3.28.2006

How Bo Short Once Was Lost (But Now He's Found.)

Or
"What's Good For The Goose...?"


If Robert "Bo" Short could be said to be known for one thing, it would probably be the "problem" he set out to fix when he, formerly a Quixtar Diamond, left Quixtar to form his own direct sales company, Passport.
The problem, as Bo saw it (and as he eagerly broadcast on Dateline NBC) was that there was "another business" offered through the Quixtar Diamonds' Lines Of Sponsorship (LOS) - the sales of instructional & motivational products and services.

As we established in a previous post, the ability of an individual to assemble a large, multilayered organization of volunteers is a highly valued skill in every significant aspect of life-- business, politics, religion, etc... By the nature of the Quixtar compensation plan, a Diamond must develop and execute that very skill in the process of qualifying for the Diamond level.

Since the qualification for a Diamond is to have mentored 6 individuals to the point of each simultaneously distributing 7500 points of volume (roughly $21,000 worth of products) monthly, this is not only a leadership skill, but a marketing skill as well, because the qualifying Diamond AND the 6 "legs" or individual business groups are each qualified strictly by the measure of the 7500 points of product volume sales.
As I expressed in that post, imagine the potential if these individuals (Diamonds), having developed the skill of assembling large organizations of volunteer entrepreneurs, actually introduced products and services into the organization. Well, technically, that's the whole point of the Quixtar business model, isn't it? Except the products and services from the supplier Quixtar actually came first, else there would have been no reason to create an organization.

So there's a Diamond, there's an organization built by the Diamond, and there's a Supplier (Quixtar) with a range of a couple million plus products & services.

Or more simply: Leader, Organization, Supplier "A", Products & Services "A"

Now, the part that Bo Short seems to have objected to is that Leader, having already established Organization to distribute Products & Services "A" from Supplier "A", goes on to introduce Products & Services "B" from Supplier "B", being instructional and motivational products and services from a supplier in which Leader has ownership.

Assuming that purchase of Products and Services "B" from Supplier "B" is optional, and that Organization is aware of their optional nature (as is the case if the BSMAA has been read and signed) then I must respectfully disagree on principle with Bo Short's objection.

I do not see which part is objectionable...

  • Is it the introduction of a new Products & Services "B" from new Supplier "B" which is different than the primary Products "A" and suppliers "A" that Organization originally contracted to distribute?
  • Or is it that Leader has ownership in Supplier from which Organization gets Products & Services?

I cannot object to either, based on Free Market principles. While Organization consists of independent entrepreneurs, they are also essentially a subscriber base or consumer base which Leader has established. Isn't it then the right and discretion of Leader to be able to introduce additional Products & Services or additional Suppliers? Isn't it an object of entrepreneurship to "see a need and fill it?"

Of course, I would advocate very firmly for transparency and ethical practices in this process. And let it not be forgotten that the whole purpose of offering such products is to ultimately enhance the opportunity for even the newest IBO. I would also advocate strongly for giving the IBO/consumer as many choices as possible (including the option to also profit from Products & Services "B"). And after all, isn't it ultimately the consumer which determines which Products & Services, or which Suppliers will succeed? Isn't the vote made with the dollars of the consumer?

(An ideal situation would be for the IBO/consumer to have multiple choices even within a particular Product & Service line from a particular Supplier, as is exemplified very honorably by the WWDB system, which offers choices such as retail vs. wholesale pricing on Tools (CDs/DVDs/Literature), competitive book prices in comparison to Partner Store Barnes & Noble, pricing of services by tiers of service levels to fit a range of budgets, and value bundles of Products & Services-- such as offering eoffice, a my.biz website, and benefits like free guest tickets to major functions, all together with wholesale pricing on tools, via Premier Membership.)

So anyway, at the point of Leader Bo Short quitting Quixtar to form Passport and organize distributors (Organization), it seems he was essentially saying "No!" to the concept of offering a greater range of Products & Services, and Suppliers, to Organization. Again, I must respectfully disagree with Mr. Short's decision at that time-- I heartily endorse the Free Market principle of giving your consumer base (Organization) the widest range of choices as possible and let them determine what will fail or succeed.

But Bo Short, apparently then lost on a key concept of the Free Market, felt otherwise.

What is quite clear, however, is that Bo Short did NOT object to the concept of Leader having ownership in a Supplier through which Products & Services are distributed to Organization, as evidenced by his founding of the Passport company. Based on Free Market principles, I cannot slight Mr. Short in this... After all, he has demonstrated his leadership skills by developing his Organization, and I heartily applaud his entrepreneurial spirit by introducing Products & Services through a Supplier in which he has ownership. He saw a need and filled it. He deserves the fruits of his labor.

I am quite pleased to discover though, that Mr. Short has once again found himself in regards to the other key Free Market principles.

You see, Bo Short (Leader) having already established Organization (Passport distributors) to distribute Products & Services "A" (Passport's Product & Service offerings) from Supplier "A" (Passport company), went on to introduce Products & Services "B" from Supplier "B", being Oasis Lifesciences Product & Service offerings from Oasis/Univera).
Not only were Products & Services "B" and Supplier "B" NOT the Products & Services or Supplier that Leader's Organization originally contracted to distribute, but the entire compensation plan the Organization was operating under was dissolved in favor of the compensation plan from the new Supplier "B". Wow-- that's a pretty dramatic development.

But again, I must heartily uphold the Passport leadership's right to do so under Free Market principles, and I find it fairly reassuring for the distributors' sakes that the new Oasis/Univera supplier at least gave them the diversity of another couple hundred product options. And I find it quite honorable of them to still make the original Passport products available for personal and customer use, as well as giving a significant price break to distributors.

However, given Mr. Short's original objection, and then observing this development, which he is "thrilled about," I find myself quite puzzled on what this whole exercise has been all about. I don't see a significant difference in business practices-- Bo Short has simply returned to some of the same Free Market principles which many Quixtar Diamonds also follow. I congratulate him on this. But that leaves me wondering-- exactly what was at the root of his original objection? Let me restate the situation again to see if I can understand:

  • Quixtar Diamonds (Leader) establish Organization through which Products & Services "A" are made available via Supplier "A". Leader also introduces Products & Services "B" to Organization, via Supplier "B", in which Leader has ownership.
(Bo Short doesn't profit from Products & Services "B" and objects.)
  • Bo Short (Leader) establishes Organization, through which Products & Services "A" are made available via Supplier "A", in which Leader has ownership. Leader also introduces Products & Services "B" to Organization, via Supplier "B".

(Bo Short profits both from Products & Services "A" and "B" and doesn't object.)

Ohhh... so that is what sets them apart.

Now, the purpose of this illustration is not to criticize Bo Short, the Passport team (including my esteemed occasional reader/commenter and Passport President, Ty Tribble) or the Oasis/Univera Lifesciences opportunity. Rather, I have affirmed the right and merit of each party in pursuing Free Market principles. However, I encourage them to affirm the right and merit of Quixtar-affiliated IBOs and organizations doing the same as themselves.

I'm simply putting into perspective their criticisms of Quixtar IBOs in relation to their own actions. Since the same Free Market principles are in play in each case-- their objections therefore lacking in substance-- their own interests should be quite apparent.

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1 Comments:

Blogger anonibo said...

To clarify, you mean that the terms of an IBO contract with the supplier Quixtar prohibits signing a contract with competitive suppliers of a similar business type? Shocking! The "real" business world never applies non-compete clauses in their contracts... ;)

It does not, however, prohibit IBOs to also own other non-competative businesses.

4:58:00 PM  

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