Wednesday, November 23, 2005


I was first prospected by a Quixtar/Amway IBO about 4-5 years ago. I listened to the pitch, and was initially interested. But when I started asking some hard questions (a topic I will explore in detail in a minute) all I got was evasive nonsense. Tapespeak, if you will. Of course, I didn't know about the SYSTEM scam at that time. And he kept harping about bestselling author Robert Kiyosaki's book RICH DAD, POOR DAD.

Later on, when I got home after my conversation with him, I did a google-search on Kiyosaki, and guess what? I chanced upon John T Reed's (WestPoint Graduate, Vietnam Vet, Harvard MBA, Successful Real Estate Investor & Author) blistering review of Kiyosaki's book! OUCH!! ;-) Man, I would hate to be Kiyosaki ;-).... I have an undergraduate degree in Mech. Engg. and an MBA with a concentration in Finance. I am NOT trying to brag (Quixtar/Amway IBOs will usually try to impugn the credibility of a critic by questioning his credentials), but I can say at the cost of modesty that I was always good at numbers. I borrowed the book from the library after reading the review, and found out that John T Reed was right on target - the book was pure drivel! Especially, Kiyosaki's anecdote about his investment in Real Estate Notes, was positively HILARIOUS ;-)! I fell off from my chair ;-)) laughing!! ANYBODY who has taken even an Introductory Course in Finance or understands TimeValueOfMoney Principles (the fundamental principle in Finance) would agree with me.

Going back to the hard questions (read the analysis of the cost and time it takes to run this business, explained by a former Quixtar IBO). When the guy presented the whole 'buy $250 (100 PV) worth of stuff every month and teach others to do the same' (F.Y.I., this advice is ILLEGAL) scheme, my first question was, WHAT THE HELL CAN YOU BUY FOR $250 EVERY MONTH FROM QUIXTAR?? I mean, how much soap, how much detergent, how much deodorant, how much toothpaste, how much toilet-paper, can you buy in a month?? I asked him how much stuff he was buying from Quixtar every month, for his own use? He immediately changed the subject! I figured right away that most people can't buy $250 (100 PV) worth of stuff every month, UNLESS the products are WAY OVERPRICED! So, I asked him if the prices are comparable to products on the market/in retail stores? He immediately said, the prices of the products don't matter, because even if you pay more for the products (say $100 every month), you still make money by recruiting a lot of people underneath you. (Of course, you didn't have to be a genius at this point to figure out that the products WERE overpriced, which is why he was pitching the recruiting angle) So, I asked him if it was ETHICAL for me to tell somebody else to spend/waste an extra $100 every month so that I could make a profit off of them??!! His answer was, "well, he can recruit other people too and make a profit off of their consumption". So, what about the other people that are recruited? Wouldn't they be forced to spend/waste an extra $100 every month, also? His Predicable Answer? Well they too can recruit more people! So, I kept pushing the argument further and further along these lines.... BUT, the population on the earth is finite, and EVENTUALLY, there WILL BE some people (a majority, I dare say) who will be LEFT HOLDING THE BAG!! At this point he just gave up and told me to read Kiyosaki's book, and that Kiyosaki recommends this business.

THIS ethical question, was my fundamental problem with the business. You can ONLY profit off of the LOSS of OTHER PEOPLE! But I couldn't fathom the fanatical devotion and conviction of these people, how, inspite of the truth being rubbed in their face they couldn't see it. I was left scratching my head! With resignation, I attributed it to the lavish life-style of the guys at the top of the pyramid, that they are repeatedly shown. And that powerful hook, the promise of residual income and the promise of unlimited time to spend with family. I didn't know about TOOLS/SYSTEM SCAM at this point.

My questions were answered while reading John T Reed's review of Kiyosaki's book. He had a link to the mother-lode, the bible of all Quixtar/Amway related information, the marvelous site by Scott Larsen,, where I found out what was motivating these IBOs, and what was the source of the wealth of the guys at the top of the pyramid. I was nauseated, especially as I read further and found all the distortions of scripture that these people indulged in. I was horrified as I read account after account after account, of how people's finances, friendships and marriages were destroyed!

I became obsessed and as I scoured the internet for more information, I found other critics' websites, including Russell Glasser (The Perils Of Amway, one of the funniest websites). To quote Russell, I also got a ;-) 'Lone Ranger' Complex.... I decided that I had to do my part, do my civic duty. To inform potential recruits about these deceptions. So every time I got prospected I would listen patiently, and if I got a chance to go to an Open Meeting, I would go there and try to reach out to the potential new recruits. Often times, when it seemed like the guy prospecting me was suspicious and wouldn't invite me to an open meeting, I would put him on the spot by presenting the evidence to refute all the lies, deceptions, and half-truths he had told me (I would always take copious notes of whatever they would say - maybe I should start taping them). I would then try to convince him to either get out or not indulge in these despicable acts. Or, I'd threaten to report him to the FTC for violating the retail sales rules.

Needless to say, I have had some interesting ;-) experiences..... I had a VERY interesting one yesterday, which I will write about shortly. I will also try to recollect my experiences over the past 5 years and recount them here.Why do I do this, you ask? One, I hope that somebody who is a potential recruit will chance upon this blog and be informed of the truth, and hopefully be dissuaded. Second, I hope [actually I think I am ;-) sure], Quixtar/Amway IBOs will read this and be scared of feeding lies, deceptions and half-truths when prospecting strangers....

Stay tuned....


As my profile mentions, I am a Conservative. And a Southern Baptist. And definitely a Capitalist. BUT, my idea of Capitalism is NOT Ripping People Off!! And my idea of Christianity is definitely NOT 'talking a pious talk and at the same time deceiving people and robbing them'! Nothing ticks me off more than people who take advantage of other people! Just because somebody doesn't know any better, doesn't give you the right to take advantage of them.

As the incomparable John T Reed said "It is unethical to sell an investment which is unsuitable for the purchaser. An unsuitable investment is generally one which requires more sophistication and ability to lose money than the investor in question possesses."

Enough said.