subject: A Glance At The Growth Of Network Marketing [print this page] A Glance At The Growth Of Network Marketing
No matter how we view the evolution of network marketing from the past 60 years up to the present, one thing remains constant. Network marketing works by building relationships. The numbers of products people sell within this structure have increase as well as the kinds of companies. The industry has changed in many ways over time, the most significant change being the method of communication used to recruit and stay connected in the business. Though many elements of multi-level income have changed, the most important element of this business is people and how they relate. This kind of selling began in 1956 with a company called The American Way Association, shortened to Amway. Using the direct selling model, today the company sells and manufacturers a variety of products, mainly in the health, beauty, and home care markets. This was the first company to use the multi-level payout compensation plan which allowed people to leverage their time. By selling to a few people and then recruiting them to market to their next level of people, a chain of distribution was created. Hundreds and sometimes thousands of people, all using and sharing or selling products, began to earn significant incomes, most working part-time. A variety of businesses have chosen this kind of direct sales model to move their products into the market place, with great success. From beauty, health products, legal services, insurance sales, baskets, essential oils or home care, the array is endless. And with every company there is a slightly different compensation plan and different plans for recruiting. The direct selling industry is a more open, regulated and acceptable business than in past years when poor practices threw a shadow over this kind of marketing. Companies that did not have a legitimate product or employed shady practices were responsible for people thinking of the industry as a pyramid scheme. Today most multi-level marketing companies have realized the benefits of honest and impeccable practices. We now know to avoid companies with compensation plans that pay by the person signing into their deal rather than the amount of product moved through legitimate chain of distribution. Accomplished correctly, Network Marketing can be fantastic. Worked poorly, it can be a nightmare. Even legal companies have had to learn best practices when it comes to recruiting new people. People who are inauthentic in their invitations to recruits, inviting them under a pretext and having them arrive at a business meeting they did not expect, have given this industry an unfortunate reputation, potentially spoiling the recruiting pool for companies operating appropriately and honestly. There is a more authentic approach that takes into account the need people have for a certain number of exposures to information before they adapt it as there own. No one wants to be sold but everyone wants products that solve their problems. So addressing the needs of a person is the only real way of keeping something sold. The way people communicate using technology of the day has made a huge difference in the way people work in direct sales. Snail mail used to send articles or videos were once the high-tech way to operate. At the lightening speed of technology today, business has the opportunity to get their word out faster and farther than ever before. Finding common ground, whether it be shared nursery schools for the children or chatting with the book club members, this kind of business thrives by making authentic connections which build honest relationships. People and relationships are the common denominator in the evolution of network marketing from the past 60 years up to the present.
