History of Network Marketing | Everyone should know

History of Network MarketingHello guys, In this Article, I’m gonna talk about the History of Network Marketing. Network marketing is also known as Multi-level-marketing or Direct selling.

What is Network Marketing? When did it start? and What is History of network marketing? before knowing those facts. I would like to tell you some wrong myth about network marketing.

what is the wrong myth that people has stored in their mind? Let’s see those myths.
  • Only the people at the top make money.
  • The pyramidal structures are Bad.
  • MLM or Network marketing is a  Big Scam.
  • MLM doesn’t work due to Market Saturation.

And many more Wrong myths people have about Network Marketing. But Don’t worry guys, in this article I’ll solve all the problems.

After getting the Knowledge about History of Network Marketing, your all myths will vanish.

so, guys, let’s know the History of Network Marketing.

History of Network Marketing

History of Network Marketing

Though there is a word on the internet that “Watchers” was the first company, most people think and agree that Nutrilite, “The California Vitamin Company” was the first true MLM company.

Not that it necessarily started as an MLM company, but the type of compensation plan that it later evolved into was much like a multi-level commission payment generated a plan.

In addition to being crowned with the founders of a network marketing payment plan, they were also the founders of the Vitamin and Food Supplements industry, way back in the 1920s. Two of the more successfully representatives of Nutrilite was Rich DeVos and Jay Van Andel. In the ensuing decade, they built a large, prosperous organization across America.

After the company saw how much money the marketing arm was making they quickly tried to change things around to dwarf commissions, and in light of that, Rich DeVos and Jay van Andel decided to take the situation in a new direction.

In 1959 Rich DeVos and Jay Van Andel, formed the birth of a company called The American Way – Amway for short. In the following decades, Amway Corporation successfully established itself as a leading multilevel marketing business, built on strong values and founding principles that continue to sustain their company today.

Perhaps you have you heard of Amway.

Here DeVos and Andel brought with them the multi-level marketing plan which had before been so successful.

Soon thereafter the Amway Corporation took on the might of the Federal Trade Commission in a test case which took the brakes off the development of the ‘network marketing industry’.

In brief, the decision, in this case, was that Amway was NOT a pyramid scam, but a legitimate form of doing and offering business.

This ruling opened the flood gates and there were very many companies set up to operate in this way in short order.

Amway continued to rule the industry, and within ten years, they had bought Nutrilite, and Amway has rarely looked back ever since.

Of course, this kind of success attracts a lot of attention and, before long there was also a dark side to the MLM story, one that still causes problems to this day.

The smart company owners soon realized that they couldn’t take advantage of people under the strict, ethical rules of conduct required by the MLM companies, also that doing so would weaken the integrity of the industry.

Others came up with a counterfeit version, based on a scam from the late 1920s (The Ponzi Scheme) that looked like MLM.

Related Article:

Thus RE-VAMPED was the Pyramid Selling Scheme.

In the 1960s and 1970s, pyramid schemes proliferated, whereby a ‘product’ was attached to a money pyramid, in order to pretend that they were actually marketing SOMETHING!

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.

This type of business is nowadays regulated and there is a great deal of consumer protection. However, the world is full of dubious characters and there are new scams being made to look like legitimate companies all the time. Keep your eyes open and always do your own due diligence before jumping into any opportunity, it is your life and your time, take responsibility. By trusting members of the DSA, MLMIA, and MLM DRA you won’t go far wrong, but watch out for start-ups which may fail, taking all your hard work with them.

Over the following decades, and continued into the future MLM is evolving and further developing into a wide array of companies, product ranges, and reward plans. This somewhat unique, and the power system continues to grow companies and people every day.

In today’s modern world, the network marketing industry has grown up. Many of the great leaders of the industry have developed some very sophisticated tools to support the back end infrastructure of managing large world-wide networks. New and easy to use prospecting tools have sprouted up that are proven to work for anyone willing to go through the learning and personal development growth curve.

Let’s know more about the History of Network Marketing.

Web 2.0 is not just a buzz word. Social networks, blogs, podcasts, and online discussion boards are an excellent free resource to promote your business. John Milton Fogg, author of The Greatest Networker in the World calls it “Internetwork Marketing”. You now have great power at your fingertips. More than ever before you have an opportunity to maximize and multiply the power of 6 degrees of separation.

The network marketing industry still continues to face challenges, as all developing industries do. However, the foundation has been laid for the next 50 years to be prosperous, revolutionary to the world of product distribution, and personal success in all areas of life for those who are part of the growth of successful companies


I hope guys, you have understood about the Network Marketing industries after knowing the  History of Network Marketing. Network Marketing is solid proof industry to become an earlier Rich in comparison to other industry.

If you want to grow in your life, you can join any MLM company and learn all skills and become a rich person. So finally guys, join MLM and promote MLM, and become Rich.

If you have any doubt or query about  History of Network Marketing, you can ask me in the comment section.

About Ankit Gupta

Hello guys, I'm Ankit Gupta, creator and founder of www.howtowinworld.com and I'm an inspiring entrepreneur and through this website, I'm sharing business knowledge. I'm also a team leader in inspire vision leading India Pvt Ltd. So guys subscribe our newsletter to connect with us :)

View all posts by Ankit Gupta →

Leave a Reply

Your email address will not be published. Required fields are marked *