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The Team of Destiny
® Mirrored Pages

 Rebuttal to
"The Facts about Quixtar"

 Rebuttal to Orrin's
"Complementary Business"

 Rebuttal to Orrin's
"Two Rules"

 Bo Short's Rebuttal to "Complementary Business"

What is TOD?

TOD sues this site

Analysis of a TOD "Tap Root Leg"

Rebuttal to TOD's Emerald Attorney Matt Abraham

The TOD Tools
Payment Plan

 

 

 

Characteristics of Pyramid Schemes
How does Team of Destiny ® Compare?

There is a long standing debate about Amway (now Quixtar) and their lines-of-sponsorship being pyramid schemes. There have been numerous court cases, filed by former IBOs as high as a Crown and Double Diamond, since the 1979 FTC case. The court cases cast doubts about the legalities of Quixtar and the Line-of-sponsorship tape and seminar businesses. The legalities and case precedents can be researched on this Q&A page on pyramids. Rich DeVos, co-founder of Amway/Quixtar has even spoken openly about abuses than can cause the business to be illegal. Amway even had an internal memo called the Postma memo, which declared the tools systems to be illegal pyramid businesses.

Do you feel you were deceived? Here is the link to file a complaint with the Michigan Attorney General if you think you were conned. You can also complain to the Better Business Bureau.

Why did I select the Team of Destiny ® ? Of all the Quixtar Lines-of-Sponsorship I've studied, Team of Destiny ® is the most prolific of any LOS at publishing material, which can be easily criticized to conflict with pyramiding regulations. TOD was the only Quixtar group I know to publicly promote, and justify the money available from their system. That page has since been removed from public view, potentially at Quixtar's request. TOD distributes the profits from their Business Support Materials sales to participants as its own Multi-Level-Marketing (MLM) opportunity6.

As with most any MLM opportunity, Team of Destiny ® has the default status of "legal and in good standing" until there is an action by an attorney general or a court. To my knowledge Team of Destiny ® has never been ruled an illegal business by an attorney general or a court. However, due to the sheer number of MLM businesses and the limited resources of regulators, only the most abusive schemes ever get prosecuted.

"While our office is able to tell you if we have taken any legal action, we will not comment on any specific investigation of multi-level marketing companies. Additionally, we do not provide any
advance form of approval for any company and if you want legal advice on whether a multi-level marketing opportunity is actually an illegal pyramid, you need to seek private legal counsel."

Michigan Attorney General's web site

Characteristics of Illegal Marketing Plans
- from MLMlegal.com -

In the leading decisions in this subject area, 17 abuses have been targeted as potential elements of illegal marketing plans: (See the MLMlegal.com Web site)

  1. Plans in which company products are totally or substantially consumed only by distributors.
  2. Plans which make no effort to emphasize retail sales to the ultimate nonparticipant consumer.
  3. Plans in which commissions are not based on actual retail product sales.
  4. Plans which would fail without purchases by participants.
  5. Plans in which emphasis is on recruitment rather than sale of product.
  6. Plans in which distributors purchase products in order to further the marketing plan rather than out of genuine desire and need for the product.
  7. Mandatory purchases of company product
  8. Products which have "no real world" marketplace.
  9. Mandatory purchases of peripheral or accessory products or services.
  10. Products that are sold at inflated prices.
  11. Plans which result in inventory loading distributors.
  12. Plans in which distributors are left with substantial unsold inventory upon cancellation of participation.
  13. Substantial cash investment requirements.
  14. Earnings misrepresentations or inflated earnings representations.
  15. Plans which require no meaningful participation by distributors after becoming a distributor.
  16. Plans that contain elements of a lottery rewarding participants based on chance rather than on bona fide sales efforts.
  17. Plans in which fees are paid to distributors for headhunting.

Characteristics of Illegal Pyramid Schemes
- Michigan Attorney General -

The Michigan Attorney General also has a good page describing the characteristics of illegal marketing schemes. The Michigan AG's site references most of the above 17 points. Team of Destiny ® is also a Michigan Corporation so it is interesting to compare what the Michigan Attorney General describes and what Team of Destiny ® business building training materials teach. Most AG's will not take action against unless there are complaints, so make your voice heard if you feel you were part of an illegal pyramid scheme. Here is the link to file a complaint. All text in "red" is from the Michigan Attorney General's page on pyramid schemes.

