The History of MLM Revealed 60

Like a lot of other misinterpreted concepts, multi level marketing has met resistance in the past because of a common bafflement of what it's all about. The multi-level marketing story is pretty straight forward but matters were misunderstood in the general public's mind when illegal pyramid and Ponzi schemes were created about the same time.

K. A company called California Vitamins noticed that each of its new sales representatives were friends and family of the existing sales drive, the cause being that they needed the product at wholesale price.
The company honored them for the sales created by their entire group of sales representatives. And the multi-level marketing history was made!

In 1956, Dr Forrest Shaklee united in the multi level marketing concept to offer a broader distribution of the food supplements he had created.

Following in 1959, previous NutraLite sales representatives Rich DeVoss and Jay Van Andel initiated the Amway corporation as the North American Way of marketing products.

Everything was perfect until the concept got in to some bad hands who began to miss-use it. Accept it or not, one of the first cases of this came in the form of chain letters. The letters guaranteed substantial gain if you would send a dime or a dollar to the individual at the bottom and many did just that. Although these letters actually started and were thankfully shut down before multi level selling was born, they later spawned similar schemes that we all know as pyramid or Ponzi schemes. These prohibited activities involve giving members commissions for hiring other members. Yet, no product or services is offered as it is by legal multilevel marketing service.
And that's's when it got rough for multi-level marketing. In the mid 1970's, because they'd no real clear appreciation of what internet marketing was all about, the federal Trade Commission began to point all internet marketing companies. In 1975, the FTC filed suit against Amway, on the grounds that the corporation was an illegal pyramid and that its refusal to sell its products in retail shops recognized a constraint of trade. 4 years and millions of dollars later, Amway cleared its name.

Since, the multi-level marketing story has come to include thousands of successul MLM companies all around the world.

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The Long History Of Multi Level Marketing
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