I want everyone to know that I couldn’t have joined Quixtar at a better time. This is a business that's only going to improve as we go forward. And because we're in the middle of an exciting transformation, there's never a dull moment – new products, new support, new money, and more. Our plan for this transformation calls for strong brand support, an aggressive reputation campaign, and the transition to a new brand for the business opportunity.
But, it’s going to take some time and a lot of hard work to get from where we are to where we want to be. The transition to a new name started in September with references in the Quixtar Business Opportunity Brochure. In March 2008, we’ll begin a three-phase rollout of the new brand name and logo.
Phase 1: March 2008
All internal and external communications, including advertising and public relations, will carry this logo.
Phase 2: September 2008
Amway Global will be elevated to the lead brand in our communications, and Amway’s 50th anniversary will be acknowledged.
Phase 3: May 2009
The transition to our new business opportunity brand will be completed.
As I mentioned above, March 2008 also marks the start of media advertising and public relations for the new Amway Global brand. We’ll be filling you in on the details of the multimedia, multimillion-dollar campaign during the coming weeks and months. But I can share that our vision is to once again be the business opportunity of choice in North America.
We’ll also be separating Sales and Marketing into two distinct, collaborative teams. To lead our Sales efforts, we’re happy to announce Sandy Spielmaker as our new Vice President of Sales. Sandy joins us with nearly 25 years’ experience in Sales, Marketing, and General Management, with a track record of innovative sales approaches. We will look to Sandy to accelerate our initiatives and achieve our goal of improving profitability for all IBOs. We are actively recruiting qualified candidates for the Vice President of Marketing position and plan to have it filled soon as well.
We all know that talk is cheap. It's easy to throw around words like transformation, change, enhancements, and partnership. It's actions that really count. And at the end of the day, we’re putting our money where our mouth is and investing in new products, expanded training, enhanced compensation, and integrated reputation initiatives. Ultimately, we’re building a compelling and dynamic business that will become the business opportunity of choice in North America.
Thanks again for your input and questions regarding my last post on the changes the Sales Department is making. Several of you mentioned that, as corporate folk, we don't have the credibility to tell IBOs how to sell or build an organization – you're right, couldn't agree more! Our intended role is not to go around IBO leaders, tell IBOs how to build the business, or take over IBO organizations.
As mentioned in my article dated March 21, this business is based on relationships and technology can't take the place of sitting down face to face. We have lots of data and information that we want to share with IBOs about their specific businesses regarding renewal rates, activation of new IBOs with product, profitability, product mix, sponsoring, etc. and we think IBOs can use this to help make better decisions and to focus their efforts.
We can also share best practices that we are learning as we talk to more and more IBOs about the things that they do to help their business grow. We can also help guide them to training, or look for creative ways to bring our resources to bare in order to help move their businesses forward. But in the end, it is their decision because it is their business.
Over the past several years we (Sales) have relied too much on phone and email. I believe that for us to build credibility and stronger relationships with the IBOs we need to get out and experience their world first hand. We realize that we have to earn the respect and trust of the IBOs, and there will be many who will resist what we are attempting to do. We understand and respect that, but I do believe that this is the right way to go.
There has been a lot of talk about the transformation of the Quixtar business and I wanted to give you an update on the changes happening in the Quixtar Sales department. In an effort to build IBO partnerships and strengthen the Quixtar team environment, Quixtar Sales is currently undergoing a departmental reorganization to take on more of a consultant role with IBOs.
Ideally, a consultant is a provider of valuable expertise, insight, and third-party perspective that you can't necessarily always get from your own inner circle. Obviously, we have expertise and insight into the Quixtar business that could benefit IBOs. As consultants, we will not only listen to IBO concerns, resolve problems, and manage relationships, we also will provide IBOs with more business data that will equip them to make better business decisions and maximize the results of their efforts. Our mission in Sales is to deliver data-driven insights and consultation that leads to responsible, measurable and sustainable growth.
