Debunking Quixtar IBO lies.
"Remember, in order to keep this business opportunity shining bright, you need to accurately portray quixtar, and the best thing that you can say about quixtar is that it's a completely new business model designed specifically for the Internet, and backed by Amway."
Ken McDonald, March 5, 1999
"Quixtar has consistently exaggerated the role of Microsoft's involvement in this project. "
Microsoft spokesperson, August 25, 1999
Here are a few of the outrageous claims I've seen about Quixtar. These claims have been sent to me in e-mails by IBOs, people who ought to know better. But it would seem that the hypesters never learn. . .
The Lie: "Nordstrom will be a partner. . ."
The Truth: "Department store Nordstrom said today it will work with Benchmark Capital to establish a subsidiary for its catalog and Internet operations in the latest attempt at combining the brand of a traditional retailer with the savvy of a Silicon Valley investor to create an e-commerce powerhouse. "
"Now, before I give you the categories of the partner stores, I do need to stop a false rumor that's been circulating about a supposed partner. It is not true that we are negotiating with a store by the name of Nordstrom. In fact, because IBOs are spreading this untrue rumor, there may never be a business relationship between Quixtar and Nordstroms."
Ken McDonald, Amvox Leadership Hotline, June 12, 1999.
The Lie: "THE SITE WILL BECOME THE LARGEST E-COMMERCE SITE EVER CONCEIVE"
"The Quixtar site will offer thousands (actually, over 100,000) of brand name products from brand name retailers, e.g. The Gap, Nordstrom's, Sony, Panasonic, Reebok, Adidas, Toshiba, Lee, Ralph Lauren, Whirlpool, Kellogg's, etc. etc, etc. Designed to handle up to six million customers per day! A true virtual mall more comprehensive than anything else currently in existence. existence. There will also be links to other e-commerce retail sites, e.g. Amazon.com, Land's End. . . . (You'll even by able to buy cars!)"
The Truth: "The e-commerce venture will not be another me-too virtual mall with hundreds of stores. . . We currently envision 12 to 100 of these merchant partners with smaller amounts of PV/BV compensation flowing upline"
Ken McDonald, Jan. 21, 1999.
The Lie: "Quixtar will be owned 51% by Amway and 49% by distributors."
"The people who started Amway are primarily responsible (although Quixtar is completely separate from Amway) but they have two partners that you know well -- IBM and Microsoft."
"He claims that Bill Gates bought out Amway, or Quixstar, and the reason that Amway is saying that Bill Gates isnt involved on their website is because they cannot say so until September 1st, to protect themselves or the investors or something."
The Truth: "Quixtar, Incorporated is a Delaware corporation, owned by the DeVos and Van Andel families. Quixtar, Inc. is a sister company to Amway Corporation. It will not be owned by Amway, but rather by our two families."
Dave Van Andel, March 12, 1999
The Lie: "A college education is good to have and for some of us it has made a difference in our earning power, but it is interesting to note that Bill Gates barely got through high school"
The Truth: "In his junior year, Gates dropped out of Harvard to devote his energies to Microsoft, a company he had begun in 1975 with Paul Allen."
http://www.microsoft.com/billgates/bio.htm
The Lie: "There was a recent David Letterman show with Bill Gates as the guest and he was asked what's new and exciting and he said 'Quixtar'."
"Bill Gates on the Jay Leno Show said that Quixtar was the wave of the future and will control the internet in the future"
". . .the "owners" of the Orlando Magic, and how Bill Gates sponsored this Quixtar program. . ."
"It was promoted to me as a business started by Microsoft, IBM and the "Owners of the Orlando Magic"."
"Microsoft has Invested 230 million dollar. . ."
"The best one is that Microsoft and IBM have invested $250 Million into Quixtar - I am a shareholder of Microsoft and I saw nothing in the annual report that even mentioned Quixtar, let alone any money was invested into it - When I mentioned this they quickly changed the subject to how big online shopping has gotten."
"They kept saying it was a "joint venture" between Microsoft, IBM and some company named A-corp."
"Quixtar "it can't lose - it's backed by IBM & Microsoft"
"He invited me to attend the meeting... adding (and this is the part where I need your help) that Microsoft had invested in the company ($50 million)."
""A ‘friend’ called and described this exciting business opportunity by a new company partnering with Microsoft and IBM"
". . .they did claim that IBM and Microsoft were major investors in their company."
"They said that this new company "Quixtar" was founded by the sons of the Amway corp. and that Microsoft and IBM had personally invested $250 Million of their dollars into this new corportation."
"Do you think that they (Microsoft, Frye Multimedia (Tada!) and IBM) are partnering with us for nothing? They want to be part of what we are doing."
The truth: an e-mail to me from a Microsoft spokesperson, dated August 25, 1999.
"Thank you for your inquiry on Microsoft.
"Microsoft Corporation, specifically Microsoft Consulting Services, is a consultant to the Amway development staff. Microsoft is supporting its partners, Fry Multimedia and Amway, as their clients, through the completion of the e-commerce project for Quixtar. Microsoft is providing the technical
platform, development tools, consulting, and direct support for web-based components of the project."We are aware of the rumors you pointed out. Unfortunately, Quixtar has consistently exaggerated the role of Microsoft's involvement in this project. Microsoft has not made a direct financial investment in the company, nor can we verify that Bill Gates promoted the project on any TV talkshow. (Emphasis is mine.)
"I hope this clarifies the situation for you. Please let us know if you have further questions.
"Sincerely,
"The Microsoft Rapid Response Team"
