Amway/Quixtar: Now Officially a Cult

[This is a follow-up to my original Amway/Quixtar MLM writeup "Selling Broken Dreams"]

I’d like to think I’m nearing the tail end of my MLM research binge (mini-obsession) that has consumed the better part of a week. Every word I read leaves me sick to my stomach after realizing just how widespread the Amway/Quixtar evil is. Despite going into this binge with a clear bias, I was willing to consider arguments as to why my bias was wrong. I thought accusations of Amquix (a preferred internet term among “haters”) being a cult had to be overblown, and necessarily limited to very small pockets to whatever extent they were true. I learned that AMO’s (Amway Motivational Organizations, now AQMO’s) – large groups formed by various high-ranking distributors/IBO’s to sell business “tools” – were responsible for the “bad stuff” but that the corporation had nothing to do with it. Amquix was still a horrible business opportunity, but it wasn’t a cult.

Then I find out that the Amquix corporation has been aware of these abuses for at least 24 years (as documented) and probably longer. Whatever small steps they took over the years to combat them, they eventually gave up and gave in. Now Amquix owners are directly tied into the AQMO’s, continuing to profit from them as they always have. Cult leaders make good cult followers who are very loyal to Amway products. It’s very easy for owners of a privately held company to look the other way as their highest ranking distributors siphon off hundreds of millions of dollars from their downlines through the sale of cult indoctrination tools as long as it guarantees product sales. This one guy Dexter Yager, who is probably the most insane man to currently walk the Earth, is the biggest cult offender. How has Amquix sanctioned him? By routinely giving him ever-increasing “largest ever in Amquix history” bonus checks. Watch this video of Yager giving a speech. This is at a BUSINESS CONVENTION. People probably shelled out $500 because they were repeatedly told that using the tools and going to conventions was the only way they could build their businesses. Now they have to listen to this lunatic ramble. What exactly is the business lesson?

Funny thing… Amquix fanatics have an answer for that question. I’m simply not “advanced” enough in “the system” to understand Yager’s wisdom. Does this sound at ALL familiar to Scientology which claims you can’t read the higher level “tech” until you reach it otherwise your brain will explode? Then once it all got leaked on the internet: “well of course you won’t understand it, you aren’t Clear yet. Oh and that isn’t the real stuff, it’s a lie. Oh, but still take it down, because you’re infringing on our copyrights.. or something.. or it’s libel. I don’t know, but take it down or we’ll sue you.”

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Yesterday I read the free e-book “Merchants of Deception” by former Amway “Founder’s Emerald” Eric Scheibeler. I was going to provide the link to download the book without giving up an email address, but I think the guy has been fucked over enough. Eric’s a young man with a bright future and a loving wife. He falls for an Amway pitch and puts his all into building what he believes to be his business. He’s downline from a guy he refers to as “Zack Walters” who is really Fred Harteis. Look at that guy’s webpage and tell me he isn’t the Antichrist. Harteis is part of the Yager chain, but he has broken off to run his own tool-and-convention business. It’s these side-businesses that make certain distributors fabulously wealthy thus “proving” the system works and suckering in more people. Eric ends up devoting his life to Amway for the better part of a decade, never able to spend time with his family despite that being one of the biggest pitches (“retire and become a stay-at-home dad!”).

Safe to assume that everything in his life goes to shit. He gives a chilling portrayal of how he was indoctrinated step by step into the Harteis sub-cult. Once he was fully indoctrinated with the cult rules – never question your upline, never tell your downline anything, never say anything negative to anyone, never talk to anyone that isn’t in your direct line of sponsorship – his mind had been completely rewired to serve Amway. Later, when he’s trying to break away from Amway, he recalls watching a surviving member of Heaven’s Gate on an episode of Leeza. The guest makes a claim like “any one of you could fall victim to a destructive cult” at which point he’s booed and jeered by the crowd. I agree with the Heaven’s Gate dude – anyone stupid enough to watch a taping of Leeza could easily fall victim to a cult. That wasn’t exactly what he meant, of course…

The story of “Merchants of Deception” is largely one of how “anyone” can fall into a cult. I quote anyone because I refuse to believe I’m susceptible. Most people feel the same, which is the problem of course. I think I’m immune because I’m very aware of cult indoctrination techniques… one might say I’m studying them for the future. It was particularly chilling to read about all the doctors and other professionals who fell in with Amway, often quitting their jobs in pursuit of the dream. All that proves is that profession alone is not an indicator of one’s cult susceptibility. Thankfully I did not hear any mention of psychologists in the book, but earlier today I read that one of the top UK distributors is also a well-known psychologist. I threw up in my mouth a little when I read that.

