WASHINGTON, Sept. 28, 1999 -- The company that made multi-level
marketing an art form hopes to build a second empire on the World Wide
Web. Amway, the ubiquitous purveyor of soaps, cosmetics, vitamins
and what have you, recently launched Quixtar,
a site that supposedly offers big bucks to those enterprising enough to
be IBOs -- Independent Business Owners.
Amway says it has sold 40,000 of its independent distributors and newcomers on the idea of launching "web-based businesses" that are tied into Quixtar. The IBOs (not to be confused with IPOs) get a chunk of the change whenever someone actually buys something through the site.
IBOs will also continue to sell shampoos, step stools and the like to friends and family in person, while presumably urging them to go online and make additional purchases which get credited to the IBO.
Amway says the new name is intended to make it clear that the Web site offers a broader range of products, including electronics, jewelry and housewares.
The Federal Trade Commission had Amway in its sites 20 years ago but finally cleared it of charges that its distribution system was little more than a pyramid scheme.
