The People’s Media:
In an effort to protect itself from unsavory opinion in the business world, Quixtar announced
Quixtar,
a multi-level marketing company focused on supporting and creating
retail business opportunities for individuals, severed ties with 15
independent businesses related to their team training organization as
well as other organizations that used their materials. Those
organizations, in turn, filed lawsuits against Quixtar.At the
center of this controversy are Orrin Woodward and Chris Brady, the
creators of Quixtar’s Team training division, also known as Team of
Destiny. Woodward and Brady worked with Quixtar in order to clean up
some of Team’s alleged inappropriate business teachings such as use of
unauthorized materials and inappropriate positioning of the
opportunity. Quixtar, formerly known as Amway, feared that if the
teachings continued, the company and Independent Business Owners (IBOs)
would face legal actions against them. IBOs are the individuals who
sell products that Quixtar markets, such as their own brands of paper
towels, vitamins, and energy drinks like XS. IBOs can get the products
at discount prices but can get them at even deeper discounts if they
recruit other IBOs. Quixtar avoids becoming an illegal pyramid scheme
by not allowing IBOs to take from the profits of their recruits by
instead earning bonuses based on their recruits’ sales.
the end of business relations with several independent partners due to unethical business teachings.