I found it interesting that towards the middle/end of the book, Scheibeler repeatedly refers to what has happened to him as “rape”. I’ve been conditioned to not casually use the word rape (“Dude, I was totally raped by that test”) in the same way I wouldn’t call Dexter Yager a “flaming faggot”. It’s interesting how feminism and political correctness have secured ownership of the word rape, making “an act of plunder, violent seizure, or abuse; despoliation; violation: the rape of the countryside” an archaic and uncouth definition. It’s because of this that Scheibeler’s use of “rape”, including at one point the term “gang rape” referring to how many people were in on it, really stands out from the page. Considering this guy’s identity was stolen from him for a decade during which he was unable to think for himself, was torn from his family, driven into financial ruin, and left with lasting psychological damage… I have no problem with his choice of terms.

Scheibeler is not a writer by trade, which is obvious while reading his book. It does lend a certain “I’m just a regular guy” credibility that aids his story. Despite his lack of literary background, he does an incredibly good job of explaining how psychologically fucked up he was as he became more and more aware of the massive Amway fraud, continuing as he left and had to deprogram all the cult indoctrination. At least some portion of the book was written post 9/11 and it’s clear at that point, after leaving Amway in 1999 (I believe), he was still suffering from residual problems. He feels responsible for pulling thousands of people in under him. As he points out, he wasn’t just in a cult… he was a cult leader. You don’t just snap back from that.

Amquix is doing all they can to ruin him to this day, as far as I know. Cults with money are known for their abuses of the legal system. Scientology anyone? Thankfully, British courts are much less willing to put up with cults in their country. It’s nice to know that at least one developed country is willing to shoot down frivolous Scientology/Amway bullshit in court, but justice can still be bought and sold in America. I’ve mentioned that a couple times recently, and I know how much it sounds like pointless America-bashing. Scheibeler wanted everything he found out to be untrue, and I feel the same way. But the truth is, those with money have multiple ways of bankrupting the average person who tries to fight them in court. A team of suits can overturn all but the most damning evidence… and sometimes even that through the use of loopholes.

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On the topic of cults, the most interesting book I’ve ever read is “Bare-Faced Messiah” by Russell Miller. It’s a biography of L. Ron Hubbard that tells his true story, as opposed to the dozens of Scientology-released biographies that build him up as someone worth worshiping. Turns out Hubbard was actually a psychotic compulsive liar, not a war hero and all that he claimed to be. In fact, if I’m remembering this book correctly… Hubbard once got into an extended multi-day battle with an imaginary Russian sub right off the US coast while he was in the Navy. I think he ended up illegally firing on some island, but my memory could be spotty. If you’re ever interested in seeing just how twisted and insane one man can be, check that book out.

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There’s something I noticed while reading various Amquix-related blogs (pro and con), and comments on these blogs. All the pro-Amquix “we are not a scam” arguments sounded very, very similar to one another. I wrote it off as a silly coincidence of them only having so many positions to fall back on, since it clearly is a pyramid scam. Reading “Merchants of Deception” put it into perspective for me. This was a case of “duplication” – a process in which you emulate and copy the people upline from you as much as possible. A cardinal rule I did not mention previously is that distributors are never to try anything new. There is no room for adaptation or creativity in Amquix cults. The system works – it has made thousands of millionaires. Why would you change something that works? Are you claiming to know more than your upline? Stifling self-determination and creativity sounds cultic to me.

That explains all the “how could this be a scam? Look at all the big corporations we’re partnered with” comments. They didn’t all independently come to this conclusion; this is how everyone, in certain AQMO’s at least, are taught to respond to any claim that Amquix is a scam. Another common argument is a result of widespread information available on the internet. Certain AQMO leaders are aware of how the tool fraud has hurt the Amquix reputation and therefore their growth/income. Members of several AQMO’s go out of their way to press how the tool fraud has nothing to do with Amquix, and that their organization has nothing to do with these (alleged) past instances of impropriety. Then, when pressed, these members will also say that the system is the only way to be successful in the business. Meanwhile, they’re paying the same amount for tools as every other AQMO but they insist nobody is making a profit off them.

Now that is indoctrination. I can’t imagine having that much mental control over someone. How do you get away with telling someone the truth about someone else, then claim you’re different while engaging in the very same behavior? I honestly do feel sorry for people who are/were in cults – I realize that the common outsider belief is “well, you chose that path, so nuts to you” but I understand how it was never really a choice. Still, it’s things like this that make people think of cult members as idiots.

