|
|
| |
History
Written by | Published
2003-09-24 18:39:58
The network marketing concept, also called MLM(Multi Level Marketing), has existed in the USA since the beginning of the 1940's. The industry has experienced two waves of growth and is today an important part of the business structure and society in many countries around the world.
The network marketing concept, also called MLM(Multi Level Marketing), has existed in the USA since the beginning of the 1940's. The industry has experienced two waves of growth and is today an important part of the business structure and society in many countries around the world.
California Vitamins was the first to use this concept. They were the first company to give bonus to their distributors who recruited new members. 2 years later, the company changed name to Nutrilite. Two of the most successful distributors in Nutrilte was Rich DeVos and Jay Van Andel. The two friends saw the opportunities that Multi Level Marketing could offer, and together they started Amway International, which today is one of the largest network-marketing companies in the world.
The evolution of Amway continued into the 1970s. A group of network-marketers had broken the rules and were making a lot of troubles for Amway International. It ended in the courtroom, and they where indicted by the FTC (Federal Trade Commission). The FTC claimed Amway was an illegal pyramid scheme, but Amway proved them wrong. 4 years after the long trial, network marketing was proven to be a legal way of doing business.
The first wave of growth
After Amway's success, which could be interpreted as the first wave of growth in the industry, hundreds of new companies emerged. FEDSA could report that over one million people had started in the Network-marketing business. After the success in the United States the companies expanded abroad. Russia, Australia and some Asian countries experienced great success. (Russia had perhaps the biggest success with more than 1,5 million people in less than 3 years!)
Unfortunately a lot of people did not succeed in the first wave because the companies focused too much on recruiting in stead of focusing on the development of new systems for products and services.
The second wave of growth
After the first wave the growth in the industry took a down fall. The managers were forced to rethink the strategy and looked for new ideas and new technology and the new technology came! In the 1990s the Internet technology changed the industry, and from 1993 network-marketing experienced the second wave of growth. In a period of less than 7 years over 5 million people began working for the industry.
Recognition
Network-marketing is now fully accepted in the USA and has become an important part of the American culture and economy. In other countries network-marketing is met with scepticism, but every day new people get their eyes open for the fantastic opportunities that exists in this industry.
|
|
|
|
Tell a friend!