An IBO's Adventure with the RSR

The following is the adventure of an IBO trying to clarify the retail sales rule from his upline and the Quixtar Corporation. It would appear from the e-mail exchange that many people inside Quixtar don't even know the rules themselves. Two Quixtar employees told him it was ok to cash his BV check, despite the IBO admitting he never had the qualifying retail sales. The IBO then asked his brother to ask the same questions. Quixtar once again told the second IBO to cash the check, basically saying it was ok to ignore the retail sales rule.

The IBO later finds out he was duped in to buying $157 worth of vitamins that is a standard adder to Quixtar business kits. The IBO ends up resigning due to the many conflicting stories and misinformation he has received from his upline and Quixtar representatives.

From The Amway Rules of Conduct

4.22 Retail Sales Rule: In order to obtain the right to earn a Performance Bonus during a given month, an IBO must make not less than one sale TO EACH OF 10 DIFFERENT RETAIL CUSTOMERS (e.g., Clients or Members) OR HAVE AT LEAST 50 PV OF SALES TO ANY NUMBER OF RETAIL CUSTOMERS (e.g., Clients or Members) that month, and upon request, produce proof of such sales.

In a message dated 3/23/01 4:00:40 PM Central Standard Time, Hillabrand writes:

Subj: Question
Date: 3/23/01 4:00:40 PM Central Standard Time
From: Hillabrand
To: member.support*quixtar.com

I have received a check for $21.02, can I cash this check? I have completed no retail sales. My uplines have said that I do not have to do retail sales, ever. My upline's have told me its ok to cash the check, is it?

Thank you

David Hillabrand
IBO # 2253698

From: Member_Support*quixtar.com

To: hillabrand@***.com

Date: Thu, 29 Mar 2001 15:21:05 -0500

Subject: Fwd: Question

David,

I apologize for the delay in getting your question answered. The check for $21.02 is your bonus check from personal sales that you had done in the month of February. You may cash the check!

Thank you,
Jennifer
Business Information Services

Subj: Fwd: Question

Date: 3/26/01 4:21:12 PM Central Standard Time

From: Hillabrand

To: J_F*quixtar.com

Maybe you can help me with my question.

Thanks

David Hillabrand

In a message dated 3/23/01 4:00:40 PM Central Standard Time, Hillabrand writes:

<< Subj: Question

Date: 3/23/01 4:00:40 PM Central Standard Time

From: Hillabrand

To: member.support*quixtar.com

I have received a check for $21.02, can I cash this check? I have completed no retail sales. My uplines have said that I do not have to do retail sales, ever. My upline's have told me its ok to cash the check, is it?

Thank you

David Hillabrand

IBO # 2253698 >>

<< Subj: Re: Fwd: Question

Date: 4/2/01 2:05:46 PM Central Daylight Time

From: J_F*quixtar.com

To: Hillabrand@**.com

According to our information, your personal PV/BV for the February was112.79/233.50. Since you were at the 9% bonus level, 9% of 233.50 is $21.02. That would be the bonus amount you keep. Hope this answers your questions. Take care, JHF

Another IBO in the same organization asks the same questions.

To: Member_Support*quixtar.com

From: mohillab@***.com

I have received a check for $56.63, can I cash this check? I did not buy anything from quixtar or did I
do any retail sales. My uplines have said that I do not have to do retail sales. I have been told its OK
to cash the check, is it? It is my understanding by reading the policy and procedures (Rules) from quixtar
I have to do retail sales, is it true?

Thanks

Mark
IBO # 2260660

Subject:
Question
To: mohillab**.com
From: Member_Support*quixtar.com

Date:Wed, 4 Apr 2001 13:48:21 -0400

Mark,

You may cash the check, it is from February pv/bv. It is your bonus check.
The rule is correct, however, this check is from personal purchases and
downline pv/bv.

Thank you,
Jennifer
Business Information Services

The original IBO then points the inconsistent stories he has heard.

To Whom It May Concern:

After researching the Quixtar IBO system I believe that my values don't mesh with my up line IBO's, who consider themselves part of the group. I would therefore like to receive my money back for my personal IBO,
2253698, membership. The reasons for my decision are listed below.

1. I was told before I signed up that I would never have do any retail sales; a violation of the Code of Conduct.
2. I was told all I had to do was, buy from myself and recruit others to do the same; a violation of the Code of Conduct..
3. I was told that the cost of the IBO was $197.00, which I paid.
4. I was told that this opportunity would be a great tax shelter; a violation of the Code of Conduct..
5. I was told that as the group we didn't have to follow the rules of Quixtar.
6. I was told that I would make $2,000 to $2,500 a month if my first leg was at 7500 PV's/month and my second leg was at 2500 PV's/month.

