Frequently Asked Questions regarding Team In Focus, the Entry Level Plan, and the Maximum Achievement Program are available here.
The date was April 24, 2002.
Questions and Answers Index
1. What is Team In Focus (TIF) and how does it work?
2. What is the Entry Level Plan (ELP) and how does it work?
3. What exactly is a pyramid scheme that is illegal?
4. Is this Entry Level Plan in violation of the law?
5. What is the legality of Quixtar?
Sixth, what is the distinction between Quixtar and Team In Focus?
Seven. What distinguishes the Entry Level Plan compensation plan from other types of compensation plans?
8. Isn't the Maximum Achievement Program (MAP) bundle itself a product in and of itself?
9. What efforts has Quixtar done in collaboration with Team In Focus leaders to ensure that the Entry Level Plan complies with the Rules have been successful?
Which specific Rules is the Entry Level Plan in violation of?
12. Describe the federal and state laws that have been violated.
12. What modifications are required to the Entry Level Plan in order for it to be legal?
How is the money that is received from the sale of the MAP packs distributed? 13.
14. Is it possible for me to get into problems for purchasing a MAP pack?
What is the process for getting a refund for the MAP pack that I purchased?
16. Has my upline Diamond's position been terminated?
17) How can you get rid of Diamonds who have given their entire lives to the Quixtar business for all of these years?
In the event that my Diamond account is terminated, how would this affect my Quixtar business?
Is it necessary for me to choose between Quixtar and Team In Focus?
Whether I promote or engage in the Entry Level Plan, what will happen is unknown.
21. According to my upline, the Entry Level Plan was created to assist those who want to start a Quixtar business in earning more money more quickly. Is Quixtar opposed to a new IBO generating greater revenue?
22. Is there anything in place at Quixtar to assist us in earning more money now that we are unable to participate in the Entry Level Plan?
23. Is there anyone else with whom I can discuss this further?
1. What is Team In Focus (TIF) and how does it work?
In Quixtar, distinct Lines of Sponsorship that have a common approach to growing the business frequently collaborate with one another to achieve success. This type of organisation is likely to employ the same Business Support Resources (BSMs) — educational and training materials and programmes — as other similar organisations. Team In Focus was an example of such a group.
2. What is the Entry Level Plan (ELP) and how does it work?
The Entry Level Plan is a programme run by a group of former independent business owners (IBOs) linked with Team In Focus. Quixtar has no affiliation with or approval of the Entry Level Plan and has no involvement with it in any form. In order to better understand what the Entry Level Plan is and how it operates, Quixtar met with Team In Focus Diamonds. As a result of our discussions, we have concluded that the Entry Level Plan is an illegal pyramid scheme that violates state and federal laws, as well as the IBO Rules of Conduct.
3. What exactly is a pyramid scheme that is illegal?
In a typical pyramid scam, the following things happen:
Participants are urged to make a significant up-front payment, the majority of which is immediately paid upline as compensation for the act of recruiting or persuading the new participant to pay the money, and participants are also encouraged to make a significant down-payment.
Participants are told that they can earn back their up-front payment by encouraging others to make similar payments, based on similar claims that they can earn money by recruiting others, and so on, and that they can earn back their money by persuading others to make similar payments
In the case of end-user consumers — those who just intend to purchase a product or service but do not anticipate to make money by urging others to join — there is no actual goods or service provided.
Those who are positioned higher in the pyramid (or who join earlier) have a better chance of making money than those who are placed lower in the pyramid.
The Federal Trade Commission's (FTC) explanation of an illegal pyramid scheme, as well as some recommendations on how to determine the difference between an illegal pyramid scheme and a legitimate business opportunity such as Quixtar, can be found at [www.ftc.gov/bcp/conline/pubs/invest/mlm.htm].
4. Is this Entry Level Plan in violation of the law? Why?
For a variety of factors, Quixtar has established that the Entry Level Plan is a thinly disguised illegal pyramid scheme, according to the company. Here are a few examples:
Only by persuading others to purchase a Maximum Achievement Program (MAP) pack will you be able to make any money.
