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History​
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Rich DeVos and Jay Van Andel initially founded the Ja-Ri Corporation, a multi-level marketing distributorship for Nutrilite products, in 1949. Ja-Ri was incorporated in 1959 and changed its name to "Amway" (American Way) in 1963. As of 2012, Amway operates in more than 100 countries around the world. In 1999, the founders of the Amway corporation launched a sister Internet-based company named Quixtar. The Alticor corporation owns both Amway and Quixtar, plus several other concerns. Quixtar replaced the North American business of Amway in 2001 after the majority of the distributors moved to Quixtar, with Amway operating in the rest of the world.
The move unified the various Amway companies worldwide. "We're now reintroducing our brands in North America, moving away from Quixtar and going back to the Amway name," said Steve Lieberman, managing director of Amway Global. "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."
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Business model
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Quixtar relies primarily on person-to-person referral rather than advertisements for the sale of products;[7] however, Quixtar has recently announced the launch of a multimillion-dollar ad campaign.[8] A large part of the marketing budget is spent on paying bonuses to distributors. IBOs were paid more than $370.1 million in bonuses and incentives in the fiscal year 2006.[1]. Bonuses are paid for individual sales and sales generated by people one sponsor but not for sponsoring itself.[9][10]
In 2001, after the majority of Amway Independent Business Owners (IBOs) had transferred to the new company, Quixtar completely replaced Amway as the marketing venture for Amway/Alticor products in North American regions. The Quixtar business model differs from the earlier Amway business model in many aspects, such as the way distribution is performed as well as the products and services offered through partner stores. Rather than ordering a product from a distributor who delivers them in person, Quixtar customers can place orders online and have the products shipped to them directly. In mid-2007, however, Quixtar announced they were phasing back in the Amway name over two years and discarding the Quixtar name. 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.,
Individuals may buy products through Quixtar's web site with a referral number from an IBO. Quixtar also gives IBOs the option to create free personal websites that can be personalized to focus on health, beauty, health and beauty, and/or gift and incentive products. The referring IBO then receives the retail/wholesale profit (usually 30%), and a percentage ("bonus") of the cost of the sold goods (from 3% up to 31% depending on total PV generated), with Quixtar-exclusive products yielding a higher bonus per dollar in Point Value and Business Value (PV/BV). Quixtar offers a wide range of products for its IBOs to purchase for personal use and/or to sell to customers through Quixtar.com and IBO personal e-commerce sites.
IBOs pay a registration fee and build their businesses through retail sales to customers, referring business to Quixtar.com, and by helping other IBOs build similar businesses. Their earnings are based on their business' sales and the volume of sales and purchases of IBOs registered by them.
The structure of a Quixtar's IBO organization is hierarchical, but an individual can earn more than those who bring them into the organization.[citation needed] Pin levels are similar to Amway. There are several major pin levels in the model denoting a particular level of success in building their IBO business.
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Income from tools and business support materials
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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. These recordings are entitled "Directly Speaking", and were addressed to Direct Distributors (now called Platinums), who are considered leaders with various responsibilities for their downline group. In January 1983 Rich DeVos announced that Amway would pay Business Volume (BV) on Amway produced tapes. He expressed concern about the level of income from the sale of Business Support Materials (BSM; tapes, CDs, books, and business conferences/functions) compared to the income the high level distributors were making from Amway products. He stated his legal team was concerned if the tool income exceeded 10% of their Amway income, and stated that BV payouts on tapes can never exceed 20%[46] of the distributor's total Business Volume.
A 1985 Forbes magazine article quoted Dexter Yager, an IBO, as stating that about 2/3 of his income is from BSMs.
In 2004, Dateline NBC aired a report, alleging that some high-level Quixtar IBOs make most of their money from selling motivational materials rather than Quixtar products.[48] Quixtar published an official Quixtar Response website[49] where it showed '"Interviews Dateline Didn't Do"'. Quixtar also states on its response site that Dateline declined their request to link to the site.