Definition of Illegal Pyramid Schemes
- Federal Trade Commission -

Definition from FTC vs. Equinox April 2000, is the same as FTC vs. Trek Alliance June, 2003

"Pyramid scheme" means a sales scheme, Ponzi scheme, chain marketing scheme, or other marketing plan or program in which participants pay money or valuable consideration to the company in return for which they receive:

  1. the right to sell a product or service; and
  2. the right to receive in return for recruiting other participants into the program rewards which are unrelated to sale of products or services to ultimate users.

For the purposes of this definition, "sale of products or services to ultimate users" does not include sales to other participants or recruits in the multi-level marketing program or to participants' own accounts.

The FTC definition for a pyramid focuses on the issue of retail sales. At least 50% of the rewards generated must come from those outside the compensation system, or simpler said, from sales to retail customers. The diagram above shows the money flow in the Quixtar system and how the majority of it just flows among IBOs themselves.

Comparison of Team of Destiny ®
and the 17 Pyramiding Abuses

Retail Sales
* Plans in which company products are totally or substantially consumed only by distributors.
* Plans which make no effort to emphasize retail sales to the ultimate nonparticipant consumer.
* Plans in which commissions are not based on actual retail product sales.
* Plans which would fail without purchases by participants.
* Plans in which distributors purchase products in order to further the marketing
plan rather than out of genuine desire and need for the product.

"Multi-level" or "network" marketing is a form of business that uses independent representatives
to sell products or services to family, friends, and acquaintances. A representative earns commissions
from retail sales he or she makes, and also from retail sales made by other people he or she recruits."

"Commissions should only be paid on the sale of goods or
services to non participant end-user consumers."

Retailing goods and services to non-participants is the least stressed item of Team of Destiny ® . Just check out their training materials. Having significant sales to non-participants of the compensation scheme is one major factor separating a legitimate MLM from an illegal pyramid, as stated above by the Michigan Attorney General. Court opinions state that at least 50% of sales should be from those not involved in the compensation scheme. From the following exhibits one can see that the main reason IBOs should buy the Quixtar products is so that they can participate in the pyramided compensation scheme. Listening to TOD's tapes, one finds a major focus is to just sell to "participants" in the compensation plan, which according to the Michigan Attorney General, the 1979 Amway FTC opinion, Amway Co-founder Rich DeVos, and other court precedents is an illegal practice. Commissions are paid on all sales, even if the majority of sales are to those in the compensation plan. The following evidence of this theme comes from the Team of Destiny ® leaders.

Ask the person prospecting you to see the Team of Destiny ® website to see how heavily they promote "buying from yourself". Did the person prospecting you tell you that retail sales are required to earn bonuses from those you recruit? Probably not.

After my criticism of the business in early October of 2003 Team of Destiny ® had a change of heart and has added two new pages to their web site promoting retailing of products.J Two topics were added in middle October and November of 2003 thee being "A Few Ways to Develop Member/Client PV", and "A Balanced Business Includes Retail Sales". They have also added a Top Gun Retailing program.

A Team of Destiny ® open meeting in December 2003 never mentioned retailing, or the Member/Client option to the new prospects. L

Amway/Quixtar Co-founder Rich DeVos freely admits in his March 1983 Directly Speaking Tape that a "wholesaling only", or "buy from yourself" business is illegal:

"I guess if I'd been told all these years you don't have to sell the product, all you have to do is wholesale it to people, then I guess maybe I wouldn't pay any attention to pricing, either. But that's an illegal business. And those of you that preach it and foster it and talk about it are operating illegally. I don't know how often I have to tell you that. I don't know how long I have to keep insisting that you talk upon people retailing the product and gaining customers and servicing them faithfully, only to have some of you just throw it up in the air and say, "That's not our way. We don't teach that method." I got to tell you, you're running the wrong method. You see, once you'd accept the fact that you must sell the product at retail to have an honest business, then you suddenly are very concerned about the pricing of the product."

"Pyramid schemes claim to be in the business of selling products to consumers in order to look like a multi-level marketing company. However, little or no effort is made to actually market the product. Instead, money is made in typical pyramid fashion . . . from recruiting other people to market the program."

"He said that if you had toilet paper in your home, or other Quixtar items such as
paper towel, etc. and people came over to the house and used these items, technically
this falls under the definition of selling."
Team of Destiny ® IBO Site visitor

It is quite easy to find examples of TOD's over emphasis of self-consumption in their training tapes from a variety of their leaders.

