Market America

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Market America
Industry Internet Marketing/direct sales
Founded 1992
Founder JR Ridinger
Loren Ridinger
Headquarters Greensboro, North Carolina, United States
Area served
Key people
JR Ridinger (President and CEO)
Revenue USD 284.4 million (2009)[1]
Total assets USD 146.1 million (2010)[2]
Number of employees
650 (as of 2011)[3]

Market America is a multilevel marketing company[4][5] that describes itself as a product brokerage and internet marketing company. Currently distributing a variety of products in several countries, the company was founded in 1992 by JR and Loren Ridinger. Headquartered in Greensboro, N.C., the company employed roughly 650 people as of 2011.[6] Market America's offerings include household cleaning supplies, jewelry, personal care products, auto care, cosmetics, dietary supplements, custom websites, water purifiers, and weight management products. It conducts business through several affiliated companies. The company uses the web domain for retail sales.


In 1992, Market America was founded by former top Amway distributor JR Ridinger (real name, James Howard Ridinger), his wife Loren, and her brother Marc Ashley, now Chief Operating Officer. The company is headquartered in Greensboro, NC and employed around 650 non-union employees as of 2011. Over the years, Market America has sold items such as auto care, electronics, apparel, water filtration systems, flowers, coffee, and oral hygiene through affiliations with outside companies that advertise and offer these items on the firm's site.

The company later expanded its operations to Australia (2002), Hong Kong (September 2007),[7] Philippines (October 2010),[8] United Kingdom (February 2012),[9][10] and Mexico (June 2012).[11]

In August 2008, the firm announced the partnering of Market America and iMirus to produce MA Newsstand, offering digital and print versions of magazines, books and catalogs.[12] In late 2010, the company bought shopping comparison firm for an undisclosed amount.[13] The acquisition prompted the company to shift its retailing domain name from to, with the aim of expanding the cashback program Market America introduced in 2008. [14]

Products and services[edit]

Market America's product categories include health and nutrition (Isotonix), home and garden care (Snap), pet care (Pet Health), automotive care (Autoworks), weight management (TLS), personal care (Royal Spa, Fixx, Skintelligence), cosmetics (Motives by Loren Ridinger), jewelry (Loren Jewels, Yours by Loren Ridinger), and water filter systems (Pure H20). Services include personal financial management (maCapital Resources) and Internet marketing services for small to medium sized businesses (maWebCenters).

The firm's Isotonix line of dietary supplements was introduced in 1993, and came to include more than 20 products.[15] Its Prime line of nutraceuticals consists of 12 supplement formulations.[16] In 2004, the Transitions Lifestyle System (TLS) weight management program was introduced.[17]

Business model[edit]

According to Market America, all of its products are manufactured by other firms and are exclusively marketed by Market America. Individual persons and business entities alike register as independent distributors, referred to as "UnFranchise Business Owners". The former can earn commissions from the sale of products. Customers can also access and shop from websites of many online retailers and manufacturers called "Partner Stores"[18]) via the portal.

Market America has been criticized as an "incarnation of multilevel marketing" whose products are "almost interchangeable with what you could find in your local CVS or Duane Reade for half the price" and as a business driven by "distributors finding customers, introducing them to Market America products, and then explaining to them that by selling this product, they can become as wealthy as, well, JR Ridinger."[4]

In 2004, consumer awareness group president Robert FitzPatrick commented that based on available figures, the company's growth "could not go on forever" and disputed the claim that "distributors can achieve financial independence".[19]

In December 2010,[3] Market America began acquisition of, a shopping comparison site on the Internet.[20] The acquisition combined's database technology with Market America's Cashback program and network of independent distributors ("Independent Shop Consultants"). Market America was to remain in Greensboro, N.C. and the previous staff were to remain in Monterey, California and London, UK. In September 2011, the two-step integration process was half-complete.[21]

In 2011, Consumer Awareness Institute president Jon M. Taylor ascribed Market America's success to a "stage" typical of multilevel marketing companies, saying, "What happens in these companies, because of the endless chain of recruitment, they get into a momentum phase where they grow rapidly, and to avoid leveling off, they set up new products and go to new countries." According to Taylor, a study of similar multilevel marketing businesses showed that "99.6 percent of people who sign up as distributors wind up losing money."[4]

Legal actions and lawsuits[edit]

In 1999, the firm and its CEO resolved, without admitting or denying any allegations, certain charges by the United States Securities and Exchange Commission concerning the manner in which the Company was taken public in 1994. The charges related to alleged violations of the federal securities laws in connection with the distribution of unregistered Market America stock.[22] The company’s CEO agreed to refrain from future violations of the federal securities laws. The company was made private when all outstanding shares were purchased by their CEO in 2001.[23][24]

On March 3, 2006, Steve Sawyer sued Market America in Guilford County, North Carolina claiming breach of contract and violation of the North Carolina Wage and Hour Act with respect to certain Internet consulting services he was providing to the company. Sawyer alleged that Market America failed to pay him for $8,333.34 in monthly services and a $25,000 bonus.