During the registration process for a new IBO, Quixtar contracts clearly inform prospective IBOs that BSM are optional and that the producers and sellers of the BSM may make profit or loss from their sale (like any other business). This is also publicized on Quixtar websites. Quixtar's Business Support Materials Arbitration Agreement (SMAA) requires the immediate seller of BSMs to buy-back materials, which were purchased only for personal consumption within a 180-day time frame, on commercially reasonable terms, upon request of the purchaser. BSMs purchased for inventory or to be sold to others downline are not covered by the buy back policy.
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Amway/Nutrilite
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Helping People Live Better Lives
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Trout Lake Farm was purchased in 1998 by Amway/Nutrilite, in order to become
a primary supplier of raw botanical materials to the Nutrilite line of supplements.
With this collaboration came resources and expertise that has enhanced
both companies.
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Through solid financial backing from Amway, Trout Lake Farm has become the premier producer of medicinal herbs in America with more certified organic acres under cultivation than any other producer. Nutrilite has over 80 years of experience in the health supplement field having created one of the first nutritional supplements in 1934. Nurtilite was the first vitamin and mineral supplement marketed in North America. Its experience in supplement manufacture and botanical processing fit perfectly with Trout Lake Farm’s nearly 40 years’ experience in growing and processing high volumes of fine quality organic botanicals. Nutrilite can now depend on a consistent supply of the highest quality botanicals for its supplements making Nutrilite the world’s No. 1 selling vitamins and dietary supplements brand.
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NUTRILITE’s Legacy of Leadership
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Prior to 1934, there were no known multivitamin/multimineral supplements marketed in North America. People found it difficult to know if they were getting enough nutrients in their daily diets. Then, Carl Rehnborg, founder of NUTRILITE® products, created his first nutrition product and became a pioneer in the history of nutrition. Since 1934, when the first Nutrilite product was introduced, the company has become a leader in nutrition research, development, and innovation.
Today, under the leadership of Carl’s son, Dr. Sam Rehnborg, the next generation of scientists, researchers, and technicians is preserving the rich Nutrilite heritage by continuing to produce high quality, innovative supplements.
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Carl Rehnborg’s high principles of quality and value have helped shape the NUTRILITE® products through;
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Nutrilite Farming Practices – There are over 6,400 acres of Nutrilite farmland, where plants are grown and harvested in accordance with nature – using sustainable, chemical-free methods
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Unique Nutrilite Processing Techniques – Nutrilite plants are dehydrated and processed within hours of harvest, using special methods and state-of-the-art equipment to capture nature’s valuable nutrients.
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Measurable Nutrilite Quality – Good Manufacturing Practices and a team of quality-assurance experts ensure high quality standards for the Nutrilite brand—so that the supplements produced each month meet precise specifications for quality, potency, size, weight, and hardness.
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Leading-edge nutrition science – The search for new concentrates and better formulations remains a constant quest for scientists and researchers of the Nutrilite brand. Their innovative work remains the driving force that keeps Nutrilite products at the forefront of the nutrition industry.
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“Just-in-time” freshness – Instead of storing our products for months in warehouses, they are carefully packaged and shipped soon after production, to maintain freshness. No other supplements are grown, harvested, processed, and shipped in this way.
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Trout Lake Farm is part of Nutrilite’s Global Farming Community
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Rancho El Petacal—Jalisco, Mexico
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Rancho El Petacal, located in southwestern Mexico, has the ideal growing climate with plenty of sunshine and rainfall—the perfect conditions for growing nutrient-rich plants for existing Nutrilite products, and for growing test plots for research.
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All 566 hectares (1,400 acres) are certified 100% organic.
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The farm is a major source of jobs for the small community of El Petacal.
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Primary crops: Alfalfa, Spinach, Broccoli, Kale, Parsley, Sage, Nopal Cactus, Oregano, Watercress Grapefruit and Mandarin.
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What We Grow
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100% Certified Organic Botanicals Grown with Pride Since 1973
*All offerings are now steam treated
*Minimum order quantity is 500kg’s (can be comprised of mixed items). If you are unable to meet this minimum, please let us know so that we can be of assistance.
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