History of Network Marketing

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Like many successful concepts, the discovery of true network marketing was a pure accident. Network Marketing was started in the early 1940’s by a company called California Vitamins, who later changed their name to NutraLite Food Supplement Corporations, and is now over 50 years old. While doing business California Vitamins noticed that all their new sale reps. were friends and/or family members of their current sale reps, mainly because they wanted California Vitamins products at wholesale prices. From this new hiring trend the company also noticed that it was easier to find a whole lot of motivated sale reps. who could sale a little, rather than finding a few heavy hitters who could sell enormous amounts of product.

After observing those two trends the company created a compensation plan and business structure that encouraged their sales reps. to recruit new sale reps. from satisfied customers, who happen to be mostly friends and family, who would have the same rights to sale and market their products as the company’s existing sale reps. This allowed the company’s sales and sale reps. to grow exponentially. The company compensated their sale reps. for the sales created by their entire group, or the network of sale reps. Thus network marketing was born!

In 1959, California Vitamins, then called NutraLite, former distributors Rich DeVoss and Jay Van Andel started what is arguably the mother of all network marketing companies, Amway Global, which set the standard and made a path for the thousands of network marketing companies that exist today.

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