Index

A Hungary, 132 India, 139–141 Access Business Group, 5, 161 Japan, 133–136 Airplane Game (pyramid scheme), 64 Korea, 136–137 Alticor Inc., 1, 5, 12, 161 Malaysia, 138–139 Amway Poland, 132, 141–142 Artistry (facial skin care and cos- Russia, 142–143 metics line), 5, 158 Thailand, 88 business model, 6–8 United Kingdom, 61 criminal indictments against, in Vietnam, 137–138 Canada, 82 factory fi re, 55–56 early years, 25–44 50th anniversary celebration, xi–xiv changing direction, 30 formation of partnership of DeVos failure, learning from, 27–30 and Van Andel, 15–24 fi rst attempts, 25–27 future of, 177–181 learning COPYRIGHTEDthe ropes, 36–37 MATERIAL lawsuits against, 11 Nutrilite, 31–43 BERR (England), 105, 163–166 expansion, 60–61, 88, 131–152 Canada, 80–84 Australia, 61 class action suit by former China, 145–152 Quixtar distributors, 175 eastern Europe, 141–142 FTC, 63–73 Germany, 131–132 Procter & Gamble, 109–117

215

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Amway (Continued) Avon Products Inc., and Avon brand, State of Wisconsin, 78–80 9, 62, 88–89, 150, 152 TEAM class-action suit, 173–175 national TV campaign and PR B blitz, 12–13, 170–171 Believe! (DeVos), 7 Nutrilite (dietary supplement line), BERR (England), case against 5, 31–43 Amway, 105, 163–166 debate over structure, 38–42 Beveridge, Frank Stanley, 59 “the Plan,” unveiling, 45–56 Biggart, Nicole Woolsey, 9, 136 humble beginnings, 46–47 Blakely, G. Robert, 113 opportunity meeting, 49–51 Bosscher, Jim, 26 the Plan, 47–49 Brady, Chris, 173–174 protecting the lines of Branson, Richard, 2 sponsorship, 51–54 Britt, Bill, 97, 128, 140, 159–160 political involvement, 119–130 class-action lawsuit against, 98–99 Amway’s infl uence, 127–129 Britt, Peggy, 97, 128, 140 contributions to conservative Buffett, Warren, 2 groups, 119 Bush, George H. W., 94, 122–123, 134 with Republican party, 121–124 The Business Handbook: A Guide to renewing the business/brand, Building Your Own Successful 155–162 Amway Business (Yager), 96–97 sales model, exporting, 3–6 “A Business Opportunity for China market, 4 Entrepreneurs” (Amway India market, 4 brochure), 8 second rebranding, 170–171 Business support materials (BSMs), 92 turning point in Wisconsin, 78–80 Butterfi eld, Stephen, 3, 99–100 Amway: The Cult of Free Enterprise Amway: The Cult of Free Enterprise, (Butterfi eld), 8, 99 8, 99 “Amway: The Untold Story” (Web site), 114–115 C Amway Career Manual for distributors, 49–50, 52–53 Capitalism and controversy, 1–13 Amway Distributors Association, business model, 6–8 rules of conduct, 85–86 exporting a sales model, 3–6 Amway Grand Plaza Hotel, 5, 68 multiple transformations, 8–11 Amway Motivational Organizations: public perception, infl uences on, Behind the Smoke and Mirrors 11–13 (Carter), 101 selling directly to buyers, 2–3 “Amway Wiki” (www.amwaywiki Carter, Ruth, 101 .com), 7 Casselberry, William, 38–39 Artistry (Amway facial skin care and Charismatic Capitalism: Direct Selling cosmetics line), 5, 158 Organizations in America Ash, Mary Kay, 59 (Biggart), 9

