Can Quixtar's Lines of Affiliation now offer their own
Products and Services to Quixtar distributor's?

"8x8, Inc., SANTA CLARA, Calif., Aug. 28 /PRNewswire-FirstCall/ -- 8x8, Inc. , provider of Packet8 residential, business and video Voice over Internet Protocol (VoIP) phone services, announced today that it has signed an agreement with InterNET Services Corporation (ISC), the marketing, training and support arm of the Yager Network, calling for the promotion and distribution of Packet8 VoIP phone services through its network of Independent Business Owners (IBOs).

Yager IBOs will market and distribute 8x8’s Packet8 services, which give users affordable telephony bundled with enhanced features such as call forwarding, 3-way conferencing, and web-based account controls. The company also offers a consumer-priced videophone that uses a broadband Internet connection.

Utilizing proven relationship marketing techniques, Yager IBOs will market and distribute Packet8 voice and video Internet phone services to a base of thousands of IBOs and their customers worldwide."

Normally the marketing of other products by Quixtar distributor's is prohibited by the Quixtar rules.  In the Quixtar compendium there are rules against competing (rule 6.5) with Quixtar and selling other products (rule 4.14).  I always had the opinion that the lines of affiliation got away with selling other products like books, tapes and their own voice messaging systems since those were possibly tools only consumed only by the distributors in the advancement of the Amway/Quixtar business.   One would have thought that possibly 8x8 Inc would be a partner with Quixtar but here they are a partner of a line of affiliation, InterNET Services. 

I see the InterNET services offer here as a new test of Quixtar rules, since the announcement states that the IBOs associated with InterNET services will be marketing the VoIP services to "customer's of the the IBOs".   Given Quixtar's recent loss in the 8th Circuit Court of Appeals that the independent and separate line of affiliation are not bound to the Quixtar arbitration agreement, I am not wondering if Pandora's box has not yet been opened for Quixtar by Yager's InterNET Services. 

With the ruling from the 8th Circuit Court of Appeals, which basically says that Quixtar can't require the separate line of affiliation corporate entities to abide by Quixtar's rules, it appears to me that Quixtar might have lost their exclusive hold on their distributor network to their lines of affiliation.     I think this was always a fear and that is in my opinion why the corporation added the anti-raiding and non-compete (rule 6.5)  rules in 2004. 

I just went to the InterNET services website to see how the plan would be marketed.   I could not find out if the IBOs would also get a commission for selling the product or if it was just another plan like the various voice mails systems where the low level distributors do not get an commission for getting people to use the service.  If any site visitors know the commission schedule for this product for InterNET Services affiliate distributor's please write me.

It will be interesting to see if other lines of affiliation test the waters and start to market other products and services to and through the Quixtar distributors in their affiliation.   Technically Quixtar can only take those individuals distributors to double top secret arbitration for violation of the Quixtar rules.   In theory the lines of affiliation could offer the products and services to their affiliated downlines, and then let Quixtar deal with filing thousands of arbitration demands against those distributors participating in the plan.    If a line of affiliation could quickly implement a plan, which involved thousands of Quixtar distributors, it would quickly overwhelm Quixtar's capacity to discipline all the distributors.  It would also eat in Quixtar's sales as well when those affiliated distributor's are kicked out as punishment for breaking the rules, since the distributor's usually show more allegiance to their upline than to Quixtar or Amway.     I assume the termination of numerous distributor's associated with Mona-Vie and Oasis Life Sciences had only a small impact on Quixtar's sales and was worth the signal to other distributors not to contemplate participating in another MLM's to supplement their Quixtar income. 

I bet the Quixtar's management is working over time on this issue to put the genie back in the bottle before other lines of affiliation get the idea to market their own products and services.