Thursday, August 21, 2008
Orrin Woodward Responds: Is Transparency The Answer To Resolving Tool Scam Issues In Quixtar?
I am reprinting a comment made by Orrin Woodward to today's earlier “Greg Duncan” post. Readers are urged to read the earlier post on Greg Duncan by Clicking HERE. What follows is both Orrin Woodwards response to my post and a response to the Forbes article Climbing To The Top. The following is Orrin's comment:
I felt it proper to write in and share some of the differences in how Team operates compared to the Quixtar systems. I shared all of these facts in Forbes and some were used and many were not. Everyone has a right to their opinion and I do not write this in a spirit of attacking anyone.
Here it goes.
1. The $6 million income figure is combined MonaVie and Team money. I am a Presidential in MonaVie and will make either just over or just under $4 million this year. On the Team you cannot make more than 50% from tools and training than you did MonaVie so the most I could make from system is $2 million. All $2 million is going to pay legal fees and the Forbes reporter knew this, but chose not to disclose.
2. The total Team business in 2007 (Our biggest year by far) was $42 million in REVENUE (not profits) and according to Quixtar that produced a $200 million plus business with all Team customers. So when people say that I was more focused on Team sales when we sold 5 times as much of Quixtar products, this is not factual.
3. Quixtar makes approximately 30% profit according to many reliable sources (Jay Factor) so they made $60 million profit on our alleged scam of $42 million in revenue. The real issue was that Quixtar did not pay us for the $200 million revenue Quixtar business, unless you consider the $500k they would have paid me (had they paid me my bonuses) in 2007, is ample compensation for the $60 million they raked in. If there is a scam, isn’t the 60 million profit business a much bigger scam than the $42 million revenue business from the same people? Especially when people enjoy the information and training?
4. If you add up my former Quixtar revenue and Team revenue, you have just under $250 million revenue business. 80% plus was product flow buy only 20% of the income was produced from Quixtar. When someone accuses me of running a scam, I must be real poor at scams. Somehow I agreed to produce a $200 million business for Quixtar and only get paid $500k. MonaVie is willing to pay 8 times more for the same size group. I attempted to get Quixtar to lower their prices and increase the pay plan by reducing the Jay Factor. I told them I would lower tool prices to make the majority of our income from the product side and help more people win.
They refused and eventually ‘fired’ me although I told them I was leaving. I have lowered the system prices in MV and now MonaVie is the major income because we cannot make more than 50% from Team of what we are making in MonaVie. If Team profits go up above 50%, then we lower prices.
Hope this helps clarify this excellent discussion. I am glad to be out of Quixtar and focusing on creating a business that helps those who are willing to work, win. Thanks, Orrin
August 20, 2008 7:01 PM
Readers, in light of Orrin's efforts toward transparency, might more of the same from current Quixtar tool kingpins help bring some kind of resolution to the tool scam? Could a similar cap on tool revenues help resolve the tool scam issues that Tex raises short of expelling the tool kingpins all together? Might openness remove some of the negative speculation that currently exists?
Orrin, thank you for shedding some much needed light on the situation currently going on within Quixtar where there is absolutely no cap on tool profits, something that you benefited by during your years with the company. Quixtar distributors might benefit by transparency and a cap on tool profits. Might weeding the Quixtar tool garden of useless and extraneous training materials and rallies also help?
Orrin, you raise an issue that I constantly point to as a disgrace: the high “Jay Factor” pricing which makes retailing Quixtar products nearly impossible. Quixtar acts if they are jealous of tool profits while maintaining a antiquated pricing strategy which brings them excessive profits as well.
There are three distinct groups of people involved in Quixtar. Two of these groups are obviously motivated by greed, while the third group make all the sacrifices in hopes of someday earning their piece of the take. Aren't there only so many Quixtar mansions to go around? For this reason, I can't advocate Quixtar as a good opportunity. It is an opportunity to make profits for the kingpin distributors and for the Amway company who ultimately benefit the most by people who are enthusiastically devoted to a cult motivational system that fleeces them like sheep and denies them a fair shake and a fair distribution of the profits!