Many critics like to claim that Amway and other MLMs are a “product based illegal pyramid scheme”. The claim is that they are illegal pyramid schemes because the majority of products are consumed by “members of the scheme” and not retail customers. It’s quite common for them to also claim that in the FTC vs Amway, the FTC declared Amway not an illegal pyramid scheme because of these retail customers. Continue reading MYTH: It’s a pyramid if most products are bought by IBOs
Eric Janssen over at his Webraw forum “Quixtar Blog” has been obsessing recently over this video on the Quixtar Facts website. In the video, Quixtar’s Rob Davidson, Vice President of Sales and Marketing, says about web-based critics of Quixtar –
“most of the people have never contacted us, many of them have never even been active in our business”
Janssen takes exception to this claiming –
The point is that Rob Davidson is saying that many of Quixtar’s critics are inexperienced whiners when the reality is that many of them have years of experience and know what they’re talking about. And to illustrate that reality I’m publishing a list of “critics” along with their experience in Quixtar (or Amway).
He then proceeds to list a small number of contributors to his Quixtar Blog forums. Janssen thinks Davidson’s claim is so “absurd” and just “propoganda” that he has now posted a video where Davidson’s speech is childishly slowed down to sound like a drunk and screenshots of the websites of three “experienced” critics are shown.
Janssen needs a dictionary. He seems to think that Rob Davidson says “all” critics have never been active IBOs. What does he say?
“many of them have never even been active in our business”
Propoganda? Or true? I just did a quick google on “Quixtar” and “Amway” and found a number of vocal web “critics” who have never been IBOs but nevertheless run websites criticising Amway/Quixtar and are regularly quoted by the anti-amway/anti-quixtar crowd –
Dean Van Druff – never an IBO
Robert Fitzpatrick – never an IBO
David Touretzky – never an IBO
Steve Hassan – never an IBO
Rick Ross – never an IBO
Robert Todd Carroll – never an IBO
Tim Williams – never an IBO
Peter Bowditch – never an IBO
Russel Glasser – never an IBO
Janssen seems to be so arrogant as to think Davidson is only talking about his site! Though we could add to the above list of inexperienced critics –
Eric Janssen – never an active IBO (wife was an IBO for a short time)
Scott Larsen – IBO in Amway for less than a year
and some vocal “anonymous” folk from the quixtarblog forums and elsewhere –
“lawdawg” – joined for 6 months to teach his father-in-law, a sapphire, how it should be done. uhuh.
“dmm” – never an IBO
“Porkchopjim” – never an IBO
“judes” – never an IBO
“don incognito” – never an IBO
“perceptive” – never an IBO
There’s more I’m sure.
Is it dishonesty or just ignorance? If you search around the posts of critics of Amway and Quixtar on the internet, something you’ll see regularly is reference to something like “The 70% Retail Sales Rule”.
Here for example, on Pyramid Scheme Alert, the claim is made –
A 70% retail requirement level has been applied in various agreements between state Attorneys General offices and multi-level marketing companies charged with violating pyramid scheme statutes.
At least 70% of product must be sold at retail to consumers who are not also Amway distributors.