User:Trevor Bekolay/TEAM (company)
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TEAM, formerly known as Team of Destiny, is a leadership development company founded by Orrin Woodward and Chris Brady in 1999 in Michigan. TEAM is an acronym that stands for Together Everyone Achieves More.
Woodward and Brady are former IBOs (Independent Business Owners, a.k.a. distributors) of the multi-level marketing company Quixtar, as well as members of the board of directors of Quixtar's IBOAI (IBO Association International, representing Quixtar IBOs). After having built successful Quixtar businesses, Woodward and Brady created TEAM as a training company to help Quixtar IBOs in their business. TEAM and Quixtar ended their relationship in August 2007. This was accompanied by a series of lawsuits from both sides, as well as the exit of Woodward, Brady and several other high level distributors, from Quixtar.
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[edit] Name and terminology
According to the TEAM's Better Business Bureau entry, its officially incorporated name is Signature Management Team, LLC and was created on March 1, 1999 as a limited liability company.[1] At that point, the company referred to itself as Team of Destiny. TEAM joined the Better Business Bureau on August 22, 2003. On November 1, 2004, the name was officially changed to TEAM by founder Orrin Woodward.[2] In the audio message that announced this change, Woodward reasons that calling the organization TEAM makes referring to teams within TEAM simpler and more cohesive.[3] Some bloggers have noted that searching the internet for the term "TEAM" returns far fewer results related to the organization than "Team of Destiny", making it more difficult to find information from sources other than TEAM itself.[2]
When TEAM was affiliated with Quixtar, TEAM was referred to as a Line of Affiliation (LOA).[4] Other sources refer to TEAM as a Line of Sponsorship (LOS),[5] a Professional Development Program (PDP), or an Amway/Quixtar Motivational Organization (AMO/QMO). Such organizations are typically started by an IBO after reaching a high level of success in their Amway/Quixtar business. Their purpose is to supply Business Support Materials (BSM) in the form of tapes, CDs, seminars and meetings to IBOs. Other examples of such organizations include Britt World Wide and Network 21. Woodward achieved the level called executive diamond (EDC), and Brady founders diamond in their Quixtar businesses. They were on the IBOAI board of directors prior to their exit from Quixtar.[6]
[edit] Business Methodology
[edit] Training
TEAM offers books, compact discs, videos, meetings and mentoring. While TEAM members receive mentoring for free, members must pay for entrance to the TEAM section of their website. Media such as CDs and books and meetings also carry a fee, but are optional. Membership with TEAM is by invitation only. While prices are not listed on TEAM's website, the price to register on TEAM's website is $60.00 per year. Enrollment in the monthly leadership training program is optional. As of September 13, 2007, the monthly leadership training program is approximately $80. As of 2004, three CDs costing $6 each[3] are released every week. Every Tuesday evening, there is a meeting to introduce new members to TEAM, which cost IBO's $5. As of September 18, 2007, TEAM has temporarily refrained from holding the Tuesday meetings. Once a month, there is a local seminar costing $25, and there are larger leadership seminars costing $90.
Some TEAM members make a profit selling Leadership Development Materials that are listed above. In Leading the Consumer Rebellion, Chris Brady acknowledges these claims:
While the purpose of our training system is to support the underlying business of our business owners, it is important to note that there are profits within the training system as well (much like a car dealership has profits in the sale of cars but also in parts and service) and that some business owners affiliated with the Team share in these profits. [...] As independent business owners each of us can, at the end of the day, choose not to participate in any form of the system provided through the Team. —pp.121-122
However, at the same time, Brady links business success with following the system detailed in the support materials:
We believe strongly in our approach to building this business and the system that has been developed to support our approach, or our Master Strategy. [...] As we listen to the stories of our most successful members of the Team, we see a consistent pattern: participation in the various meetings available to them as business owners was one of the key factors in their business success. —pp.120-122[7]
[edit] Recruitment
TEAM members contact people they already know and introduce them to TEAM. Potential new members are able to go to a seminar, listen to CDs, or read books written by TEAM members to determine if they are interested in becoming involved with the organization.
