CHAPTER 4:
Behind the Curtain

It was a Friday afternoon when Mark and I arrived at the Portland Coliseum. The parking lots were vacant, but I knew that by 7 p.m. it would be havoc trying to find a space. This was "West Coast Free Enterprise Day," the biggest and most exciting event of the year for Amway distributors in the Northwest. It was going to be held in the home arena of the NBA Portland Trailblazers.

Mark had called from Chicago, Illinois, and asked that I attend. He said he wanted some assistance in coordinating the book sales. I felt this would be my golden opportunity to see firsthand how such an event was put together. Soon I was to learn that it was a methodically well rehearsed program. I sat and listened as Tom Kenney, Diamond Direct, who is in John Wells' line of sponsorship, gave orders to workers inside the arena. He had them position the speakers' platform and arrange the folding chairs into neat rows in front of the stage. Then Tom called everyone together to discuss each person's respective part in the program. How long should the band play? Who would be the first speaker? Do we have all the doors covered with individuals to handle tickets and security? Tom covered every detail. Nothing was left to chance. Before the night was over, he would relinquish his position as foreman, shed his shirtsleeves and slacks and return in his best evening attire as the host of this magnificent program. All this activity was designed to give the Northwest distributors the most exciting extravaganza that they had ever experienced. After purchasing tickets, a program and possibly a tape packet to take home, it would be easy for a distributor to drop over $50 for the evening. The people who were attending tonight were coming to witness something spectacular. They wanted to see success, hear success, feel success and touch success. They were not to be disappointed. People started filtering in the large auditorium about 6 p.m. By 7:30 there were in excess of 10,000 people there. Before 8 p.m. the coliseum appeared to be packed. People were crowded in like sardines. At 8p.m.sharp the band struck up with the "Rocky Theme." The lights were dimmed, and the mood was set. Tom Kenney stood next to the exit door, rubbing his hands together with great anticipation as he waited for his introduction. "And now, Ladies and Gentlemen...," the announcer bellowed, "that moment you have all been waiting for. I'd like to present to you our host, Diamond Direct, Tommmmm Kenney!"

The trumpets blared even louder than beforehand the drums once again beat out that famous "Rocky Theme." It was a song of victory. Tom Kenney sprang from the exit and broke out into a full run as he raced down the isle and up to center stage. The crowd rose to their feet. People cheered and whistled. I had never seen anything like it in my life. The roof literally came off the place. It was louder than any Blazer basketball game. No presidential candidate would receive this kind of applause. It went on for a full two minutes. It seemed like ten.

Then, when Tom Kenney introduced John Wells, Triple Diamond, the crowd once again sprang to their feet, screaming and clapping with great enthusiasm. It was a thunderous response. It kept getting louder and louder. The crowd began to push forward towards the stage like a mob trying to get into a Tokyo subway train. Cameras were flashing, hands were being thrusted out and books and programs were being waved, requesting an autograph. "So this is what it is all about!" I remembered thinking to myself. Even though I had been to a number of rallies, I, too, had been caught up in the emotion of the moment. This time, however, I needed to be more objective. I didn't waste any time. I wanted to analyze what was making this all happen. It wasn't going to be easy, but I had to get backstage. Pearl and Ruby Directs, loyal to Tom Kenney, were posted carefully in this area, seemingly acting as guards. As I walked down the long corridor, the screams and applause continued. "If only there was a way I could get past that guard," I thought. "Of course -- Mark. He is one of the guest speakers. He can get me backstage." it didn't take me long before I had tracked him down. He was busy in the hall supervising the sale of motivational books. I explained to Mark that I wanted a ringside seat backstage. I wanted to see these stars up close. Mark obliged and together we hurried downstairs. It was a simple matter for Mark, since he was a star speaker, to introduce me to everyone and thus allow me the privilege of complete freedom all around the platform as well as backstage. Now leaning on the stage, I had a bird's eye view of everything. I could hear the various Diamonds in another room arguing about who was going to get what share of the booty from this event. I watched Tom's wife, Debbie Anne Kenney, scurry back and forth with proceeds from the ticket sales. She was stacking money upon a table and seeking the assistance of others to count it. Most of the tickets, I was told, were sold prior to this particular event. However, tickets could still be purchased at the gates. Walking around backstage like this required that I always act positive, especially since I was not wearing a Diamond pin. These people possessed a keen ability to discern if one was with them or against them. I knew full well how Tom Kenney perceived those who were negative or those who questioned, even in the slightest way, his leadership. "Just flush them!" he would say, matter of factly. As far as he was concerned, there would be no heretics in his group. Now one can understand why I spent the entire evening with a bigger-than-life smile pasted across my face. I knew that if I wanted to gain some insight into this business, I had to conceal my indifference and possible suspicions.