The plan to shift to more of a consultant role consists of three steps: 1. Drive Internal Change Management: The key to moving this concept forward and allowing it to succeed will be both internal and external change management. 2. Refine Existing Solutions: Members of Sales currently have information tools and training to help them be effective when consulting with Platinums and above. 3. Increase Line of Affiliation (LOA) Involvement: We can only be successful when we work in partnership with leaders and their organizations to help them define and reach long-term profitability goals.
The most important tool for internal change management is communication. We've been communicating in department, team, and one-on-one meetings, keeping other departments and IBO leaders in the loop on what we're doing.
As Sales transitions to a focus on Business Solutions through consulting, many organizational changes will take place. Business Solutions will no longer be a stand-alone concept within Sales, but instead will be the only way that business is done. Quixtar Sales also will recruit, develop and retain people who increase the department's capacity to conduct credible business consulting.
We'll increase our Sales team to better support our contact with IBOs, their downline, and the emerging leaders. We'll add LOA Field and Home Advisors who will meet one-on-one with IBOs and provide them the data and information they need to succeed. This means that the Sales Advisor will no longer be a voice on the phone, but a presence in the IBO's hometown.
Other than the obvious difference in LOA Field and Home Advisors (Field will be traveling and Home will be stationed at Quixtar), the two positions share many similarities. Their common responsibilities will be, but are not limited to: – Participate in quarterly LOA planning meetings – Participate in or conduct select Platinum and above meetings – Analyze and recommend areas of improvement for Platinums and above – Participate in LOA/Quixtar Events – Trials day
Stay tuned for more information via email and voicemail about this new plan. We want to keep IBOs informed about the direction we're taking and manage expectations up front.
Since the day I walked in the door of Quixtar two years ago, we've been all-hands-on-deck, working hard to build the best business we can for IBOs and the best products for consumers. I am proud of how far we've come in such a short time, and the development of our First Circle plan gives me a tremendous sense of optimism about the future of the Quixtar business.
While Quixtar has been a top priority for me, I also have responsibilities for Amway affiliates globally. The Quixtar business deserves a managing director that can give it 100 percent focus and attention. That’s why I’m pleased to announce that Steve Lieberman will join us August 20 as the new Vice President and Managing Director of Quixtar, reporting directly to me.
Steve is an accomplished consumer products executive with more than 25 years of global industry experience, much at S.C. Johnson & Son. He's a graduate of the State University of New York and received his MBA from the University of Chicago.
That adds up to a terrific background for a leader who will be asked to help us advance First Circle, improve our company's reputation, develop a stronger consumer focus, and infuse innovation in all we do.
I'm one of the biggest fans of the Quixtar team, Quixtar IBOs, and this incredible business. And I know Steve will be able to take our transformation to the next level, working with a stellar team and committed group of IBOs.
You won't hear from me as often in the Opportunity Zone, but you'll still hear from me!
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.
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.
Hi, I am Ray Alexander, Director of Marketing for Quixtar. This is my inaugural posting to the blog and I am going to talk about an event this past weekend that paints a bit of a picture of where we are headed with putting our brands in front of consumers to make it easier for IBOs to sell.
IBOs Need to Make More Money Sooner — it probably can't be said enough. The challenge is that new IBOs need to sell products to make money early and feel good about the business, and we've been a bit lax in providing them the tools and incentives for making the sale.
We need to make it easier to retail products. To do that, we are focusing on Health, Skin Care, and Gift, and creating product pathways for each that provide everything an IBO needs to sell to consumers. The pathway 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.
IBOs clearly have a much easier time selling products that have some level of brand awareness in consumers' minds. Quixtar's exclusive product brands have not historically had great awareness outside of our business. A number of initiatives, such as last fall's national Nutrilite® advertising campaign and the global sponsorship of world record holders Asafa Powell (100 meter sprint) and Liu Xiang (110 meter hurdles), are working to change that. Just think of that a moment. Asafa Powell, the fast man in the world and the fastest man in history, attributes some of his success to Nutrilite!
