Once a household name and reputedly the key to great fortune for modern salesmen hoping to live out a Horatio Alger myth, the Amway brand faded from the American market years ago, tarnished by legal and regulatory problems.
The direct-seller of everything from health and beauty items to household cleaners repeatedly fought allegations that it was a pyramid scheme. The company also paid $20 million in fines in a Canadian criminal fraud case in 1983.In 2000, after Amway become part of an umbrella company called Alticor Inc., the Amway name was dropped in the U.S. and Canada. The hope was that the company could emerge wholly remade in the world of online sales under a new moniker: Quixtar.
Now, as Amway’s 50th anniversary approaches in May, Alticor is retiring the inert Quixtar label and pouring millions of dollars into reviving the Amway brand in North America with market research, national television commercials and ads in newspapers and magazines and online. The company will use a transitional name, Amway Global, before reverting in about a year to Amway.
“We thought, well, if we’re going to build a brand, build the brand that everybody knows already,” Alticor president and co-CEO Doug DeVos said in an interview with The Associated Press. “It’s going to be much more successful and cost a lot less and happen a lot faster.”
Logo from Quixtar.
Jonathon Pugsley on December 27th, 2008 at 10:17 pm
Excellent article! This interesting what Amway has gone through with the legal battles & being accused of being a pyramid scheme.
It seems that Amway has been picked on more then any network marketing company. Why is that I wonder? That’s seems like they are being picked on. Thank you for the information.
Jonathon Pugsley
homebasedphilosphy@getresponse.com
http://www.networkmarketer2.com/building-on-a-budget