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.
History Of Quorum International
In 1991, a man by the name of Raymond Hung, who was a part owner of Applied International Holdings in Hong Kong, along with RJP, teamed up with Marty Matthews to found the company. Using a multilevel marketing distribution model, the company offered various products in home electronics, security, health, skin care and weight management.
With the diverse product line and lucrative compensation plan, the company grew quickly. By 1994, the company did business in 16 countries with over $300,000,000 in annual sales. 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 a 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 at this company’s history, we see an excellent idea that could have worked if handled differently…in my opinion. They 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 the company 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.
The company’s leadership team claimed distributors could gain financial independence by just doing 3 things:
Sell $100 worth of products per month
Sponsor 5 distributors in 3 to 6 months
Train the distributors to duplicate these tasks
Did that system work? It seems not.
But, overall if MLM distributors did follow the basic ideas Quorum presented, I do believe that they would have made significant progress in their business. Many did do quite well with Quorum International when it was alive.
Here are a few quick facts about the company that I found online.
The founder of Nerium and The People’s Network, Jeff Olson 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.
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.