TIF informed us that the majority of the money paid for each MAP pack — around two-thirds of the purchase price, according to TIF — goes directly into the wallets of the upline as incentive for enticing the new member to purchase a MAP package.
While the MAP pack contains a few products, such as tapes and a personality profile, the MAP pack's extremely expensive price prevents it from being sold to anyone who is not interested in making money by selling MAP packs to others. In contrast to consumable items such as nutritional supplements, household cleaners, or cosmetics that an end-user might purchase for use in his or her home, it is not a consumable item such as a pharmaceutical. Only IBOs that believe they can earn money selling MAP packs to other IBOs are aware of the existence of a market for MAP packs. There is no method to sell a MAP pack to someone who is not an IBO, and there is no reason for someone who is not an IBO to want to buy a MAP pack.
As the Entry Level Plan is implemented throughout the Team In Focus organisation, people at the top of the organisation — Diamonds and Emeralds who act quickly — will be able to generate money quickly and easily just by selling MAP packs to their existing legs. Sales to their downline would almost certainly be made by IBOs in their legs who purchased their first MAP pack straight away, and so on. The higher a Team In Focus IBO's level in the organisation and the later a Team In Focus IBO begins attempting to sell the MAP pack to others, the fewer IBOs will be left who haven't either purchased or otherwise decided they do not want to engage in the Entry Level Plan. The Entry Level Plan would be easier to make money in any way you look at it, and it would be easier for downline, and especially newly registered IBOs, to lose the money they paid for MAP packs. As a result, the Entry Level Plan is deceptive and unjust to new Independent Business Owners (IBOs).
Compensation systems such as the Entry Level Plan have been repeatedly condemned as deceptive and unlawful pyramid schemes by courts as well as state and federal law enforcement agencies such as the Federal Trade Commission (FTC), the Securities and Exchange Commission (SEC), the United States Postal Service, and numerous state consumer protection organisations. When in doubt, you should speak with an experienced attorney, and you should recommend that he or she read the 1979 Federal Trade Commission judgement, which explains in full why the compensation model on which the Quixtar firm is built is not an illegal pyramid scheme. The Federal Trade Commission's judgement highlights numerous forms of illegal pyramid schemes that are quite similar to the Entry Level Plan but are fundamentally distinct from the Quixtar system. Information about the elements of an illegal pyramid and fraudulent schemes can be found at the following address: 164.62.7.30 /bcp-conline-publications-investment-multilevel-marketing-scheme-research/mlm-scheme-research.htm.
5. What is the legality of Quixtar?
The Federal Trade Commission (FTC) issued a ruling in 1979 on the validity of the compensation plan on which the Quixtar business is founded, concluding that it is a valid business opportunity. Certain major findings of the Federal Trade Commission (FTC) help to show the essential distinctions between Quixtar and the Entry Level Plan.
The cost of being an IBO is extremely minimal — simply a fraction of the cost of a single MAP pack — and no IBO may earn an income solely by registering additional IBOs unless and until those IBOs also make product sales themselves.
If an IBO does not comply with the Member/Client Volume Rule and moves at least 50 PV to Clients or Members each month, he or she will not be eligible to receive a Performance Bonus from Quixtar based on the sales of his or her downline. There is no such rule in the Entry Level Plan, and there isn't even a product to sell at retail as a result of this.
All Quixtar items are covered by the Buy Back Rule and the Satisfaction Guarantee, which are both available online. Under these Rules, IBOs who purchase a MAP pack are not eligible to receive a refund of their purchase price.
Others of Quixtar's Rules, such as the 70 percent Rule, ensure that the Quixtar firm is a genuine entrepreneurial opportunity. There are no such restrictions in the Entry Level Plan.
6. what is the distinction between Quixtar and Team In Focus?
Quixtar is the corporation that provides the fuel for your business, and Team In Focus was a group of former independent business owners that provided assistance and training to other independent business owners. To put it another way:
Quixtar is the infrastructure that underpins your company's operations. Quixtar owns and administers the Independent Business Ownership Plan, runs the company's website (quixtar.com), manufactures and distributes the products and services, provides customer service, pays your bonuses, and basically handles all of the other behind-the-scenes activities so that you can concentrate your time and effort on growing your business.