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Cheng, Eva, 4, 145–152 retirement, 124–125 China, Amway’s expansion into, testimony at FTC hearing, 67 145 –152 Direct Selling Association (DSA), 2, 39 Cheng, Eva, 145–152 Donahue, Phil, 84, 109 direct sellers, paving the way for, Dornan, Jim and Nancy, 97, 140 146–150 Dutt, Jere and Eileen, 55 growth of an industry, 150–152 Colson, Charles W., 125, 154, 155 E Craig, Bruce A., 70–71, 72, 78, 80 Crowley, Mary, 59 Eastern Europe, Amway’s expansion Cunningham, Mark, 164–165 into, 141–142 Elizabeth (wooden schooner bought by DeVos and Van Andel), D 27–28, 55 The Dark Side of the Pyramid (Smith), Enterprise II, 5 70, 159 An Enterprising Life (Van Andel), 8, Dateline NBC, investigative story on 11–12, 41–42 Quixtar (“In Pursuit of the F Almighty Dollar”), 159–161 DeLay, Tom, 6, 120 False Profi ts (FitzPatrick), 64 DeVos, Betsy, 123, 125, 128–129 Federal Trade Commission (FTC), 10–11, DeVos, Dick, 6, 74, 88, 92, 124, 126, 51, 63–73, 87, 88, 178–179 135–136, 156, 158, 169 defi nition of pyramid scheme, 64–68 run for Michigan governorship lawsuit against Amway, 64–73 (2006), 168–169 decision, 68–73 DeVos, Doug, xii, 5, 74, 139, 158, FitzPatrick, Robert, 64, 73, 178–179 167, 170, 175, 177 Foley, Tim, 97–98 DeVos, Rich, xii, 13, 19–34, 35–39, Ford, Gerald, 54, 120 42–47, 51–55, 60–61, 67, 72, Frisk (renamed L.O.C. All-Purpose 73, 74, 77, 80, 81, 83, 84, 85, Cleaner), 46 87, 88, 92, 104, 123–125, 128–129, 131–132, 145, G 153–156, 162, 167 Gifford, Rob, 150–151 Believe!, 7 Goodrich, William W., 39, 40, 41 early life, 19–22 Grand Rapids, Amway’s revitalization estimated net worth, 6 of, 68 formation of partnership with Van Grand Rapids Toy Company, 30 Andel, 22–24 heart surgery, 74, 124 H heart transplant, 153–156 Hope from My Heart: Ten Lessons for Hanrahan, John and Stacy, 98 Life (DeVos), 8, 21 Harvey, Paul, 83, 123 marriage to Helen Van Wesep, 37 Hassan, Steven, 179, 180

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Haugen, Randy, 110, 111, 116–117, L.O.C. All-Purpose Cleaner, 46 173–174 Longaberger Baskets, 60 Hope from My Heart: Ten Lessons for Life (DeVos), 8, 21 M How to Get Well and Stay Well (Nutrilite marketing book), Madoff, Bernie, 62, 178, 179 38, 40 Malaysia, Amway’s expansion into, FDA investigation/lawsuit, 40–41 138–139 Mary Kay Inc., and Mary Kay brand, 9, 71, 150, 152 I Maskaant, Neil, 31, 32, 47 “In Pursuit of the Almighty Dollar” McDonald, Ken, 160 (Dateline NBC investigative Mentz, Roger, 129 story on Quixtar), 159–161 Mohr, Michael A., 116 India, Amway’s expansion into, 139–141 Mondale, Walter, 62 Muller-Meerkatz, Peter, 4, 77 J Mutual Broadcasting Corporation, purchase by Amway, 67–68 Ja-Ri Corporation, 29, 30, 36, 42, Myrick, Sue, 128 43, 47 Mytinger, Lee, 38–39 Jacobs, Irwin, 88–89 Japan, Amway’s expansion into, 133 –136 N Johnson, James J., 111–112 Nakajima, Kaoru, 4, 134 National Consumers League, 40 K Nicholson, William W., 82, 87, 88 Kerry, John, 168–169 Nutrilite (Amway dietary supplement Kim, Leonard, 9 line), 5, 31–43 Korea, Amway’s expansion into, debate over structure, 38–42 136 –137 Koscot Interplanetary Inc., 63, 69 P

