Retail Redefined

Market America, the brainchild of notable supercouple JR and Loren Ridinger, is all grown up and giving birth to new revolutions of its own.

All big revolutions begin with a good idea; JR Ridinger had a great one. As a result his Market America empire is now massive, and ever expanding to all corners of the globe.

Unlike most, who live a life working to retire and retiring broke, JR Ridinger and his entrepreneurial vein were meant to create world-changing initiatives. Dissatisfied with the idea of financial mediocrity in spite of his hard work, JR was struck with the inspiration he’d need to do just that. “I learned about residual income,” he recalls, “where you do something, make something, build something once, but get paid for it over and over, every week, month, year.” A concept few wouldn’t embrace, given the opportunity, but one that requires the stroke of genius necessary to ignite such cash flow. Since that fateful day, the idea of residual income has acted as a catalyst in JR’s life, sparking the idea that would result in an entire economic movement throughout the world. And JR’s plan to tap into said residual income was less than self-serving. It was meant to create a platform for similar opportunities for anyone who wanted them. Any person with entrepreneurial aspirations would be able to cash in through Ridinger’s program.

Of course the tale wouldn’t be as sweet without a heroine. Enter: Loren. JR’s wife, a marketing maven in her own right, appropriately poised, and possessing all the qualities one only vies for: beauty, strength, sky-high cheek bones, and the nurturing flame that kept JR lit. It wasn’t easy; it never is. But together, along with Loren’s brother, Marc Ashley, the group built a brand from the bottom up—way up. And while the onset was met with struggle, the team endured; and today, citizens of the world benefit in big ways.

MARKET, SHARE

Aptly described by its creators as a business “built on product, powered by people,” Market America is combination online shopping experience and entrepreneurial system. Offering some 40 million products and services in virtually every industry through partnerships with more than 3,500 retailers, including Apple, Target, Saks Fifth Avenue, and Travelocity, as well as access to email, news, entertainment, social networking, and more, all in one location. Market America is a portal, a gateway if you will, to anything and everything you could want at one URL, www.marketamerica.com. Far from your ordinary e-commerce outlet, the site approaches online shopping from a social perspective, allowing customers to enjoy an interactive experience that not only gives them what they need, but rewards them for spreading the word. Thus the “powered by people” component.

Their version of a personal shopper, a shop consultant, is assigned upon registration, to guide them through the purchasing process, providing peace of mind while facilitating the experience for all involved. Aside from extreme convenience, the Ridinger’s ma Cash Back program makes it enticing, allowing every participant to make money; get this, while they shop. In fact, when a purchase is made online at Market America, the buyer can expect to automatically receive anywhere between two and fifty percent cash back. And just like JR’s initial intention, rooted in the idea of spreading the wealth, ma Cash Back employs the help of a sophisticated tracking system to ensure shoppers receive an additional half-percent cash back on every purchase made by anyone they refer. This proven “pay people to shop” model, despite the state of the global financial system, has allowed Market America to create its own recession-proof business. It is JR’s first big idea, actualized.

Loren puts it in perspective: “People have things that they need to buy, no matter what, so why not get cash back for your purchases?” It’s brilliant really; customers get paid to shop while avoiding lines, pushy sales people, and arriving just to find out they don’t have your size. And numbers don’t lie; statistics show that by 2013 a whopping 50 percent of shopping will be done completely online, revolutionizing the retail experience as we know it.

Since the company is built upon the mutual success of everyone involved, it has bred a utopian environment where all reap the benefits. “The whole plan is designed around cooperation rather than competition…In Market America, the more you help people, the more successful you are. I don’t know another business model in the world that operates like that,” JR says.

IN REAL TIME

The Ridinger’s paradisiacal business model spills over into their lifestyle with a sprawling waterfront estate, Casa de Sueños, which literally translates to “House of Dreams,” in Miami Beach where they reside most of the year; and for summers spent in New York City, a 15,000-square-foot mansion in the sky, and of course dock space for their pair of mega-yachts: Utopia 2 and Utopia 3. “For us, both Miami and New York are the ideal places to live,” Loren explains. “In the summertime, when Miami is stiflingly hot, we go to New York and I tap into the sophistication and the hustle and bustle of the city. For me it’s like every interaction, every experience in New York is another opportunity for great business. We get the best of both worlds.”

