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Tuesday, June 15, 2010

The History of MLM

How MLM (Network Marketing) got started and grew to meet the needs of the customer and the entrepreneur. It’s fascinating

A company that creates a product must make that product widely known. Sales organizations made up of individual salespeople were (and still are) the backbone of business.

The number of salespeople in the United States began to grow rapidly starting in the late 1800s.

1861: 1000
1869: 50,000
1885: 100,000
1903: 300,000

1860 - Traveling salesmen were known as canvassers, peddlers, hawkers and drummers. Some of these former peddlers created trained sales organizations. Had it not been for their influence, many of the corporate names we’re all familiar with today might never have been.

-Henry Heinz, a former peddler, created an organization of 400 salesmen to sell various vegetable products, like ketchup and pickles, to people who didn’t grow their own.

-Asa Candler, another former peddler, built a sales force to sell Coca-Cola syrup to restaurants after buying the formula from pharmacist John Pemberton for $2300 in 1886.

Out of these organizations came companies that allowed their salespeople to have their “own” business.

1868 - J.R. Watkins founded the J.R. Watkins Medical Company, one of America’s first natural-remedies companies where associates marketed directly to consumers.

1890 - David McConnel started the California Perfume Company, based out of New York. In 1906 he had 10,000 sales representatives selling 117 different products. The California Perfume Company changed its name to Avon Products in 1937.

1905 - Alfred C. Fuller was another former peddler who greatly influenced future sales organizations. Fuller started the Fuller Brush Company and hired 270 dealers throughout the U.S. to follow his business plan on commission only. By 1919, the Fuller Brush Company had made $1 million in sales; by 1960, $109 million.

1931 - Frank Stanley Beveridge was the former vice president of sales for Fuller Brush Company. He and Catherine L. O’Brien founded Stanley Home Products. Influenced by the economic hardships of the Great Depression, Frank and Catherine envisioned an opportunity for people to start their own businesses with minimal investment, selling products that people use everyday. This vision was obviously taken from the Fuller Brush Company. Stanley Home Products sold household cleaners, brushes, and mops. Some Stanley dealers began giving demonstrations for clubs and organizations rather than for individuals to increase sales volume. Other Stanley dealers quickly embraced this idea as a way to maximize the selling presentation. These dealers took the “clubs and organizations” concept into homes by having the home owner invite friends and family over….and the “party plan” was born.

Stanley Home Products became the training ground for many well-known company leaders. Mary Kay Ash, founder of Mary Kay Cosmetics; Brownie Wise of Tupperware; Jan and Frank Day, founders of Jafra Cosmetics; and Mary Crowley, founder of Home Interiors all received early training as Stanley Home Products dealers - again spurred by the Fuller Brush company.

1934 - Carl Rehnborg started the California Vitamin Corporation selling what today are known as vitamin supplements. In 1939 the company changed its name to Nutrilite Products Company, Inc.

1945 - Nutrilite contracted with Mytinger & Casselberry to become the exclusive American distributor of Nutrilite products. Mytinger & Casselberry created the first documented MLM compensation plan. It worked like this: A Nutrilite distributor bought his supplies at a 35% discount. (Ex: A distributor bought a box of vitamins for $13 and then sold them for $20 = $7.00 profit.)

To encourage the distributor to sell more, Nutrilite paid an extra monthly bonus of 25% on the total sales. 20 customers x $13.00 (wholesale value) = $260 x 25% =$65.00 profit.

Once the distributor proved that he could get 25 customers he was allowed to become a DIRECT distributor - which meant that he could find others who wanted to sell the Nutrilite products and then they would buy their products from him. In essence, once he proved that he could get customers he was “promoted” and allowed to find other distributors and to train them to get customers. As an incentive to train his distributors well, once he and his distributors amassed 150 customers, he received an additional 2% of the total sales volume.

This is not a pyramid - it’s a quota-based system of management. Those who sold the most boxes of vitamins got a higher reward than those who sold little. The MLM compensation plan was simply an extension of the Fuller Brush Company rewarding production. With MLM (Network Marketing) , the company could motivate a sales person to not only sell more products, but to train others to sell more products as well.

1945 - Earl Tupper created a line of flexible, lightweight plastic containers with tight-sealing lids. He started selling his products through conventional retail outlets, but realized the products needed demonstration. Earl Tupper then teamed up with Brownie Wise (formerly with Stanley Home Products) and launched Tupperware Party Plan, now a world-wide billion-dollar company operating in 40 countries.

