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Modern Network Marketing Companies Evolution!

Network Marketing Companies forerunners, were Peddlers and now we have, InterNetwork Marketing ....what a journey in history! Today we have the newest means to promote products to a billion plus people online.

The Network Marketing Evolution!

Network marketing companies have been evolving since the 1860's. From the time of the Peddlers and the Hawkers! The Guys who used to flog their wares from town to town, selling all sorts of goods to any and everyone they came in contact with. Records indicate peddlers in South Carolina in 1650 and they existed through to end of the 19th century. However in Europe and Asia the peddler continued their much longer than America. I think maybe still a few around!

Tinware was made at Berlin, Connecticut, as early as 1770, and tin and iron goods were peddled from their through the American colonies. The era of the traveling peddler, in America probably peaked around the American Civil War.At that time in America there were about 1000 peddlers,by 1900 their more modern counterparts totalled near 300,000 salespeople.

Around 1870's in America,the popular mail order catalogues offered another way for people in rural or remote areas to buy special items not available in local stores.

What has this got to do with network marketing companies?....Plenty!

The evolution started with these peddlers,then later commission reps,direct sales-salespeople, then network marketers. The peddler was in competition with the local shop-keepers. Don't you think networkers are in competition with the shopkeepers of today?

The Network Marketing Pioneers!

The early peddlers influence lead in time to names we know today, like 'Heinz'- 'Coca-Cola'- 'Watkins Products'- 'Avon'- and 'Fuller Brush Company'.

After aquiring the Coca-Cola formula from a John Pemberton in 1886, Asa Candler created a huge sales force to go around and sell the Coca-Cola syrup to shops & restaurants.

Henry Heinz organized hundreds of sales people to flog his ketchup and pickles where ever they could sell them.

In the early 1900's,California Perfume Company had 10,000 sales reps selling more than 100 products. David McConnel may not of been a former peddler,but he was the brains behind California Perfume Company,which in 1937 changed its name to one of the biggest network marketing companies of today - Avon Products.

J R Watkins,founder of Watkins Products,started in 1886 with his natural remedies. For a 100 years Watkins direct sold to comsumers,before turning to MLM. The fact that by 1970's women were entering the workforce in big numbers.....meant that the Watkins Rep had few consumers at home to call on anymore.

Alfred Fuller another former peddler,started Fuller Brush Company in 1905.He started with 'commission only' sales reps.He had hundreds of reps and by 1960, Fuller Brush Company was grossing over $100 million in sales.

Former Fuller Brush Company Vice President of sales, Frank Stanley Beveridge,in 1931, started Stanley Home Products. Stanley Home Products are the pioneer of the home 'Party Plan'. When some Stanley commission dealers,got a homeowner to invite family & friends over for product demonstrations.....the home party plan was off and running.

Many early day company leaders got their training at Stanley Home Products. Mary Kay Ash of Mary Kay Cosmetics,which reached gross sales of in excess of two billion dollars, by mid 1990's,was one of these leaders. Another ex-Stanley Home Products leader was Brownie Wise, who teamed up with Earl Tupper and created Tupperware, now thriving in over forty countries.

The Amway Beginnings!

Carl Rehnborg didn't know what he was starting in 1934, when he kicked off California Vitamin Company. The historcial connection with network marketing companies and nutrition products goes back to at least California Vitamin Company. It is significant that most major product discoveries in the nutrition industry have been pioneered by network marketing companies or in association with them.

About 1939, California Vitamin Company changed its name to Nutrilite Products Company. Nutrilite sold its products to its distributors at 35% discount and also paid them a 25% bonus,payable monthly on the sales volume for that month. Thereby creating the first MLM compensation plan.

This comp plan later lead to the 'stair-step' comp plan still about today. The plan pays two levels of distributors and three pay plans. Seems like a real headache, compared to modern company plans.

In 1949 two ex-school buddies, Rich deVos and Jay VanAndel returned from army service and joined Nutrilite. They built a huge organization within 10 years.

In 1956 Dr Shaklee, who had developed a method of extracting minerals from vegetables joined Nutrilite to gain a wider distribution of his products.

After problems in 1959 between Nutrilite's manufacturers and Nutrilite, deVos and VanAndel ventured into network marketing history,and formed Amway. Taken from the words - 'Amercian Way'. In 1972 they had taken control of Nutrilite. Amway is probably the largest of all network marketing companies today. In 1999 they also became known as 'Quixar'.

The Amway Fight!

Amway's success attracted many new companies into the industry. It also attracted others who were to cost Amway in dollars and reputation for many years.

Scam schemes based on the short-lived 'Ponzi Scheme' of the 1920's now accelerated their activites. A Ponzi scheme is an illegal investment scheme that involves paying returns to investors out of the money paid in by later investors, rather than from net revenues generated by any real business.

It is important to go back a little from 1972, to post World War One, when the 'chain-letter scam' thrived across Europe and America.

