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The following article was published in our article directory on May 28, 2014.
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Brief History of Network Marketing

Article Category: Advice

Author Name: Elmer Sabisch

Along with the economic downturns in the past decades, network marketing industry has been the alternative of massive influx of folks which paved way to the industry's substantial growth and expansion. It has become the steps to success of average- earners who look for ways to earn more money. Right now, securities investors are looking for companies and industries that are projected to rise up swiftly; thousands of analysts are looking closely at network marketing.

Network Marketing is a business model that uses direct selling and relationship referral as a means of creating distribution channel for a company's products or services. The legality and efficiency of MLM have always been questioned by those folks critical to it. In order to clear the misconceptions about network marketing, it is important to learn what does its history says about it.

Network Marketing was born during the time of the Great Depression in 1930s. Around 1934, a company named Nutralite (formerly called California Vitamins) was established and by 1945 developed multi- level marketing strategy, it is a method of turning consumers into distributors. The company learned that they could increase their sales rate by selling the products to distributors rather than selling it directly to consumers. Moreover, it is easier to buy than to sell products especially if a person is taught to be qualified for commissions from sales of those he or she recruited.

The company's sales of nutritional products that fight various ailments like cancer and cardio vascular diseases have exploded. This sudden explosion led to FDA scrutiny and other regulatory agencies.

In 1960, another Multi- Level Marketing company named Amway (short for American Way) which sells biodegradable soap call Frisk was founded and developed by former Nutralite distributors Rich DeVos and Jan Van Andel. Their compensation plan is designed to allow those at top of a pyramid of distributors to get commissions from the continuing stream of recruits at the bottom of the scheme. The company's sale rates increased thus in 1972 Amway was able to acquire Nutralite. Later on, direct selling companies continued to flourish; Mary Kay Cosmetics, Avon, Fuller Brush and Tupperware were founded.

The last half of 1970s was not a good period for MLM industry. It was the time of several MLM- related lawsuits and battle against those agencies that questioned the legality of network marketing. In 1975, the Federal State Commission and state agencies filed cases against Amway. Fortunately, Amway had the financial ability to defend itself and the entire multilevel marketing industry. In 1979, the case lasted and the court favored Amway.

During 1980s, the world experienced economic recessions again. This is also the explosion era of network marketing taking the industry to a completely new level. It spread widely and more and more people came to know Amway, Mary Kay, Herbal Life, Usana, Omega Trend, and many more. The years 1945-1979 were said to be the industry's underground phase while 1980-1989 marked the proliferation phase of Multilevel Marketing industry.

Today, MLM is reported to be a US $100 billion industry and its projected growth is US $300 billion by 2015. Nowadays, there are more than 10,000 network marketing companies across the world which includes Fortune 500 companies and those listed on the NYSE and Tokyo Stock Exchange.

Keywords: MLM Leads,Network Marketing, MLM Tips,Steps too Success etc.

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