As I am out building my new MonaVie business, I am asked many questions about why 40% of the IBOAI Board made a stand against Amway/Quixtar and resigned from their business.  I realized that many have never heard the full story.  On August 9th, 2007 we decided to resign from Quixtar and Quixtar subsequently terminated us. On August 10 we were sued by Quixtar.  The lawsuit put a restraining order on Chris Brady and myself (and our wives) that eventually became an injunction for over seven months.  Seven months is a long time to not communicate about the future directions and plans for a leader, but I followed the law and did not violate my injunction.  This left many questions unanswered and created an environment where rumors flew and many leaders mistakenly jumped at the latest rumor.  I don’t blame the leaders as this was a completely new environment that had never happened before.  The leaders had no direction and could not communicate with many of their mentors.   I wish to share the facts from my side so that we can put closure on this portion of the story and focus on our future.   I will repeat the questions that I have received and then answer each question.  These answers will serve as closure and after this post I plan on focusing on my future enterprises and not continue to rehash the past.  Leaders learn from the past, work in the present, and stay focused on their futures!  Here are the questions.

 

1. What was the main reason for no longer being with Quixtar? – We challenged Quixtar and were terminated for doing so.  The number one reason that I no longer could continue with Amway/Quixtar is their unwillingness to confront the big rocks that were preventing their North American business from growing.  The Amway business hit 1 billion dollars in sales in 1980 and is lower than that today in 2008 even after inflation.  By refusing to fix a broken business model, making promises without keeping them, replacing managers constantly, providing no vision and lastly changing the name back to Amway – I lost confidence in the capability and willingness of the Amway managers to fix the North American business.  Boasting about sales in China, Korea and Russia is only a convenient way to not confront reality for a 28 year slump in North America. 

 

I have never built the business for just my personal results and with the changes I saw in the new Amway transformation – I became convinced that we would be part of North American slump over the next 5 years.  I still believe I live in the freest country in the world and did not feel I should be threatened to go into the new Amway against my will. 

 

I did not have to have my own business and joining with MonaVie is more evidence that I would have gladly stayed with Quixtar if they would have fixed their business opportunity.  Asking people to stay in a business that has not grown in 28 years and justify this action by slipping in non-competes against the wishes of the majority of the field IBO’s is unacceptable behavior in my opinion. 

 

If you take the time to read my original letter to Doug Devos and my follow up letter to the IBOAI board, you will see that Product Value was the key concern.  I don’t mind selling luxury cars as long as you provide a value story for me to explain why they are paying more for the car. If they can buy water for a buck everywhere else then someone would need to explain why they should buy water from me exclusively for 2 bucks.  If there is a value story that explains the higher cost then I am happy.  Repeatedly I asked Doug and the Board for value based products.  The interesting point is that in the UK, Amway was able to lower the prices of their product by 2/3’s and still make money.  What kind of margins do you think the founding families were making if they can lower the price 66% and still make money?  This only proves they were not providing value based products.  Value = Worth/Cost.  To have a good value story you either raise the worth by providing feature/functions/benefits or lower the cost by reducing the sales price.  Amway/Quixtar did neither and the First Circles getting started suffered the consequences of Amway’s lack of leadership.  

 

By reading the letters, you will see that I offered to reduce my bonuses either in the Quixtar plan or by reducing the tool prices to help the First Circle.  Amway refused every suggestion in my Doug Devos and IBOAI letters and I (and others) became a Pariah for daring to question 28 years of no growth.  In MonaVie, we have been able to help the new people (First Circle) grow fast and make money.  We also have been able to lower the cost of the tools since we can make money from the marketing plan.  By my calculations, the performers in MonaVie make between 3 to 6 times more for less work.  I did not demand Quixtar be the Wal-mart of the internet, but I did ask them to have a workable business model so we could grow to 1 million people.  Over dinner, Jim Payne (Quixtar Managing Director and Amway VP) told me directly that he did not want us to build a million people team.  This was devastating to my long-term goal and dream.  This is the same Jim Payne who later told me that we were paying too much money to Team affiliated leaders in our profit sharing plan.  I can only assume that Amway/Quixtar was embarrassed by its own deficient pay plan.  I told Jim that Laurie and I had come too far to give up on making a difference in the lives of a million people.  He said that I would have to change my goal and settle for less.  I am not a settle for person and decided I must reach the families to talk directly to them and see if they felt the same way.  I believe strongly in loyalty, but not to the point of killing my whole team. 

 

When Amway did not produce even 10-15 value based products and instead announced they were going back to Amway – I knew the end was near.  The Board did an emergency meeting (the first time in nearly 50 years) to discuss our concerns with the Amway change.  Amway refused to discuss the concerns and plowed ahead with their initiative assuming that if they showed up to the meeting that they placed a check mark in the “We heard you” column.   Isn’t it interesting that the types of changes that we had been asking for in the United States were forced upon Amway in the UK? 

 

We came in on August 9th with the best plan that legal counsel provided us to reach a settlement.  We genuinely desired to walk away peacefully and have our initial proposal to prove it.  Quixtar lawyers were the ones who blew past our standstill agreement, did not even counter offer our proposal and “fired” us after we had told them we were resigning.  Amway/Quixtar is the one who announced to the world that we had started a competing business even though they knew we hadn’t.  I told them on August 9th that we hadn’t and wouldn’t do anything until we had reached a settlement with them.  To this day I am confused on why they would do such a thing.