1949 - Rich DeVos and Jay Van Andel (high school buddies and business partners) returned from military service and became distributors for Nutrilite vitamin supplements in 1950. After a brief dilemma with Nutrilite in 1959, the two abandoned ship and formed the Amway Corporation. In 1972 Amway Corporation acquired Nutrilite.

1956 - Dr. Forrest Shaklee developed a method of extracting minerals from vegetables and used MLM (Network Marketing) to distribute his products.

1963 - Mary Kay Ash creates Mary Kay Cosmetics. By 1996, company sales were in excess of 2 billion dollars.

1975 - The FTC (Federal Trade Commission) filed suit against Amway corporation for operating a pyramid scheme.

1979 - An administrative law judge ruled that Amway’s multi-level-marketing program was a legitimate business opportunity, as opposed to a pyramid scheme.

The History and Truth of Network Marketing


The most fundamental fact of life in our world today is change. As a rule, people are reluctant to change. We resist it, we like to stay within our comfort zone of what is known and accepted by most. THIS IS HUMAN NATURE.

But it's true that what you resist will persist, especially when you resist a better method whose time has come. In almost every field of endeavour, the arts, sciences, medicine, and business, most new ideas have always met with resistance and rejection at first. The more unique and revolutionary the idea, the louder and stronger the opposition to it.

People have always been afraid and even ignorant about ideas and methods that may result in change. Fear of change caused ridicule of Christopher Columbus, Louis Pasteur, Thomas Edison and Albert Einstein. There are other examples of how fear of change had effects on progress.

In the 1800's, people bought what they needed at small, family owned shops. Then a man named W.T. Grant had an idea that created change. What if we combined all these separate, little shops by making them individual departments under one roof, in one large store? A new and better way of doing things. Customers loved it.

The individual merchants who owned the old-fashioned retail stores saw their businesses decline. The shopkeepers fought back politically. There were thousands of them with thousands of votes, and they lobbied for their right to do things the same old way.

They finally got the local and state governments to outlaw Grant's department stores. Eventually, Grant's department store won out. If there is a better way it will persist.
In the early 1960's franchising was a revolutionary new technology in business, and it was also met with resistance. Newspapers and magazines wrote what a scam and rip-off franchising was. Stories of people who lost their life savings to some franchise were everywhere. There was a strong move to make franchising illegal. In fact, franchising actually came within 11 votes of being outlawed by Congress.

Today this so-called scam is responsible for over 34 percent of all retail sales in North America. Franchises sell nearly 800 billion dollars worth of goods and services today. Every industry goes through an evolution similar to this. Chiropractors were considered quacks in the 1970's, the stock market was considered shady and a form of gambling, and the first newspaper in British North America, The Public Occurrence (1690), was suppressed by the governor of Massachusetts. Now, we almost can't do without these industries.

The Pioneers

Like all-powerful concepts, Network Marketing has also met resistance due to a lack of understanding. There is no mystery to Network Marketing. It's just another form of sales and distribution. Network Marketing is 50 years young. In the early 1940's a company by the name of California Vitamins recognized that all their new sales representatives coming aboard were friends and family of their existing sales force, primarily because they wanted the product at wholesale cost. They also discovered that it was easier to create a sales force of a lot of people who each sold a small amount of product than it was to find a few superstars who could sell a lot of products.
So they combined those two ideas and designed a sales compensation structure that encouraged their salespeople to invite new representatives from satisfied customers, most of whom were family and friends, who each had the same right to offer the product and representative status to others, which allowed the sales force to grow exponentially. The company rewarded them for the sales produced by their entire group or network of sales representatives. Network Marketing was born! A few years later, the company changed its name to NutraLite Food Supplement Corporations.

In 1956, NutraLite was joined in Network Marketing by Dr. Forrest Shaklee to gain a broader distribution of the food supplements he had developed.

Not long after, in 1959, former NutraLite distributors Rich DeVoss and Jay Van Andel started the Amway company as the American Way of marketing products. Like many truly innovative breakthroughs, the development of true network marketing was an accident.

Abuses of exponential growth haunted network marketing for years and it is still misunderstood today. One of the first abuses of the concept of exponential growth to generate income may have been the chain letter craze that swept the U.S. after World War I. The letters promised great profit if you would send a dime or a dollar to the person at the bottom.