It was, indeed, a very interesting evening. Up on stage there was much talk of villas, cruises, expensive cars, banking practices and upcoming events. In the hallways, tables were heaped full of tapes, books and lots of American memorabilia. Events similar to this could go on all day and all weekend. Were there spin-offs? You bet. The record breaking ticket sales, catered dinners, books and cassettes were just a few. Others include soft drinks, hot dogs, calendars and even bumper stickers. At some of these events, it was not uncommon to see additional spin-offs such as the sale of suits, jewels and automobiles. All of these were considered "tools of the trade"-even custom tailored suits. Whoever sponsored the event was like any well-schooled promoter. He would make certain that he profited from absolutely everything, if possible, sold at his event. I had the opportunity to speak at some length with Dave Beach, Diamond Direct. He was an extremely sharp young man who prior to joining Amway, had been an electrical engineer. He had rapidly climbed the "ladder of success" and would, later in the evening, share with the audience some of the experiences he encountered along the way. Many questions darted to my mind as I stood back and observed. Why would Wells and Kenney bring in a Diamond all the way from New York? After all, wasn't this "West Coast Free Enterprise Day"? Why was Mark being flown from one "Free Enterprise Day" to another? My only conclusion to these questions was that it must be HYPE! The guest speakers for this event were carefully handpicked. The enthusiasm they could generate was hard to believe without witnessing it firsthand. It was a common practice to bring in outside guest speakers, not just on a "Free Enterprise Day" but all throughout the year for various rallies and seminars. This always brought a lot of fresh new "success" stories, which fueled new excitement.

These special speakers and other members of the Board of the Amway Distributors' Association constitute a small elite private club. You scratch my back, and I'll scratch yours. Some have said that the company frowns on this activity, but its use is widespread. Possibly millions of dollars each year are spent in honorariums to cover the costs of these expensive guests. The reader is probably asking himself how I can be so sure about all of this? Well, I too was asked to go out of state with all expenses paid to dazzle others in different lines of sponsorship because I was an author. It seemed that the leaders enjoyed using people of notoriety to draw crowds and breed enthusiasm in this business. This "Free Enterprise Day" event was no different. It was just on a much grander scale. Dave Beach was young, very handsome and successful. He would be well worth whatever price they paid.

Later I was to learn that the cost of these honorariums was a small price to pay in comparison to the enormous profits reaped by the host at these functions. My thoughts came back to my own business. As the meeting continued in the auditorium, I went upstairs to question Mark as he supervised the sale of hundreds of books and tape packets. "Mark, when I continually sponsor and don't retail as you have instructed, I don't make any profit. But tonight the light has really dawned on me. I have invited all my downlines to this event, and they will probably pay the asking price of $39 for your tape packet and purchase a myriad of motivational books, not to mention the admission fee, all of which will benefit no one except those putting on this gig, right?"

I did not receive a response. Mark has a unique way of ignoring a person when he wants to but can keep right on smiling as he does. Mark was now autographing motivational packets. After a few moments he finally backed away from the table. He reached out and draped his arm across my shoulders. With a squeezy clasp and a smile, Mark led me across the hall to the stadium entryway. Thousands were crammed into the stadium singing, "God Bless America."

Together we stood and watched this spectacle. Hundreds now stood many holding hands, and some gently swaying to the song's cadence. "Look, Phil, they're happy. Just look! That's what counts. You want to take that away from them?" I couldn't believe my ears. I turned and solemnly walked away from my sponsor. My wife was waiting down the hall, and together we left this event in Portland, very disillusioned. Already we had spent hundreds of dollars on rallies and seminars prior to this particular "Free Enterprise Day" Well, it wasn't free. We weren't equals. Those who organized this event would walk away with their attaché cases full of cash, just as they had previously predicted. The sponsors of these events almost always insist that tickets be paid in cash only. At many events I have seen doormen ask that checks be made out to "cash." No receipts are given.

I was now convinced how my uplines perceived this business. It was a colossal plan aimed to appeal only to selfishness and carnality: the obsession of money and things, regardless of the price. Their brief cases full of money were sufficient evidence of that. Our zeal was gone. We were now uncertain about our future in this business! I assured my wife that our friends and family members were much more important than all the money in the world.

Besides, the Amway business, as we were instructed to conduct it, was showing us little or no profit. This evening was additional proof that the big money, indeed, was being made by a very select few, and not by selling soap. Later we learned that many times these events were scheduled to be held concurrently with a function being offered by the Amway Corporation--the same date and the same city. The hosts would urge their downlines to attend their rally rather than the Amway sponsored event. Were the leaders really wanting to motivate these people, or were they wanting these individuals to spend money for their own profit? I felt I had already seen enough. Certainly over the months I had witnessed, unknowingly, millions of dollars being cleverly siphoned away from thousands of unsuspecting Amway distributors.

"For there are the charlatans--torturing old writings to use on the gullible and unfortunate; inventing weird and wonderful concepts to lure the lonely, twisting Christianity in their avarice for power, riches or fame."

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