Ada-tudes | Amway

By:  Steve Lieberman

Most of the time, our efforts here at Amway are dedicated to creating the best business opportunity possible. However, we occasionally pause to reflect on another extremely important aspect – one we all do collectively – and that’s the Amway One By One Campaign for Children.

This important program, in which IBO’s take a very active role, takes us away from our offices, away from our day-to-day activities – and smack-dab into the hearts and minds of children who need our help.

In nearly every country where we do business around the world, Amway Independent Business Owners, employees and customers are creating positive change for children by establishing local partnerships to address kid-centric issues.

In short, we’re helping children live, learn, achieve and play.

In China we’ve helped kids get a better education.

In Japan we’ve supported sensory therapy programs to help blind and visually impaired children experience the wonders of life.

In Russia the Campaign has facilitated fully-equipped playrooms for kids during their hospital stays.

And here in North America we’ve built playgrounds, planted gardens with Boys and Girls Clubs, and volunteered our resources in many other ways to improve the lives of children.

So today, as is our tradition, we’re proud to share an update of our collective efforts.

Since 2003 the Amway One By One Campaign for Children has:

· Raised $168 million in contributions

· Volunteered 2.5 million hours

· Impacted 9.5 million children in 50 countries worldwide

Of course, numbers alone don’t tell the whole story. But we hope you agree:  it’s amazing what can happen when the common goal is simply making a difference – especially when it comes to children in need.

That’s when making a difference makes all the difference.

So on behalf of the employees at Amway North America, thanks for all you do to make this program such a success. Let’s strive to continue increasing our collective efforts in 2012 and beyond.

Have you seen the latest Quixtar University offerings? The Artistry Time Defiance online course
launched just last week, highlighting the age-defying benefits of Artistry Time
Defiance products and how to help your customers select the right products for
them.   

Also new is the Sports Nutrition course. Learn how to
identify the three types of customers most likely to buy sports nutrition
products, as well as which products to recommend to these customers.

In general, the product
expertise courses on Quixtar
University strive to do
one of two things. Some courses focus primarily on preparing you for selling products. You learn key benefits of the
products, how to match these products with actual customer needs, and see some
selling dialog that you can model in your own selling conversations.  Both the Artistry
Time Defiance and Sports Nutrition courses
fall into this group.

Other available courses
focus more on selling and follow-up
skills. The Artistry Purse-to-Purse
course is one of these. You learn a method for selling conversational or
experiential products in your everyday interactions with others. You can easily
transfer the skills learned in the Purse-to-Purse
course to other experiential products, such as XS Energy Drinks.

Let us know what you think
of these two new courses, as well as any others available in the Product
Expertise group. What features were especially helpful?  What information wasn't necessary? What do you
need more of?  

Hollywood, Florida, is the location of this year’s Achievers celebration where over 5,000 Founders Platinums and above have been gathering for four sessions over 17 days as we discuss the transformation components which will shape our future. Oh yes, and we have some fun planned too.

Moving Product

As Quixtar’s new Managing Director, I’m not only new to this business – I’m also new to the blogosphere. But I’ve been doing my homework on the Opportunity Zone, along with as many other aspects of the business as possible, and I can see that there’s only one really effective way to approach my first foray into the conversation – by just diving in head first.

So allow me to address a topic that’s been discussed a lot recently and on which I hope to make a significant impact during my tenure at Quixtar – selling product.

It probably goes without saying that Quixtar offers a business opportunity that allows people to have a business of their own based on product sales and sharing the opportunity with others who will do the same.

Some have said that Quixtar’s products can be difficult to sell. Quixtar IBOs, however, are obviously adept at selling product, as Quixtar is one of the largest retailers on the web. Quixtar Independent Business Owners (IBOs) generated more than $1.118 billion in product sales at www.quixtar.com in 2006, the fourth consecutive year in which the company surpassed the billion-dollar mark. Quixtar also has been ranked for the past four years by Internet Retailer magazine as the top online retailer in the Health & Beauty (H&B) category, placing 22^nd overall based on web-generated sales.

While Quixtar has experienced great success in selling product, this is not a company that’s content to just sit back and rest on these accomplishments. And yes, the premium pricing for some of products can make it a challenge to sell them. Nutrilite® Double X®, for example, is a top-quality multivitamin. It requires some education to help a customer understand its benefits and why it’s worth a higher price than a cheaper multivitamin that they might be able to pick up at their corner drug store.