    1. From the tape, PPS-41, Diamond IBO Tim Marks makes repeated remarks about the importance of "buying from yourself". "Why buy it from someone else if your business has it?"
      PPS-41 "We made $1500/month and we just bought from ourselves".
    2. From the tape, TOD-71, Executive Diamond Orrin Woodward says how even if you don't have people skills, it should still be easy to teach people to buy from their own businesses.
    3. From the tape, PPS-34, Sapphire IBO Jeff Granger, warns IBOs to not let it slip out in the contact that it is a "huge buying club", but to focus on getting people to the plan showing.
    4. From the tape, TOD-132 Diamond IBO Terry Brady promotes the buy from yourself model.
    5. From the tape, TOD-105, Platinum IBO, Renee Oettinger explains that a "Power Player" needs to buy 150PV from their own store.
    6. From the tape, PPS-40, Sapphire IBO, Holger Spiewak, says to change your buying behavior and commit to 150PV per month.
    7. From the tape, TOD-5, Sapphire IBO, Ed Zentner, says it is not hard to change one's buying habits to earn an easy 150PV.
    8. From the tape, TOD-132, Diamond IBO Terry Brady explains the concept of "negative products" and the confidence you show to others when you buy your own products.
    9. From the tape PPs-39 Diamond IBO Chris Brady says the third part of the business is to have PV via buying from your self.

Have the person prospecting you loan you some business building tapes and find out for your self.

Even Quixtar has taken notice of Team of Destiny's ® under emphasis on sales and over emphasis on recruiting. This excerpt is from Quixtar in a letter to Orrin Woodward.

TOD, in fact, is growing faster than the rest of the Quixtar business. However,
more important than growing fast is a commitment to growing
right. This
means a commitment to a balanced business. Focusing not just on sharing
the opportunity but on retailing Quixtar's unmatched portfolio of products
and services. Partnering with us to make the most of all this business has
to offer. By growing right, you create a solid business foundation upon which
you can continue to build - a foundation and a business that is built to last.

Quixtar and TOD have the "Member/Client" rule requiring IBOs to have a least 50PV or $100 in sales in order to obtain bonuses on downline volume. The rule can be easily circumvented by "self reporting", or by using "option 4: buying for a customer through your account", or by "pay around" of the bonus by the Platinum, or by creating bogus Member accounts and buying the minimum from those accounts.

"I was told to sign someone up who does not want to be an IBO and then make my first purchases
through that account. There are a lot of IBO's doing this"
"Our Platinum taught us to make our first purchase 'option 4, buying for a customer', using IBO price, in fact she said use it for all purchases." -
Team of Destiny ® IBO Site visitors

For brand new IBOs left in the dark about the rules, if your upline knows your Quixtar password they might even log in your account and report MC volume for you without your knowledge.

"I don't have any product to sell. I buy product for myself. I don't sell anything. I simply buy product
from Quixtar for my home and family. I am changing my buying habits so that when we are running
low on paper towels, toilet paper, diapers, garbage bags etc., etc., etc., then I order from Quixtar."
Team of Destiny ® IBO on Web Bulletin Board MLM Know How Forum

Commissions are paid on all sales regardless even if most are self-consumed. No doubt without the sales to the IBOs themselves, the business would fail.

Over Emphasis of Recruitment
* Plans in which emphasis is on recruitment rather than sale of product.

"Be skeptical of plans that claim you will make money through continued growth of your
"downline" -- the commissions on sales made by new distributors you recruit -- rather
than through your own sales of products."

"Avoid any program that focuses more on recruitment of new people rather than the sale of a
product or service to an end-user consumer. If the opportunity for income is primarily derived
by recruiting more participants or salespersons rather than by selling a product, the plan
probably is illegal. Several courts interpret greater pressure on members to sponsor
new recruits than to market company merchandise as evidence of an illegal pyramid."

From a Team of Destiny ® seminar 11/09/2002:
"Focusing on PV will not work. You must focus on building numbers"
TOD Emerald IBO, Bill Lewis (PV = Point Value, is obtained by product sales)

From the Team of Destiny ® prospecting material
"Team goals are very important because this is a business of
"building numbers" of people attending the events."

From the tape PPS-39 Diamond IBO Chris Brady stresses
building the team as the key to the business.

