Monday, December 1, 2008

"Showing The Business Opportunity--Tex's Way"/UPDATED


A few years back, I had an idea for a manual to train new distributors/IBOs to use in their own Quixtar/Amway Global businesses. Quixtar/Amway Global has a policy that all Business Support Materials that involve the business opportunity must have the materials reviewed by the corporate muckity-mucks. At the time, I was under the impression that only IBOs that had achieved an advanced level in the compensation plan could submit materials for review.

That impression was either wrong, or it has been changed. I recently found out that TEX, has submitted a PowerPoint presentation to Amway Global for review and the presentation has been approved. Tex has told me that he was not aware of any restrictions with an IBO not being able to get content reviewed, now or in the past. He felt this belief was probably a "myth" from the upline to keep the IBO's in line, as any other approvals would be a threat to their tool scam.


"The content review was slow. I had largely put this presentation together in my head, and when I was talking with Chuck (Speaking of Amway) a few months ago, he told me he recently had a presentation approved. I thought it would take a long time, and was happy with using the plan from the various tools I bought, with important verbal differences noted, which you will see visually, later in this presentation,....(By the way, Amway didn't have any issue with this issue). Chuck said it went pretty quick, so I decided to give it a shot. Plus, I wasn't in any rush, given Amway still needed to make some changes, especially in the rules, before I wanted to spend a lot of time, effort and money in building the business.

Everything went pretty well, until I was asked to get permission from Robert Kiyosaki for using his ESBI quadrant. Getting this permission took 3-4 months, as he was in the middle of a lawsuit with the lady who co-wrote many of his books with him. After that was finally settled out of court, it took another couple of months and a lot of prodding the Amway employee to move the presentation through all of the reviews. Amway made a few minor changes, especially adding in the disclaimers, which I felt were going overboard, given we are required to leave a brochure behind explaining these issues. All in all, it wasn't difficult, I just had some special circumstances with Kiyosaki, and had to keep on top of people to move through the process."


I'll be posting slides of Tex's PowerPoint Presentation over the next few weeks. It's important to note that nobody would be able to use the presentation unless they use it exactly as it was approved. Also the presentation is presented here as an example and for information purposes and to gather opinions rather than as an official prospecting/sponsoring act. No one is able to contact Tex directly through this blog, except in the comments.

The Following Is From Tex:


"In the PowerPoint presentation, the contents are "loaded" in several steps, to allow the presenter the opportunity to cover the portion they want prior to moving on, and keep the audience focused on each portion, rather than "wandering" on other portions of the slide as the presentation is being made. For example, this slide starts with the top part only, and each row of text is added as the presenter moves forward in the slide show.

This presentation is largely based on the TEAM presentation at Open meetings I attended, with some content added from other presentations I've seen and liked. My original goal was to get the entire TEAM whiteboard presentation on one sheet of paper, in about 10-12 "panels" on a sheet of paper, and I was successful in doing this.

On this first slide, the motto is from Orrin's motto of "Have fun, make money, and make a difference", with some minor yet profound changes.

The text could include some or all of the following, or whatever the presenter would like to cover. I mostly wanted a presentation that could be read and follow the pictures to tell the "story" that appear on the other slides. I wouldn't spend more than 1-2 minutes on this first slide, an introductory/alignment slide."
UPDATE: 12/1/08 2:52PM

Slide has been removed at the request of Amway Global. An explanation is in the comments section. More info forthcoming. Sorry.



Tex said...

Dave, a clarification: Amway requires all BSM presented to PROSPECTS be approved. Just wanted to ensure your reference to "business opportunity" is properly interpreted by others.

BSM shown to IBO's do NOT have to be approved, except the new accreditation process apparently "samples" 25% of the audios/videos for inappropriate content.

Tex said...


Looks like this post has caught the attention of Amway, they are spending more time here today than they have in a LONG time.

Tex said...



After speaking with Amway personnel, I agreed we cannot post these slides, and need to remove the one that is posted. Please do this as soon as practical.

I didn't "go down without a fight", but when I realized others could, and probably would, post these or other presentation slides under the false pretense of looking for comments, yet would be prospecting, I had to agree with Amway. In other words, allowing me to do this would crack a door open that would be VERY difficult to close.

It's impossible to have the views I have regarding the LCK's and then expect them to have the morals, honesty, and ethics I know they don't possess.