The Artistry® Time Defiance Skin Care System, for another example, is not intended to compete with other skin care brands on the basis of the lowest price. It’s designed to appeal to those who are knowledgeable about skin care and looking to make an investment in their skin. And it may take time and education to help a customer make the decision to purchase.

While we stand behind products that require a higher level of knowledge and commitment on the part of the customer, Quixtar is committed to making it easier than ever for IBOs to sell products. We are focusing a variety of efforts on Health, Skin Care, and Gift areas of retail specialization. We’re working to provide everything an IBO needs to sell products in these areas to consumers. This starts with products consumers want to buy, includes merchandising resources and training that help IBOs attract customers, and is supported with integrated consumer programs, events, and advertising.

To support these retailing initiatives, we are launching in 2007 a number of new products and newly packaged and priced versions of existing products, such as:

• The new Nutrilite Daily Multivitamin 90-day supply (as opposed to the 180-day supply). At just 12.5 cents a day, customers can easily compare Daily to popular competitors, while still getting the natural plant benefits that set Nutrilite apart.
• The new Nutrilite ClearGuard sampler pack, which allows IBOs to attract potential customers with an attention-grabbing product that is highly experiential. Nutrilite ClearGuard helps balance histamine production, and a clinical study found it helped to support clear noses in three days or less. The sampler pack includes a five-day supply, as well as a fold-out spread loaded with product information.
• Simply Nutrilite™, an integrated line of natural, nutrient-rich snacks and drinks, launched on September 1, 2007.
• Artistry Essentials, a new simplified line of skin care and cosmetics launching in November 2007. The products are specifically designed to meet the needs of today's woman who wants to care for her skin and enhance her natural beauty, yet doesn't have the time, expertise or patience for overly complex products and routines.

In addition to supporting IB
O retailing efforts with product initiatives and merchandising support, we also are striving to reward and encourage retail sales like never before:

• New IBOs can receive free shipping on orders of selected products over $75 and the opportunity to earn $50 each month for their first full three months in the business. The $50 is earned by generating 150 PV each month, including at least 50 PV from retail sales to non-IBOs.
• To reinforce the value of customer sales, Quixtar also is offering a PV uplift and free shipping for customer orders of selected products over $75.
• To qualify for their annual or bi-annual incentives, IBO leaders must first meet certain minimum requirements:
• They must re-qualify at or above the level they achieved at the end of the previous IBO award year.
• Emerging leaders who qualify all 12 months and meet QBI side volume requirements are eligible for cash awards of up to $20,000, while two-year leadership incentives could go as high as $500,000.
• Platinums and above also have the opportunity to qualify for invitation-only business conferences in fabulous destinations like Peter Island, Hawaii, and Florida.

To insure that IBOs’ retail sales activity can be captured even if IBOs sell to customers from the IBO’s own inventory of products, Quixtar is introducing a new retail sales reporting tool in September 2007. This software will create a simple-to-use system to track customer names, their product orders and prices, and generate customer receipts. The invoices are an especially easy, useful, printable tool for IBOs, and Quixtar is able to use the information to audit retail sales.

Some great posts on Ada-tudes regarding QBI — thanks to all.

QBI means Quixtar Business "Incentives." Part of our transformation goals is not only to increase sales volume but also IBO profitability across the board. Our commitment for this additional QBI money is for two years. We will then re-evaluate the results against our goals and decide to modify, continue, or rethink our incentives based upon the results. Frankly, my hope is this QBI generates so much success that we don't have to change anything. 

I would have preferred to wait to post the QBI incentives until all the details were worked out but inaccurate discussions were beginning to occur and I thought it would be best to get the correct information out even if all the details were not worked out. Obviously, inaccurate discussions are still occurring but now they are mostly around the "requirements" to qualify for this new money. There have been discussions about requirements, guidelines, goals, etc, but these are not finalized and will not be until we have further discussions with IBOAI (Independent Business Owners Association International). When any criteria or guidelines are established, they will first appear on our web site. I've already posted one correction this month and do not want to do another, if possible. Please look for a flyer later this summer providing an overview of these changes and stay tuned to the Quixtar Business Incentives section on http://www.quixtar.com/About/ for more information as it becomes available.

Finally, in reading the posts, I was reminded of a commitment some months ago by a blogger who is participating in this string that he would insert his issue of "tool profits" into every string if we didn't change the format of our blog to keep his issue up front. We didn't change our format, as he already had a place to discuss his issue and he kept his commitment again with my post on QBI. Please know there is no "one issue" that if fixed would make everything right. If there was one issue, we wouldn't need a business transformation. We would just tweak the one issue and keep doing what we are doing.

