What is MLM?

History of Network Marketing
(as seen on: Network Marketing Business School)

The history of network marketing originates back to the 1940’s where a company trading under the name of “California Vitamins” discovered they could make more sales when they had a lot of sales representatives selling a small amount of product each, compared to the traditional business model, of trying to have a few sales representatives selling a lot. California Vitamins also discovered that most of their growing customer base was made up of the friends and family of their existing sales representatives who had essentially referred them to the company as they were impressed with their product line.

New sales representatives were then created from existing satisfied customers and a commission based system was developed. Both teams and individuals were rewarded according to their sales efforts and as a result network marketing was born. The same company later changed their trading name to Nutrilite Food Supplement Corporation.

In 1959 Richard DeVos and Jay Van Andel founded the company Amway which was an abbreviation for the term “the American way”. Amway from day one was based on the same network marketing concept. Almost 50 years later Amway is a well established network marketing company operating in more than 80 countries around the world and with more than 3 million business operators.

Jay Van Andel and Richard DeVos

Currently it is estimated that there are more than 50 million people worldwide involved in network marketing with almost 100 billion in annual wholesale revenue. Given the history of network marketing and it’s rapidly growing popularity, the network marketing industry is recognised as one of the fastest growing industries in the world today and is predicted to have significant growth well into the future as more and more companies are choosing to capitalise on this networking trend and choose to sell their products direct to the consumer. This emerging trend is also being driven by a wave of entrepreneurs who continue to drive the concept of improving quality of life and working from home.

Although the history of network marketing dates back to the 1940’s it is only now that the industry has come of age. Network marketing has now grown to the point where it is creating more millionaires today than the dot com boom industry did before the bubble burst.

The history of network marketing has stood the test of time and over the past 50 years has proven itself to be a successful distribution model and home-based business opportunity. The industry itself is now currently being endorsed by many business leaders as a proven system for anyone who wishes to achieve financial success. It is not surprising that network marketing is now one of the fastest growing industries of all time with an estimated 150 000 people just like you, joining the industry every single week.

Given the proven history of the network marketing business model and the emerging business trends the timing could not be better to capitalise on this trend and we encourage all entrepreneurs looking for a home-based business opportunity to seriously consider a network marketing business.

The Latest Business Trends
(As Seen on: Network Marketing Business School

At any given time there are several emerging business trends in society. In particular, if we were to single out one of the driving forces behind many of the economic trends over the past the 60 years it would have to be that of the baby boomers. Since the time they were born they contributed to the rapid increase in sales of baby food and nappies back in the 50s, schools and education in 60s, car sales in the 70s, the real estate boom in the 80s and the fast food chains and mega supermarkets in the 90s. Leading economic forecasters have used these trends to predict where the baby boomers will spend their money next and in particular were able to forecast the current emerging business trends in the Health and Wellness and Financial Services industries.

A new wave of entrepreneurs coupled with advances in technology has lead to a changing business environment. For example, the telephone has been a primary source of communication for over a century, but utilising our telephones to trade stocks, to send and receive photos and to surf the internet, is a new business trend that is a result of synergistic technologies. Although the elements of these trends have been around for years, the trends themselves emerge when the timing is right and when several factors come together. The health and wellness industry for example, has been with us for centuries, but it took the convergence of the aging baby boomers, with advancements in medical science, to create the critical mass of this emerging trend.

Modern day consumers want speed, variety, quality, customerisation (tailored to the customer’s needs) and choice. As the products that we consume become more sophisticated and complex, consumers are demanding a quality relationship with the provider of these goods and services. They want the products to deliver what the advertising promises. Educated consumers are now choosing to go direct, building a relationship directly with the parent company, which is fundamentally a different concept from the way we have done business in the past.

Going direct through referrals is a concept that has been around for years, but the opportunity for financial advances through access to global networks is enormous and immediate and one that business-minded people should not miss out on.

A number of young entrepreneurs have already spotted this trend. Michael Dell, founder and chairmen of 'Dell' computers is destined to become the new Bill Gates in the next decade, and is the richest person in the world under the age of forty today. One of the most admirable CEOs in America, Michael Dell, has a philosophy that is brilliant, uncomplicated and right online with this emerging economic business trend. He creates a relationship directly with the customer and sells high performance products. Using this direct, relationship model, 'Dell' sells approximately $25 million per day, directly to the consumer, by-passing the middleman, saving the consumer money and creating better customer loyalty.

The going direct concept coupled with building relationships between manufactures and consumers is the essence of the principles of network marketing. More importantly, it is a natural thrust of today’s economy. Network marketing uses relationships to introduce new customers to a parent company so that they can buy direct from the manufacturer. Although this network marketing business environment is not yet so obvious and many will miss its significance, those people that adopt this system early will be rewarded handsomely.

“Unless you are networking, you will soon be not working”
Dr Denis Waitley

Not everyone will see the rise of network marketing as a main stream method of doing business, just like 50 years ago people dismissed the business concept of franchising. Not too long ago people use to laugh at franchises, just as some people shy away from network marketing. Congress almost outlawed franchises with a bill nearly making them illegal, falling short of passing by only 11 votes. Today this vehicle is responsible for over a third of retail sales in America. Of course franchising was not for everyone, but those people who were open and willing to consider new ideas and who had the courage to take action in a changing business environment profited handsomely.

Today people are willing to risk hundreds of thousands, even millions of dollars to open franchises, hoping to capitalise on a business trend that if they acted on decades ago would have rewarded them enormously. Network marketing in the new millennium has entered the main stream and may become more prolific and popular than that of franchises. Unlike franchising however you are only risking your time and effort and not your fortune or a mountain of debt. With network marketing you don’t need inventories and you do not need to create and manufacture the goods and services yourself, you are simply the “direct” in going direct.

Network marketing is not just becoming mainstream, it is starting to become the dominant market trend and one that cannot be stopped. The real question people should be asking is how can they benefit from it?
Network marketing is no longer something to joke about, it is creating more millionaires today than the dot com boom industry did before the bubble burst. As with any opportunity timing is half of the success and execution is the other half. You have no control over the former as the business trend will emerge without you. The jet is leaving the ramp, you can either be on it or miss out. The second half to capitalising on this trend is in the execution, by doing your homework and finding the right company, all you need then is commitment and the desire to learn from those who came before you, and this webpage is designed to help you with exactly that.

So if you’re ready to take full advantage of this changing business environment, we suggest you do your homework and work your way through this site as we help you identify the right opportunity and how to become successful.