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MLMSurvivor.com
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"Quixtar Terminates 6 Diamond Distributorships
12 Others Resign in Protest
April 23, 2002
On April 19, 2002, Quixtar terminated the distributorships of six Diamonds. Their crime? Attempting, along with 12 other Diamonds, to throw a few pails of water at the Augean Stables of the Amway/Quixtar motivational "tools" business.
"Of the 18 Diamonds in Team In Focus, 6 have been terminated (Andy & Polly Andrews, Gerry & Sharon Betterman, Gayle Collinsworth, Mike & Lynn Jakubik, Ron & Melanie Rummel, John & Pat Terhune) and most of the others, when threatened with termination, have resigned."
For years, the shadow business of the Amway (and now Quixtar) kingpins has been the "system" -- the business of motivation in the form of tapes, books, functions, videos, and CDs. It has been repeatedly shown that the Diamonds make far more -- at least 80% and often up to 95% -- of their income from the "system" than from Amway or Quixtar. The system had become the tail that wagged the dog.
As early as 1982, Rich DeVos, Amway co-founder, chastised these kingpins, accusing them of running an illegal pyramid scheme. However, 10 years later, the "system" had become a way for a very few to suck millions -- even billions -- of dollars from their downline. Tool income was secret, the average frontline distributor was told that nobody made any money on tools, and everything was managed by the "wink and handshake" method. There were no contracts, and upline diamonds could change the way tool money was distributed at will.
Gradually, information about the "system" and the profit being made from it became public. In 1997, Amway acknowledged this in the BSMAA. However, it was obvious that the Arbitration Agreement was created to try and stop the flood of very public lawsuits over the tool business.
Now, in the l"
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