Short History of Network Marketing

Sales were brisk even though the product was not sold in pharmacies or supermarket but directly to consumers through Nutrilite's own sales force which actuall created the network marketing business model as it grew. Sales continued to climb requiring very intensive and on going training of the sales staff. It became apparent that some of the best sales people were actually customers who loved the product so much they could not help but talk about it. Discussions about where this customers could somehow benet led to a new business model based on a network of customers.

Thus, the second revolutionary concept emerged. Why not let the sales people recruit other salespeople and customers to help grow the business? And here's the real secret: they would earn an override or residual income on people they recruit similar to what insurance salesmen receive for selling a policy. This is the secret to the incredible lifestyle you can have when you use the network marketing business model. Two young men picked up on this idea and signed on as Nutrilite distributors. One was Dick DeVos and the other was Jay Van Andel, 2 high school buddies who were looking for a new opportunity. They had tried a flight training school and yachting. They almost drowned when the boat sunk under them but they lived to prosper.

The pair liked their health and wellness product but found it a little hard to explain to people. So they got together to plan a new strategy: they wanted something their growing distributor force could sell without any long winded explanation and a product that every body was already using. They came up with soap and the rest is history. Amway was formed and now is the largest direct sales  company in the world with sales around $6 billion. Some people have a negative view towards Amway or Amway Global (Quixtar) as it is now known but what most people object to are the marketing strategies of a few major distributors which really has nothing to do with Amway, the company. They must be doing something right. Amway subsequently purchased Nutrilite which still is a separate company and still receiving accolades for its role in nutrition.

At about the same time Amway was formed (1950's) Dr Shaklee founded Shaklee and Mary Kay founded you know.(pink cadillacs). In 1965, Adelle Davis wrote the groundbreaking book  "Let's Get Well" which focused on nutritional healing. This booked fostered the development of the early health food stores such as the Big Carrot which is still located on The Danforth in Toronto.

One of the most notable scientists and political figures of the 1960's and 70's, Dr Linus Pauling received two Nobel prices--on for chemistry and one for peace. He was a real 6o's style anti war protester who was not afraid to ruffle feathers at the US State Department. In the 1970's, while in his sixties, he began to focus on the curative efects of Vitimin C. Publishing a book in 1970, called the "Vitamin C and the Common Cold", he again caused quite an uproar in the medical community because he had suggested a vitamin might work.

In the late 1970s, Dr. Alfred Libby, renowned authority on therapeutic nutrition and longtime associate of Nobel Prize Laureate, Dr. Linus Pauling, began to explore an alternative delivery system for Vitamin B-12. The goal was to bypass the stomach where this essential nutrient is not easily absorbed. Subsequent studies proved that his patent sublingual method worked extremely well allowing absorption into the bloodstream.

Dr. Libby closely followed B Vitamin research throughout his lifetime—with special attention to the work of Dr. Kilmer McCully, who pioneered a B Vitamin/Homocysteine theory in the 1960s. Dr. McCully theorized and later proved, that homocysteine, a toxic amino acid, was the culprit in a large percentage of heart disease cases. Both Dr. McCully and Dr. Libby knew that B Vitamins—specifically B-12, B-6 and folic acid—detoxified homocysteine and helped prevent heart disease. By the 1990s researchers began to uncover homocysteine’s link to other killers—stroke, diabetes and Alzheimer’s, among others. As a result of this research, Dr. Libby took a new look at his patented Sublingual B-12, and added the perfect homocysteine-fighting proportions of B-6 and folic acid. It became the foundation for a new company called Trivita.

In the mid 1970's, Dr Gustavo Bounous was just beginning  20 years of research on whey protein isolate (immunocal)that would form the cornerstone of Immunotec founded in 1997. This product now has method of use patents for AIDS and Cancer treatments. Dr Bounous deserves to win the Nobel Prize for Medicine and maybe he will one day.

It's a long way from the development of the first multi vitamin in the 30's to the discovery of a product that raises glutathione in the 90's. Who knows if these kinds of products would ever have seen the light of day without direct sales  organizations. Besides playing a major role in launching the "the health and wellness  food industry", the direct selling industry also played a major role when the telephone industry was deregulated in the USA in the 1980's. Companies like MCI took off like a rocket thanks to direct sales companies. Since then  companies like ACN and Excel have continued to play a major role in the communications industry.

In the 1990's a  company called NSF did an awful lot to change people's opinion of the water they were drinking from their own tap. This campaign was continued by Amway and Shaklee. Now it's hard to listen to the radio without hearing an ad for filtered water of some kind. Little did they realize that the now common plastic water bottle would become such a burden in our dumps.

At about the same time Amsoil invented synthetic motor oil. Totally revolutionary back then but synthetic oil is now sold everywhere. I use it my trucks and they can go 20,ooo km between oil changes which saves me downtime and maintenance costs.

You will find numerous examples of direct sales/network marketing  companies creating new and revolutionary products. That's why people get excited and want to share the good news with the people they know--usually their friends and family---sometimes--often--they get too excited and turn them off rather than turn them on. Some people just don't know when to stop talking.

The Bottom line: While the products are extremely important, its the change that goes on inside the people that is truly remarkable: the key ingredient that makes this business exciting is that people get to dream again. Goals and dreams that  have conveniently forgotten can be resurrected from the graves of quiet desperation. Now individuals  have a way to get their dreams, a way to change their life for the better. This is by far the most important gift this home business gives to people. Baby Boomers have embraced this concept with both arms.

But just be sure you join the company that's best for you and one that is reputable and honest in their business dealings. You don't want your dreams stolen by some charlatan. This industry has its share of unscrupulous people just the same as any other business. It's not perfect but it's one of the few chances people really have to make a truly significant difference in their lives.

There's lots more information and it doesn't cost you anything to find out.

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