Quixtar and Tools Income

Update March 1, 2008:  I've linked the following videos since there were once on the web and had disappeared. 

From two documented incidents it would seem that Quixtar has an active policy to prevent Lines-of -Sponsorship from publicizing the income potential of the tools business.

The first incident comes from the Team in Focus debacle. Team in Focus wanted to market a new product called the "MAP" pack, which would be sold at retail pricing to IBOs from IBOs. The MAP pack was a business support material (BSM). The low level IBOs would be allowed to profit from the MAP pack. Andy Andrews from Team in Focus reveals, in a function video, Quixtar's reaction to their intentions to distribute tools income low level IBOs. Mr. Andrews explains in (Part 2) Quixtar's position that 98% of IBOs should not participate in the tools income nor can they even know there is an income opportunity from the tools business.

Part 1 9.4 meg .wmv format

Part 2 6.4 meg .wmv format

 Andy Andrews Summary (429K) complete recording   Andy Andrews (2.8 meg)

After Andy Andrews spoke, John Terhune interviews Team In Focus's lead attorney, Ted Lindauer, in a court room style, about his legal opinion of Team In Focus's MAP pack plan and intentions to share tools money with low level IBOs.

 Ted Lindauer Interview (2.8 Meg)

Mr. Lindauers expertise and advise about the MAP pack might be a bit suspect since his own MLM company "Purchase Plus" closed down in 2000 leaving people hanging for millions of dollars.

Eventually Team In Focus lost the battle with Quixtar. Three TIF diamonds were terminated and the rest of their Diamonds resigned in protest. Quixtar terminated the TIF Diamonds since Quixtar considered the MAP pack to be an illegal pyramid and would endanger Quixtar's own standing.

The second incident comes from a line of sponsorship web site depicting how the money work in the tools business  The page was up at least for at least a month before the details were removed.

It would be safe to assume that this group's promotion of the tools income also got Quixtar's attention.

No doubt Quixtar realizes if the Lines-of-Sponsorship promote the income potential from the tool's pyramids, that their own status with the Attorney Generals and the FTC might be jeopardized. MLM legal expert,  Ted Lindauer., comments on the legalities of marketing the "income opportunity" versus the products.

It is well documented from Rich DeVos, co-founder of Amway, and the Amway internal memo, known as the "Postma" memo that the Corporation believed the tools business to be illegal. The main reason is that there are no retail customers for tools (BSM's) outside of IBOs themselves. Businesses that derive most of the income from the participants themselves are considered pyramid schemes by marketing regulators.