By 1930, US post office estimated that their were 10million of these chain-letters circulating daily. The deal was to send $1 to the name at the bottom of the letter and do another letter with your name and send it out.

About 1940 this scam gave birth to the MLM Scams we know as 'Pyramid Schemes' . The pyramid schemes operators realized they could not function under the ethical and strict MLM rules.

So they simply devised counterfeit schemes to look like and promote like MLM,but where money was exchanged to involve others as there was no real product.

After a rash of scams popped-up around the world, and much political debate in 1974, Senator Walter Mondale came out and submitted that such companies were involved in consumer fraud.

The Federal Trade Commission and State authorities acted to investigate all network marketing companies. Really,at that time they had no idea or understanding of precisely what constituted the legitimate use of network marketing.

As a result, in 1975, the Federal Trade Commission alleged that Amway was a pyramid scheme and because it refused to sell its goods in retail stores,they further alleged this to be 'a restraint of trade'.

Amway Wins The Fight!

After Amway had spent 4 years in court and millions of dollars in its defense by 1979, the Federal Trade Commission ruled that Amway was NOT a pyramid scheme, that Amway got its revenue from product sales and acknowledged network marketing as a legal and efficient distribution system.

Amway carried the industry through those years.

The Network Marketing Growth

This news attracted an even bigger number of companies to the industry.

This industry has thousands of companies today operating in more than 200 countries and a big following in USA,Japan,Malaysia and Canada.It is probably the largest industry in the world and returns 100's of billions of dollars each year and many of its companies are Fortune 500 and NYSE listed.

Many name companies have created subsidiaries to operate as network marketing companies .Colgate-Palmolive and Gillette are a couple.

Big names companies like IBM,GMH,Firestone,Coca-Cola, & Goodyear make components for NWM companies,but don't seem to have in further involvement.

Why use the MLM method of product distribution -Anyway?

The Big principal reason.....the companies don't have to pay for marketing until.....AFTER the network marketing product is sold and delivered!

In traditional marketing....companies spend big money on ads,sales staff,benefits,travel,premises, and communication services. All BEFORE any product is sold! Also with traditional marketiing costs are around 80% of product sales. With network marketing companies the cost requirements are more basic and include the commission payments to members.

The Network Marketers!

As many as 50,000 people per day are joining this industry. That's the positive side: On the negative side....the industry has a 95% failure rate!

Network marketing companies have more than 100millon members who share information in a co-operative way and develope relationships with team members. They grow their businesses by helping their team grow and so-on. Unlike as in traditional industry,each member is the CEO of his own independent business or organization. So success is achieved by helping your team be successful,unlike in the corporate world!

All the members of network marketing companies have the same chance...as the next member...to earn as much money...upline or downdownline. It often happens....that a member will enrol a new person..and after awhile that new member is earning more money that the person who enrolled him/her.

Does your boss earn less...than you?

The network marketing companies supply the product,research & developement,management,public relations,finance,production,warehouse & packaging, quality control, shipping,data & account processing,and commission payments to members.

The Network Marketing Future!

The on-going evolution of this industry is now moving to the internet in a bigger way. The failure rate cannot persist. The internet should easily turn that around.

Imagine if this industry had a success rate of 50%!

The use of videos in online training and information clips on your website and other powerful internet tools...make operating online a breeze for all marketers. But also in online telephonic video hook-ups. You can talk to someone on the phone,be it a landline,mobile or Skype online phone,but when you can actually see them and they can see you with video-cam it is different and better!

All the website marketing tools are available to every networker to embrace the internet and truly apply the 'internetworking' title.

Summary

These new ways will further evolve the industry as we move forward.This is a wonderful business model and it has withstood the test of time. If Network marketing companies can maintain a win-win-win for customer,member and company....whatever changes come about,they will always survive.

For More Information....Check Out These Other Web-Pages

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Network Marketing Tip That Could Change The Industry Forever!

All industries through the passage of time, have changed and developed new methods and techniques to suit. These evolving changes will always accompany any industry.

A Network Marketing Product that works well - does not hurt!

The key to success in marketing is - how you market,first of all and secondly if it is a good product. Unfortunately many distributors get it around the wrong way.

Exploring a list of home based businesses has something different to offer everyone.

Many online directories are private collections of home and or affiliate businesses.Whereas some of these lists are comprehensive,most lack any real solid information or resource on the hundreds or thousands of work from home businesses today!

Network Marketing Education Compared To The New Methods Online!

I believe the Network Marketing (NWM) model is the most efficient and effective business model available today.Network Marketing companies and businesses don't spend one dollar on advertising until product is actually sold. NWM model is clearly a superior model. Going online will make distributors more efficient and effective!

Network Marketing Recruiting Where The Internet Takes Center Place!

There's a 'shift' in the industry and that has a huge bearing on recruiting! Are you still using the old methods of recruiting? Like making a list of.....shame on you.... why put your business to anyone.....who has not asked to know about it? In network marketing recruiting wouldn't you prefer or indeed......want to only talk to people who put their hand up to know about your business? That's the 'new way'!

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