Network marketing and multi-level marketing has truly made its own personal stamp in every economy. It started with the natural development of what we have come to know as shopping malls. In the old days, people basically bought their goods from family owned stores. And then a man named W.T. Grant figured that is would be so much more convenient to put several stores under one roof. This became a controversial move that had governments in tangles for a while, but the idea gradually took. Another major step was franchising, which also became the issue of the decade in the 1960’s. yet, today it still exists and remains part of the free market. It’s funny how such normal things today actually had their own time in the limelight as a controversial issue.

Today, network marketing has taken its time in the limelight as well. What originally started out as a great idea, it was used and abused by those who wanted to make a quick buck off the unsuspecting public. This is how illegal pyramid schemes came about, wherein it was never about the product, but rather about payment and recruitment. However, the basic idea of network marketing is simple – you use a network of people to market and promote a product, and many times those same networked people are also the consumers. This is ideal for products that are available from only one company.

At its 50th year, network marketing is still in its growing pains to be recognized as a legitimate business strategy. Although it has been recognized as one by over 200 colleges in America who actually teach the network marketing course in their schools, it is still a point of contention for many individuals who haven’t caught on to the network marketing frenzy yet.

The original network marketer was a company called California Vitamins, who realized that is consumers were made up of a network of relatives and friends. They decided to take it a step further and use this same network to market the company products. By merging the idea of the consumers being the marketers as well, they came up with the first MLM network system that made the company sales go up exponentially.

California Vitamins changed its name to NutraLite Food Supplement Corporations and was joined by Dr. Forrest Shaklee in 1956, who further refined the network marketing strategy. In 1959, Jay Van Andal and Rich DeVoss of NutraLite broke away and formed Amway to market unique American made products.

It has only been because of abusers of such a great system that network marketing has been left with shadows of doubt that haunt it over the years. From the infamous chain letters in the 1930s that took money from individuals and promised big profits if they merely sent a dollar to the person’s name at the bottom of the page, to the savings pyramid scheme, network marketing has unfairly been lumped with such groups because of the mere commonality – networking.

Companies like Amway have unfairly suffered for it, but today people are looking at network marketing in a new light. Why? Because networking is the new thing on the internet now, everyone is staying connected and that is how information is shared. Because of this timely development in information sharing, it has brought to light the roots of networking history by finally recognizing the effectiveness of network marketing both on- and off-line.

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