The truth is that both Loren and JR are so revolutionary in their thinking, so three-steps-ahead, that every encounter is an opportunity to make magic happen regardless of where they are. Take their list of celebrity friends, for example. Reading like a who’s who in the worlds of music, television, and entertainment, the Ridinger’s count the Kardashian family, Jennifer Lopez & Marc Anthony, Eva Longoria, and Swizz Beatz & Alicia Keys amongst some of their closest friends. In fact, it was on their yacht where Keys, Swizz, and Alejandro Sanz formed the idea, music, and lyrics to their hit collaborative song, “Looking for Paradise.” And since the Ridinger’s only breed hits, it’s no surprise that the song, born in their company, recently won a Latin Grammy for best album, and has been nominated for an American Grammy.

HOME MADE

Similarly, the company continues to reach new levels of paradise. Since that first spark of inspiration, JR has had quite a few more. “I’m always pregnant with ideas, programs, or projects,” he laughs. Loren too, a bona-fide entrepreneur, has launched several of her own brands under the MA umbrella, most of which are amongst the top-selling products on the site. There’s Motives, her cosmetics line that resulted in some $27 million retail in sales within its first year. For 2010, she is expecting to close at $32 million.

“I think that even in times of recession, people still buy those small things that make them look and feel good,” she deduces. Initially the line consisted of lipsticks and powders, but between November and January 1, thirty-two new products were added to the Motives lineup. “All of them pretty much sold out in the first 15 days,” she states proudly. “It’s been a huge product line for Market America.” She also mentions that Motives comes in at around number two or three in terms of best selling lines for the company, but maintains ambitions to reach number one. “It’s funny; I like to compete with myself.” It’s quite possible that she’ll take herself out in the next round, as the product line is continuously evolving. “It’s just the beginning; I’m adding a lot of anti-aging properties to the ingredients now so we can make it good for your skin too, which is important.”

It doesn’t end there. Exquisite taste gave birth to Loren Jewels this past April. A happy accident, the jewelry line started out as a hobby and a way for Loren and co. to have fun creating pieces they loved, and loved to wear. “It was supposed to be something fun, but it ended up being a great business,” she says. Available at top of the line retailers like London Jewelers, Oxygene, and the Webster, the line has developed a cult following, garnering press attention since before it was even available for purchase. “It’s kind of the opposite of what most people experience when they’re building their brand,” says Loren. “We had press before we actually had a product. I’ve been incredibly lucky because I have incredible friends who help me constantly; I really owe it to them because it’s done so well.”

The support goes both ways; Loren, JR, and Market America have collaborated with their friends on special projects across the board. The beauty is, everyone benefits. “Alejandro Sanz, we did his cologne and his perfume, and it sold out multiple times over in a very short period of time. The same with Kimora Lee Simmons and the limited-edition cosmetic line we did; it sold out.”

Next on the agenda: “My hopes are that I’ll end up doing a costume jewelry line that is more affordable for everybody. I think the masses are where it’s at.” Until then, fans can look forward to the January 31st release of Loren’s newest venture, Fixx, a line of ten different solution-oriented products that she thinks “will probably be the first rival that Market America will ever have to be the top selling product in the company,” (which is currently and has been for a while, their series of oral nutritional supplements, Isotonix). Aimed at creating solutions for problems like hair growth, the reduction of hair loss, cellulite diminishment, and even the temporary erasing of wrinkles with a product aptly named Vanish, that promises to rid you of unsightly lines for a good eight hours; the line will literally provide a series of quick fixes. “They’re all based on problems that people deal with constantly; so these are solutions for them–that’s why it’s called Fixx—and I love the name!”

CONNECTING THE DOTS

With so much coming down the pipeline at once, one wonders how Loren manages to spread the word so well. It seems news of her latest ventures almost always goes viral before they’ve even come to fruition. Turns out, Loren equates a lot of the attention to social media, a tool she uses actively in her daily life to reach an unprecedented amount of potential new clients. Actually, Market America as a whole is leading a social media revolution by harnessing the power of the Internet and social media platforms. “For me social media is critical,” she states matter-of-factly. “I’ve used it to build my brand.” With almost 100,000 followers on Twitter, and another 150,000 over five Facebook accounts, Loren has employed the help of these resources to reach an audience completely aside from that which she reaches internally through Market America. “It’s a way for me to reach new markets, new people, a new audience.”