"Pyramid promoters are masters of group psychology. Recruitment meetings create
a frenzied, enthusiastic atmosphere where group pressure and promises of a
large sum of money play upon people's greed and fear of missing a good deal. "

Orrin Woodward at Quixtar Live
TOD-71 Orrin Woodward says how the volume
of traffic on the Quixtar web site "melted" the IBM computers!

"I was approached by TOD. I was told it is ALL ABOUT RECRUITING new IBO's."
"
These TOD guys that came over talked nothing of the actually selling of the products,
it was all about recruitment."
TOD Prospects

Purchase of Peripheral Products
* Plans in which distributors purchase products in order to further the
marketing plan rather than out of genuine desire and need for the product.
* Mandatory purchases of company product
* Products which have "no real world" marketplace.
* Mandatory purchases of peripheral or accessory products or services.

Team of Destiny ® actually consists of two different schemes. The first being the Quixtar products business. The second is the Team of Destiny ® Business Support Materials pyramid. Either of these could be considered illegal marketing schemes when retailing of products, or the system to people outside those expecting to participate in the compensation scheme is not at least 50% of sales. (as judged by the recent court precedents) The purchase of these materials and Quixtar products are of course completely optional, but those "wanting to succeed" should purchase them.

On tape PPS-39 Chris Brady says that if you can't afford a $6 TOD, then that is all the reason
more to be on tape of the week. (tape of the week is actually two tapes costing $12/wk)

On tape PPS-19 Tim Marks says that if you skip either the pattern or the system it won't work.

On tape PPS-28 Orrin Woodward says that the business won't work without the system.
He cites an example of an IBO with 72 downline IBOs who did not use the system.
This IBO had a100% success rate at failure since he did not use the system.

On tape PPS-38 Matt Abraham says that "you can't do it without the system"

Team of Destiny ® sells Business Support Materials (BSMs) consisting of audiocassettes, seminars, and open meetings to train their IBOs. TOD's BSM scheme promotes the Quixtar "Product Pyramid". The BSMs have no other market outside of the Quixtar IBO market. The content of TOD's audio cassettes also support the wide spread teaching that the business sells mostly to its participants and very little to non-participants. Here is a copy of the 2002 TOD tools payment plan.

On tape PPS-9 Don Freeze says if someone is not willing to get on tapes,
or pay to come to meetings then there is no sense trying to help them in the business.

I attended a Team of Destiny ® open meeting. Afterwards I spoke to the guest speaker about the BSMs and the profit potential from the "B" type business outlined on Orrin Woodward's now password protected web page. I asked him if I had to buy the tools to be able to participate in the tool profits. He told me that if I was not using the tools, that I would probably not be able to attain the level required to participate in those profits. The speaker would not confirm that the tools are "required" for success but did state that using them would "ensure your success" in the business.

"Promoters also openly discourage thoughtful consideration and questioning of the scheme."
Don Freeze on PPS-9 "You must submit to the system"

"The worst thing you can do for your business is to pick and choose within the system" - Orrin Woodward

"Don't filter anything people say from stage"- Orrin Woodward

Work in the system, not on the system" - Orrin Woodward

Team of Destiny ® stresses building "numbers", or numbers of people attending events because the selling of tools, or BSMs is much more lucrative than selling Quixtar products. Team of Destiny ® Cassette tapes cost $6 each or $12 for the weekly standing-order program, yet tapes can be reproduced in bulk for less than $0.50 each. There is also one Standing Order Leadership tape for $6. The messages on the tapes are usually recorded at Team of Destiny ® functions. In addition, Team of Destiny ® also sells the "Top 50 pack" of training tapes to new IBOs for $300, which only cost $25-$50 to reproduce.

TOD weekly meetings cost $5 per person, monthly events cost $25, and the quarterly events cost $90-$100, not including travel and accommodations. I attended a Team of Destiny ® open with 50 IBOs and maybe 10 non-paying guests. At the end of the meeting I asked the hotel clerk how much the room cost for the evening. Since the room only cost $50, somebody in TOD pocketed $200 profit on the room. When you go to a TOD open, ask the hotel how much the room costs to rent. Each TOD IBO usually pays $5 to attend the open meeting. Team of Destiny ® had a function in Las Vegas where it was claimed that 500 people attended at $90/ticket or $45,000 gross receipts. The room was said to cost only $1000. See the letter

Access to the Team of Destiny ® Web site costs $24 to set up and then $10/month. IBOs are also encouraged to purchase a voice messaging service for about $25/month.

