{"id":3761,"date":"2009-04-06T19:11:31","date_gmt":"2009-04-07T00:11:31","guid":{"rendered":"http:\/\/www.sequence-inc.com\/fraudfiles\/?p=3761"},"modified":"2011-08-19T21:38:17","modified_gmt":"2011-08-20T02:38:17","slug":"distributor-failure-rates-in-amway-quixtar","status":"publish","type":"post","link":"https:\/\/www.sequenceinc.com\/fraudfiles\/distributor-failure-rates-in-amway-quixtar\/","title":{"rendered":"Distributor Failure Rates in Amway (Quixtar)"},"content":{"rendered":"

Former high level Amway distributor Eric Scheibeler, author of Merchants of Deception<\/a>, offers this perspective on the Amway “business” and whether it can really be considered a good opportunity:<\/em><\/p>\n

Amway Global: Fact, Fiction or Business Opportunity Fraud?
\n<\/strong>Perhaps you have seen the television commercials for Amway global promoting that Amway operates in \u201c50 different countries and helps put over 3 million people into business for themselves\u2026 we are a company of opportunity.\u201d\u00a0 Do the \u201cIndependent Business Owners (IBO\u2019s) actually own an independent \u201cbusiness\u201d?<\/p>\n

They certainly are induced to \u201cinvest\u201d in their own business but there are quite a few differences. First, IBO\u2019s have no control over the cost of their own business products, which high level leaders have described in court documents as \u201chopelessly overpriced\u201d. Second, you could spend a decade investing in \u201cyour own business\u201d and building a network of people and if you decide to leave for more lucrative opportunity and bring the organization you developed (your equity) with you, chances are you may be litigated against and find that Amway\/Quixtar (and its well funded legal teams) considers your downline line of sponsorship their property.<\/p>\n

You also can have your income literally stopped on a day\u2019s notice while your legal expenses are being driven through the roof. In what truly \u201cIndependent Business\u201d can someone else literally shut off your income and claim your \u201cbusiness\u201d after a decade of work and investment?<\/p>\n

The documentation seems to support a nearly 99% loss rate for IBO\u2019s in the US. <\/strong>Documentation also supports that Amway Senior management has known that deceptive practices were being utilized upon its trusting distributor force as far back as the early 1980\u2019s. See additional details located at The Amquix Smoking Gun<\/a>.<\/p>\n

Assistant Wisconsin Attorney General Bruce Craig prosecuted Amway in the early 1980\u2019s and stated \u201ctax returns (obtained for this litigation) of all active Wisconsin Direct Distributors, the company’s top 1%, showed an average net income of minus $900.\u201d I was shocked to learn that it was almost identical tactics that were utilized upon myself and our organization decades later.<\/p>\n

Justice Norris, in the recent MOD initiated and supported UK Government case against Amway reported in 2008 that out of an IBO population of 33,000, \u201conly about 90 made sufficient incomes to cover the costs of actively building their business.\u201d If this is accurate, that seems to be close a 100% loss rate for those investing in the Amway UK \u201cbusiness opportunity\u201d.<\/p>\n

I personally advised senior management of, in my experience, the 99% loss rate for IBO\u2019s when I terminated my distributorship on August 8, 2003. I advised the corporation that I could not accept \u201cblood money\u201d that was generated from new people who were systematically being deceived. The shocking events that followed are detailed in my book “Merchants of Deception”.<\/p>\n

The corporation and its high level motivational recruiters have been plagued with lawsuits and\/or arbitrations for decades yet continue to recruit new consumers to \u201cinvest in the opportunity\u201d. This is despite full knowledge of losses for almost all participants, similar in some ways to the actions of Bernie Madoff, the infamous Wall Street Swindler. New consumer investors are simply recruited to replace almost all who have lost and drop out, with much of the money being transferred from those at the bottom to those at the top of the pyramid (the corporation and a small percentage of high level distributors).<\/p>\n

The movement of products simply camouflage the transfer of funds from new investors on up.<\/p>\n

Hear audio of Amway executives talking about how wonderful the Amway – Quixtar opportunity is on Eric’s site:<\/p>\n

http:\/\/www.merchantsofdeception.com\/emails\/MODemail2.html<\/p>\n","protected":false},"excerpt":{"rendered":"

Former high level Amway distributor Eric Scheibeler, author of Merchants of Deception, offers this perspective on the Amway “business” and whether it can really be considered a good opportunity: Amway Global: Fact, Fiction or Business Opportunity Fraud? Perhaps you have […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[184],"tags":[],"class_list":["post-3761","post","type-post","status-publish","format-standard","hentry","category-pyramid-schemes-mlm"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p6Z0e-YF","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/posts\/3761","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/comments?post=3761"}],"version-history":[{"count":0,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/posts\/3761\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/media?parent=3761"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/categories?post=3761"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/tags?post=3761"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}