The Development Of Network Marketing From The Past 60 Years

Learning the evolution of network marketing from the past 60 years provides an insight into the MLM market as it is today. The concept of allowing sales people to actually buy the products and market them has its roots in the 1800s. Peddlers like Henry Heinz, of Heinz Ketchup, were looking for ways to push the products into the market without having to hire full time sales people. The idea was rudimentary but eventually took hold, and network marketing was born.

Henry Heinz was pushing his ketchup and pickle food lines to people who did not have gardens and decided that he could use help selling the products. He began selling them to peddlers who would travel from town to town peddling the products and keeping profits for themselves. This was one of the first commission based sales positions and was eventually incorporated by Asa Candler in the sale of Coca-Cola syrups to grocery stores and restaurants.

In the 1940s and 1950s the concept of providing an ownership model of sales began to take hold. During this time the largest and most successful Multi-Level Marketing companies were born. One of the originals was Amway. Started as Nutralite, the manufacturer of the products began slowing production because the sales company began making more money than the manufacturer did. The founder of Nutralite switched to making his own product, and eventually bought the original manufacturer and folded it into the company. Mary Kay Ash and Earl Tupper also began their companies using the new owner-seller model. Thus was born Mary Kay Cosmetics and Tupperware.

Thanks to fate, some people decided to use the model that the MLM industry created and build fake companies that would recruit people in the same fashion. The problem was they were selling memberships that had no benefits or products. The pyramid scheme was born by these people and has had many offshoots such as the ponzi scheme in the investment industry. Since the model for recruitment was so similar to the MLM type, the pyramid scheme is closely associated with the industry. This link has been difficult to shake, even though MLM companies have been hugely successful with their product lines.

In 1975 Amway was sued by the United States FTC with the accusations that Amway was a pyramid scheme. A few years later the courts final decision was the company was a legitimate business with legitimate products. Even though this link has remained in many peoples' minds, the MLM industry was the first to request laws preventing pyramid schemes.

Over time, the technology and the industry have advanced. The tools have improved. People receive orders faster than ever before, and training has advanced because of the technology. Even those who were previously disinterested have found that many of their household products came from an MLM beginning.

When the internet came about the entire industry was taken to a new level. Building a webpage for businesses and incorporating social network media into the formula has caused an increase in both legitimate and illegitimate opportunities. The products are often sold without the personal face to face client interactions. The concepts haven't changed and the need for personal references remains a very important factor.

Through technological advances and a tumultuous time, the evolution of network marketing from the past 60 years became a model that has been highly successful and long lasting. Through the relationships and trust that is built, networks are created. The ideas are the same now as before.

Discover why the evolution of network marketing from the past 60 years provides ongoing success now in our guide to all you need to know about how and where to find the best network marketing opportunities