The Network Marketing Road Was Paved Over 100 Years Ago!

The evolution of Network Marketing spans over 100 years. One of the oldest companies in the world originated the Network Marketing concept in 1868, that company was Watkins Products and they are still in business today. You may recall when you were a child their products like vanilla and spices.In 1903 came the W.T. Raleigh Products Company. Both Watkins and W. T. Raleigh were one level Network Marketing Companies, direct selling business models.Then in 1942 a new concept was introduced with a company called California Vitamins. This was the first company to coin the term "MLM" - they had two levels in their compensation plan. Two key distributors for California Vitamins were Richard DeVos and Jay Van Andel. In 1959, Richard and Jay formed a new Marketing Company called the Amway Corporation.Amway changed the Network Marketing business model to then include three levels in the compensation plan. Amway was very successful and by 1972 they had six (6) million in annual sales. Many believe Amway was so successful because they offered people a new concept in owning their own businesses. There was a relatively low start-up cost and your investment was more in the realm of your time, talents, and skills. Amway's success and sales proved people really embraced this opportunity.During the years of about 1972 - 1975 along with Amway's stunning success came many illegitimate and fraudulent companies who tried to imitate what Amway had accomplished. But these imitators did not have the right fundamentals and failed. This activity in the marketplace shed a bad light on the Network Marketing business as a whole.Then in 1975, the US government stepped in and said they were going to put this industry to the test. And, with Amway being the industry leader at the time, Amway bore the brunt of that test. The government claimed this method of distribution wasn't legitimate.Now, during the next four years from 1975 to 1979, before the Amway ruling was made - something remarkable happened. I suspect you would predict that during those four years people would leave Amway for sure, after all the US government was claiming it was an illegitimate business. But this was not the case, in fact, the incomes and sales volumes remained level throughout those four years. They didn't rise or fall.Then it came, in 1979 the official Amway Ruling, 93-FTC-618 was made. In summary, the court said Amway was not a pyramid scheme and that Network Marketing or Multi-Level Marketing (MLM) is a legitimate method of distributing products to end line users and the parameters and boundaries were set.After this ruling between the years of 1979 - 1982 more than two (2) million people in the United States joined and worked in Multi-Level Marketing (MLM).Network Marketing or Multi-Level Marketing (MLM) continued on, becoming more and more popular, but now it had a defined set of rules and parameters to adhere to. There was another great surge in companies entering the arena during 1984 to 1989.Herbal Life, founded in 1980, was one of the first companies to become a multi-national company. Nu Skin Enterprises, founded in 1984, was one of the first companies to become a publicly traded company on the New York Stock Exchange. Both of these were very important steps in the evolution of Network Marketing, proving the strength and viability of these companies.In 1990, technology started to change the options possible and available to Network Marketing companies and their distributors. Especially the compensation plans. Through a proven and predictable pattern of activities distributors can create a customer base for the company and collect royalties for years to come. In conclusion, the business model of Network Marketing or Multi-Level Marketing (MLM) has proven there is no question about the efficacy and legitimacy of the business.Network Marketing or Multi-Level Marketing (MLM) is for REAL -The question is: Is it for YOU?To Your Success,~ Dorene PierceallNetwork Marketing Professional