Where Did Network Marketing Get Its Start

Where did network marketing get its start is an issue that questions the thoughts of many. One can track its start back in the late 1800's. Back then, salesmen had various alias, like peddlers, hawkers, drummers, and canvassers. Many peddlers saw the need to join forces with a few sales associates to increase their sales volumes. Seeing how successful this was, a few decided to break free and build their own sales organization.

Henry Heinz, a former peddler, was one of the first pioneers to create a sales organization of 400 men to promote tomato ketchup. His first company went bankrupt in 1875, but he along with his brother and cousin, founded another company they called F & J Heinz. In 1888, he bought out his brother and cousin and reorganized the company under the name H. J. Heinz Company. In 1887, Asa Candler, another former peddler, created a sales organization to sell a formula to restaurants he bought off inventor John Pemberton. Asa along with his team and their aggressive marketing, made the formula we all know as Cola, very successful. He made millions from his investment and became a leading philanthropist contributing in a big way to the state of Georgia.

From their enormous success, other companies allowed their salesmen and women to create their own business within the organization. David McConnell started The California Perfume Company which later changed their name to Avon Products, Inc in 1939. At one point, David had 10,000 sales representatives selling over 117 different products. Carl Rehnborg created vitamin supplements out of a plant he found in China called alfalfa. He started the California Vitamin Corporation and in 1939, changed the name to Nutrilite Products Company, Inc. Carl made friends the first to become distributors, letting them know that he would pay them a commission for selling the supplements. Back then, his strategy was called sales marketing recommendations.

Where did network marketing get its start? Using his sales marketing recommendations strategy, Carl Rehnborg significantly influenced the future of sales organizations worldwide. More so that two young talented Nutrilite distributors Rich DeVos and Jay Van Endel, broke free of the company and in 1959, created American Way Corporation or AmWay. AmWay not only followed in the success of Nutrilite, but surpassed it and in 1972, bought a controlling stack in it.

Rich and Jay stardom threw a red flag to the US government. In 1975, the Federal Trade Commission labeled their system as a "pyramid". Hence where the whole pyramid scheme started, but after a lengthy investigation, specialists established that the activities of the company were not an "illegal pyramid". For many peddlers, they wanted to eliminate the idea of a competitor coming along and selling to their loyal customers. They wanted a way to get paid every time their loyal customer bought, which created the compensation plans for MLM companies today. There were other peddlers that pioneer this industry that I did not mention, but collectively, with their creative thinking develop a plan for distributors to get paid using leverage.

Listen, If you're reading my article because you're looking for a way to make money online, then you should check out my top recommendation. It's the best method I've found that anyone can use to earn income online, click the link below:

Click Now <-To get 2 FREE how-to videos and discover how you or your business can be hugely successful online! I'm giving away my 2 FREE how-to videos today and tomorrow only. So go to my website NOW and get it before tomorrow night!

Article Source: http://EzineArticles.com/?expert=Keddrick_D_Tucker

Article Source: http://EzineArticles.com/6447487