The chain letters spread as far as Europe, and by the 1930's the U.S. post office estimated that 10 million letters were being mailed each day. Postal Authorities and law enforcement agencies battled the fraudulent schemes and the chain letter phenomenon began to subside in the early 1940s. Unfortunately, this scam spawned schemes which came to be known as pyramids, where money was given for the right to involve others, as no valid product which was being purchased from the company.

In 1974, Senator Walter Mondale declared such companies to be the nation's number one consumer fraud.
Law enforcement agencies moved quickly to clean up the abuses. In the mid 1970's, with no clear understanding of what constituted a legitimate use of network marketing, the Federal Trade Commission and state agencies across the nation turned their eyes to almost all network marketing companies. In 1975, the FTC filed suit against Amway, alleging that the company was an illegal pyramid and that its refusal to sell its products in retail stores constituted a restraint of trade.

Amway spent four years and millions of dollars in legal fees to clear its name. In 1979 the FTC (Federal Trade Commission) ruled that Amway was not a pyramid, that its revenue was generated from the sale of its products, and the FTC acknowledged network marketing as a legal and efficient distribution system. Network Marketing exploded in the next decade.

Who's Involved in Network Marketing?

Today there are thousands of Network Marketing companies operating throughout the United States, Canada, Mexico, South America, the United Kingdom, Europe, Australia, New Zealand, Israel, Japan and the Pacific Basin. Little Malaysia alone has more than 800 active Network Marketing companies. Network Marketing is reported to be a $100 billion dollar industry, internationally, made up of FORTUNE 500 and New York Stock Exchange (NYSE) companies.

In 1993, Amway was the fastest growing foreign company in Japan with sales over $1 billion. Discovery Toys markets their products solely by Network Marketing, with sales figures in excess of $100 million. Sprint, MCI and AT&T make their long distance phone service available through Network Marketing companies. The A.L. Williams Company utilized Network Marketing and astounded the insurance industry by outselling Prudential, a giant in the industry, in four short years.

Traditional sales method companies such as Colgate-Palmolive and the Gillette Company have Network Marketing subsidiaries. Rexall Drug is now utilizing the Network Marketing method of distribution with its subsidiary, Rexall Showcase. Network Marketing companies such as Melaleuca outperformed Liz Claiborne, The Limited and John Paul Mitchell while Nu Skin bested the likes of Maybelline, Dow Chemical and Matrix. Mary Kay is bigger than Johnson & Johnson, Amway is bigger than Revlon, and Avon is bigger than Estee Lauder. Sam Walton, the founder of Wal-Mart is quoted as saying, "I'd rather run a profitable business in an unconventional industry than an unprofitable business in a conventional industry."

Network Marketing has evolved in other ways, as well. Companies that began as direct selling companies are now utilizing networking marketing compensation plans. Some examples include Avon, the $3 billion cosmetic giant, Watkins Products, which had been direct selling for nearly 100 years before it converted to network marketing, and Encyclopedia Britannica.

One reason for the decline of direct selling is that beginning in the 1970's, distributors making calls on people found that no one was home. Women, long standing as the customer backbone of direct sales, had entered the work force, leaving few at home during the day. Companies watching these societal trends moved quickly to revise their marketing plans to network marketing, which allows for more informal methods of sales and greater compensation.

Network Marketing Companies have actually pioneered entire industries: natural vitamin supplements, nutrition and diet drinks, concentrated and environmentally friendly household cleaners. One network marketing company almost single-handedly created the billion dollar home water filtration business.

The Company Wins, too

Why are so many companies utilizing network marketing as their chosen method of marketing? Simply stated, it's more efficient! They do not pay for marketing, distribution or sales until after the sale is made and the product is delivered. Compare that to traditional marketing where a company can spend millions of dollars on advertising, as well as all costs associated with an employee based sales force, such as benefits, support staff, communication, travel and office, before any product is sold. Charles Givens, financial expert and best selling author of Wealth Without Risk, points out that 80 percent of the cost of getting a product to consumers today is the result of marketing expenses. Companies are looking to move their cost as close to the point of sale as possible. Network Marketing companies replace traditional advertising and marketing costs with sales commissions to the independent representatives, paid after the product is sold.

