Network Marketing History

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MLM or Network Marketing is a strategy whereby the sales force gets paid for what they do, the sales that are to their own credit, as well as th esales for other people. They recruit others who are known as their "downline" or downline team. The people who are selling as part of that downline are also giving the upper salesperson a part of their own earnings.

MLM has often been referred to as a pyramid marketing, network marketing and even direct selling although it is not so in the strictest sense of the phrase. The history of this type of marketing is disputed widely, with many different companies taking credit for--or declining to take credit for--being a part of the history of network marketing.

Most commonly MLM or network marketing is thought to have begun in the late 20s and early 30s with companies such as Nutrilite. One of the most common network marketing companies back then was the California Perfume Company,which is known today as Avon. Everyone knows Avon and everyone is aware of the successes that have taken place for some of the sales people from the Avon company.

There have also been some very famous failures that detract from network marketing.

One of the most famous of the network marketing companies is Amway, and it was also the one that was responsible to some extent for giving network marketing and MLM marketing some of the negative connotations that it has today. Time magazine did a story about Amway, reporting that the average salesperson from Amway had never sold a single product and most spent money to get started that they had never recovered.

The problem is that even with so many negative stories, there remain some that are so positive, so remarkable that they show us that network marketing works and when it works, it works very well indeed.

It was about 1860 when Watkins Medical company, a company that sold natural remedies allowed their "associates" to sell directly to the public and have their own company--so to speak.

In 1905 Alfred Fuller started something of the kind, something that is still working today. Fuller Brush hired on 250 people and each of them sold by commission only. In les than twenty years they had made their first million. In 1960 the company broke 100 million dollars in sales.

Historically, prior to the advent of the internet and other wide advertising arenas making money from network marketing or MLM marketing was much more difficult.Today we have opportunities that were heretofore unknown to meet new people, to recruit new salespeople and to sell to our general public. With the use of the internet, network marketing has grown, expanded and become far more profitable than it has ever been. If you haven't checked out network marketing lately, you've never explored network marketing.

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