Resigned Diamond - Bo Short

01/04/2003

Scott,

I received your email the other day and wanted to say hello. I also thought I would share some thoughts with you. I am writing to answer a couple of your questions. My only concern about this being published is that I am not looking to use this forum to promote my business and do not want it to appear so. Therefore, out of respect to the readers of your site, I would ask that you not mention the name of my company.

I was involved in the Amway/Quixtar business for approximately 11 years. About a year and a half ago I chose to resign my distributorship. I thought it would be improper to simply go "inactive" and continue to collect money (even though this was recommended by one of the corporate executives).

Let me first say that I met some wonderful people in the Amway business during my tenure. I spent countless nights working with people that were good, hard-working individuals. In fact, the overwhelming number of people I came into contact with seemed genuinely kind. The "brush" that many distributors are painted with is oftentimes unfair.

There were a number of reasons I chose to resign. The overwhelming reason was based on the fact that after 11 years in "the business" I did not see enough people succeeding. While I firmly believe in education and training, I do not see its value if it does not have a wider-reaching effect. While I believe in a training system, if it does not produce sufficient results...dismantle it. I felt that there was entirely too much emphasis on the training system as a "business" in itself.

I watched good, ambitious people start to blame themselves for their lack of success. Twelve years ago, I might have understood that argument, but a decade of experience taught me that there is more to it than that. One more meeting, one more plan, is not necessarily the answer. I believe there are fundamental flaws that are common within many network-marketing organizations. In my opinion, I do not think that this particular organization is exempt from many of those same flaws.

Having attempted to cause change in areas that I believed were needed, and failed, I found myself with only one option. Resignation. My loyalty was always to the independent business owners in my particular line of sponsorship. If I no longer believed that this business was going to accomplish what I was taught it would, then I could not represent it any longer. My loyalties were never to the small group of "success stories", but to the people that I had met in "living rooms" for the past 11 years.

Having gained a great deal of insight and experience in this industry I would offer the following: I believe that many mlm companies overprice their products, offer compensation plans that, while they may look lucrative, only pay out to a very small minority, and rely entirely too much on training as the "magic bullet".

I believe that if you offer people a "real" home-based business (so people do not spend their lives in convention centers and hotels), with a limited number of products (so people do not feel guilty for shopping at stores), price the products to compete with retails stores, and have a comp plan that puts the bulk of the money in reach of the average ambitious person's effort, then you cannot help but succeed. Additionally, I believe that ones individual efforts should not always be shared in the comp plan with their upline. That is why we instituted the Out-of-Plan compensation. Only the first $85 personally generated is put in the mlm compensation. Anything beyond that (monthly) is paid in the form of a 50% bonus directly to the associate. (Example: if you personally generate $250 in volume you receive a bonus check for $82.50; $250-$85 =$165; 50% of $165 = $82.50) I also believe that training should be at or near its cost...its real cost.

The compensation plan, products, and the experience itself should offer value to its participants. If it does not, it is not a "good deal".

Three important questions people should answer, who are involved in a mlm are:
1. How long have you been in?
2.How much do you spend each year learning (books, tapes, seminars) how to do it?
3. What was your last bonus check? If you are only attracted to the social aspect of your business then the answers do not matter. However, if your rationale is business-driven then your answers mean a great deal.

I hope this has been helpful and clarified some of your questions. I wish you nothing but the best of luck. I look forward to speaking with you sometime. Do not hesitate to call.

Sincerely,

Bo Short

 

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