In her best selling book, The Popcorn Report, Faith Popcorn explains additional societal trends driving the success of Network Marketing. Her book describes consumers as having a desire to cocoon and stay at home. She believes that they wish to avoid crowded malls and traffic jams, and are looking for the convenience of direct delivery of the product that Network Marketing provides. Advertising Age magazine states that the recommendation from a friend is the most powerful form of advertising; that is what Network Marketing is all about.

The changing work place has demonstrated that there is no security in the traditional corporate structure and career path. In the United States over 3,100 jobs are lost each day due to downsizing. Automation and technological advances are streamlining business and changing entire industries. Millions of people will be out of work searching for the same kinds of jobs their former employers just eliminated, in another company that just hasn't yet streamlined. This is postponing the inevitable; In fact, 47 percent of the companies that made up the Fortune 500 in 1980 are no longer in operation today, which represents a net loss of more than five million jobs!

Technological advances affect the work forces of entire industries. One example is the vinyl record business. In 1985, vinyl records supported a $24 billion a year industry. Today it is all but extinct, having been replaced with producers of cassettes tapes and compact discs. The steel and copper industries have suffered with the advent of new plastics and alloys. The functions computers are able to execute have caused the replacement of millions of workers. Robotic technology similarly has taken its toll in the workplace. One robot can replace twenty human workers and extinguishes the need for companies to pay exorbitant amounts in employee benefits. Man Power Inc., a temporary service, is now one of the largest employers in the world because companies are finding it less expensive to hire temporary employees and thereby avoid paying benefits to permanent employees.

Marketing on a part-time effort can provide a financial cushion of residual income to protect oneself from such events. A recent Wall Street Journal survey found that 80 percent of the work force want to own their own business and 40 percent surveyed would like to work at home. This is exactly what network marketing provides. People are searching for ways to build a future that develops leadership and provides a balance in their lives for their families and each other, without sacrificing their sanity in the process.

How Does It Work?

In network marketing, you share information and develop personal and professional contacts. You are rewarded for sharing information that results in product sales. Network Marketing empowers you to build your own networking sales organization from your personal and professional contacts, which also empowers everyone to do the same, creating exponential growth of your network. You can earn income from the successful efforts of your network of business associates. Unlike conventional Corporations with one chief executive at the top, in Network Marketing everyone is the CEO of his or her own independent organization.

A network marketing company supplies the product. Then they join in partnership with a network of independent representatives, each one in business for themselves. The company takes care of the research and development, finances, management, public relations, production, warehousing, packaging, quality control, administration, shipping, data processing, the accounting and payment of representative sales commission checks.

Cooperation vs. Competition

One of the reasons for the success of Network Marketing in the 1990's is that it is based on cooperation, not competition. Unlike in traditional business, career advancement in network marketing comes directly from helping to create success with those that you introduce to the company. Network Marketing is sharing information that results in product sales. People involve themselves because they want to finally be compensated for what their efforts are really worth. They're involved because somebody cared enough about them to show them the awesome opportunity of network marketing. They get involved because they were ready to make a change.
Why Hasn't the Truth About Network Marketing Been Told?
People resist change and are fearful of what is not fully understood. People are comfortable with what is known and accepted by most.

The truth is that most people in power today have an overriding fear of the loss of their own power. Network Marketing is about empowerment of the individual.
Is it really your best interest they have at heart? Remember what happened with W.T. Grant, franchising, and the first newspaper? Most new concepts have always met with resistance and rejection at first.

Newspapers, magazines, radio and television earn their primary profits from their advertisers. Is it in the media's best interest to say anything positive about an industry that does not advertise? Do you suppose major traditional marketing companies that are receiving increased competition from network marketing companies are excited? Whose side do you suppose the media would take to protect their advertising dollar?

A few years ago a network marketing company that sold personal care products became the attention of the media and several state Attorney Generals. Their sales were approaching $500 million dollars. These sales were being taken away from companies such as Revlon, Max Factor, Estee Lauder and others in the health and beauty aids industry. Do you believe the competition was pleased with the success of a network marketing company that was not spending multi-millions of dollars on advertising as they had traditionally done? Furthermore, network marketing companies were bypassing the department stores and malls and going direct to the consumer's living rooms with sharing, caring service and timesaving convenience. What if you were one of the brokers, retailers, wholesalers, media people or any other person whose job or businesses were being threatened because network marketing was a new and better way of doing things? What would you do?

