subject: A Look At Network Marketing History [print this page] The network marketing history goes back to the 1860s when a group of business savvy people found a way to expand on their promotional efforts and cutting down on the number of hours worked. This is where most multi-level marketing history lessons begin and it shows that the business concept has been around for over a hundred years. While the name has chances over time, the history of success speaks for itself.
Some of the earliest influential people in network marketing history were Asa Chandler and Henry Heinz. These individuals hired people to help them to market their products effectively and used the time spent marketing was time that was taken away from selling mentality. Their goal was to focus on selling products to people who were interested in what they had, while their marketers went around towns selling items.
These marketers were then paid a commission for each of their sales. That means the more effort they put into the business, the more they become paid and that idea helped to create what many people call sales employees today. This is where people become their own bosses and employ others to further enhance their efforts. The multi-level aspect of this came in when these people had individuals aiding them in their sales efforts.
All this was working great and then Nutrilite came into play. With this process, Carl Rehnborg took the concept of the commission to a different level. From 1945 on, he offered those who generated larger orders a bigger payout than those who sold smaller amounts of his product. This meant that those who invested more of their time and effort in the company ended up receiving a better income based on their efforts. This is where the MLM selling system saw a new direction.
However, the network marketing history isnt all about the good that happened. With every story about riches, also comes to those who have found failure in these efforts. While others saw success of a few people, others noticed that they were struggling and in 1975, the FTC decided to make an example of a company that still thrives today. That company is Amway and they were charged with operating pyramid schemes. While the charges were eventually dropped in 1979, this has brought public attention to the good and bad design that these companies have.
In modern society, we find that the network marketing history continues to evolve based on the quality and upstanding companies that are still around. While there are critics and people who have a negative opinion of these businesses, individuals still make hundreds of thousands of dollars through the commission structure to this day.
As you can see, there is plenty of good in the history of network marketing and you need to approach the industry with an open mind. Just be sure to look into the company that you are considering and ensure that they do have a good reputation and you will have the potential for success.