Orrin Woodward on PPS-28 "We try to make the system as cheap as possible"

The Team of Destiny ® information system could be distributed much more cost efficiently if they were truly interested in making their system as "cheap as possible". The top 50 tapes could be distributed on one CD in .mp3 format including a .mp3 player for less than $50. IBOs could also download the latest tapes from the TOD website if they were serious about making every thing as cheap as possible. A 40 minute message in18kps .mp3 format would be about 6 megabytes. It is my opinion that the Quixtar compensation system is not commensurate with the effort required, therefore the Quixtar products business must be subsidized by the profits from the system in order to keep people working it.

The BSMs business is very profitable to the Diamond Team of Destiny ® leaders, and is probably much more profitable than their Quixtar product businesses. It is a multi-million dollar enterprise, which has few or no retail customers outside of their IBO participants. The profits to those above platinum from recruiting new IBOs on their system is much higher than the Quixtar bonus attributable to their new Quixtar IBO purchases.

On tape PPS-31 Chris Brady says "set goals for number of people buying the system"

Many of the Team of Destiny ® tapes are just recordings from past Team of Destiny ® meetings, in which the Team of Destiny ® "system" itself is being promoted. A good portion of the teachings from these materials is why you should be buying into the system of tapes, books, and seminars and getting others to buy it. My observation is that the system is used to promote the system itself. My opinion is that there is greater emphasis on promoting the system than there is of merchandising the Quixtar products to retail customers, who are not IBOs.

On tape PPS-22 Chris Brady promotes the purchase of the system using the system

On tape PPS-31 Chris Brady "the system is optional but so is success"

Listening to their tapes and going to their meetings will reveal the repetitive messages about using the "proven system". In reality, IBOs need to continually listen to the repetitive messages on the tapes, so that they can continually relearn, why they need to continue to buy and listen to Team of Destiny ® tapes and attend their meetings. It should be clear to the casual observer that the main emphasis of the business is to purchase the system and convince others to purchase it. Of course after attaining a certain level, and bringing enough IBOs onto the system, one can begin to profit from promoting the system.

The reason that the meetings and tapes are so repetitive is that new people are always being brought in to the business. The new people could never come up to speed if the techniques being taught had a compounding base of knowledge such as that in Medicine. The Quixtar business can only reproduced if it remains simple down to its core. This means that the messages on their tape system will quickly become routine and repetitive. The only reason to continue to buy into the system is to show your loyalty to the system so that others will follow your example. Getting enough people to follow your example will enable you to profit from their purchases.

Product Pricing
* Products which are sold at inflated prices.

"Make sure the product or service offered by the company is something you would buy without
the income opportunity and the product or service is competitively priced. Illegal pyramid
schemes often sell products at prices well above retail or sell products that are difficult to
value, such as health and beauty aids, new inventions or "miracle" cures."

Sapphire IBO Don Freeze teaches on the Team of Destiny ® tape PPS-18 that the Quixtar Double-X vitamin is cheaper than the Centrum brand on a cost-per-use basis. Double-X costs $48.15 for 31 tablets or $1.55 each. The multi-vitamin Centrum costs 6.3 cents at Wal-Mart. The Quixtar Double-X vitamins are 24 times more expensive than the Centrum. About $22 per box, or $0.72 per tablet goes to the pyramided bonus pool. Quixtar also sells a Multi-vitamin "Nutrilite" similar to Centrum, which cost 15 cents each. This is still over twice the price of Centrum. Almost all of the price difference goes to fund the pyramided bonus pool.

"Beware when the products or services are simply vehicles for recruitment. The products may be gimmicks and/or overpriced, but even high quality products may serve as a cover for recruitment activities."

The high cost of the Quixtar products is a common objection to the business. Executive Diamond Orrin Woodward on PPS-25 "Handling Objections" says that one could treat the price premiums as an investment that will be paid off, after they show the plan and recruit some other people. The tape  TOD-52 "Follow Through" teaches another method to handle the ever-present "high prices" objection.

A Team of Destiny ® IBO writes a letter to Quixtar complaining about how high the product prices are and how the Partner store link through Quixtar partner stores sometimes have more expensive prices than the Partner Stores themselves. See the letter

Inventory Loading
* Plans which result in inventory loading distributors.
* Plans in which distributors are left with substantial unsold inventory upon cancellation of participation.
* Substantial cash investment requirements.

