Yager - Emerald & Diamond Club
4/5/1983 Fountainbleu Hotel - Miami
After the release of Dick DeVos's directly speaking tapes Amway representatives and attorneys were sent out in the field to speak with each of the major lines of sponsorships. The lines of sponsorship were in an uproar since they thought Amway wanted to take over the line-of-sponsorship tools businesses. Rich DeVos had added BV to the Amway tapes so that everyone could share in the profits and wanted to provide "system-less" distributors with tapes to prevent the other lines of sponsorship from prying on those without systems.
The Amway representatives and attorneys met first with the Yager Diamonds in the afternoon. They later met with the Emeralds in the evening. The attorneys outlined legal issues the company faced with the "curiosity approach" and also the legal opinions of experts at to whether the tools business was legal since it was sold only to the distributor force and had no retail customers. Apparently a crown distributorship, Leonard Hall in California was selling his system to the distributors who had no system at the time. This occurred in the early 1980's. At this time Amway did not want to allow such practices. It seems Mr. Hall was ahead of his time as the Corporation now accepts that anyone can buy BSM's from whomever they choose.
The recording quality of the Diamond meeting is poor since it was recorded on the rooftop of the hotel. It is also unorganized as there is constant, emotional dialog between the Diamonds and the Amway people.
All recordings of the Diamond meeting are in .mp3 format bundled together in .zip files.
Doug Wead starts off and states that if the tape money is taken out of the field, that Amway must replace the lost money or else people will leave. Listen to cut "05_wead_on_tools.mp3" on side 1. Doug Wead also states in "07_audio_problem.mp3" on side 1" that if Amway would provide as much money as the tape business does, then there would be an incentive to build the business on Amway income alone.
Amway's Jim Hussey states that the real issue is about the non-Amway products being sold, which have no ultimate consumer, thus defying State pyramiding laws. Listen to cut "13_amway's_tapes.mp3" on side 1.
Jim Hussey discusses how a third part would observe the tools business, in the extreme, as it relates to pyramiding, price fixing, discriminatory pricing and anti-trust laws. He also goes on to state Amway's legal consultant's opinion of a definition of a pyramid. A major point in the consultant's opinion was "rewards which are unrelated to the sale of product to the ultimate users.. consumers...customers". "promote and talk about a product, which never has an outlet except with those with those that are participating in the business"....that is how they define a pyramid. Listen to cut "23_anti-pyramid_laws.mp3" on side 1. In the end, the legal consultants recommended a percentage be placed on tools so that the tools business would not be seen in the extreme and subsequently as an illegal pyramid.
Attorney Bill Abraham also mentioned that giving up their incomes (from tools?) would mean Chapter 13 or bankruptcy for most of them. He also talked about "raping" the group when the tools profit get out of hand. Listen to cut "22_bankrupt_without_tool_business.mp3" on side 2.
At the end, the Diamonds ask if more money could be put in the plan. This says to me that the Diamonds felt the Amway bonuses alone would not adequately compensate them for their time and effort moving Amway products.
The Emerald meeting is better organized and clearly recorded. They lack the emotional outburst from the Diamonds wondering how they will make money if their tools businesses were gone. Additionally, attorney Bill Abraham, predicts the demise of the Amway business if Diamonds fight amongst each other over the tools business.
All recordings of the Emerald meeting are in .mp3 format bundled
together in .zip files. If you have a dial-up connection I do not recommend downloading
these due to their size.
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