A New Direction for Quixtar Sales
Friday, October 12, 2007  by Todd Krause
Category: , ,

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.


Comments

rdknyvr said:
October 12, 2007 5:44 PM | #

Todd, this is a fascinating update, many thanks. I've heard from a Diamond who thought that you yourself are from a successful IBO family -- it that true? So you have some significant insights yourself into both sides of the equation.

QUESTION for you: Thomas Curran, Interim CEO at Interleuking Genetics, said in their Q2 conference call a few months back that ILG and Quixtar were co-recruiting for someone with a strong background in both the relevant science and in marketing to work on-site at Quixtar/Alticor to advise and assist with developing effective strategies for the Personalized Health program, including marketing/sales the Gensona brand of DNA tests. Can you give us a brief update where you are in that process? Still recruiting? Interviewing? Ready to announce this new person?

With appreciation, :)

Captain said:
October 12, 2007 5:56 PM | #

I don't think I'd be interested in consultation from a corporation that does this sort of thing: http://media.alticorblogs.com/2007/10/12/guerrillas-in-the-midst/

Ros said:
October 12, 2007 6:55 PM | #

Todd,

Excellent!

Great direction!

This will allow Quixtar and IBOs (and their LOS organizations and associated LOA) to strengthen their working relationships and better understand the changing needs of the IBOs and organizations and provide the support needed.

Thank You!

- Ros

___________________

Working together we can accomplish what we could not alone.

Steve said:
October 12, 2007 9:36 PM | #

Sounds to me that Amway is going to be taking over the LOA's (downlines) from the leaders in a sense.  Guess that would fit more with the retail focus of the business and making all ABOs more dependant on the corp than their upline.  Business is sure changing.

Utah said:
October 12, 2007 11:10 PM | #
Nice Post. Looks like some good ideas. Anyway to keep the Alticor blog people and attorneys from hurting Q/A?
pvbvguy said:
October 13, 2007 2:03 AM | #

Great stuff Todd Krause and Quixtar!!

The more involvement between the LOA's and the company and the more communication; the better this business will be.  It is this kind of initiative that will take this business places it has never been.  

I am so glad to see Quixtar's committment to continue transformation on all fronts.  There has been too much lip service for a long time.  I believe that you guys and gals are serious about this transformation stuff and it is really exciting!

P.S. We still need those 15-20 out front eye popping products.  Simply Nutrilite and Artistry Essentials are a good start but we need more.  I believe you guys will deliver; the sooner the better.  The eye popping products will be at the core of this initiative and it is up to you guys to deliver.  When you do we will have a true first circle, balanced business model.

rdknyvr said:
October 13, 2007 4:24 PM | #

Todd, a related question for this post about changes in Sales Support. Why is the exclusive to Quixtar Gensona brand listed NO WHERE in your lists of exclusive brands, but I see that the discontinued MagnaBloc continues to be profiled?

I've looked on the Alticor home page, and on the lists of exclusive brands on the Quixtar home and sub-pages listing exclusive brands, to no avail. Not to mention some of the new flyers that purport to show and promote our exclusive brands. Given the $45 million and counting investment Alticor has made in this brand, don't you think it should pop up SOMEWHERE with the other brands?

Can you comment specifically on this? I would appreciate an answer here on this blog.

With appreciation, :)

rocket said:
October 14, 2007 12:14 PM | #

That all sounds really nice.

When will the products become competitive?

Jeffrey said:
October 14, 2007 2:51 PM | #

That sounds good, but first, you need to break down the case lots and also give us more sample sizes of more products. I know I sound like a broken record, but people are still not going to spend $35 on something to see if they like it or not.

Dwight Spaulding said:
October 14, 2007 8:47 PM | #

Looking forward to this and other changes. Keep them coming! You guys are great!!

MinuteMan said:
October 15, 2007 2:34 PM | #

I thought these types of influences were what the IBOAI was designed to provide, i.e. Representation of the field to the Corp. Where do they fit in?

