have a positive and profitable experience from their business. Remember the key words: balance, profits, relationships, integrity, optional strategies, and no rewards without effort.
We want all of you to continue to have confidence as you grow your business, so please use these guidelines to successfully build your business in depth.
Business Strategy Guidelines
- Participation in the Team 21 Business Strategy to building your Amway business and/or purchase of business support materials and services is strictly voluntary. Use and purchase of BSMs should be in balance with the income and/or goals of one’s business.
- Building a balance of both width and depth is important.
- The line of sponsorship may not be restructured for strategic realignment of depth building.
- Product education is important because understanding and being able to explain Amway product features and benefits has been shown to increase IBO’s sales volume.
- It is important that each IBO has a prior relationship with his sponsor who participates in a meaningful way in the sponsoring activity and agrees to fulfill the obligations of being a sponsor. “Stacking” people who are unknown to each other is unacceptable.
- It is every IBO’s responsibility to communicate and clearly educate other IBOs in their Team(s) that profitability comes from increasing the sale of Amway products and managing expenses as IBOs develop their own customer base and support an effective sales force of IBOs in their Team(s) who do the same.
- Implying income generated by IBOs is residual or self regenerating is inaccurate.
- Suggesting an advantage will be lost unless one registers immediately is inaccurate.
- A Team strategy does not take away the fact that it takes hard work and it is the individual IBOs responsibility to build his business.
- IBOs must be educated on the fact that referring prospects to other IBOs may have a significant impact on their potential for qualification as well as a potentially negative impact on the profitability of their business if width is not developed.
- No business building method is guaranteed to create success for those using the strategy on the time and effort invested. An individual is responsible for their own success based on their effort.
For Existing IBOs Only
© 26 Network TwentyOne International
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