If you had a friend in the State Attorney general's office would you call them? If you or your company had contributed to any industry lobbyist, political action committee or had media contacts might they be contacted, too? What if, in fact, your job were in jeopardy either as the VP of Sales or as one of the executive staff who might have to answer to stockholders and explain why your market share was being taken away by some network marketing company and your position, your power and your income were at stake? Do you suppose these strategies are ever used against a competitor? How many votes do you suppose an Attorney General would risk by focusing on a network marketing company that employed many people and paid a great amount of local and state taxes - in a different state?
Just as in any business or industry, there are scams and schemes that hurt the industry image. Real estate has had its scams. Banking and Savings and Loans have had their improprieties. Ministries have had abuses for self-serving purposes. The stock market has had its insider trading scandals. Why should network marketing be any different?
Look at the company, the product, its management and their past history. Understand the commitment that is necessary to achieve success and residual income. This advice is just as valid in network marketing as in anything else.

There are many myths about the industry of network marketing and the companies involved. It is true that many recognized traditional companies have started subsidiaries, such as Gillette, Colgate-Palmolive, Rexall and thousands of other companies that are using network marketing as their preferred method of distribution, creating sales of approximately $100 billion dollars. It is often stated that Coca-Cola, Goodyear, IBM, Firestone, and General Motors are involved in network marketing with their own divisions. Actually, these companies are suppliers of products to companies that utilize network marketing, such as Amway. MCI, U.S. Sprint and AT&T supply long distance service to network marketing companies that are rebillers. Due to the high cost of real estate for showrooms, Toyota of Japan uses direct sales to market directly to the consumer, but not network marketing.

Network Marketing is the new way to financial freedom. You'll never create residual income and freedom from the traditional job. Even professionals are trading their time for money; if they are not seeing clients or patients, they are not getting paid. Most income is temporary and it is easy to determine if your income is temporary - just stop working for 90 days. If your income stops or slows down, you have temporary income.

In network marketing you can stop trading time for money. Once you develop a solid network of sales representatives, you will create ongoing residual income. This can give you the freedom to do what you want when you want to.

It's interesting how resistant we are to change. We want to stay in our comfort zones even when we're miserable.
It's been said network marketing is the next step in the evolution of free enterprise. But there is one thing we can always be assured of: the most fundamental fact of life in our world today is that change is inevitable!

Who is Greg Stewart? Click on Greg Stewart to learn more about this MLM Master.

To Learn a lot more about the MLM Industry, check out our FREE MLM Training Section by clicking Here, it is FREE and you will not be prospected for anyting, just learn to set your business on FIRE!

How MLM Works


Contrary to popular belief and practice, the core principles that drive network marketing are the based on FULFILMENT of promises — not just PROMISES of fulfilment.

In other words, people are much more satisfied and excited by EATING a good meal than by LOOKING AT an impressive menu!

Yet most time and effort in network marketed is devoted to trying to attract people through lavish promises of what might be (usually supported by holding up the the high income earners — less than 1% of the people in most companies — as examples) rather than ensuring that the people who buy the “Dream” actually experience genuine success, right from the beginning.

Here’s how network marketing should operate. It’s a simple, controllable, three-stage process…

Stage One: Enthusiastic Consumer

Use the products and experience the benefits.
When you discover that the benefits outstrip the promises made about them, and all the conditions that had to be met to obtain those benefits (including the purchase price and actually using them), you get REALLY enthused.

Anticipation — the promise of fulfilment — is one thing, but it’s short-lived if the benefits aren’t soon forthcoming. Personal experience of the benefits — the fulfilment of the promise — is MUCH more potent, and it continues as you share the the benefits with others and continue to experience them for yourself.

An added benefit is not having to face an ethical dilemma whenever you try to sell or sponsor without that personal experience of the claimed benefits. It undermines your integrity, self-respect and credibility.

Stage Two: Enthusiastic Product Advocate

Share the product benefits with other people.
This will earn you reciprocal income, where you exchange one thing of value for another. (In this case your product for their money. In a job, you exchange your time for your boss's money.) Reciprocal income is not your main icnome source in network marketing, but it’s the most immediate and the easiest to earn for new people. Never forget… “little fish are sweet” applies as much in network marketing as in anything else in life.

This proves two things — first, that the products work for others, and they get excited by the benefits, and second, you can actually make money selling the products to others.

Once again, your enthusiasm is based on fulfilment, not promises. Not just your own fulfilment, either. Your customers’ fulfilment as well.

