Quorum International: History, Review and Facts

Today, I’m going to provide an independent review of Quorum International, a one time MLM powerhouse.

If you were to type Quorum International into your search engine right now, you would discover a company that manufactures ceiling fans and lighting.

It is not a multilevel marketing company.  So, why am I reviewing Quorum International on this website?

At one time there was a different company with the same name that used a multilevel marketing business format.  It was a consumer electronics company started in Phoenix, Arizona by Raymond Hung and Marty Matthews.

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History Of Quorum International

In 1991, a man by the name of Raymond Hung who was a part owner of Applied International Holdings in Honk Kong along with RJP, teamed up with Marty Matthews to found the company.

Using a multilevel marketing method, the company offered various products in home electronics, security, health, skin care and weight management.

With the diverse product line and the compensation methods for distributors, the company grew quickly.

By 1994, the company did business in 16 countries with over $300,000,000 in sales yearly.

Some well known MLM personalities were jumping on the Quorum International bandwagon.

But in 1995, sales of Quorum International products seemed to drop substantially.

There are many theories as to why this happened, but no actual facts.

And then Quorum was faced with a lawsuit.

It seems that two brothers who started Chemworld Products that distributed Quorum International products decided to sue Quorum when one of the brothers was banded from Quorum for violation of ethical rules.  Quorum claimed he was cross-promoting another MLM.

The brother won in court and Quorum was ordered to pay $1,700,000.  Quorum International filed for Chapter 11 Bankruptcy and the tide turned further to where they ended up filing Chapter 7 Bankruptcy. And, Quorum International was finished in 1998.

Quorum International Review

When we look back to Quorum International, we saw an excellent idea that could have worked if handled differently…in my opinion.

quorum internationalThey had such a wide variety of products, but their best selling items were their alarm systems. But, without hard-core patents, their ideas were easily copied and cheaper versions began to flood discount stores.

It also seems that Quorum International did not have a “cut in stone” rules to follow.

Some distributors would be punished for things other distributors were doing.

While no facts are evident, many claim that Raymond Hung pulled a perfect scam.

There are claims that he has opened companies, made a lot of money from investors and then filed bankruptcy while he has the funds in offshore accounts or in China.

Even though Applied International seemed to be a major part of the Quorum International system, they seemed to not be affected by the bankruptcy.

Quorum International claimed distributors could gain financial independence by just doing 3 things:

  1. Sell $100 worth of products per month

  2. Sponsor 5 distributors in 3 to 6 months

  3. Train the distributors to duplicate these tasks

Did that system work? It seems not.

But, overall if MLM distributors do follow the basic ideas Quorum presented, I do believe that they can have great gains financially.

Many did do quite well with Quorum International when it was alive.

Quorum International Facts

  • The founder of Nerium and The People’s Network, Jeff Olsen did quite well with the company.

  • Eric Worre, who is a master MLMer, did great at Quorum International.

  • When the bankruptcy was completed, there were nearly 1,500,000 Quorum International distributors worldwide.

  • Quorum also had a long distance plan in cooperation with MCI.

  • Quorum also had mail order catalogs.

  • There were many odd moves in the Quorum structure: Incorporated as Quorum Ventures Inc on June 5th, 1991; a partnership was formed June 21st, 1991 called Quorum International Ltd; the partnership dissolved on July 12th, 1996; on July 19th, 1996, Quorum Ventures Inc changed its name to Quorum International Ltd.

  • One of the founders of the company, Marty Matthews later became President of Travel Dynamics, Inc.

  • This quote from a political article about Raymond Hung can make you think: Hung is also reported to have set up dozens of shell “front companies” offshore. These companies allegedly sell cheap Chinese products imported by Hung who declares bankruptcy, citing Chinese taxes on the imports. Hung, of course, splits the “taxes” with the Chinese government and returns to America to purchase hard assets such as real estate.

Final Thoughts

With the right management team behind an idea such as Quorum International, I believe this company could have become (and remained) an industry giant.  The system they used worked, but the company didn’t.

What are your thoughts? We would love to hear from anyone who was involved either as a distributor or a customer with the company.  Tell us about your experience, please.  You can leave any comments or questions in the comment section below. Thank you.

Disclaimer: Neither I nor the Online MLM Community were affiliated with Quorum nor any of the other companies listed in this article.


