The history of MLM dates back to the 1940s. It started with a company that, at the time was called California Vitamins. Their vision was to flip the sales practice around. Instead of having a small sales force of well-trained sales personnel selling a lot of product, they would flip it. They would have a lot of sales personnel selling small amounts of products. They knew that they could drastically increase their sales by using this new method of selling their products. Through this “outside of the box” type of thinking, California Vitamins also found that most of their growing customer base was due to friends and family of existing sales representatives.
As they realized that the new customers were referred to the company by existing customers, California Vitamins created a way to make the customers into new sales representatives. This was accomplished through the use of a commission-based system developed by California Vitamins. The first compensation plan was born.
Teams, as well as individuals, were rewarded for their efforts and their sales volumes. The first MLM company was now in business. California Vitamins was extremely successful. They later changed their name to Nutralite Food Supplement Corporation, and are still in business today.
Where Nutralite started out using a traditional business model, then transitioned into an MLM business model, in 1959 the first company that started out using the MLM model was born. An abbreviation for “the American Way” founders Richard DeVos and Jay Van Andel created Amway. Almost 60 years later Amway is a well established MLM company. They have operations in more than 80 countries around the world and have more than 3 million distributors/associates.
Now more than just 60 years old, the MLM industry is rapidly growing in popularity. It is estimated that there are more than 50 million people actively involved in MLM. This translates into more than $110 billion annually in revenue for the MLM companies they are associated with. To say that the MLM industry is here to stay is an understatement.
It is recognized as one of the fastest-growing industries on the planet! New and exciting products are being launched every year and more and more companies are choosing the MLM business model to launch these products. Why? The answer is simple, because it works. The history of MLM has shown that it is a proven, effective and lucrative business model. Both for the parent company and the distributors/associates working with the company.
While the MLM industry is relatively new, it has now come of age. With its rapid growth and increased awareness of its legitimacy, the MLM industry is creating amazing results. Both for the companies and individuals alike. The MLM industry is creating more millionaires yearly than the Dot Com stock boom did in the early ’90s.
While there are individuals who doubt the validity, or even the legality of the MLM industry, it has stood the test of time. Now just over 60 years old, the MLM industry has proven to be an effective method of selling and distribution of products and/or services.
There are many leaders in business, individuals such as Warren Buffet, Robert Kiyosaki and Mark Cuban who endorse the MLM industry. On top of this, many companies are using the Network Marketing business model to increase their sales and overall profits. Couple all this with the connectivity that we now have and you the home business owner can have a truly global business right from the comfort of your home.
The proven history of MLM along with the statistics that show the amazing growth rate, it’s a business model that cannot be ignored. If you are an individual who is looking to branch out and become an entrepreneur and start your own home-based business, it is strongly recommended that you look at what MLM has to offer. If you need assistance in understanding what MLM is about or have questions that you cannot find the answers too, simply contact us through our Contact Us section.
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