"Sometimes, new "distributors" are persuaded to purchase
inventory or overpriced products/services when they sign up."

"Be cautious about participating in any program that asks distributors to purchase expensive inventory. There are horror stories of people with a basement or garage full of merchandise that no one will buy."

Besides the $235 TOD registration, there is no up front investment. Quixtar also has a 100% money back guarantee. I've heard that Quixtar will also pay the shipping costs. However, the cost to sign up with Quixtar as an IBO is only about $50. The Team of Destiny ® recommended registration includes:

1) Team of Destiny Website Registration $24.00
2) Literature $12.67
3) Quixtar Registration $45.75
4) Product Package (SKU: 10-1387) $150.
The total is about $232

The Team of Destiny ® refund policy via the BSMAA contract is not as generous as Quixtar's. Interesting to note is that the TOD Business Support Materials Arbitration agreement specifically excludes tools that were purchase for inventory (non-personal use).

" 8. Refund policies -- ...... Business Support Materials purchased for stock or inventory, or for any reason other than the buyer's personal use, are not subject to this policy but shall be governed by whatever refund policy is agreed to with the selling IBO. For seminars, rallies, and other meetings, the selling IBO shall buy back any tickets purchased for the buyer's personal use for a period of 30 days...... "

Unlike the Quixtar refund policy, the Team of Destiny ® BSMAA specifically states many conditions and specifically excludes BSMs purchased for non personal use.

"Just wanted to let you know, I gave my upline two letters (one to Nick and the other to the person's name that appears on my receipts Mike Barrett) requesting my intent to leave TOD and requesting a full refund. He responded by telling me that I could not get a refund on tools as it is specified in the TOD contract. I responded that according to #8 that tapes, books, opens and seminars are refundable. I'm currently awaiting a response."

"My ex-upline and I agreed to a 50% refund for the TOD tapes for personal use but unfortunately the BSMAA agreement rules out any money given back for tools I bought to give out to people."

- TOD site visitors

As part of their system TOD encourages IBOs to stock up on tools.

The following is from Orrin Woodward a few years back promoting inventorying of Business Support Materials:

  • "Double your tool stock. Double your flow"
  • "If I were to walk out to your car and look in your trunk, how many of you would be embarrassed? I am not for anyone spending any money on this business. I am all for you investing for this business"
  • "Get to the point that when someone opens your trunk that you're proud to show them your stock"
  • "Having tools will motivate you even more to show the plan and get them in people's hands so that they can learn"
  • "You should be moving as many special order tapes as tape of the weeks into your groups"
  • "If you don't have the material to give out to your new people, you are failing them"
  • "If you don't have the right material in your trunk, you've sentenced yourself to being the message, having to answer phone calls, and tell everyone everything all the time."

TOD sells various "tool trunks". Their compact, medium, and large trunks sell for $508, $998, and $1500 respectively. These trunks contain multiple tapes, CD and prospecting materials.

The Quixtar products can also be inventory loaded, but Quixtar supposedly has rules to addresses this issue.

Quixtar had one time warned Orrin Woodward about inventory loading of Nutrilite vitamins to new recruits a few years back. Here is the letter from Quixtar to Mr.Woodward in response to a complaint to the Michigan Attorney General. Page 1, 2, 3, 4. Page three mentions the food supplement inventory loading.

Income Misrepresentations
*
Earnings misrepresentations or inflated earnings representations.

"Be cautious about specific income or earnings claims. Many programs boast about the
incredibly high earnings of a few top performers ("thousands per week" or a "six figure
income"). The reality is that most of the people recruited into the organization are
not making anywhere near those amounts and most actually lose money."

"She also laughing said, she had only made probably $400 or so from the business
but it probably costs her four thousand dollars"
Site visitor's story in 2001 about Orrin Woodward's mother who is an IBO

Founder's Diamonds Orrin Woodward On tape TOD-25 builds the dream, and asks what you would do "if you could make $10,000/month from this business".

Sapphire Don Freeze On tape PPS-42 states:
"Wealthy is defined as making over a million bucks a year. Who is up for that? Ok good. You see Orrin does, Chris does, and Mark is on his way to doing it... "

Founder's Diamond Orrin Woodward On tape PPS-20 states:
"When we bring Chris and Terry Brady there will be four people ..that are multi-millionaires. When is the last time you spent a weekend with four multi-millionaires for $100?"