I have now concluded that each of these is incorrect, as I understand them.

When I was first introduced to the business, which I was never told was Quixtar. I asked the questions about retail sales. The individuals told me that we didn't have to do any retail sales, just buy from your self and recruit others to do the same. The individuals told me that they would not have signed up if retail sales was a requirement of the business. Since these individuals were members of my family, I made the decision to sign up.

After I was signed up I found out that I was a member of Quixtar, not the group. This deception is also a violation of the Code of Conduct. The people that actually signed me into the business were not my family, but others. Once I had my IBO number I logged onto the Quixtar web site and started to look around. One of the first places I went to was the rules section. I found the retail sales rule, which stated that I must sell retail. I asked the question to my upline, the answer I got was no we don't have to sell retail we are part of the group and we don't follow Quixtar rules. Wow was I confused! They told me they followed the teachings of their up lines, the duplication method, buy from yourselves and recruit others to do the same.
Well this was not good enough for me so I sent in a question to Abuse@quxitar.com. Also I kept asking questions to my uplines. This result in me being referred to the individual who started the original Indian River leg.. I thought great I'm going to get some answers now. The first thing I ask was about the whether we had to follow the Quixtar rules since we were the group. I was told we must follow the Quixtar rules. I then asked about the retail sales rule. Dan told me that yes Quixtar does have a retail sales rule, however it was not being enforced and not to worry about it. I asked him if he was doing any retail sales and was told that he was! Dan told me that he has about 750 people below him. I figured Dan must be correct about the retail sales rule since he is in a leadership position. I asked about why I received vitamins in the mail from Quixtar. Dan told me that I purchased them for PV. I told him that I didn't purchase the vitamins because I wouldn't purchase something I didn't want. He told me that the vitamins were part of the original $197 fee. He finally told me I could return them, but not after trying to convince me that I needed them. The cost of the vitamins was around $157.

Then I receive a call from Norma, Quxitar (616-787-5469). Norma referred me to Renee, Quixtar code of conduct, concerning my question about the retail sales rule. Renee told me that we must follow the retail sales rule and that by signing the bonus check we are stating that we have complied with the retail sales rule. It is the responsibility of the up line Platinum's to insure that their down lines are in compliance with the retail sales rule. Up to this point I only thought I was confused, now I had no idea what was going on.

I explained all I had learned to my up lines. I figured after my conversion with Dan that he would set them straight that the group must follow Quixtar rules. I don't believe this has ever happened.

Now since I was in research mode I decided to purchase some products from the Quixtar web site. I purchase the following for my own personal use:

Canon flat bed scanner
Rice combo pack
Paper products combo pack
West Bend Crockpot

I completed no retail sales for the month. I received a check for $21.02 and a statement which said "Rules of Conduct require all IBOs who receive a performance bonus to be in compliance with the Rules of Conduct, including the Retail Sales Rule, Ten (10) Customer Order Rule and 70% Rule. Acceptance of any Performance Bonus constitutes your affirmation of compliance with these rules. In order to ensure compliance, your Platinum may have your bonus paid directly to him or her for handling. If you have questions regarding this, please consult with your sponsor or upline Platinum." Since I was unsure whether I could cash the check I sent an E-mail message to one of my upline and received no reply. However another upline did say it was ok to cash the check and since they meet with their upline weekly I assumed this was their response also. I'm still confused, so I sent a e-mail to member.support*quixtar.com.

<< Subj: Re: Request to receive money back for personal IBO

Date: 4/12/01 8:54:35 AM Central Daylight Time

From: QBCR.Department*quixtar.com

Sender: QBCR.Department*quixtar.com

To: Hillabrand@***.com

David,

We are sorry for all of the confusion this situation has caused you. We are addressing the mis information given by your upline as well as from the customer service area here at the corporation. Unfortunately the representatives do not deal with the rules related questions on a regular basis and should have referred you to our area.

If possible could you also supply us with the addresses of the individuals you communicated with on AOL so we can clarify the rules of conduct for them as well?

In order to terminate your business, please send us a signed letter along with your request for a refund.

This can be mailed or faxed to us at 616-787-7896 or Quixtar, PO Box 430, Grand Rapids, Michigan 49501.

Because a contract was signed to begin your business we need a signature to terminate it as well.

Thank you for you assistance in this matter and best of luck in whatever you decide to pursue.

Debra

Business Conduct and Rules

 

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