Big Bob said:
October 15, 2007 9:09 PM | #

    Why would the corporation, "obviously have expertise and insight" especially if they are not actually in the "field" working w/ new prospects??

    As "consultants" if that's a quixtar's sales stratagy plan, why would you want to focus on "managing relationships" when what people really benifit from is leadership!?!  

sheila Smiggen said:
October 16, 2007 11:13 AM | #

Hi rdknyvr -

Just a note on Interleukin - They are a public company, albeit, Alticor does have a vested interest in them.  Their marketing and promotional decision are made by the Interleukin management team.  Quixtar has a very close relationship with Interleukin, but we do not make their marketing decisions regarding the promotion of their genetic tests, nor do we direct their marketing efforts.  In addition, Quixtar does not  make decisions regarding their employees or who Interleukin hires. They really are a public company - they are truly accountable to their  shareholders.

Steve said:
October 17, 2007 11:28 AM | #

Why was my comment cut short?  I submitted 1-2 more sentences beyond what is showing.

Did it hit a little close to home?  In case you don't have my complete comments on file, I said something to the effect...

The business is sure changing.  It is unsure whether Amway will remain in business as an MLM in North America.  It may survive though as a manufacturer that moves its products in retail outlets.

I would appriciate you posting my complete comments.  Thank you.

 Editor's Note:

Steve,

The last sentence I show in the comment you submitted is "Business is sure changing." which is exactly how it was published. Not sure what might have happened to cut off any portion of the comment, but hopefully publishing this one will remedy the situation. If you've read the comments published across the Opportunity Zone, you'll note that we have no problem publishing those that are contrary or critical.

Thanks,

Anna Bryce

rdknyvr said:
October 17, 2007 9:20 PM | #

Hi Sheila, thanks for your  comment and insight. Not to be too disagreeable with your points, but you're not up to speed on the commercial relationships between Interleukin and Alticor, as clearly explained at the AGM and at the Q1 investors' call, and ILG Annual Reports. There are real issues there around marketing and sales which ARE on Alticor's plate and ARE Alticor's responsibility, not just Interleukin's. (In fact, there are some issues on which Interleukin's hands are tied, and completely in Alticor's court.) It was immediately after those unfavorable conditions were revealed that institutional investors dumped the ILG stock drove it to the bottom. Alticor's "launch and abandon" strategy last year (to use Beth Dornan's well-turned phrase) has been muchly responsible for the 80%+ destruction in ILG's share value over the past 15 or so months (about $120 million+ of stock value destruction).

As for responsibility for marketing and sales, Alticor is the exclusively contracted channel right now for Gensona... are you saying that Quixtar has no responsibility for marketing and selling it? Seems like a contradition on the face of it, compared to "SEC-public" statements by Interleukin executives, including Interim CEO Thomas Curran.

Also, trademark registrations for the GENSONA brand were granted by the US Patent and Trademark Office to ALTICOR on July 17 and July 24, 2007. This is ALTICOR's brand, NOT Interleukin's. That seems to be part of the problem... you guys look from the outside like you live in product silos and don't know what's going on. The fiasco in marketing and promoting Personalized Health, including Gensona is an outstanding example.

I'm smiling when I say this, but the point should be taken.

By the way, the "vested interest" Alticor has in Interleukin the public company is about $45 million and counting, and significant majority ownership position, with which Thomas Curran can concur. It was That's a lot of $$ for RDV to have tied up in a company that's not even breaking even on its genetic tests due to Alticor's ambivalence around marketing and positioning a very critical and key product in the Health Pathway.

If you read through the 2006 Annual Report, listen to the Q2 Investor's Call (still available on their site) and read through the Sept. 26 Investors' Presentation (on their site), that will provide a bit more insight. :) I've raised a number of these points directly with Ray Alexander by email, on the explicit recommendation of my upline Diamond, but without ever receiving even the courtesy of an acknowledgment back.