Diamond Chris Brady On tape PPS-39 states:
"How much money does Orrin really make? I know for sure it's ..LOTS".
" I've made $4,000 for each plan I've shown."
"Buy from your self and you'll be a millionaire"

Sapphire IBO Bill Lewis On tape PPS-36 states:
"You're offering them a chance to be a millionaire".

Sapphire IBO Matt Abraham, On tape PPS-38 states:
"... Tim Marks ...25 months to qualification of millionaire status (ie Diamond)."

Diamond Orrin Woodward, On tape TOD-71 states how he has seen people
make $6,000 - $7,000 per month in this business in less than two years.

Maybe Mr. Brady and Mr. Woodward would care to show "the fruit on their tree" and publish their Quixtar checks like Dexter Yager did. He made copies and handed them out at functions. Click here for copies of Dexter's bonus checks. Chris Brady, and Orrin Woodward are Quixtar "Founder's Diamonds. According to 2001 Quixtar data, the average IBO at this level grossed $227,400 from Quixtar, not the millions implied from their tapes. Mr. Woodward might however make that when the profits from the Team of Destiny ® BSM scheme are included

"Be cautious about specific income or earnings claims. Many programs boast about the
incredibly high earnings of a few top performers ("thousands per week" or a "six figure
income"). The reality is that most of the people recruited into the organization are not
making anywhere near those amounts and most actually lose money."

"Beware when presented with "testimonies" from other distributors.
These "success" stories rarely reflect reality
."

"I wanted to respond to a post I saw with regards to Team of Destiny. I have a friend living in Michigan who is completely sold on this business... He seems to think he will be a millionaire in 5 years. "

"I was introduced to TOD over the weekend.. My friend that has been in the company for three months guarantees he will be a millionaire in less than five years. Telling the five people he had at the meeting that they could join him if they started today." - Site Visitors

 

The image above shows the additional sources of income IBOs can eventually have from the very lucrative TOD BSM's pyramid business selling tapes, books, seminars, and obtaining speaker's fees. Participation in the profits from the tools business is based upon one's success in building a Quixtar organization, and convincing downline IBOs to consume these items. These items have no customers outside of IBOs or prospects and have no real word use outside of the group. The BSM profit sharing plan creates an economic incentive and a conflict of interest for IBOs to recommend the use of BSMs to their downline IBOs for the sheer sake of generating commissions without regard for the economic consequence to their downline IBO's personal profitability. This creates an inherently fraudulent scheme.

It appears that Quixtar might have told TOD to remove the "How the Money Works" page and its controversial image from Orrin Woodward's website. The reason was "this is important knowledge for all TOD IBOs, it is not intended to be shared with prospects as an enhancement to the plan showing process." No doubt promotion to the public of the BSM's pyramid as part of the Quixtar plan would bring on regulator criticism. Similar to how Quixtar clamped down on the Team In Focus BSM profits sharing plan.

In a 1983 audio taped speech entitled "Directly Speaking," Amway co-founder Rich DeVos stated:

Let me talk to you about the legal side, beyond price fixing, that deals with pyramids, that deals with the illegal operation of a business that does not have an end consumer, where the product is not retailed. That would include all books and tapes. The sad news, folks, is that when those things go out that way and they become excessive, beyond my ten or twenty percent theoretical guideline, hopefully acceptable, to where it's a reasonable support system, but not beyond the reasonable element, then it becomes an out and out illegal pyramid.

. . . when your tape volume becomes so great in relationship to your regular business, if it is not used as a support for the Amway business, - will oftentimes be an illegal business - in fact, it could be called a pyramid - because, - does not get sold to the consumer. Which means that all the tape business does is take money out of the organization, and because the final person can't retail it, it never brings money into the organization. Now, I'm not arguing the value of it - we accept the fact that motivation is vital to this business. Good, honest motivation is important to the business. But, it must be motivation that builds the business - not become a business in itself. And some of you have made it a business in itself . . . And I am imploring all of you to do two things. Number one, clean up your act. And number two, if you know people who are continuing to do things improperly after all of this, then I want you to write us a note and just tell us who's doing it.
Directly Speaking, January 1983, Rich DeVos, Amway Cassette Series VA-2160.