This has been a FABULOUS business for almost 50 years and has impacted positively the lives of thousand and thousands of people. But the business IS almost 50 years old. If we are going to continue to impact people positively for the next 50 years, we must do a thorough examination of all aspects of our business … products, pricing, brands, distribution, training, IBO profitability, IBO/consumer/prospect experience, reputation, etc, etc, etc. Too many issues to list in one post but topics we have been talking about over the past months in this blog. Personally, my life would be a lot simpler if there were only "one issue."

Our commitment, this blog, our life and our legacy is ALL about an overall business transformation so the generations that come behind us can continue to use this business to achieve whatever their goals may be in life. It will not be easy, but nobody ever said doing the right thing was going to be easy.

It is an exciting time to be part of this business right now but I firmly believe that the future will even be better, brighter, and bigger.   

In my haste to celebrate the 4th of July, I realize some of my post on Business Transformation requires some clarification:

RE: Ruby Bonus— the $$ amount is correct but the difference is in the %. The statement should read … Providing an additional 2% in bonus payments at 10,000PV and an additional 4% at 12,500 and 15,000PV to compensate those IBOs that exceed the minimums. For those not familiar with PV/BV, these bonuses should be in the $550, $1,400, and $ 1,700 range. For those familiar with PV/BV, that means a Ruby bonus should be in excess of $2,500 monthly.

Sorry for any confusion I might have caused.

Hi Everyone,

Hope you are all gearing up to celebrate the 4th of July.

Obviously there has been lots of discussion these past few weeks on the business transformation that was recently announced at Alticor. While this is a business transformation across the enterprise, the focus seems to have been on the name change from Quixtar to Amway. A couple of comments.

1. The rebranding of our business is 18-24 months away. By making this move Alticor will create a single, global brand for its business opportunity and begin to leverage Amway's global strength and success in supporting IBOs in North America. In order to make the change, we need to rethink how we develop products and training while enhancing compensation and our reputation with the goal to strengthen our business even more in the future.

2. We plan to be much more visible in the marketplace in telling our story to the public and support our IBOs in telling that story. Our research showed that prospects and consumers want to be associated with a highly visible and known brand and that they need to know what company will be behind their business to support them as they develop and build their own business.

3. We’re committed to making unprecedented improvements to the overall business and, after working with IBOAI, have decided to “walk the transformation walk” and agreed to launch additional Quixtar Business Incentives (QBI) September 1 that will assist IBOs in their “First Circle” efforts and ultimately ensure that we continue to offer the best compensation in the industry and improve IBO profitability at all levels. Some of the highlights of this approximately $70 million in additional money are:
* Free freight on customer and new IBO orders that exceed $75.
* 20% bonus PV on those $75 or more customer orders.
* $50 per month cash incentive for new IBOs who secure specified personal circle and client volume.
* These three commitments are designed to assist the First Circle and desired profitability goals for all IBOs. 
* $5,000 qualification and re-qualification bonus for 6-11 month Platinums. 
* Doubling the Q-12 cash award from $10,000 to $20,000
* These two bonuses are offered in recognition of the contribution of these emerging leaders.
* Providing an additional 2% in bonus payments at EACH of the following levels; 10,000, 12,500, and 15,000 PV to compensate those IBOs that exceed the minimums.  For those not familiar with PV/BV, these bonuses should be in the $550, $1,400, and $1,700 range.  For those familiar with PV/BV, that means a Ruby bonus should be in excess of $2,500 monthly.
* Provide an additional $150,000 every two years to an IBO who has maintained three qualified Platinum legs for those two years.
* Provide an additional $500,000 every two years to an IBO who has maintained six qualified Platinum legs for those two years.
* These two bonuses are offered in recognition of the value of the mentorship that is being provided to the emerging leaders.

Yes, the usual “restrictions apply” apply here also and I am sure there will be questions but this is neither the time nor the forum.  The actual program definitions will be published sometime in August after we have clarified all the conditions with IBOAI. My purpose here is not so much to provide all the details but to let you know that we take this transformation concept seriously at all levels of the business and realize it applies to us also. 

And this is just the beginning. We are going to focus on customer needs by developing products consumers want to buy and IBOs want to sell.  We will invest in marketing and advertising efforts to create positive awareness initially for our products and product brands and, at the end of our transformation, for our business opportunity. In total, the company will invest more than $200 million in making this business better for all IBOs.

