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The two major players of multilevel marking were Nutrilite, now Amway, and Shaklee.
In 1945 Nutrilite became the first documented MLM plan. The Nutrilite plan was a quota quota-based management system. The distributors that sold the most boxes of vitamins got a higher reward than those who sold little. In 1972 the Amway Corporation bought Nutrilite.
Another early MLM company was Shaklee. 1956, Dr. Forrest Shaklee developed a method of extracting minerals from vegetables and used multilevel marketing to distribute his products. His “vitalized minerals” were introduced in 1915, before the concept of vitamins was fully understood. He went on to build successful chiropractic practices and clinics, where he learned from treating patients that good health required nurturing wellness, not just treating illness. Additionally, Dr. Shaklee’s innovations didn’t end with nutrition. He practiced living with nature and preserving our environment, thus inventing a biodegradable cleaner decades before environmental safety was a concern. He pioneered new discoveries in nutrition that went mainstream years later. He wouldn’t have thought much about contemporary labels like eco-chic, organic or self-actualization, but he was a pioneer in all of them.
The first years of MLM revolved around recruiting your friends and family to purchase your products and join in. This type of marketing is also known as the warm market. Your friends and family trust you and want you to succeed so they buy into your program. The warm market method though had it downfalls, that being you run out of family and friends.
The 3-foot rule came along in the multilevel marketing arena. This notion was that you were to prospect everyone within three feet of you and sell your product whether you knew them or not. Fortunately this practice is not taught in MLM tips or techniques today.
In the 1980’s and 90’s newspaper advertising became pretty popular. Most of the ads were placed in the sales section in the classified ads. This form of recruiting new distributors was soon shut down by government regulations. The government contended that they were fake job ads. Today you may see MLM distributors advertise in highly targeted magazines although this type of advertising can be quite expensive.
Today, the internet has revolutionized multilevel marketing. Location is no longer an issue, you can advertise and sell globally if your company allows. However due to the internet there are tons of get rich schemes claiming to be a multilevel marketing business when in reality they are more than likely some type of pyramid scheme. Additionally, there are pages upon pages of training sites on how to build your business in mlm of which I am sure many are worth the dollars but I suggest that you thoroughly review each training program before purchasing.
It is my belief that to be successful in multilevel marketing, you need use your product(s) and to believe in your product. This belief in your product will show in your recruitment of new members.
MLM is still evolving across the internet and there is money to be made if you believe in your product and yourself. MLM is not a get rich scheme, it is an honest noble profession and a great work at home opportunity either part time or fulltime. When considering a multilevel marketing business, take the steps to research the company, understand the compensation plan, and do you like the products.
For more information about multilevel marketing, visit MLM Resources