[edit] Building Depth
When TEAM was affiliated with Quixtar, it organized its members' downlines by growing depth before width, a practice sometimes called stacking. TEAM members argue that depth building increases stability and ensures that all members receive the proper mentoring by being mentored by the person above them in depth.
[edit] Relationship with Quixtar
As of September, 2007, TEAM is no longer associated with Quixtar. Members now refer to TEAM as a Leadership Development Service Provider.[8]
[edit] Controversy
In addition to controversy over Quixtar, TEAM has received criticism from the media and blogging community concerning suppressing information, and tax deductions.
[edit] Suppressing information
David S. Touretzky of Carnegie Mellon University has been vocal about Quixtar and TEAM's alleged attempts to suppress the free speech rights of their critics. Of TEAM in particular, he notes that, while founder Orrin Woodward used to acknowledge the connection between the two companies, information about their relationship is now only available in password-protected areas of TEAM's websites.[9]
As of August 2007, the "Product Showcase" on TEAM website's main page showed XS Energy Drink, a Quixtar product.[10] However, in September 2007, the product showcase removed the drink image and description and displayed a featured book instead, due to TEAM's separation from Quixtar.[11]
[edit] Tax Deductions
Business ownership is one important distinction between a TEAM member and a traditional salesperson. With ownership comes a different set of tax rules. TEAM has advertised this as another incentive to joining the organization.[12] Since IBOs work from home, and TEAM encourages members to travel to meetings and purchase products for personal consumption, business owners must be aware of what can and cannot be claimed as a business expense for tax purposes.
[edit] Response to Criticism
TEAM founders Orrin Woodward and Chris Brady have been quick to respond to criticism.
On March 15, 2004, Orrin Woodward sued vocal TEAM critic Scott Larsen.[13][14] While the suit was dismissed in 2005, the reason behind the dismissal is not known, and the court proceedings have been sealed.[15] Material specific to TEAM on Larsen's website has been removed.
In connection with this case, Wikimedia Foundation was issued a subpoena on 6 December 2005, to send to Orrin Woodward's lawyer all records submitted to Wikipedia.com and/or Wikimedia Foundation from January 1, 2002 concerning the terms "Team of Destiny", "Team", "Orrin Woodward" and/or "Chris Brady" including but not limited to: all records, documentation, emails, and/or electronic information, and correspondence.[16]
In Leading a Consumer Rebellion, Brady warns newcomers to "Expect resistance."
Learning to expect resistance was an important lesson. When you decide to step out and pursue success, in anything, there will be detractors. There will be people who shine doubt on what you are doing. As a matter of fact, negative resistance will be inversely proportional to the size of the undertaking: the bigger the dream, the bigger the critics. [...] Believe it or not, some are staunchly opposed to almost everything you hold dear in life. If you are for freedom, there are those who want to take it away. If you believe in saluting the flag, there are those who want to burn it. The list goes on indefinitely. This is where success becomes a battle; because to create anything, to take a stand on anything, requires change, and the only people who like change are babies! —pp.104, 106
Later, in a section entitled "Critics are wrong," Brady writes:
The simplest way to overcome these obstacles is to realize that critics are cowards. Critics are spectators. Criticism is the death-gurgle of a non-achiever. While the peanut gallery is busy saying something can't be done, a few leaders with courage are busy doing it. [...] This business has been no different. Every step of the way, with every innovation and advancement, there were those saying it couldn't be done, or that it had already been tried, or that it wasn't legal, or something or other. —pp.106, 108[7]
[edit] Exit from Quixtar
On August 10, 2007, Quixtar announced termination of 15 distributorships including those of TEAM founders Orrin Woodward and Chris Brady and other leaders from TEAM and connected training organizations. Woodward and Brady said that they resigned one day before Quixtar terminated them. Quixtar states that the TEAM founders refused to work with Quixtar to bring TEAM to compliance with Quixtar rules,[17] and that Woodward and Brady had stated their intention to start a new MLM. Woodward, Chris and other IBOs have filed a class action lawsuit complaining that Quixtar prices are not competitive and that Quixtar admitted this problem in meetings with IBO leaders.[5] The lawsuit seeks relief from the non-competition and non-solicitation rules in Quixtar distributor contracts, so that IBOs have the freedom to continue with Quixtar or to pursue other business opportunities[18][19][20] The lawsuit was dismissed on October 4, 2007.