It was an extremely lively and engaged conversation, and there were several other issues raised that I thought I handled quite well. But in the end, the above issue was one I could not overcome.

If you're interested in the other discussion points, perhaps we can start another thread on that topic.

However, Amway personnel did commit to obtaining comments from other IBO's they work with, which satisfies the original desire.

By the way, I have blind copied the Amway person I spoke with, so they know I have requested the slide removal. I am also posting this message in the comments section on the blog.

Thanks for your help, as always.


David Robison said...

Blog entry has been modified as per Amway Global request.

Tex said...

Thanks Dave, you know what they say about forgiveness and permission!

Tex said...

alHere's a major part of why Amway said the presentation had to come down. It is a legal bulletin, which is essentially an expansion/explanation of the rules, and therefore considered part of the rules. My comments are included in the body of the bulletin:

Electronic communications can be an effective tool to help an Independent Business Owner (IBO)
conduct and build a Quixtar-powered business. Following are minimal requirements for IBOs
using the Web to communicate with other IBOs and prospects. ---- This leaves Amway significant latitude to insist on additional requirements, which is NOT a good thing for IBO's.

Positioning of Quixtar Inc., IBOs, and support organizations

How the Quixtar-powered business and product offerings are presented to prospects has a significant impact on the reputation and credibility of not only the presenting IBO but also the IBO’s Line of Sponsorship (LOS)/ Line of Affiliation (LOA) organization, Quixtar Inc., and the overall business. Thus, prospects must have a clear and accurate understanding about the roles of Quixtar, IBOs and support organizations. ---- If Amway believed this, the tool scam couldn't exist. Most IBO's, let alone prospects, don't have a clue most of the profit is from the tools, and they won't make a net profit because of the tool scam, especially if they follow their uplines' advice and participate in the "optional" tool system that is shoved down their throat via heavy promotion and isolation if you don't participate.

Truthful and Accurate

A general rule is to “under-promise” so the business can “over-deliver.” The goal is to ensure that prospects have realistic expectations about the business and product offerings, understanding
how income is earned in an independent Quixtar-powered business, and are clear about the time and effort required to earn income as an IBO. ---- Again, the tool scam is polar opposite of "truthful and accurate", there is institutional overpromising and underdelivering (at least until you get to participate in the tool scam profit, normally at the Platinum level and above), there is very little understanding by most IBO's and prospects how the real profit is made, and the time and effort involved, because of the tool scam.

Therefore, no false, misleading, inaccurate, or deceptive statements may be used with prospects. ---- That is EXACTLY what the tool scam is, it IS false, misleading, inaccurate and deceptive.

Rule Compliance

IBOs have a contractual obligation to comply with the Rules of Conduct. ---- When will Amway enforce all of the above, when it comes to the tool scam?

IBOs are strongly encouraged to review the following Rules prior to developing Electronic Communications that
promote the business opportunity and/or product offerings: ---- This is where I got in "trouble", even though it is crystal clear I was looking for feedback, NOT "promoting the business opportunity and/or product offerings." It wasn't that I was promoting the business opportunity, but that others could use the same tactic to promote the business while claiming they were not. In fact, I reported what I believe is a clear violation several weeks ago that has not been acted on:

• Rules 4.3.2 and 8.3.11 (Broadcast Communication) Prohibits broadcast
communication methods wherein personal contact is not present in order to prospect IBOs and customers. ---- I did not do this, but understand others could use the same tactics and violate these rules.

• Rule 9.8 (IBO Advertising) IBOs may not advertise or promote the business opportunity and/or products and services where the person-to-person nature of the business is not present. ---- Same as above.

• Rule 4.23 (Unsolicited E-mail Messages) Unsolicited email messages to those that the
IBO does not have a pre-existing personal or business relationship violates this rule. ---- Does not apply to my case.

• Rule 4.27 (Privacy and Confidentiality) All IBOs are required to abide by the
Corporation’s Privacy, Confidentiality and Non-Disclosure policies with regard to IBO and
prospect information. ---- Also does not apply to my case.

• Rule 4.8 (Compliance with Applicable Laws, Regulations, and Codes) IBOs are mandated to comply with all laws, regulations and codes that apply to the operation of their Quixtar business. ---- Generic requirement.