There is a method behind the madness, however. “I tease [my followers], I ask them questions; a lot of the products that we’re launching come from the audiences’ requests. I ask people, ‘What do you want, what would you like to see developed?’” The genius behind that kind of one-to-one interaction is the automatic sell that ensues when what you’re delivering is exactly what people want. “I get probably 180 new customers a month personally just by a little one-line sentence about a new product I’m doing; I’ve used social media to build that and find those people. Anybody can do it!”

CHECK MATE

The far-reaching arm that is Market America and its creators only continues to grow. Most recently, news of MA’s acquisition of top comparison-shopping site, Shop.com has swarmed, and with good reason. On a live interview for Bloomberg television, JR spoke to the power force that MarketAmerica.com and Shop.com will be once unified. “The billion-dollar roll,” he called it. Explaining that the acquisition will allow for the combining of the most valuable parts of each of the sites for an unmatched online shopping experience.

“Other than the Paid to Shop program, the acquisition of Shop.com has been the biggest thing that MA has ever done in its history,” says Loren. The name alone, Shop.com is striking to Loren who wonders if there is a better name to own on the internet; but it’s the technology that she explains is of most value. “The review system, the ratings, the comparative shopping…When combined with the power of people that MA offers and the Paid to Shop program, it’s a powerhouse.” A powerhouse indeed, as she predicts the acquisition will catapult them to the billion-dollar mark within the next 14 or 16 months. “It kind of feels like the beginning of MA all over again for me right now; so much excitement and so much to look forward to. It’s just the right time. I keep telling everybody, if you’re not a preferred customer yet, now is the time to become one, because we are really going to change the way people shop.”

Timing was a major factor for JR as well who refers to the here and now as an occurring “paradigm shift in the way people approach online shopping and social shopping.” Loren agrees: “People are realizing that this is the way the world is shifting and I think its better to be ahead of the trend. Not only will we do it successfully, we will hopefully be the number one retailer in the world online. It really amazes me why people are still shopping at Amazon.com and not getting paid for their purchases…I think the future will speak for itself. I think it’s going to take us to a whole new level and we will be the first company to ever take on Amazon. Nobody ever talks about taking on Amazon, but I think MA is now in prime position to do just that.”

Along with the nearly five-fold increase in traffic that the acquisition promises to provide, so too will the marriage play a major role in MA’s global expansion. “With the acquisition of Shop.com, we now have an office in the UK,” explains Loren. This translates to open season for Market America throughout all of Europe, adding to the monster presence that the site already has in places like Australia, Taiwan, Hong Kong, and the Philippines. “Asian markets are huge for us, we do tremendously well there. Shop.com is very successful in the UK, so we’re going to pick up where they are now and hit the fast track to develop the UK and Europe.” An exciting venture considering that Loren says, “People are very much used to shopping online in the UK and are very much with the program.”

IN THE BLOOD

A far cry from where they started out, Market America has blossomed, to say the least, but the fundamentals are still in place. JR and Loren drive this well oiled machine with the help of the people who work daily to make it all possible—many of which are the family members who were there from the get go. “I’m incredibly blessed…or maybe my husband is, that he married a family of entrepreneurs. Like JR and myself, my mother always made us believe that we could do anything we wanted to do, but we had to work hard for it. I think each one of us is uniquely different.” Loren breaks down each member’s function, stressing all along how integral a part of the operation each person is: “Marc does everything; we couldn’t exist or function without him—he’s the main artery making it work every day.” Loren’s other brother, Steve, is also on board; as is her sister, Brandi. “Steve is Vice President of Internet Marketing; and Brandi likes to be more behind-the scenes, she’s Vice President of Operations. I’m lucky that I get to work with my family every day and that I’m so close to them. Most people don’t have that; and the fact that we do and everybody’s good at what they do, I feel so blessed.”

Anyone who may want to scream nepotism would be quickly swayed by learning just how hard each one of them works. “My husband would be the first to say it’s not nepotism. He’d say ‘my wife really does work hard’; I’d say they probably work harder than me—and I work hard!”