Team In Focus provided educational and training materials as well as activities to assist you in growing your Quixtar enterprise.
7.What distinguishes the Entry Level Plan compensation plan from other types of compensation plans?\
This plan is distinguished by the fact that IBOs are encouraged to purchase the MAP pack primarily as an income possibility that is separate and different from Quixtar's business. Some products in the MAP pack may be useful to some IBOs in their Quixtar business, but the primary selling message is "make money quickly by selling MAP packs to other Quixtar IBOs." Other reputable training courses place a strong emphasis on assisting independent company owners (IBOs) in building a profitable Quixtar business. The Entry Level Plan is also illegal because participants only receive money by bringing in new members, which is against the law.
8. Isn't the Maximum Achievement Program (MAP) bundle itself a product in and of itself?
The MAP pack contains training materials that should be useful in the development of a Quixtar business. End-users who do not join in the compensation scheme might nonetheless benefit from legitimate business possibilities that provide things of value to them.
9. What efforts has Quixtar done in collaboration with Team In Focus leaders to ensure that the Entry Level Plan complies with the Rules have been successful?
Since March 2015, the Corporation has participated in extensive contacts with members of Team In Focus leadership about the promotion of the Entry Level Plan. These communications have lasted approximately three and a half months. We conducted consultations with them in an effort to assist them in developing their Quixtar-affiliated enterprises and to teach others how to develop successful Quixtar-affiliated businesses without the use of fraudulent or unlawful practises. In addition, our attorneys met with their attorneys and gave various ideas on how to ensure that the Entry Level Plan complies with the Rules and regulations. Despite this, the Team In Focus leaders created the Entry Level Plan, which is a step-by-step guide toThe IBO Rules of Conduct as well as federal and state laws were broken.
Which specific Rules is the Entry Level Plan in violation of?
Entry Level Plan violates IBO Rules of Conduct, namely Rules 4.9 and 4.10, which prohibit IBOs from participating in deceptive or unlawful trade practises (Rule 4.9) and from operating any illegal or unlawful business venture (Rule 4.10). (Rule 4.10).
12. Describe the federal and state laws that have been violated.
In the case of these difficulties, a slew of federal and state statutes come into play. They include the Federal Commercial Commission Act, the 1933 Securities Act, state pyramid and unfair trade practises legislation, as well as a substantial corpus of case law that interprets these and other statutes and regulations..
12. What modifications are required to the Entry Level Plan in order for it to be legal?
As previously stated in #4, eliminate the pyramidal properties.
How is the money that is received from the sale of the MAP packs distributed? 13.
According to the TIF leaders, the cost of generating each MAP pack is roughly $100, of which approximately $120 is paid in immediate bonuses to the seller and upline, and the remaining $80 is held for the Diamonds to utilise for their own purposes. As you can see, $200 of the $300 payment for the MAP pack is set aside to repay the salesperson and upline for their efforts in persuading a participant to purchase the MAP package.
An IBO will require more than a dozen MAP packets sold in each of his or her "right" and "left" legs in order to break even, according to TIF's marketing materials. In order to break even, each of those dozen must find 12 or more one-time MAP pack clients, and so on. Our belief is that it is unavoidable that the final persons to purchase the MAP packets will have no chance to earn the money promised by the Entry Level Plan, and that the Entry Level Plan is intrinsically dishonest and unfair to Quixtar Independent Business Owners (IBOs).
14. Is it possible for me to get into problems for purchasing a MAP pack?
No. Please remember that promoting and participating in the Entry Level Plan would be a breach of the same Rules for which certain Diamonds were terminated, and would put you in violation of the same federal and state laws as they were for which certain Diamonds were terminated.
What is the process for getting a refund for the MAP pack that I purchased?
