The Trump Network was a multi-level marketing company named after businessman (and, later, 45th U.S. President) Donald Trump. The company, which sold vitamins and health products, was initially founded as Ideal Health in 1997, before being renamed in 2009 as part of a licensing agreement between Trump and the owners. The licensing agreement expired at the end of 2011, and the company's remaining assets were sold to Bioceutica the following year.
History
Ideal Health
Ideal Health, Inc. was founded as a multi-level marketing company in March 1997. The company, headquartered in Lynnfield, Massachusetts, was founded by Lou DeCaprio and brothers Scott and Todd Stanwood, who were friends of DeCaprio. The three men had previously opened New England Wine and Spirits in Newburyport, Massachusetts in 1991. After the Stanwoods' sister had joined a direct sales company in 1989, she encouraged them to get involved in the industry. The three men worked for Nu Skin Enterprises, a multi-level marketing company, and decided to form Ideal Health after seeing how successful Nu Skin had become.
Ideal Health hired salespeople who would then conduct their own marketing to sell a customized vitamin supplement program, which was determined through a urinalysis test to learn about the customer's health. Salespeople made money through commission on sales and by recruiting other salespeople. The products were shipped directly to customers rather than being stored by company salespeople.
By 2004, numerous complaints had been filed with the Federal Trade Commission (FTC) against Ideal Health, by salespeople who alleged that they spent thousands of dollars on company products that did not generate revenue. One of Ideal Health's products, Supreme Greens, was the subject of an FTC lawsuit for its false claim of being able to cure cancer. In 2004, Ideal Health acquired and began selling a line of skin-care products known as BIO Essentials.
The Trump Network
In 2008 Donald Trump began searching for a network marketing company with which to become associated. Trump's lawyer Jerry Schrager met DeCaprio during a business presentation that DeCaprio was doing in New York City. At the time, Ideal Health was seeking a partnership to increase its recognition. Trump met with DeCaprio and the Stanwoods at Trump Tower in Manhattan. Trump later recalled, "We hit it off. I checked into their past, and they were solid people. They had a nice track record, but even more importantly they had a lot of people who thought highly of them."
In March 2009 Trump agreed to license his name to the company, which would be re-branded as The Trump Network. Trump also agreed to make occasional appearances at events to promote the company's products. Trump had initially considered taking a financial stake in the company. DeCaprio remained as the president of the company, while Todd Stanwood served as the chief executive officer and Scott Stanwood served as the vice president of communications. The Trump Network launched on November 13, 2009, with a ceremony attended by Trump and held at the Hyatt Regency hotel in downtown Miami.
Trump referred to the company as a "rescue and recovery program" for people who were suffering from the effects of the Great Recession and who needed extra income. For $48, people who wanted to be salespeople could buy a marketing kit and three months of access to a personalized web site to promote the company products. Also available was a $497 package that also included coupons, CDs, and sales tips. Marketers had the right to sell any unsold inventory back to the company. Packaging for the company's products was imprinted with Trump's family crest, but the lineup of products remained mostly the same. Trump created a scientific advisory committee to evaluate the products sold by the company. Trump also registered 18 negative Internet domain names, including TrumpNetworkFraud.com and DonaldTrumpPonziScheme.com, to prevent websites from being registered with those names.
As of March 2010 Trump Network products were available in each U.S. state, with plans to expand to other countries. By then the company had relocated to a larger building at 428 Newburyport Turnpike in Rowley, Massachusetts. The company had previously been headquartered at 12 Kent Way in Byfield, Massachusetts.