History of Network Marketing
Have you ever wondered when the history of network marketing even began? Most people assume that it was in 1945 by Nutrilite, formally known as the California Vitamin Company. However, the inspiration for this plan began many years before that.
The Traveling Salesman is Born
Salespeople have always been the backbone of any company. While they put in the endless hours of grunt work to make a living, someone at the top is getting rich. Although this is a similar concept to network marketing, at least every person has the same opportunity to be that tycoon at the top if they work hard and smart.
In 1860, a few former traveling salesmen created a couple well-known business, still popular today. Two you may have heard of include:
• Asa Candler – He built a strong team of salespeople to sell restaurants the Coca-Cola syrup he had purchased for $2300 in 1886 from a pharmacist named John Pemberton.
• Henry Heinz – This former peddler created a sales force of 400 to sell pickles, ketchup and other products to those who didn’t have a garden of their own.
If it wasn’t for these two men, things might be a lot different today.
Private Businesses
The late 1800s and early 1900s also played a key role in the history of network marketing. It was during this time that companies were created that essentially offered the opportunity for their salespeople to have an actual business. A few include:
• California Perfume Company – Founded in 1890 by David McConnell, he had more than 10,000 salespeople in 1906, selling over 100 products. Today, this company is known as Avon.
• Stanley Home Products – In 1931, Frank Stanley Beveridge branched away from a company he was previously the Vice President of Sales at. He founded this well-known business, specializing in mops, brushes and cleaners.
• California Vitamin Corporation – Here is where something really special happens in the history of network marketing. The California Vitamin Corporation was founded by Carl Rehnborg in 1934 to sell vitamin supplements. By 1939, the name was changed to Nutrilite Products Company, Inc., and a pyramid scheme was created that will be remembered throughout history.
Nutrilite
A lot of people became extremely rich thanks to this company. Unfortunately, there were also many who weren’t so lucky. If you got in at the right time when the product exploded in popularity, life was good!
In 1945, Rehnborg invented a door-to-door, multi-level marketing system for salespeople to sell his vitamins. William S. Casselberry and Lee S. Mytinger did their part to shape the history of network marketing by becoming exclusive national distributors of the vitamins. While they were in a heated dispute with the Food and Drug Administration for false advertising, two billionaires formed another company called Amway to distribute the vitamins. Amway ultimately took over full ownership of the company by 1994.
What was so unique about this company was that distributors with 25 or more regular customers were permitted to recruit their own distributors and earn 3 percent commission on all future sales. Network Marketing was Born!
Who knows with a little hard work and network marketing tips you can also make into the history books of Network Marketing!