We do not have a specific date for the transition to Amway as our opportunity brand in North America yet because our ability to successfully change our brand depends on how quickly we successfully change our business for the better. This will be a NEW Amway. Everything that IBOs learned from Quixtar since 1999 will now be combined with the immense success and name awareness of Amway around the world.

Stay tuned in the coming months for more information on the transformation taking place at Alticor.

Have a safe and happy 4th of July!

Jim

Thank you all for your comments on the Opportunity Zone regarding our request for ideas to help improve IBO profitability and continue to grow the Quixtar business. The response has been overwhelming. We are consolidating these ideas with the one's we have generated internally and are prioritizing how they might fit into our overall strategic plan. One consistent request was for more training by the company. The good news is that we have already begun work on this and below is some information to share on what we are doing.

1. Training is the key to our vision of creating clear pathways to profitability for IBOs at all levels. We believe that Quixtar must offer the best possible training, at the least possible cost to the IBO or the consumer.

4. Over the next 3-5 years:

• IBOs at all levels of achievement thoroughly understand the earnings potential of a balanced business and have realistic expectations of what they must do to reach their goals.
• IBOs are confident that they have the training and support needed to build a balanced business at their own pace and to whatever extent they desire.
• New IBOs, as well as the LOA, view Quixtar as a key source of training and support, and Quixtar-developed content is recognized as an indispensable component in successfully building a balanced business.
• All training, whether mandatory or optional, is delivered through a combination of Quixtar and field resources coordinated to produce the most effective results.
• The majority of field-produced support materials emphasize the "how" of building a profitable, balanced business.

I have noticed a lot of good conversation and healthy debate in Ada-tudes, thanks for the honest feedback and opinions. I thought that I would throw out another item for discussion that will provide you with a better idea of where we intend to go in the coming year, and also give us a compass check based on the reactions.

One of the key principles driving us ahead in 2007 is centered on enhancing the relationship between Quixtar and the IBOs. We need to maximize our business partnership and strengthen the business while making profitability a priority for both parties.

Currently, the roles of Quixtar and the Lines of Affiliation (LOAs) are not aligned as they should be. This results in less than effective partnerships as well as positioning in the marketplace that is inconsistent, confusing and sometimes deceptive. It is critical that our organizational structure be analyzed and recalibrated if we are to fully support building the transformed Quixtar model.

Here are some of the key strategies and tactics we will be focusing on:

1. Treat IBOs as business partners and not as consumers. More face to face contact with leaders and emerging  
     leaders to support and socialize Quixtar’s Strategic Plan, and to lead them in the effort to realize greater 
     profitability through the earnings potential of building a balanced business.

2.  Develop long-term strategic planning and analysis of the leadership’s key business indicators such as  
     activation, profitability, productivity, and renewal.

3.  Develop education based business development tools focused on the key business indicators to help drive
     measurable and sustainable results.
4.  Develop a process for gathering and sharing best practices and key learning from IBO programs and teachings.

5.  Develop a process for communicating timely and accurate short and long-term measurements of all programs 
      IBO organizations participate in.

6.  Establish interactive communications with all levels of IBOs that provide clear content and especially support 
     new IBOs building toward their personal goals and succeeding at their own pace.

7.  Ensure that Quixtar employees have opportunities to personally meet and understand IBOs at all levels.
     Employees will be strongly encouraged to support and enable balanced business outcomes.

8.  Better our understanding and support of differing IBO populations – demographic differences, income goals, etc.

      Here are some of the things we will stop doing:

1.  Relationships with IBO leaders based primarily on telephone and e-mail contacts.

2.  Short-term product promotions. They don’t drive long-term results.

3.  Any initiative that isn’t measurable and doesn’t support the Strategic Plan.

4.  Thinking of ourselves as reactionary and having limited impact on measurable and sustainable IBO profitability
     and growth.

This business has been built on relationships and always will be based on relationships – it is our greatest strength. No matter how technology may change or enhance our infrastructure, we must always remember that true partnership can only be reached by sitting down across the table with those who represent this opportunity every day.

03/24/2007 Update:

This post has been edited to incorporate numbering.

I just finished a two-day meeting with senior management at Alticor, including Doug Devos and Steve Van Andel. The theme of the meeting was how we can become a more innovative company and drive growth across the enterprise and to all IBOs. We are a strong company and we have a fantastic business opportunity but we need to become even better.