L Pagliarini, Robert, 7 Pantlind Hotel, purchase by Lieberman, Steve, 12, 170 Amway, 68 Litigation, 11 Parker, John, 135 BERR (England), 105, 163–166 Payne, Jim, 171 Canada, 80–84 Pin levels, 49, 55, 91–106 class action suit by former Quixtar Crown Ambassador, 91–92 distributors, 175 Diamond, 92 FTC, 64–73 Double Diamond, 92 decision, 68–73 downside, 98–104 Procter & Gamble, 112–117 Executive Diamond, 92 State of Wisconsin, 78–80 Founders Crown Ambassador, 92 TEAM class-action suit, 173–175 Pearl, 92

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Ruby direct, 55, 92 Ruby Direct pin level, 55, 92 Silver, 92 Russia, Amway’s expansion into, success, price of, 104–106 142–143 top distributors, 92–98 Triple Diamond, 55, 92 S “The Plan,” unveiling, 45–56 humble beginnings, 46–47 SA8 biodegradable detergent, 46 opportunity meeting, 49–51 Scheibeler, Eric and Patty, 101–104 the Plan, 47–49 Schwartz, Sidney, 114–115 distribution hierarchy, 49 “Selling America” (taped motivational Pinckney, William S., 133, message), 51, 54 139–140, 141 “70 percent rule,” 69, 70 Poland, Amway’s expansion into, 132, Short, Bo, 160 141–142 Silicon Glaze (automobile polish), Ponzi schemes, 62, 66 53–54 “The Power of Positive” (national TV Siriani, Mary, 59 commercials), 12, 170 60 Minutes report on Amway (“Soap Prince, Erik, 125 and Hope”), 83, 94–96, 97, 104 Procter & Gamble, 11, 107–117 Starr, Kenneth, 116 Ivory Soap, 108 Stone Mill Products, 30 product logo, 108–112 and rumors of Satanism, 109–112 T lawsuits against Amway, 112–117 TEAM class-action suit against Puryear, Ron, 8–9 Quixtar, 173–175 Pyramid scheme, 11, 39–40, 62, 63, “10 customer rule,” 69, 70 70, 73, 77, 113–114, 141, 147, Triple Diamond pin level, 55, 92 151, 178–179 Trump, Donald, 2 accusations of, 11 Tupperware, 57–60, 66 class action suit by former Quixtar distributors, 175 FTC’s defi nition of, 64–68 U Ussery, David, 136 Q V Quixtar, 7, 11, 157–162, 170, 172 TEAM class-action suit against, Valentine, Debra A., 64–66, 69 173–175 Van Andel, Jay, xii, xiii, xiv, 1–2, 8, 13, 15–19, 21, 23, 25–34, 36–39, 41, 42–43, 46–47, 51–56, 60–61, R 64, 67, 68, 70, 72, 73, 74, 77, Ramakrishnan, Vijay, 172 78, 79, 80, 81, 82, 83, 84, 85, Reagan, Ronald, 94, 120–121 88, 89, 104, 132, 133, 178 Rehnborg, Carl F., 31, 38, 42–43 death, 162 Riverside Drive-Inn Restaurant, 26 early life, 15–19

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Van Andel, (Continued ) Williams, Pat, 3 An Enterprising Life, 8, 11–12, 41–42 Wise, Brownie, 59 formation of partnership with Wolverine Air Service, 26–27 DeVos, 22–24 Woodward, Orrin, 173–174 marriage to Betty Hoekstra, 37 A World of Opportunity (Amway 50th political involvement, 120–121 anniversary book), 89 retirement, 126–127 Van Andel, Steve, iv, xii, xiv, 3, 4, 6, Y 10, 12, 47, 126, 127–128, 156, 162, 167, 170, 175, 177 Yager, Birdie, 92–97, 124, 128, 140 Vietnam, Amway’s expansion into, Yager, Dexter, xv, 92–97, 103, 124, 137–138 128, 140 class-action lawsuit against, W 98–99 Wead, Doug, 122 “Why You Should Join Amway” (blog), 7

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