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There’s one guy in particular who scares the hell out of me. It’s hard to tell if he’s completely indoctrinated, or if he’s a leader in charge of the propaganda machine. Maybe both. He goes by the handles “insider” and “ibofightback” and runs a website he constantly promotes. He has popped up on every single YouTube link and blog I have read. He promotes an AQMO called “Network TwentyOne” or “N21″ that he claims to be “different”. These independent AQMO’s have no problem throwing each other under the bus if it helps their reputation. After all, if you are an IBO you own your own business! (Not true, but work with me) Amquix is only the supplier, other than that you’re on your own. Therefore the AQMO with Triple Diamond Grand Master Wizard Dragon Jim Dornan at the helm is 100% different than the AQMO down the street with Fred Harteis. There are a few common features, though. 1) No matter what the AQMO, nobody is going to make near the amount of money that is advertised. 99% of IBO’s are going to lose money. (Several groups claim they make no claim of future earnings. Right, people just sign up because the business plan sounds so good!) 2) Each AQMO has their own tools, but as far as I can tell they’re always referred to as “the system” and following “the system” is always the only way to succeed in the business.

Insider/ibofightback is particularly interesting because he claims to be (and presumably is) a “liberal atheist” or “liberal secular humanist”. It’s hard to tell what his level of indoctrination is, because his life is clearly devoted to Amquix. That’s one thing that comes through, even when he is contradicting himself or lying outright – he has an intense amount of conviction. What’s interesting is that he tries to use logic to create rational arguments, ones that I haven’t seen put forward by any other Amquix supporters. Now he’ll drop logic to support his world-view at a moments notice, but he’s clearly trying something new and attempting to be creative, which makes me wonder if he’s just a marketing employee for N21. I bring this guy up for a reason. I was reading some comments in regards to a complaint that was filed against N21 (his AQMO) among others, and he gave a very telling response:

I bet it’s not about N21 promoting religion.
I bet it’s not about N21 promoting politics.
I bet it’s not about N21 running it’s business with under the table cash payments to whoever it likes.
I bet it’s not about N21 “excluding” folk who aren’t “on the system”.
I bet it’s not about N21 calling people “losers” if they’re not interested.
I bet it’s not about N21 leaders showing off “excessive lifestyles” that don’t fit their Amway levels.
I’ll also bet it’s not about N21 leaders earning more from tools than Amway.

Some of these are blatant propaganda lies. I’m willing to counter-bet in his precious N21 that people are excluded by not following “the system” and of course its leaders are earning more from tools than from Amway. But the rest of those are interesting, and probably true. Amquix has reported on the average income levels of Emeralds and Diamonds, and many IBO’s know the numbers. They also know about the widespread tool scandals. This doesn’t matter in areas where indoctrination is complete, but it’s obviously going to hurt getting new recruits. And why risk the chance of cognitive dissonance driving your faithful cult members crazy like what happened to Scheibeler?

If you were pulling in millions a year in a scam, do you think you could spend a few years pretending to live on a meager 150k salary (which you could say is 250k, since 150k is the average for your level but you’re far above average)? 150k can afford a pretty nice lifestyle if you aren’t putting any of that money away and buying everything on credit. Keep in mind you get to travel all over the world to private “business retreat” tax breaks.. er, islands. At conventions you’ll be given the nicest suite, and nobody will question a thing because the company paid for it. You could easily spend 500k a year pretending to live on a 150k income, is that so hard an act to keep up?

It’s not as hard as everybody else downline making jack shit but pretending the business is working because they were taught to “Fake It Til You Make It!”

Oh, and his group doesn’t whore Christianity to lend itself moral legitimacy while forcing ultra-conservative political views on its members through scare tactics. Good for them, it’s almost like this AQMO’s leaders realized there was a huge potential market to be tapped of people willing to destroy themselves financially in pursuit of a false dream, but not if it meant having to jive with the creepy religious-political background. I had heard Amway is spreading like fire among “Desis“, a term I had never heard before but refers to people of South Asian origin. Apparently some people think the word is derogatory, so I won’t use it.. but I did feel like sharing its existence. That makes sense, seeing as the guy I met up with was Indian. So you figured out that you could dupe Hindus if you just toned down the Christianity a notch. That sounds like good business, not proof that you aren’t a cult.

Calling people losers? It’s not about what you say to their faces, it’s about what you say to one another and fully believe. I don’t care if someone calls me a loser, but it bothers me if they’re so indoctrinated that it’s the only way they know how to see me.