In October 2007, Quixtar filed a suit to obtain the identity of 30 anonymous people who created blogs and posted YouTube videos critical of Quixtar. This was done with the stated belief that some of these websites and videos are engineered or directed by Woodward and TEAM.[21][22]
Many Independent Business Owners (IBOs) associated with TEAM have opted to resign from their Quixtar IBOships and abide by the six month waiting period.
[edit] References
- ^ http://search.detroit.bbb.org/nis/newsearch2.asp?ID=1&strBCode=03320000&ComID=0332000049002153&ComName=Team [dead link]
- ^ a b http://www.webraw.com/quixtar/archives/2004/10/tod_is_now_team.php
- ^ a b Audio message from Orrin Woodward [1]
- ^ http://www.quixtarfacts.com/us-en/IBOs/loa.html
- ^ http://www.webraw.com/quixtar/archives/2003/11/what_i_think_i_know_about_tod.php
- ^ IBOAI Board Suspends Five Directors, On IBOAI Blog, August 13, 2007 [2]
- ^ a b Brady and Woodward (2004), Leading the Consumer Rebellion, Obstacles Press
- ^ http://www.the-team.biz/Articles/tabid/53/ID/678/Default.aspx
- ^ http://www.cs.cmu.edu/~dst/Amway/
- ^ TEAM website. Retrieved on [[26 August 2007]].
- ^ http://www.the-team.biz/Articles/tabid/53/ID/678/Default.aspx
- ^ "There is another major advantage to owning one's own business: taxes, or more accurately, an improved plan for your tax burdens." pp.31, Brady and Woodward (2004), Leading the Consumer Rebellion, Obstacles Press
- ^ http://www.webraw.com/quixtar/archives/2004/08/tod_v_scott_larsen.php
- ^ Team of Destiny v. Scott A. Larsen Complaint
- ^ http://www.webraw.com/quixtar/archives/2005/05/tod_v_larsen_dismissed.php
- ^ Team of Destiny v. Scott A. Larsen, subpoena issued to the Wikimedia Foundation [3]
- ^ Quixtar Takes Swift Action To Protect Its Business, Quixtar news release, August 10, 2007
- ^ Woodward, Brady, et al. v. Quixtar, Complaint and demand for jury trial, August 9, 2007
- ^ Business Wire (August 15, 2007). "Distributor Group Represented by Shughart, Thomson & Kilroy Refutes Claims of Termination Announced by Amway Sister Company Quixtar; Group Resigned From Quixtar Following Company’s Alleged Refusal to Stop Pyramid-like Business Practices". Press release. Retrieved on August 28, 2007.
- ^ Business Wire (August 24, 2007). "[http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20070824005569&newsLang=en Distributors Announce Wins in 10 Temporary Restraining Orders Against Quixtar Filed Across the Country; Today’s Limited Court Rulings in Quixtar’s Hometown Do Not Affect Strength and Merit of Original California Federal Lawsuit Filed by 15 Former Distributors Represented by Shughart, Thomson & Kilroy]". Press release. Retrieved on August 28, 2007.
- ^ Quixtar's complaint against anonymous bloggers [4], 8 October 2007.
- ^ Quixtar Goes On Warpath Against Bloggers