In January 1983 the infamous internal Amway "Postma" memo it stated:

The Tool business (motivation) is illegal. If I understand the MLM system, there are certain parameters that confirm its legality. Unlike the Koscot method of marketing, the MLM system moves a product to an ultimate consumer outside of the business structure; i.e., a customer. Although the Amway business is legal (no question), the tool business is not (my conclusion).

      1. It is a pyramid. It sells only to those who involved in its structure.
      2. It may violate tax laws. It is hard to determine whether or not proper sales taxes are paid (especially in the state of Washington).
      3. A real danger of inventory loading without the protection of a buy back rule exists. This has already occurred (Mackey). It will happen again.
      4. It could be construed as an employer/employee relationship.
      5. It is not a free enterprise opportunity. A downline Direct is not to compete with an upline Diamond

Another Internal Amway Memo from 1982 states:

The following, important statement from Hogan & Hartson's 28 page legal evaluation of the legal risks inherent in selling and distributing non-consumable "products" through a multi-level system, has helped us greatly in getting the attention of the "systems" entrepreneurs:

"Because of the extensive and extremely adverse publicity associated with Glenn Turner's "Dare to be Great" operation -- an operation based primarily on the sale of motivational tapes -- it must be recognized that any multi-level sales plan which unduly emphasizes sales of motivational literature or tapes is likely to attract the attention of enforcement authorities!!!"

References for "Dare to be Great" motivational supplies pyramid cases [Kentucky] [Virginia] [SEC

At recruitment meetings you might hear phrases like "this is a ground floor opportunity which will
change your life", "opportunities don't go away, they go to other people", and "if you act now
and work hard for three to five years, you can retire and live off of the residual income."


PPS-20 Orrin Woodward "If you get started right now, you will be an early pioneer ....."
Bill Lewis on PPS-36 says "you can make $120,000/year for life"
Founder's Diamond Orrin Woodward, on PPS-25 states:
"by working the business 3-4 hours a night for 5-6 days a week, for two
years and after two years you will retire with triple your salary with a
growth rate of 25%-50% every quarter"

"Another warning sign is a confusing compensation plan."

Diamond Chris Brady on PPS-39 "Every year it gets bigger...
we don't even know what we make ..What do you make Chris? I
have no idea.....I don't understand it".

Distributor Participation
* Plans which require no meaningful participation by distributors after becoming a distributor.
* Plans which contain elements of a lottery rewarding participants based
on chance rather than on bona fide sales efforts.

TOD employs a strategy called "stacking". Prospects are told they need needn't do anything. Someone will build a line for them.

"He told me to buy into a position and I wouldn't have to do anything, just be in line.
He never said I should try to sell any products. Just buy and get others interested."
"I never knew who sponsored me, nor who I sponsored, this is a common occurrence."
- Site Visitors

Even in the open meeting I attended, the speaker highlighted one IBO who already had made the 21% bonus level and he didn't do anything.

Depending upon how one is stacked and who is stacked under you there is an element of chance of having successful people stacked under you.

Headhunting Fees
* Plans in which fees are paid to distributors for headhunting.

Neither Quixtar nor TOD pay any direct fees for headhunting.

"Some companies call themselves multi-level marketing when they are really operating pyramid schemes that violate Michigan's Pyramid Promotion Act."

"Team of Destiny" ® is a registered trademark of Orrin Woodward and "Team of Destiny" ® . The author has no intention or desire to suggest that "Team of Destiny" ® or Orrin Woodward either approve of or sponsor the content of this site and any use of the trademark is purely incidental to the author's purpose in describing and criticizing the practices of "Team of Destiny" ® and its leadership, including Orrin Woodward.

6 "This model fits Multi-Level law with a majority of IBOs buying tickets and tools as retail customers." From Orrin Woodward's "complementary businesses article".

Here is the link to file a complaint with the Michigan Attorney General if you think you were conned. Addresses for the complaint are at the bottom. TOD is also a member of the Better Business Bureau. You can also complain to them. You will need the information below.

Team of Destiny Inc. registered in Michigan Num: 30132A
WOODWARD INTERNATIONAL NETWORKING SYSTEMS, INCORPORATED
Agent: ORRIN A WOODWARD
105 E SECOND ST STE 1
DAVISON MI 48423

The Address is from the State of Michigan website

Quixtar Corporation
5101 Spaulding Plaza
Grand Rapids, MI 49355
616-787-7800

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