HEIR FORCE ONE

The entrepreneurs keep coming, it seems. JR and Loren’s daughter, Amber, is headed down the same path. “It think it’s hard when you grow up in a family of two entrepreneurs, where their whole life pretty much revolves around business, not to have it in you.” Amber’s natural tendencies, however, are in fashion. The Parsons fashion student is actually working on an eight-piece collection, which she’ll call Lumière—a term that means “light” in French. The offerings are meant to fall in the $50 to $300 price category and include such pieces as the side-studded, supple leather mini-shorts Loren wore on her last birthday party aboard Utopia 3, giving the VIP guests a sneak preview of just how shining a light Lumière promises to be. “It’s a passion project for her,” says Loren. “I’m always more the sales person; she’s always more the creative. She makes it to see it and I’m like, ‘ok, let’s sell it!’” Innate talent coupled with her family’s ability to sky-rocket any product into the super stratosphere means things are looking up for young Amber who Loren says “has never had the desire to work for anybody but herself…I think it comes from causing her to believe that she can achieve anything she wants, and urging her do those things. I actually think she’ll be better than JR and I because she has the best of both of our qualities, but she doesn’t have the bad in either one of us.” The tender words may speak more to Loren’s genuine love and desire for greatness for all those close to her.

PAY IT FORWARD

Loren and JR really wish for better for everyone, and consistently do their part to make that happen. As a common thread throughout our conversation, giving back was always on their lips. And of course, that includes philanthropic efforts. The couple has been actively involved with the Make-A-Wish Foundation for more than a decade, are major proponents of both Alicia Keys’ Black Ball and Denise Rich’s Angel Ball, and have recently joined pal Eva Longoria in bringing the Rally for Kids with Cancer to the Miami area. “The Make-a-Wish Foundation is about taking a terminally ill child and granting them a wish that they might not ever get to experience. For me that is huge, and I’ll always be a part of that program,” explains Loren. “And Eva and I will be doing our second Miami Rally for Kids with Cancer in April.” Rally for Kids with Cancer is an organization that aims to provide funding for Cancer patients from the diagnosis to treatment stages, and works tirelessly on researching promising therapies. “It’s different from other charities in that we get to physically see the kids, talk to them, and interact with them. Sometimes when you’re involved in charity you never have the opportunity to interact with the people that you’re trying to help. In this case we do. Its something for me that is very personal and dear to my heart.” Unlike traditional fundraising events, which most often include black-tie galas and cocktail receptions, Eva, Loren and JR chair what’s called The Rally for Kids with Cancer Scavenger Cup—an exciting and effective fundraising initiative that get’s the community involved in an interactive way.

ABRACADABRA

While JR and Loren have worked so hard to make magic for others, whether by allowing them to achieve unprecedented amounts of success through Market America, changing lives through philanthropic efforts, or collaborating with friends on projects that have garnered massive attention and as a result massive revenue streams, the real magic is the one that exists between them.

“You know some people can’t work with their husbands or wives,” says Loren. “But we’re great business partners because we both have tremendous drive and passion.” The couple, who anyone who has had the pleasure of spending any time with can attest, are a pair with deep love, admiration, and respect for one another, and work daily to make sure the spark’s still lit. “Our bigger problem is to remember that we’re still married and have a personal relationship. After 22 years we try and focus on all the things we love about each other and all the things that make us happy, and I think it’s made our relationship much better and our friendship and appreciation for each other as well.” This sometimes means creating a set of rules to live by. Recently Loren has put the “no staff in the house after 7 p.m.” rule into effect; recognizing that while she would love to have the help after a long day and a house still full of company-that usually includes friends and colleagues bouncing ideas off each other in that sort of fun, evening-time, think tank sort of way-she is happy to make the sacrifice in order to give JR the little bit of private time she knows he values so much. “He does the same for me. It’s a give and take. If you focus more on giving than taking, it works so much better.” Another mention of that golden giving thread that runs rampant. Other rules read like a Ridinger version of Tiffany Table Manners, including laws of dining etiquette: “When we’re out at dinner we have a new rule: no BlackBerries. Let’s focus on us and the conversation. I’m going to have your attention and you’re going to have mine.” No easy feat for two people who are constantly dreaming up new ways to change the world; but imagine the power behind any idea ever born in the lock of their gaze—now that would be revolutionary.

– Interview by Kamal Hotchandani