Stage Three: Enthusiastic Business Advocate

Share the income opportunity with other people.
Some of those customers will catch your own enthusiasm, and your reality will become their vision. They’ll join you and experience the benefits of reciprocal income, immediately.

This will begin to create residual income for you — the REAL income stream in network marketing, because it’s high leverage. The more people who join you, the more your income will grow — yet your time and effort will remain at the same kind of level.

Now you’re enthusiasm is climbing rapidly, based once more on actual fulfilment, not mere promises. And because your people are experiencing their own fulfilments based on actual experience, the synergy within your team becomes extremely powerful.

That’s the whole “shooting match” — anything more complicated than this loses the plot badly, and will soon sabotage your efforts.

The KISS Principle (No — it's not “Keep It Simple, Stupid”!)

Learn to Keep It SAFE and SIMPLE.
Complicating your network marketing business is the fastest way to LOSE the benefits and emotional fulfilments. Remember — your people will do what they SEE YOU DO, not what they hear you say.

How to STAY enthused and excited

Stay close to your new people — they’re your most potent source of renewed enthusiasm, as they experience the kind of differences that you originally experienced, that got you so excited.
And if your enthusiasm starts to wane, and you feel yourself growing “stale”, the solution is simple… just begin sharing the products and income and business benefits with some new people, and enjoy a fresh infusion of excitement for yourself, from their excitement at experiencing the fulfilments — NOT just promises — that are the REAL motive power in network marketing.

A Brief History of MLM

Nobody knows exactly when MLM began, because it really evolved over a number of years, prior to World War II. Most observers agree that Nutrilite – now an Amway subsidiary – was the first true MLM company. In addition to being the founders of network marketing, they were the founders of the vitamin and food supplements industry, way back in the 1920s. So the historical connection between MLM and nutritional products dates back over most of the twentieth century – a fact unknown to most people (especially those who think that, somehow, MLM companies are johnny-come-latelies to nutrition. Most of the major product breakthroughs in that industry have been pioneered by MLM companies, in fact.)

The beginnings of MLM

In 1949, two young men named Rich DeVos and Jay VanAndel became Nutrilite distributors. In the ensuing decade, they build a large, prosperous organisation across America. But, in the late 1950s, a problem arose that was to continue to plague many MLM companies even until now. And it almost sank their business.

The manufacturing arm of Nutrilite was owned separately from the marketing arm. And, as often happens in such circumstances (not just in MLM), the marketing arm was seen to be making most of the money. There’s nothing unusual in this. It’s a fact of life that those who connect manufacturers to their markets take the lion’s share of the selling price, in any industry.

To make a long story short, a standoff developed between the manufacturer and the marketer. DeVos and VanAndel watched, alarmed, as their distribution network dwindled rapidly due to lack of product and the resulting lack of income from sales. Unable to bring the two parties to an agreement, they decided to create a product of their own that they could supply to what was left of their network.

Amway is born

What happened next is legendary. In 1959, they formed Amway Corporation. Within ten years, they’d bought Nutrilite, and Amway has rarely looked back ever since. It’s still the largest MLM company worldwide.

Of course, that kind of spectacular success soon attracts attention and, before long a rash of MLM companies sprang into existence. But there was also a dark side to the story – one that still causes problems to this day.

It didn't take sharp operators long to realise that they couldn't take advantage of people under the strict, ethical rules of conduct required by the MLM companies. So they came up with a counterfeit version, based on a scam from the late 1920s (The Ponzi Scheme) that looked like MLM, but allowed them to fleece people who were basically the same as themselves… lazy and greedy.

Thus was born the Pyramid Selling Scheme.

The counterfeits soon emerge

It’s ironic that people still mistakenly accuse MLM of being pyramid selling when it was actually the reputable MLM companies that first petitioned government authorities to have pyramid selling outlawed.

It didn’t take long for legislation to be passed to rub out pyramid selling. But pyramid selling isn’t really a system or structure, despite its cunning name. It’s a mentality – an attitude – which is very hard to legislate against. Consequently, many anti-pyramid laws also discriminate unintentionally against legitimate network marketing, “throwing the baby out with the bathwater.”

Over the following decades, MLM has evolved and developed further into the wide array of companies, product ranges, reward plans and cultures that exist today. This unique, powerful system of free enterprise continues to grow, attracting more and more people to it. As we prepare to enter the twenty-first century, MLM has never been so well-respected, so healthy, so attractive or so rewarding.