  1. Gore’s China scandal
  2. Travel Dynamics Names Martin J. Matthews President.
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About the Author

Greg Boudonck is a freelance writer and the author of over 50 books. He writes on many different topics, but business subjects are one of his primary areas of writing expertise. You can see more about Greg and his work by visiting his website at Lancerlife.com.

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13 thoughts on “Quorum International: History, Review and Facts”

  1. A friend of mine gave me a big box of Quorum stuff that I’ve never gotten around to playing with. My favorite was the system that let you put a pager-like device on several kids and it would alert if any of them wandered out of range, with a siren on the home and remote units. Radio Shack used to a sell a vehicular unit that was similar, with a pager-like unit carried by the vehicle owner that would go off if the alarm was triggered at the vehicle.
    Too bad the company didn’t make it.

  2. Doing a long overdue basement clean-out and found materials from my brief foray with Quorum. I am confused by the timeline of their “fall” ( filing for bankruptcy etc.) as according to my materials I actually became involved with them in 1997!
    I remember NO mention of problems within the company and there was a good group of “success” stories operating in our cohort. things were active and ongoing. How could that be???
    I did love their portable body alarms- it was a great seller with women joggers.

  3. I was a Gold distributor and I believe heading quickly to Diamond. My network was mainly in Italy, France, and Spain. Innovative, unique consumer electronics made Quorum far more appealing than any other previous MLM. That’s why its growth was record breaking. The problem was that consumer electronics were not consumables. Quorum tried to compensate for that with the introduction of both a line of cosmetics and a nutritional products one, among other launchings, but it just didn’t work. The distribution base wasn’t consumables-oriented, they were mainly male, part of them disappointed with the likes of Amway, Nu Skin or Herbalife. They just didn’t like consumables. When no new, appealing innovative products filled the pipeline, the growth stopped. Very few distributors were actually selling anything, let alone consuming themselves. That’s what killed it. I also agree about questionable ethic from some of the top distributors. And it’s true, a portion of Hung’s island – whether or not it actually existed – was promised to all future Diamonds. Easy comes, easy goes.

    1. Thanks for sharing your story with Quorum International, Miguel. I really appreciate it. Here’s to your continued success and happiness in life and in business.

  4. Great article. I was recruited with the idea that a 3D was going to make me rich. You didn’t mention how Raymond Hung offered top Distributors a piece of “Quorum Island”, yes an Island that Hung owned.

  5. Amazingly, two of my good friends made their fortune with Quorum.
    They now lead a very privileged lifestyle and somehow, STILL receive residual income. Not sure how that works if the company is no longer around.
    any idea how that could be
    Ottawa Ontario Canada

  6. The problem with this company is that I always have to find new customers for alarms is not something that a customer will buy repeatedly.

  7. Hello,
    I often wondered what happened to this company. My mother was a independent distributor, but I purchased a few products from her. I thought the products were wonderful. I loved the personal alarm that you wore like a pager. I’m sorry this company isn’t around anymore. I guess the founder wanted a “get rich quick scheme ” and it worked. Good for him, bad for us. That’s the world we live in. I find it hard to invest in things like this because I know they won’t be around the next day. Thank you so much for writing this article. It was very helpful. I will share it with my mother, because she too was wondering what happened to Quorum.

  8. Hello,
    I was a Quorum distributor and quickly made it to the Gold level. The main problems I experienced with this company was the integrity of most of the people in my upline. Some of these people continue to run their scams today. Bottom line in any MLM company is, the product must sell it’s self and the more time and money you have to invest, the higher you move up. Fact is it takes money to make money. I did have a lot of fun though and met some great people.

    1. Peace be unto you, Michael. I was a distributor and met Mr. Hung and his wife on several occasions. The problem was the up line. They had little ethics, no morals, and no integrity. I’m talking about well known people, some even had television program. We were not supposed to take out newspaper or television ads as it would be a disadvantage for those unable to do so and infringe on their selling arena. My up line took out a full page ad. When I called him on it as being against company policy his response, “This is business. We gotta do what we gotta.” When I told my immediate upline how unscrupulous this was and that I was going to report him to the company, due to the person’s high profile on TV, I was asked to let it slide. I was at the Las Vegas convention and witnessed a diamond level couple acting totally immoral with other distributors at the swimming pool. WTH? I loved the products!

  9. steve portelance

    Hi Greg,
    Enjoyed reading your segment on Quorum. In your research did you come across the name of the company (Chinese I assume) who manufactured the alarm products for Quorum?

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