• Rule 7 (Business Support Materials) Materials relating to prospecting, product
promotion and the sales plan require Quixtar review and authorization prior to use with
prospects. ---- I have the authorization, the number is 23477.

• Rule 9.1 (Trade Names, Trademarks, and Copyrights) The Corporation will not permit
use of its trade name (company name), trademarks (product names), designs, or symbols by any person, including an IBO without its prior permission. ---- Again, I have this permission, via the authorization number listed above.

Content Open to the Web
• Self & family – introduction of IBO and family that discusses who they are, what they do and why they became affiliated with Quixtar ---- Does not apply to my case.

• Product promotion – product claims must be stated exactly as Quixtar’s in order to
ensure appropriate claim substantiation. Intellectual property (i.e. logo use and product
imagery) requires IBOs to engage in a Quixtar-produced licensing agreement ---- Does not apply to my case.

• General business and business trends – Growth of home-based businesses, the rise of
e-commerce in today’s market, the popularity of on-line shopping, etc. ---- Does not apply to my case.

• Information regarding Quixtar and (LOS) – Discussion regarding Quixtar and the LOS. ---- Does not apply to my case.

Please note: this discussion should not command a “call to action”– it should provide information regarding the business opportunity and the benefits of voluntary system participation. ---- Does not apply to my case.

o Quixtar developed and maintained web content – An IBO may post a link to their business web site provided it’s not in association with any content that could be
connected to an offer to sell products or services available from Quixtar or viewed as a solicitation for participation in the Quixtar IBO Compensation Plan. ---- Does not apply to my case.

Content Requiring Passcode Protection
• IBO Compensation Plan – Demonstration of how income is earned through an independent business powered by Quixtar. Requires applicable earnings disclosures ---- I wonder if I could use a "passcode" to send the presentation via email to those who want to provide comments?

• Implied and direct earnings representations (includes lifestyle examples) – requires applicable earnings disclosures ---- Approved presentation has this.

• Sale of Business Support Materials (BSMs) – permitted within IBO-only sites ---- I don't sell BSM's.

• Specific information regarding LOS – permitted within IBO-only sites including business
building tips, etc. ---- Does not apply to my case.

• Content that encourages a “call to action” – this includes prospecting information that
encourages the prospect to do something (i.e. contact presenting IBO) in order for them
to register as an IBO or customer ---- Does not apply to my case.

Electronic Communications Requiring Quixtar Review

• Content which encourages a “call to action” on behalf of the prospect ---- Does not apply to my case.

• IBO Compensation Plan ---- Approved by Amway.

• Implied and direct earnings representations ---- Approved by Amway.

• Use of intellectual property (e.g. use of logo and product imagery) ---- Approved by Amway.

• Product promotion to verify claims ---- Does not apply to my case.

Prohibited Content

• Unsolicited e-mail messages (See Rule 4.23) ---- Does not apply to my case.

• On-line auctions (e.g. eBay) ---- Does not apply to my case.

• Links to non business-related sites ---- Does not apply to my case.

• Use of trademarks within email addresses and URLs (excluding Quixtar provided personalized web sites ---- Does not apply to my case.

• Vulgar/inappropriate/offensive language or content ---- Does LCK count?

• Religious/Political references ---- Does not apply to my case.

• Posturing system participation as mandatory or guaranteeing success ---- Does not apply to my case.

3 Submission Procedures

In order to submit an electronic communication for review and authorization, please send an
email to Include your name, IBO number, Web site address (URL) and passcode information (if applicable). ---- I guess this one did apply to my case, but I didn't think it did, as my intent was purely for generating comments.


Standard process

Failure to submit Electronic Communications requiring Quixtar review (as stated above) is subject
to action against an IBOs independent business (IB) in accordance with the Rules of Conduct. ---- Too bad this isn't applied to the tool scam.

Accelerated Process

Unauthorized Electronic Communications (material not reviewed and authorized by Quixtar)
which include income representations (implied and direct), product promotion and/or unsolicited e-mail/contact will result in accelerated/aggressive rules enforcement against an IBOs IB. ---- I think I got the "accelerated" enforcement, even though NONE of the above items were posted. On the other hand, Tom Fraley has been known to be violating at least one of these issues, was notified weeks ago, and his site is STILL running.

