A Cursory History Of Network Marketing

Are you thinking about getting involved with network marketing

? If so, you may want to learn about the history of network marketing in order to see how the business model came about and how it is evolving today. The business model all evolved out of using salesmen to sell products and network marketing started in 1940 from a company called California Vitamins.

The company realized that their sales reps all stemmed from their sales force recommending friends and family to join the company. An added benefit of joining the company was that they could buy the products of the company at wholesale prices. Upon this realization, the company decided to set up a commission based system where the representatives were compensated based on sales figures and the sales of their sponsors.

Tupperware, the company selling lightweight plastic containers for everyday use, also ran into this concept. They started selling their products through retail like all other companies but realized they needed to show how their products worked and why they were of value. They decided to let representatives sell their products with the concept of Tupperware parties.

The business model became widespread with the company Amway. The company was founded in 1959 by Richard Devos and Jay Van Andel. The company sells all kinds of products from kitchenware, supplements, health products, to beauty products, and is still doing well today. They have more than 3 million representatives selling their products.

Another great success story in the history of network marketing is Mary Kay Cosmetics started by Mary Kay Ash in 1963. The whole concept was based on the idea of succeeding by helping other women succeed. The business took off and Mary Kay Cosmetics had had sales of over 2.2 billion dollars with over 1.7 million consultants.

Network marketing has spurned many different businesses from opportunities with supplement companies, travel companies, real estate, B to B, publishing, education, and so much more. There are many different network marketing companies now that budding entrepreneurs that want to get involved can choose to go in an industry they are truly passionate about.

The number of opportunities means that you can work with the products and services you're interested in. More and more people are getting involved with network marketing. The popularity of the Internet is also allowing network marketers an opportunity reach a wider audience and set up systems to help them build their business.

By looking at the history of network marketing, you can see that this is a proven business model that has stood the test of time. It is based on the simple concept of using salespeople to sell the products and services of a company. The only difference is that salespeople can earn more money if the people they've signed up have success promoting the company.

by: BrianGarvin

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