In 2007, the court granted Market America’s Summary Judgment motion with respect to Sawyer’s claim that Market America had violated the North Carolina Wage and Hour Act. Sawyer appealed the decision to the North Carolina Court of Appeals, which affirmed the trial court’s decision in favor of Market America in June 2008.[25] Sawyer appealed to the North Carolina Supreme Court, which denied review on December 11, 2008.[26] On December 26, 2008, Sawyer filed a lawsuit against Market America in Multnomah County, Oregon, based on the same facts as the North Carolina lawsuit. In 2009, Market America sought to bring the North Carolina lawsuit to trial. Sawyer filed a motion to stay the North Carolina lawsuit, which was granted.

Later in 2009, Market America filed a motion to stay the Oregon lawsuit, which was granted. Sawyer appealed the decision to stay the Oregon lawsuit to the Oregon Supreme Court, which denied review in January 2010.[27]


The company was ranked 27th in the 2013 Direct Selling News Global 100 List of multi-level marketing companies.[28]


  1. ^ "The Inc 5000 Market America profile". 2010. Retrieved 17 August 2011. 
  2. ^ "Market America Worldwide, Inc. and Affiliates Consolidated Balance Sheet" (PDF). 31 December 2010. Retrieved 17 August 2011. 
  3. ^ a b Robin Wauters (15 December 2010). "Market America Acquires Bill Gates-Backed Shopping Site". Retrieved 17 August 2011. 
  4. ^ a b c "Market America's American Dream Machine". June 23, 2011. Bloomberg Businessweek. Retrieved 1 May 2014. 
  5. ^ Robert N. Lussier (8 January 2016). Management Fundamentals: Concepts, Applications, and Skill Development. SAGE Publications. pp. 715–. ISBN 978-1-5063-0329-1. 
  6. ^ Top 500 U.S. E- retailers
  7. ^ "Market America opens operations in Hong Kong". Retrieved 26 March 2012. 
  8. ^ "Market America opens Philippines site". Retrieved 26 March 2012. 
  9. ^ "Market America expanding into UK". Retrieved 26 March 2012. 
  10. ^ "Market America expands to the United Kingdom". Retrieved March 26, 2012. 
  11. ^ "Market America Launches in Mexico with Tremendous Success". Retrieved 15 June 2012. 
  12. ^ "Market America and iMirus Partner to Create World's Largest Online Newsstand for Magazines, Catalogs, and Books" (Press release). 16 September 2008. Retrieved 17 August 2011. 
  13. ^ " finds a buyer". Retrieved 26 March 2012. 
  14. ^
  15. ^ "Isotonix Delivery System". Retrieved 26 March 2012. 
  16. ^ "Prime Anti Aging Nutraceuticals". Retrieved 29 September 2011. 
  17. ^ "Market America 2010 International Convention: Looks to Social Media, Celebrity Partnerships & Technology Enhancements, Scottie Pippen & Kim Kardashian Partner with Market America" (Press release). 11 August 2010. Retrieved 1 August 2011. 
  18. ^ "Partner Stores". Retrieved 23 August 2011. 
  19. ^ Hoag, Christina (February 16, 2004). "Direct Sales Company Allows Miami-Area Founders to Enjoy Extravagant Lifestyle". The Miami Herald Knight Ridder/Tribune Business News. via HighBeam (subscription required). Retrieved 2014-05-02. 
  20. ^ "Market America to buy". 15 December 2010. Retrieved March 26, 2012. 
  21. ^ "Market America completes the heavy lifting of integrating". September 26, 2011. Retrieved March 26, 2012. 
  22. ^ "Litigation Release No. 16131A / May 4, 1999". U.S. Securities and Exchange Commission. 4 May 1999. Retrieved 17 August 2011. 
  23. ^ "Market America CEO looks to take company private". Retrieved 26 March 2012. 
  24. ^ "Company Overview of Market America, Inc.". Retrieved March 26, 2012. 
  25. ^ Steve Sawyer v. Market America, Inc., COA07-1257 (North Carolina Court of Appeals 3 June 2008).
  26. ^ "Supreme Court of North Carolina Petitions 11 December 2008". 11 December 2008. Retrieved 17 August 2011. 
  27. ^ Steve Sawyer v. Market America, Inc., 7 (Oregan Supreme Court 21 January 2010). Text
  28. ^ "The List - Direct Selling News". 2013. Retrieved 15 June 2013. 

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