Tag Archives: Team

Amway clean out moves Down Under

It may be autumn downunder, but Amway’s spring cleanout of Diamonds continues. Last week a source told me that qualifiers for Amway Australia & New Zealand’s Emerald Plus cruise of the Mediterranean were asked to sign statutory declarations that neither they, nor their spouses, nor children, were to join any other MLM companies.

Three Diamonds reportedly refused to sign the declaration and will thus not be on the cruise. Amway apparently made the move after learning that several Diamond’s already had family members involved in a competitor, namely Mona Vie, the juice MLM that attracted former Quixtar Executive Diamond Orrin Woodward and his TEAM associates.

Some days afterwards another contact informed me that a Mona Vie Black Diamond had told them that a number of Amway Australia Diamond’s, have being angered by Amway’s request, had earlier this week joined the Mona Vie team of former Amway Double Diamond Brig Hart.

The Mona Vie Black Diamond apparently gave the impression that they had left Amway due to anger at Amway’s request to sign the declaration. Now, I personally find it a little farfetched to believe that these Diamonds, having been “angered” by Amway, could have investigated and evaluated all the opportunities out there and decided in the space of only a few days to join Mona Vie. Clearly Amway Australia had legitimate reasons to be concerned.

The Diamonds involved are very well known in Australia and this may cause some shockwaves through their Amway groups. However, another source tells me that while some Australian groups were breaking new Emerald’s and Diamonds regularly these Diamonds groups had shrunk considerably over the past decade, so they may have had little to lose.

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A win for TEAM

Quixtar has suffered a legal setback in their dispute with TEAM. A Texas district court judge has declared that earlier Fifth Circuit reasoning in Morrison et al vs Amway et al that Amway’s contract was “illusory and unenforceable” also applies to current Quixtar contracts.

In essence the Courts declared that because the contract could be unilaterally changed by Quixtar, then they are not valid contracts. One immediate result is that Quixtar is unable to enfoce arbitration in the  Simmons et al vs Quixtar Inc case.

It will be interesting to see if there is any response on the Alticor Media Blog. Back in February, the blog stated that the Morrison decisions effect on current cases was “virtually zero”. As it happens, I agreed with them, as the Morrison decision seemed to hinge on the fact that the issues in the case occurred before the relevant changes to the Quixtar and Amway contracts.

It seems we were both wrong.

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Amway Myth: If the products are so good, why do so few new IBOs renew?

One of the superficially reasonable questions that some Amway/Quixtar critics have espoused is “If the products are so good, then why is it that so few new IBOs renew their businesses?”

On the face of it this seems a reasonable question. According to statistics revealed in the recent disputes between Quixtar and TEAM, only 30.8% of new IBOs renew their Quixtar businesses at the end of their first year.

You would think that even if they decided that the business wasn’t for them, that they would at least renew and continue to purchase the products at IBO price and enjoy other benefits of being an IBO. Yet a very large percentage don’t.

A reasonable conclusion would be that these new IBOs have decided that the products aren’t worth buying, even at IBO price, so they don’t renew.

The facts tell another story.

Another statistic was revealed in the Quixtar/TEAM dispute – only 50% of IBOs place any order after joining! This figure is quite stunning – only half of people who register with Quixtar ever even test the website and order products!

Now, granted many of those IBOs would have received some products when they registered, but Quixtar (and Amway elsewhere) has literally thousands of products available. What this figure tells us is that IBOs are doing a very poor job of helping new IBOs they sponsor try out the various products and the website.

It also tells us something else. 50% of IBOs place an order. 30.8% of IBOs renew. I think it’s safe to assume that IBOs renewing who never placed an order a few and far between, so the renewing IBOs are those that actually tried out Quixtar and the products.

Indeed, nearly 2 out of 3 IBOs who place orders after registering renew their business.

The message from this is clear – contrary to critics claims, the majority of people who actually try what we have to offer like what they find!

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