By Ana Swanson The salespeople at Ideal Health were thrilled when they heard Donald Trump would become the new face of their company. The New York real estate mogul, whose reality show “The Apprentice” made him famous, licensed his name to the firm, which was then rebranded as the Trump Network in 2009. “Oh, my …
 
Wonkbook
The latest economic and domestic policy from Wonkblog
 
 

Republican presidential candidate Donald Trump at the Old Post Office Pavilion, soon to be a Trump International Hotel, in Washington on March 21. (Jabin Botsford/The Washington Post)

By Ana Swanson

The salespeople at Ideal Health were thrilled when they heard Donald Trump would become the new face of their company. The New York real estate mogul, whose reality show “The Apprentice” made him famous, licensed his name to the firm, which was then rebranded as the Trump Network in 2009.

“Oh, my god, people cried when they heard it was him,” says Jenna Knudsen, who worked as a high-ranking saleswoman for Ideal Health at the time. “They cried and looked at each other and said, ‘We’re going to be millionaires!’ ”

Knudsen and her colleagues sold customized vitamins and other health products as part of a controversial business model known as multilevel marketing, in which companies pay salespeople commissions for selling products and recruiting more representatives.

Trump, whose presidential campaign is based in part on his reputation as a businessman, is well known for licensing his name to golf courses, hotels, clothing, wine and many other products. But in this case, he became involved in an industry that consumer advocates had long criticized as promising financial independence to sales recruits but rarely delivering it. Ideal Health had already faced complaints about its practices.

Trump says he was not involved in the company’s operations. But statements by him and other company representatives — as well as a plethora of marketing materials circulating online — often gave the impression of a partnership that was certain to lift thousands of people into prosperity. In fact, within a few years, the company fell on hard times, leaving some salespeople in tough financial straits. It ultimately was acquired by another firm.

ADVERTISEMENT
 

But when Trump joined forces with Ideal Health, he was enthusiastic about its future.

“When I did ‘The Apprentice,’ it was a long shot. This is not a long shot,” Trump told a Trump Network convention of at least 5,000 people in Miami in 2009, his face projected onto a giant screen.

Read the rest on Wonkblog.


 

Chart of the day

Rich black kids are more likely to go to prison than poor white kids. Wonkblog's Max Ehrenfreund has more.
max_revised


Top policy tweets

"Shockingly broad U.S. public opposition to free trade in the new @bpolitics poll https://t.co/uLewPIFlSi" -- @sahilkapur

"Free trade is a myth; all we have is managed trade. The question is for whom? In practice, only corporations benefit. Why not workers also?" -- @BruceBartlett

"broken infrastructure foils Iranian hacker who maybe tried to flood small Westchester County village for some reason https://t.co/gned820tv6" -- @pareene

 
Most Recent Posts from Wonkblog
Why pediatricians care so much about the Supreme Court’s birth control case
It all comes down to religious objections.
 
Older Americans are taking their vitamins — and that could be dangerous
1 in 6 older Americans is at risk of a dangerous drug interaction
 
The Trump Network sought to make people rich, but left behind disappointment
Donald Trump billed The Trump Network as an antidote to the recession. Later, its people stopped getting paid.
 
Watch what happened to flight patterns in the moments after Brussels attacks
Following a pair of explosions Tuesday that killed more than 20 and put the Brussels Airport (BRU) on lockdown, air traffic controllers diverted an estimated 50 planes. This is what it looked like.
 
The number that tells us the economy might be doomed
Interest rates are probably heading back to zero the next time there's a recession.
 
Poor white kids are less likely to go to prison than rich black kids
Some new research addresses the uncomfortable question of whether you're better off being rich or being white.
 
ADVERTISEMENT
 
Recommended for you
 
Business & technology news alerts
Get immediate updates in your inbox on business, economy and technology. Visit washingtonpost.com/newsletters for more breaking news alerts and newsletters.
Sign Up »
 
     
 
©2016 The Washington Post, 1301 K St NW, Washington DC 20071