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Accusing an organization of being a cult is very serious and should not be thrown around lightly. I don’t want to be the boy who cried cult. From what I’ve researched, I’m now prepared to call anyone invested heavily in Amquix a cult member until they individually prove me otherwise. I haven’t seen a single example of an online supporter who did not display incredible cultic tendencies. In my mind Amquix is no longer a “horribly flawed business model with some claims of there being cult-like activity”, it is a cult. Not everybody falls for it, considering over 50% of distributors quit every single year, but it’s still a cult in business clothing.

Admittedly, there are some very thin lines between what constitutes a cult and a regular organization in which members are very committed. There is always discussion as to which sectors of Christianity cross that line. Some is academic, and some is “hahahah religon iz stupid ur all in a cult hahahahhaha god is stupd.” Ask my buddy Josh if Jehovah’s Witnesses are a cult, and he’ll punch you in the face for asking such a stupid question. While few people consider them a part of Christianity, they aren’t often referred to as a cult. He thinks they are, and I tend to agree from what I’ve heard and read.

What about Catholicism? I grew up Catholic so I’m allowed to look at this one critically. Pretty standard Christian dogma for the most part. Protestants who hate Catholics (read: all sorts of hate groups, the entire early history of colonized America, etc) generally do so because they don’t trust the Pope. And there is something sort of strange about having a kingpin religious leader who can speak for God. What about the sex scandals where Catholic leaders just moved the priests around to different parishes? I realize a number of people did leave the Church at that point, and I will admit that I haven’t polled everyone else about how they felt. How do you justify staying after a scandal like that? “Oh, it was just a few… thousand.. isolated incidents. It doesn’t point to anything wrong in the Church or the beliefs.” If that was someone’s reasoning, then I would argue religion has a cult-like grip that is keeping them from admitting the truth to themselves.

What about that guy who holds up “GOD HATES FAGGOTS” signs at military funerals? What about snake-handlers? What about ultra-conservative sects? I ask this not because I disagree with their politics, but because they tend to be extremely close-minded and militant, with fervor to spare. What about any piece of shit belief set that tells me I am going to rot in hell for eternity if I do not accept Jesus Christ the Son of God as my personal savior? I am aware this is including almost all of Christianity. When a group’s leader seeks to keep his members in line by threat of eternal damnation, that is much too close to a cult for my tastes.

If you’re going to judge a cult by its destructive influence, how much psychological damage do you think has been done to sensitive kids who are told they will BURN IN HELL if they are bad?

There’s a common statement made by anti-religion crusaders when discussing Scientology: “What’s the difference between Christianity and Scientology? About 2000 years.” The point being, you can’t simply look to Scientology’s beliefs and state they are a cult. To an atheist, belief in Xenu is no more ridiculous than a belief in God. I believe the argument to be flawed. There is something about the human condition that leads us to believe in a higher power. And whether that is our ancestors, a pantheon, or a monotheistic God, their enduring appeal speaks to something greater than the imagination of a science-fiction writer/hack. It’s the money, domination, and crazy destructive views that make Scientology a cult.

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Nobody knows what a cult is. That’s a small problem when it comes to identifying them. I realize this now as I skim through the Wikipedia entry on cults: I probably should have done some research before rambling. On the other hand, I’m a firm supporter that the best kind of theory is one you make up on your own before you find out what experts have to say. It might let you think of something in an entirely new way that would be impossible once someone else’s framework is jumbling up your mind.

The wiki makes the point that the word cult is usually used against organizations that are believed to have negative influences on their members, but groups with positive influences can have cultic properties as well. It notes that one study determined Alcoholics Anonymous to be a cult. Well, I’ve heard of strain in relationships when one person does not know why the other is constantly off at meetings. AA does claim to be the ONLY way to stay sober, despite having a track record showing it no better than other kinds of treatment or doing absolutely nothing. The people at AA meetings are very strange, for the most part. Yeah, sounds like a fair assessment. I always knew there was a reason I didn’t want to be there, and now I know why. See, even when I’m not conscious of why, my mind steers me away from cults.

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I did have an experience, once… I was in this group. There was a clear distinction between who was an insider and outsider. I allowed it to take over my life for a time. I could claim I had a choice, but do you really have a choice when it comes to something you care about either succeeding or failing? Despite being democratic, there was a strict hierarchy. A certain level of conformity was required. There was no set policy for dealing with those who left the group… some ignored them, others remained friends. They certainly weren’t thought highly of, though. It had a big impact on destroying a couple relationships. Then again, a relationship that fails on the basis of “why can’t you spend every second of every waking moment with me?!?!!?” is probably better off dead. Hmmmm…. I’ll have to give this more thought.