The Trump Network
| File:Trump Network logo.gif | |
| Industry | Multi-level marketing |
|---|---|
| Predecessor | Ideal Health, Inc. |
| Founded | March 1997 in Massachusetts, United States |
| Founders | Lou DeCaprio Todd Stanwood Scott Stanwood |
| Defunct | Early 2012 |
| Fate | Assets transferred to Bioceutica (early 2012) |
| Headquarters | , United States |
Area served | United States |
Key people | Lou DeCaprio (president) Todd Stanwood (chief executive officer) Scott Stanwood (vice president of communications) |
| Products | Vitamins, energy drinks, skin-care |
| Owners | 1997–2012: Lou DeCaprio Todd Stanwood Scott Stanwood 2012: Bioceutica |
Number of employees | 20,000 salespeople (2010) |
| Website | Official website |
The Trump Network operated as a multi-level marketing enterprise bearing the name of businessman and future U.S. President Donald Trump. Initially launched as Ideal Health in 1997, the company rebranded in 2009 after entering a licensing arrangement with Trump. This agreement concluded in 2011, leading to the sale of its assets to Bioceutica in 2012.
Ideal Health
Ideal Health was created in March 1997 with its headquarters located in Lynnfield, Massachusetts. The company was founded by Lou DeCaprio alongside brothers Scott and Todd Stanwood.[1] The trio brought prior experience from direct sales and network marketing sectors, including involvement with Nu Skin Enterprises.[2]
Their business strategy centered on enlisting sales representatives who promoted personalized vitamin supplement regimens derived from urinalysis testing. These representatives earned commissions through both product sales and recruitment activities. Customer orders were fulfilled via direct shipping, minimizing inventory burdens for the sales force.[3]
By 2004, Ideal Health encountered numerous grievances submitted to the Federal Trade Commission by distributors who claimed they incurred substantial upfront costs without adequate financial returns.[1][4] One product, Supreme Greens, became the subject of an FTC lawsuit due to misleading assertions regarding cancer treatment.[1] That same year, Ideal Health broadened its offerings by acquiring BIO Essentials skin-care lines.[5]
The Trump Network
In 2008, Donald Trump sought to partner with a network marketing firm. His attorney, Jerry Schrager, connected with Ideal Health’s founder DeCaprio during a business event in New York. Ideal Health aimed to elevate its brand recognition, prompting meetings between Trump and the founders at Trump Tower. Trump later acknowledged their strong operational history and reputable standing.
March 2009 marked the licensing of Trump's name to rebrand the company as the Trump Network, with Trump agreeing to occasional promotional efforts. Lou DeCaprio continued as president; Todd Stanwood assumed CEO responsibilities; Scott Stanwood took on vice president of communications duties. The official launch occurred on November 13, 2009, at an event in Miami featuring Trump's attendance.
Trump characterized the venture as a "rescue and recovery program" designed to provide supplemental income opportunities amid the Great Recession’s economic challenges. Sales representatives paid $48 for a basic marketing kit with web access or $497 for a comprehensive package including coupons and sales strategies. Unsold merchandise could be returned. Products displayed Trump's family crest but remained largely unchanged from previous formulations. A scientific advisory board was established by Trump to review products, and 18 negative domain names were registered to protect the brand identity.
By March 2010, product distribution covered all U.S. states with intentions for international growth. The headquarters relocated from Byfield to a larger facility in Rowley, Massachusetts. The use of Trump's surname significantly boosted recruitment efforts; by December 2010, the organization experienced a 373% increase since Trump's involvement began, doubling its staff to approximately 50 employees and expanding its salesforce globally from 5,000 to 20,000 individuals. Participants from Trump's reality television show The Apprentice also joined as distributors.
In January 2011, plans were announced to broaden product lines and enter European and Asian markets with ambitions to exceed Amway’s market share. DeCaprio addressed concerns about distributor earnings by highlighting self-motivation as essential for success. Trump positioned the business opportunity as a source of additional income rather than a full-time career.
The licensing agreement with Trump concluded at the end of 2011. Early in 2012, Bioceutica purchased the company’s assets for an undisclosed amount, signaling the end of operations. Some distributors expressed dissatisfaction over Trump's limited involvement—confined to licensing his name and occasional motivational appearances—with Trump's legal counsel confirming that this arrangement had been transparently communicated. The company's website contained disclaimers clarifying that neither Trump nor his affiliated entities owned or developed the products marketed under the Trump Network brand.
Products
By 2011, the Trump Network's range of products encompassed two types of multivitamins: Prime Essentials and the premium Custom Essentials, which featured personalized vitamin guidance through a urinalysis test known as PrivaTest. The company also offered children's nutritional snacks called Snazzle Snaxxs, QuikStik energy beverages, and a weight management system named Silhouette Solutions. After Donald Trump's association with the company, a skincare collection titled BioCé Cosmeceuticals was launched. As of July 2017, PrivaTest continued to be accessible via Bioceutica’s online platform.
Although these products were available, several nutrition specialists expressed skepticism regarding the vitamins' effectiveness and questioned the scientific credibility of the PrivaTest. Harvard-affiliated physician Pieter Cohen criticized PrivaTest as a "fraud," characterizing it as a commercially motivated initiative lacking empirical support.
External links
- Ideal Health official website, archived through the Wayback Machine
- Trump Network official website, preserved via the Wayback Machine
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- Business career of Donald Trump
- Nutritional supplement companies of the United States
- Defunct multi-level marketing companies
- American companies established in 1997
- 1997 establishments in Massachusetts
- Defunct companies based in Massachusetts
- 2012 disestablishments in the United States
- Businesses of Donald Trump that went bankrupt
- Companies of the United States by year of establishment