What's the right answer, Amway? Are you going to let me know why his site is okay and my posting was not? You were "all over" this site today, how about some fair treatment, for a change?
©2007 Quixtar Inc.

pablo said...

hello there i'm an IBO i just want to know where are the open in spanish i got friends in texas but i don't know where to send them, so they can know about this oportunity, thanks and have a successfull day.

pablo contreras new mexico.

Tex said...


Do you know who your upline/tool system name is? If so, they should be able to help.

I used to have access to that information from Yager/InterNET Services, but I was "booted" when I told the truth about some of their activities that were in violation of the rules.

I protested to Amway, but they declared the upline support is a "privilege", even though NOTHING in the written rules even remotely communicates anything close to this. In fact, quite the opposite. The rules REQUIRE upline to support their IBO's, and the proper action would have been to contact me and/or take me to arbitration, which is a whole story unto itself. But suffice it to say, it is "unconscionably" (to use several US Federal judges' words) stacked against the IBO, or I would have used it for protesting the tool scam LONG ago.

Tex said...


Bridgett's post from December 9th:

How can so much corruption be acceptable? Beats me, I've been complaining about the tool scam for oevr 3 years, and little outward progress has been made, at least in the U.S.

Tex said...

According to the scuttle on ibofb's site, there are some new, hefty incentives for increased retailing, for the LCK's and the IBO's.

If accurate, here's my take:

I'm all for incentives for rewarding the proper behavior, but this new set of incentives invites abuse.

The LCK's will teach people how to find new IBO's and help them find customers that aren't "real." By example, an IBO will be told to buy 100 PV and have their parents/brothers/friend buy some products, or even buy the products for them by getting them to agree to buy the products and then getting paid back. The IBO and upline scoop up the extra bonus and Amway's reputation suffers even more. This is what happens when you make the incentives too large and don't have a mechanism to keeps things honest. I also don't know how Amway is going to handle returns. Can a "customer" buy the products, have the IBO get paid, then return the products 5 months later?

I could be wrong, perhaps their are controls I'm not aware of, time will tell.

Not only will there be more bonus money, the LCK's will have the ability to say, "I know you have the extra cash, so if you want to take this to the next level, join us at XYZ major function half-way across the country. You DO want to be long term successful, don't you?"

I told the 60 or Amway public relations folks, from around the world, in Prague earlier this year I was giving them billions of dollars worth of advice. You are reading more of it, not so much because I want Amway to grow, but because I don't want the IBO's to continue to get ripped off by the LCK's via the tool scam.

Remember, you read it here first.

Tex said...

Here's another "technique" that will probably be used with the new retail incentives:

When showing the plan, tell the prospect to be a customer the first month, then sign them up the next month.

Tex said...

At this link:

ibofb said, "well, to be fair it's the 50th anniversary in the US, not Europe! In theory the large Diamond bonuses won't be repeated." ---- I may be wrong, but I view the large P/E/D bonuses as permanent, to partially replace the tool scam profits. If Amway takes away the bonus, a BIG incentive will be taken away, and if coupled with a reduction/elimination of the tool scam, we could see a mass exit that makes the TEAM exodus look minor.

Tex said...

Found this on another blog:

Looks like the former IBO LCK's dropped their Procter and Gamble appeal.

Tex said...

Although not a Ponzi scheme, the Amway tool scam has several similarities to the Bernie (made off) Madoff story:'s-Why-I-Invested-with-Him?tickers=^dji,&gspc,^ixic

I don't know who the goons are in the video, but they obviously think Bernie's Ponzi scheme is more funny than wrong.

It's also instructive to note how many people were okay with what Bernie was doing, as long as THEY were making money. However, they didn't realize it was a Ponzi scheme, they thought it was insider trading by Bernie, a former NASDAQ chairman. Both are illegal.

The apologetic IBO's and Amway are also dead WRONG on the morality and ethics of the tool scam. As long as Amway is making money, they are okay with the tool scam. However, the UK government caught up with them last year. When will REAL men (and women) stand up and do the right thing in other countries?

If you want to brainstorm on how to accelerate corrective action, let me know, and we can talk by calling into the conference call number referenced a couple of threads below.

Tex said...

This sheds a completely new meaning on the term "Weekend with Bernie."

All content is copyrighted 2009-2011 by each individual blog entry author.