Network Marketing has been around for over 50 years. In 1934 California Vitamin Company came up with a concept of Multi Level Marketing. This company started out as a direct sales company signing up sales people that would use the product for their personal use and sell to it to their family and friends. In the process they would earn an extra $50 per month which was a substantial income at that time. Their friends and relatives not only liked the product but they started to realise that they could benefit financially themselves by buying the product at the wholesale price and in turn selling it to others.
In 1943, California Vitamins changed their name to Nutralite Corporation which implemented the first true Multi Level Marketing compensation plan. Everyone involved in the company got paid on multiple levels of sales made.
In 1949, Jay Van Andle and Richard Marvin DeVoss joined Nutralite Corporation as Members and for the next ten years the company grew and prospered. They regarded conventional sales jobs as unfair - being paid only once for the work that they did even when the company continued to make a profit from their labours for many years afterwards. They believed that they should be paid relative to the benefit the company continued to get from their original work. In 1959 Jay and Richard decided to go in a different direction and start their own Multi Level Company called Amway.
In 1975, US consumer protection agency Federal Trade Commission decided to take Amway to court because they thought that Amway was involved in a Pyramid Scheme. A pyramid scheme is when you sell a system without a product. A number of different pyramid schemes sprang up with the advent of MLM.
Because Amway was the biggest MLM distribution company at the time, the Federal Trade Commission decided to make an example of them to prove that Amway was involved in an illegal business. For four years Amway fought in the courts to prove that MLM was a legitimate business finally winning the case in1979. This paved the way for many more MLM companies to enter the industry.
In the early Eighties the Multi Level Marketing term was replaced by Network Marketing. Right now Network Marketing is poised to become a giant that will out grow any other form of conventional business. Currently it is the fastest growing method of distribution in the world and now you have a ground floor opportunity to grow your business and prosper in the years ahead.
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