On May 1, 2009, Quixtar made the name change to Amway Global and fused the various different entities of the parent company.
[4] Rich DeVos and Jay Van Andel initially founded the Ja-Ri Corporation, a multi-level marketing distributorship for Nutrilite products, in 1949.
"We decided there were a number of roads we had to go down in order to recreate awareness for a brand that, quite frankly, a lot of people felt had gone away.
Along with the re-branding campaign, Amway Global is investing over 580 million dollars into both increased compensation for IBOs and extensive advertising of the new brand name.
IGP is the profit made when customers of an IBO buy products and services from Quixtar at retail price.
[15][16] This said, according to Inter@ctive Week, "The commissions aren't all that great, even though they can add up to greater than 50 percent of the cost of the goods sold.
If privately held Amway generated $6 billion in sales in 1998 as estimated, then each of its 1 million distributors would have pulled in, on average, only $6,000.
That's because this form of marketing relies on what Ken McDonald, regional vice president at Amway North America, calls "high touch."
This is what amounts to the need for agents or distributors to reach out and touch people they personally know, in order to make a sale.
North American Diamonds (high-level IBOs) and their associated training companies may apply to Quixtar to be accredited by the corporation.
Additionally, accredited programs must agree to a range of other guidelines, including "full" transparency in any compensation paid for Business Support Materials.
Forbes ranked Alticor, as America's 27th largest privately owned company with estimated revenue of $7.29 billion.
Orrin Woodward and Chris Brady, both former IBOAI board members for Quixtar, co-authored the #1 bestseller, Launching a Leadership Revolution.
[32] Prior to the 2009 Major League Soccer season, Amway Global signed a three-year deal with the San Jose Earthquakes to become the team's official jersey sponsor.
As a result, Amway Global is now also the official sponsor of the team's Kicks for Kids program that focuses on fitness and healthy lifestyles, as well as bringing underprivileged children to Earthquakes games.
The partnership also saw the creation of the Amway Global Street Team, which appears at all Earthquakes home games and at a number of soccer and non-soccer events throughout the Bay Area.
The members of the Amway Global Street Team give away Earthquakes-branded merchandise and provide soccer skills demonstrations at each event.
[33] In March 2009, Amway Global signed a multi-year deal to become the official presenting partner of the Los Angeles Sol of Women's Professional Soccer.
For several years Quixtar was involved in litigation with the tools businesses of former Crown Distributor Kenny Stewart and Double Diamond Brig Hart.
[40] In his online book "Merchants of Deception", former Quixtar IBO Eric Scheibeler stated that he and his family received death threats from his uplines during a business meeting and from an anonymous phone call.
[41] In July 2007, Scheibeler wrote a letter to an attorney for Amway and Quixtar clarifying among other things that, to his knowledge, Doug DeVos or Amway/Quixtar employees never made any death threats to him.
[42] The Federal Trade Commission offers advice for potential MLM members to help them identify those which are likely to be pyramid schemes.
In 1983, Rich DeVos, one of Amway's founders, made recordings which, among other things, communicated his displeasure with several issues regarding some of the high ranking distributors/IBOs.
The plaintiffs alleged that the company knowingly operates as a pyramid scheme, and prevents its distributors from leaving the organization through the aforementioned provisions.
On August 10, 2007, Quixtar announced that it had terminated the businesses of fifteen of the plaintiffs involved in the lawsuit,[53] and sought and received a temporary restraining order and preliminary order of injunction in a Michigan court preventing them from interfering with the LOS, soliciting IBOs for their new company, or disparaging Quixtar or the business in any way.
[54][55] In mid October 2007, Quixtar argued that the former distributors were in violation of the court order since TEAM continued to have meetings and sell motivational materials.