XanGo
American multi-level marketing company
XanGo is a multi-level marketing (MLM) company based in the United States, known for its dietary supplement products, particularly those made from the mangosteen fruit. The company was founded in 2002 and has since expanded its product line and global reach.
History
XanGo was founded in 2002 by a group of entrepreneurs including Joe Morton, Gordon Morton, and Aaron Garrity. The company was established with the aim of marketing a nutritional supplement derived from the mangosteen fruit, which is native to Southeast Asia. The founders were inspired by the fruit's traditional use in folk medicine and its purported health benefits.
Products
XanGo's flagship product is the XanGo Juice, a beverage made from the whole mangosteen fruit, including the rind, which is believed to contain high levels of xanthones, a type of antioxidant. The juice is marketed as a health supplement with various benefits, although these claims have been met with skepticism and regulatory scrutiny.
In addition to XanGo Juice, the company has expanded its product line to include a variety of health and wellness products, such as dietary supplements, skin care products, and personal care items. These products are distributed through a network of independent distributors who earn commissions based on their sales and the sales of their recruits.
Business Model
XanGo operates on a multi-level marketing model, where independent distributors sell products directly to consumers and recruit new distributors to join the network. This model allows distributors to earn income through direct sales and by building a team of distributors, from whom they earn a percentage of sales.
The MLM model has been both a source of success and controversy for XanGo. While it has enabled rapid growth and global expansion, it has also attracted criticism and legal challenges related to the structure and sustainability of the business model.
Global Presence
Since its inception, XanGo has expanded its operations internationally, establishing a presence in numerous countries across North America, Europe, Asia, and Latin America. The company's global reach is supported by its network of distributors and localized marketing strategies.
Criticism and Controversies
XanGo has faced criticism and legal challenges over its business practices and product claims. Critics have questioned the efficacy of its products and the ethical implications of its MLM model. Regulatory bodies in various countries have scrutinized the company's marketing claims, leading to legal actions and settlements.
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Contributors: Prab R. Tumpati, MD