IBOs that purchased the MAP pack are entitled to a full refund from the supplier in accordance with the IBO Rules of Conduct. According to the IBO Rules of Conduct, suppliers of BSMs are required to issue refunds upon request within 180 days of the purchase date. If you desire to receive a refund, you must first contact the individual from whom you purchased the MAP pack. If you have sold a MAP pack and collected money, you are expected to provide a complete refund to each person to whom you sold the MAP pack if they so request it within 30 days of the sale.
16. Has my upline Diamond's position been terminated?
Six Diamonds have been terminated from Team In Focus (Andy & Polly Andrews, Gerry & Sharon Betterman, Gayle Collinsworth, Mike & Lynn Jakubik, Ron & Melanie Rummel, John & Pat Terhune), and the majority of the remaining Diamonds have resigned when threatened with termination (Gerry & Sharon Betterman, Gayle Collinsworth, Mike & Lynn Jakubik, Ron & Melanie Rummel, John & Pat Terhune).
17) How can you get rid of Diamonds who have given their entire lives to the Quixtar business for all of these years?
Termination is never a simple decision, and it should only be utilised as a last resort in extreme circumstances. We were left with no choice after three and a half months of pointing out to the former Diamonds in Team In Focus that the Entry Level Plan is illegal and in violation of IBO Rules of Conduct, and the unfortunate decision made by certain Diamonds to proceed with its launch left us with no other choice besides to sue them. The action taken was necessary in order to secure the long-term viability of the Quixtar firm and to ensure that the Independent Business Ownership Plan opportunity would be available to all future employees and shareholders.
In the event that my Diamond account is terminated, how would this affect my Quixtar business?
Quixtar is now collaborating with your Line of Sponsorship to guarantee that you receive the training and assistance that you need and deserve. And even though your upline Diamond is no longer active in the business, you are still a member of one of the most exciting industries on the planet. In fact, Quixtar was recently ranked second in consumer e-commerce in the United States, according to a recent report. So, even with everything Quixtar has to offer — wonderful products, a tried-and-true business model, a fantastic Web site, and superb service — you still have what it takes to develop a successful business.
Is it necessary for me to choose between Quixtar and Team In Focus?
Either one of two options is available: either do not break the Rules of Conduct or do violate them. At the moment, the Entry Level Plan is in violation of the Rules.
Whether I promote or engage in the Entry Level Plan, what will happen is unknown.
The Corporation will be placed in a situation where it may be required to enforce the Rules of Conduct by taking action that may include, but is not limited to, terminating the contract between Quixtar and your independent business that is linked with Quixtar.
21. According to my upline, the Entry Level Plan was created to assist those who want to start a Quixtar business in earning more money more quickly. Is Quixtar opposed to a new IBO generating greater revenue?
Quixtar wants new IBOs to produce money as soon as possible. As a matter of fact, Quixtar provides a legal business opportunity that allows new independent company owners (IBOs) to start earning money right away by selling products to Members and Clients who are referred to the Quixtar Web site.
22. Is there anything in place at Quixtar to assist us in earning more money now that we are unable to participate in the Entry Level Plan?
Absolutely. In order to provide you with a wide variety of options for earning as much money as you like, the Quixtar business opportunity has been carefully and lawfully designed:
To begin, navigate to www.quixtar.com. You'll find thousands of products and services — including Quixtar exclusives, Store For MoreTM merchandise, Hot Buys, Partner Stores, and more — that can help you build a stable source of income by encouraging your Members and Clients to purchase these high-quality, name-brand products and services.
Additionally, make certain that every IBO you've registered, as well as all of your Members and Clients, is using the Ditto DeliveryTM Service. It's an excellent method of generating volume on a consistent basis.
Then you can continue to use the site and your own personal touch to register others as IBos as time permits.
Finally, when you total up all of the incentives accessible through the Sales Incentive Program, you have an incredible menu of money-making opportunities on your hands.
Since its inception in 1999, Quixtar has enjoyed phenomenal success, and the company's sales and IBO registrations continue to expand in a good manner to this day, indicating that the business is on the right track.
23. Can you recommend someone with whom I can discuss this further?
We'd be delighted to speak with you and answer any questions you may have. Call Business Information Services at (616) 787-7636 for more information.
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