With appreciation,  :)

Steve said:
October 18, 2007 12:08 AM | #

Thanks Anna.  I didn't think that the comment was that critical or contrary to cause it to be altered.

With everything going on in the Alticor/Amway world these days it seems the corp is moving away from the soon-to-be ABOs.  If their intentions are to become more like Avon (which it seems is the case) I wish they would just come out and say it instead of causing so much anger in the field.

Have a great day.

A Kline said:
October 18, 2007 10:45 AM | #

When it comes to consulting IBO's and LOA's I have to ask Q..."what do you know? what are you qualified to consult about?".

I am extremely impressed with the branding you guys are kicking out ... it's unbelievable! the new pricing direction ... awesome. Your web marketing strategy.. incredible. Your tech team ... top notch.

But really ... consulting? I mean, you guys don't even sound like you know how to sell the product. Anything I've heard from Q about selling sounds like complete theory.

I think you're doing an amazing job with the branding and executive-level marketing, but really...consulting IBO's/LOA'S?

You still rock though.

sheila smiggen said:
October 19, 2007 2:51 PM | #

rdknyvr --  

Just to clarify - as I noted earlier, I am speaking from a Quixtar perspective - the North American affliate.  I am not speaking from a corporate, Alticor/Amway perspective.  The information I shared with you in my earlier email is accurate - Quixtar has a close relationship with Interleukin. However, regarding the marketing and promotion of their patented technology, we at Quixtar Health Marketing do not develop strategy for them outside of Personalized Health.  

In regards to the owning the brand name Gensona, yes, Alticor owns the brand name, but not the technology behind the name.  This was a strategic move should the Personalized Health Program wish to contract with other genetic testing companies who may have additional technology that may not be available through Interleukin.  

I am sorry to hear that you feel this was a fiasco - other IBOs who I have spoken with have voiced a more positive view on our efforts.

I appreciate your thoughts, however, and believe that this dialog is valuable. We are certainly open to any ways that we can improve upon PH and the marketing surrounding it.

I am working on getting some more detail from the folks at Alticor to respond to your concerns.

Thanks for your patience!

Michel said:
October 21, 2007 1:33 PM | #

Hi

For your information Zellers and Wal Mart ( Canada )are starting to price theyre products the same as US price ( they made that public to make sure that the cunsumers knows it )! Are we in the game ( same direction?).

I know that your are working on products and pricing ( that's good ), but ( for canadian IBO ) it still not evident if Q dont equal the pricing (US versus canadian ) .

Thanks for answering ...

Anna Bryce said:
October 25, 2007 4:48 PM | #

rdknyvir --

I did touch base with Tom Curran on the position ILGN is filling and he shared that what he said on the Q2 conference call was that ILGN is dedicating resources. including the hiring of a marketing and sales professional, to work with their strategic partner

on all marketing, selling, and various technical, educational , and communication aspects of genetic testing product sales.

According to Tom, this search is in process and we hope to have the position filled soon.

I realize this doesn't give you a specific date but I'm sure that all depends on the right candidate!

rdknyvr said:
October 25, 2007 5:44 PM | #

Thanks Anna, that is what Tom said on that call. I was looking for some encouragement above that Personalized Health as a marketing concept was a key part of your plans going forward and that there was follow through by both Quixtar and ILG, which was the basis for my original question to Todd above. And that you're not going to abandon it as something too hard to promote just because you/they haven't cracked that education and marketing nut. Some of our competitors have figured out how to successfully market and grow their businesses including "technology intensive" products, and we should be able to do so as well. I also realize that as a public company, ILG needs to announce that kind of hiring (when it happens) in an appropriate forum, and not on a blog. :)

I owe Sheila an apology (and I do apologize) for replying the way I did... probably a private email would have been a better way to communicate the concerns and frustrations that actually had little to do with her.

Anyway, thanks to both of you for the updates and your patience. Overall, all the elements of the Transformation are wonderful and hugely uplifting.

With appreciation, :)

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