Another great example of exciting brand awareness effort for Nutrilite is its official sponsorship of the 2007 Prefontaine Classic in Eugene, Oregon, Sunday, June 10. This race is the premiere track & field meet in the United States. Since 1996, it has been ranked first among all annual track & field meets in the U.S. by the International Association of Athletics Federations (IAAF). For more event details, visit www.preclassic.com . This prestigious race is the only one in North America where both Asafa and Liu competed, making it the perfect event for highlighting the power and prestige of Nutrilite Double X® . The Nutrilite sponsorship of this event is exciting because it highlights four examples of how we are delivering on building the pathway: IBO involvement, local/national advertising, product accessibility, and sampling.
IBO Involvement As an event sponsor, Nutrilite hosted two tents in the expo area of the race. The first was for the general public, and all attendees were able to pick up a free Asafa Powell/Liu Xiang/ Nutrilite poster. The second tent was IBO-only and all IBOs received free Nutrilite merchandise and VIP treatment. This was a great atmosphere for IBOs to bring prospects in.
Advertising Nutrilite also conducted special advertising in support of the event, including national commercial spots every 20 to 30 minutes during the live airing of the race on NBC.
Product Accessibility Consumers have always found it difficult to buy product through Quixtar.com. Beginning with this race, Quixtar is making it easier. All ads direct viewers to the new www.teamnutrilite.quixtar.com . From this site, a consumer can order product in just two clicks of the mouse. The site includes an edited selection of Nutrilite and XS™ products, as well as information about Asafa Powell and Liu Xiang, and information about the brands. Any customer without a referring IBO will be assigned to one behind the scenes, and all the PV/BV will be awarded to that IBO. Any customers who already have an IBO will be able to enter that person's information into the system instead.
Sampling In addition to the sponsorship and advertising, Nutrilite also is offering a new 10-day supply of Double X , featuring Asafa graphics. These sample-sized packages allows customers to try Double X without committing to a month-long supply, which equals easier retailing for IBOs.
Enough for now. As you an see, things are changing. The sponsorship of the Prefontaine is an excellent example.
Here’s a random firing so bear with me, I don’t mean to preach. I happened upon a quote recently that made me think about the Quixtar business opportunity and why our First Circle Transformation is so important to keep us aligned with the philosophy of free enterprise set down by Rich DeVos and Jay VanAndel back in 1959. I’m not saying that there is anything real new here or revolutionary, just another way of thinking about where we need to focus.
“So, then to every man his chance. To every man regardless of birth, his shining golden opportunity. To every man the right to live, to work, to be himself. And, to become whatever thing his manhood and his vision can combine to make him. This seeker is the promise of America.”- Thomas Wolfe
All right, enough of the flag waving and sentiment – but sometimes that’s OK.
Small business is a large part of the great American success story. Small business owners are the entrepreneurs, the builders, the innovators willing to take a chance and do something others aren’t willing to. Quixtar can’t be considered a small business anymore like it was in 1959, but I would like to think that we will always be a small business at heart.
Each day we deal with thousands of small businesses at Quixtar – our IBOs, and believe me when I say that we are grateful that they are there. In order to continue to attract those looking for opportunity to our business, we need to be able to deliver on offering the plan and support they can put their hope in.
My opinion is that there seems to be almost an anti-success mood that prevails in our culture where achievers are distrusted and success in business must be apologized for as if it were a violation of moral law. Don’t get me wrong, our business has had its share of rogues but I also believe that the vast majority who participate in Quixtar are there to do it right. I am proud that we offer an opportunity where, for a small investment, people can participate in the free enterprise system. Our job is to make certain it remains viable and relevant with First Circle – helping more IBOs make more money sooner – at its core.
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.
2. We believe this strongly enough that we are creating an executive-level training division at Quixtar to ensure the creation of this training
3. In our long-term strategy we have committed to:
Develop comprehensive training programs, in conjunction with field leadership, that will include both required and optional modules for all levels of IBOs
Ensure that the most appropriate source (Quixtar, IBO leader, LOA, etc.) delivers each training element.
Encourage and recognize field-produced training materials that support and teach IBOs how to build a profitable, balanced business.
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.
