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