HOW IT WORKS:
"Network marketing is a business model that depends on person-to-person sales by independent representatives, often working from home. A network marketing business may require you to build a network of business partners or salespeople to assist with lead generation and closing sales."
- Investopedia.com
THE HISTORY OF NETWORK MARKETING
1932
"Wachters" becomes the first company to successfully execute a network marketing business model to sell their supplements and herbal products. Wachters recruited salespeople by advertising the advantages of network marketing, which are still true today:
- Financial freedom
- Time leverage
- Low start-up cost
- Unlimited growth potential
- Helping others
1939
The California Vitamin Company (Nutrilite). Carl Rehnborg adopted the multilevel marketing strategy to help boost the sales of his company. Consultants Jay Van Andel and Rich DeVos become distributors of the Nutrilite products.
Together, they set up a competing company called Amway and bought a controlling interest in Nutrilite in 1972. In 1994, Amway took full ownership. They are now one of the largest companies today.
1959
Amway launched a business model fueled by the power of relationships. Their first product-Liquid Organic Cleaner
1975
The United States consumer protection agency and the Federal Trade Commission decided to take Amway to court because they thought Amway was involved in a Pyramid Scheme. A pyramid scheme is when you sell a system without a product.
1979
The U.S. Federal Trade Commission declares the Amway sales and marketing plan a legitimate multilevel sales opportunity.
1980
Amway annual sales passes the $1 billion mark.
Truths of Network Marketing
Several people believe that Network Marketing is a "get rich quick" opportunity. The truth is, like many other worthwhile opportunities, Network Marketing takes time and commitment.
Those who think they will start making major amounts of money in the first couple of weeks will quickly be disappointed & discouraged. This ultimately leads to them quitting before they see any money or success. The key to success in this industry is consistent commitment.
"I'd rather earn 1% of the efforts of 100 people than 100% of my own, personal efforts."
-J. Paul Getty
Salespeople within a network marketing company should know the company's compensation plan very well. The first question that potential team members are wondering before joining is "How do I actually get paid?". If you are not well-versed in the compensation plan, it will hurt your growth within the business.
The person at the top DOES NOT make all the money.
One of the greatest advantages of network marketing is that there are no limits, no matter how short or long your time has been in the company. You can even surpass your sponsor's income, if you work hard enough.
Extroverts are not the only ones who can be successful in network marketing. The salespeople who are coachable & committed are the ones who are highly successful, above anything else.
Network marketers do not have to sacrifice their friendships or relationships in order to recruit team members.
The definition of networking is: The action or process of interacting with others to exchange information and develop professional or social contacts (Dictionary.com).
You can network with anyone, especially those that you are not extremely close to.
Network marketing represented over 35 billion dollars in sales in 2019 (dsa.org).
Network marketing has been around for decades.
This industry is and will continue to be one of the most rewarding areas of business to be apart of.
Network marketing has proved to be a steady & strong form of income for millions of individuals around the world.
