Here is the latest news in the management odyssey of Amway Global. If the report is true - I am astonished that an allegedly free enterprise opportunity would now threaten and intimidate top leaders and THEIR ENTIRE FAMILIES from participating in any other opportunities! I have grown accustomed to Amway’s threats against distributors, but never on the distributor’s family members. Update: The IBOAI states that in Amway Australia a distributor is free to join other MLM's, but not free to have their children or them in another MLM and qualify for incentive trips. I wonder why Australian distributors have more freedom than their USA brothers and sisters who have a 6 month non-compete clause? Here is an excerpt from the latest report by David Steadson an Amway supporter from IBO Fightback site.
"It may be autumn down under, but Amway's spring cleanout of Diamonds continues. Last week a source told me that qualifiers for Amway Australia & New Zealand's Emerald Plus cruise of the
Three Diamonds reportedly refused to sign the declaration and will thus not be on the cruise. Amway apparently made the move after learning that several Diamonds’ already had family members involved in a competitor, namely Mona Vie, the juice MLM that attracted former Quixtar Executive Diamond Orrin Woodward and his TEAM associates."
Is this even legal in contract law? Can a mother or father sign a contract that is binding on the children without their consent? Is this what Rich Devos had in mind when he gave the Selling America talk decades ago? The Selling America talk was read into the Congressional record to capture the free enterprise principles Rich espoused for posterity. Someone please tell me this is a bad joke! It saddens me to think that free enterprise legends like Dexter Yager, Bill Britt, Jim Dornan, Joe Markiewicz, John Crowe, Dave Dussault and others would permit this behavior. I believe the ‘free’ in free enterprise means that people should be free to choose which enterprise they associate with? Certainly there children should be free to choose their own path! Right? Would Uncle’s and Aunt’s fall into this contract also? Where does this end? Perhaps the Amway led PR machines can explain this behavior to the field of IBO’s who thought they owned their own businesses. What kind of company has the right to tell independent contractors what their children can do for a living? The Amway story becomes more Orwellian (1984 like) every day. Rich Devos, please for the sake of your legacy - stop your company’s confusing behavior. You cannot preach free enterprise out of one side of your mouth and use the other side to issue threats to the families of “independent” business owners.
Why are so many top leaders leaving Amway? Quite simply, it is a question of economics. Diamonds in Amway make between 180k & 250k per year. In competitive MLM’s the same size leaders make well over a million dollars per year, every year. The leaders also spend less money on product, less money on the training systems and deal with less negative by not having the Amway stigma. With all these critical economic factors against Amway – something had to give. I and others will gladly compare our weekly checks from MonaVie with any of the Amway/Quixtar Crown Ambassador’s monthly checks. It would be embarrassing for the Crown Ambassador, but gratifying to the many leaders who stuck their necks out for the truth. In my opinion, Amway/Quixtar should have listened to their Board and fixed the business by cutting prices, increase by multiple factors their compensation plan, and fire their poor management team. Instead, they hired more lawyers, opened up multiple new arbitrations, sued competitors, libeled top leaders, and spun the whole story. Is this really a way to run a respectable company?
In the Information Age, the facts will come to light and you cannot hide your business behind secret deals, secret arbitrations, and massive spin of the facts. You cannot turn every poor business result into a confidential issue to protect your image against reality. This only denies the relevant data from prospective distributors who are attempting to make a rational decision on whether to participate in your ‘opportunity’. How can prospects make rational choices about your business if all the business details are confidential and only shared with the ‘enlightened’ minority on the Board? Free enterprise teaches - either fix your business or reap the consequences of your mismanagement. This is not your father’s MLM, so come into the 21st century. Change or suffer the consequences like all free enterprise companies. (Just ask GM or Ford) I truly hope Amway changes for the sake of the good individuals left in their business who are suffering from the mismanagement of the company. Only time will tell what the DeVos and VanAndel second generation families will do. Stay tuned. God Bless, Orrin Woodward