               

2. Why did you choose MonaVie since this is not a Wal-mart strategy pricing plan?

 

MonaVie has one of the best value stories on the market.  The word of mouth marketing on users of MonaVie is incredible.  I have given a bottle to numerous individuals and explained some of the benefits.  After they use the product for a week they typically become the biggest advocates of the MonaVie product.  Wal-mart has 93% of Americans shopping at its stores in a given year.  In order to accomplish the value proposition that Wal-mart has we would need to reach our first goal of 1 million.  My goal has never changed.  I wanted to reach 1 million people and then see what type of value propositions we could do with a 1 million people community.  Amway/Quixtar fired themselves by stating they did not want the vision we had chased for years.  Laurie and I had even promoted a Wal-mart of the internet model on their 2003 Quixtar Live stage!  I did not change my goal, but Quixtar changed theirs and told us they no longer wanted our vision.  Not only did they do this, but they said you are not free to leave without being sued.  I refuse to be bullied by anyone and their threat only made me more committed to never represent their company again! 

 

3. Why didn’t you just start your own MLM and do the Wal-Mart model?

 

I did not start nor team up with any other MLM to start the Wal-mart of the internet because we are not even close to the numbers necessary to pull off this model.  We must grow our numbers and that is why August 9th happened.  Amway was not interested in me growing numbers and talking about a model that they had rejected.  I have found a home in MonaVie where I am free to pursue my million people goal.  In the process of doing this, I am keeping my eyes on the future and have teamed up with a visionary leader in Dallin Larsen who will help me accomplish our vision.  A million people goal has been and is the first objective.   Quixtar asked me to settle for less than a million people so I had to fire them as my partner even if it meant millions of dollars in legal bills.  I made a commitment to too many people with Quixtar’s knowledge and assent to change the deal on them.  Wal-mart took 30 years to develop the buying power to achieve their current success.   The best leaders and the best companies have long-term goals, but they know that decades are involved in the accomplishment of these goals.  I think some of our leaders were so excited about the goal that they forgot the long-term aspects of it.  If this goal excites you then build in the present so we can get the numbers capable of achieving it!  I strongly believe that Dallin is a partner with the vision to help the MonaVie Team achieve a million people goal.  I know the landscape on our future will look different when we have accomplished our million people goal.

 

4. Why didn’t Team just stay leadership only and not join any MLM?

 

The Team never intended to be a stand alone general leadership-only business.  We were limited to that role during our non-compete and followed all the rules even though we vehemently disagreed with them.  I was a consultant in the past and know better than most people the difficulties associated with being a leadership consultant to Corporate America.   The Team will provide a CD series (LLR) that will be general leadership for anyone wishing to learn leadership techniques in any field.  But our main focus will be in building communities and Having Fun, Making Money and Making a Difference.  My desire was not to own my own MLM.  I can take that or leave it.  My desire is to provide an environment and an opportunity for people to learn, grow and apply leadership to a specific business and fulfill their leadership potential.  I am and will remain a community builder on my way to one million people.  John Maxwell states, “A dog who chases two rabbits catches none.”

 

5. What does the future hold for you and the MonaVie Team community?

 

I dream of building a group of people who love one another, serve one another, edify one another, and celebrate one another’s success.  I believe that society has lost a sense of community and that the MonaVie Team can play a major part in bring community back to the forefront.  I believe by leading with a great product that we extend our arms wide open to bring nearly anyone into the business.  When we get them in the business then we can work with them and expose them to the best leadership training out there.  Many more people will listen to CD’s and learn principles of finances, leadership, parenting, faith, people skills, etc. if we are signing up 8 times as many people as previously.  The future is on to a million people and continuing the virtuous cycle that has already started.  The tool price has dropped 33% and can go down further as we grow numbers, serve people, and teach others how to lead through our MonaVie Team leadership training. 

 

6.  What if I don’t agree with the direction of your vision?

 

Laurie and I have never, nor ever will hold people against their will in our businesses.  If you are not happy and feel you can lead better - I encourage you to develop your own life plan.  I will not bad mouth you or try to throw obstacles in your way.  I believe in a person’s right to freedom and will be proud of your success even if it means you need to go elsewhere to accomplish it.  My lifetime goal has always been to provide the right information to help enhance people’s lives.  I love what I do and am proud to be in the MonaVie Team where I have partners to help me achieve my long-term dream. 

 

I have shared the questions and answered them openly and honestly.  I wish I could have shared this much earlier.  I will close with one of my favorite sayings - the late Michigan coach Bo Schembechler had a sign above his office door that read, “Those who stay will be champions.”  Bo knew that achievement in any field takes sweat equity, setbacks, focus, and discipline.  He also knew if the freshman stuck with his plan that he would produce champions on and off the field. 

 

Laurie and I have proven our commitment to this cause and with God’s grace will advance this dream to make a difference in people’s lives.  We will also refine our leadership training to prepare the next generation of leaders to increase the scope of influence to the world.  I believe the same as Bo - Those who stay will be champions.  God Bless, Orrin Woodward