A bit of History - and the Future of Network Marketing

Published on this site: November 23th, 2006 - See more articles from this month

It's an exciting world we live in today and one far different than the world of fifty-years ago. There are very few things in our society now that existed five decades ago, and if they do exist, they have certainly changed in a great many ways.

Most people don't realize that Network Marketing has been around, and flourishing, for more than fifty years. Not only that, but it has gained force over the years, to the point that today, it is the single marketing technique that brings in the most revenues for those that participate.

People are suspicious of change

In the 1960's franchising was the new technology in business. My parents remember what a scam everyone thought franchising to be. In fact franchising was almost outlawed by Congress, and today this "once thought to be scam" is responsible for over 30% of retail sales in Northern America. Network Marketing has and does face the same scrutiny.

Let's begin at the beginning

Over fifty years ago, long before home based businesses truly prospered, in the early 1940's, a company called California Vitamins (known as NutraLite Food Supplement Corporations) struck gold with a brand new concept. They realized that most of their incoming sales force were referred to them by their current sales force, and in fact, were usually family members and friends. They quickly discovered that it was easier to create a sales force of a lot of people who each sold a small amount of products than it was to find a few who could sell a lot of products. By combining these two ideas and designing a sales compensation structure that encouraged their sales people to invite new representatives in who, in turn, had the same right to offer the product and the representative status to others, allowed the sales force exponential growth.

Taking this knowledge, they created the very first instance of Network Marketing by rewarding their employees in two different ways:

First, when they recruited others into their sales fold; and secondly, by the total sales earned within each representative's group, or "network." This simple concept has turned into a billion dollar business all of its own, and is now the number one marketing system in the United States. Unfortunately, as with anything that is highly successful, unethical people will find a way to misuse it to their own benefit. From scams such as chain letters that promised money to those that participated, to the well known pyramid schemes.

Obviously, if I'm stating that Network Marketing is number one in the United States, and not only for home based businesses or Internet home based businesses, then you may be wondering who, exactly, is using Network Marketing? There are literally thousands of companies utilizing this method of marketing across the United States - and most other countries in our world today. Companies such as, Amway, Discovery Toys, Sprint, Mci, and AT&T -just to name a few - have all used, and are currently using Network Marketing to huge success. Even Avon, who began as a fully focused direct-sales company, now has branched off into Network Marketing. Their reasons were a loss in profit as more women entered the workforce; and therefore, there weren't as many people home during the day to market their products in the old-fashioned door-to-door routine. What is Network Marketing and how does it work?

It is a proven method of benefiting those that work in a team structured atmosphere. Network Marketing is the actual sale of products, services, or information to others within a cohesive and strongly built team environment. To break it down simply, however, Network Marketing is a process in which you share information while developing contacts. This leads into increased
product sales in which you will be rewarded for - and not just for your sales, either. Remember those contacts you've developed? As those people bring in new sales, you also get rewarded for that - and on it goes. It can truly be a never-ending cycle of income and support. The company you're associated with supplies the product, the services, and/or the information to their representatives. They supply the marketing tools, the advertising tools, and, what is most essential to the home based business entrepreneur- the support. The future of Network Marketing has no boundaries. It can be everything you want it to be - if you put the time into it, listen to those who have come before you, and continue to build your contact list every single day. Network Marketing is the path to financial freedom. It can be your path - if you want it to be!

If you're considering any work at home business, educating yourself further on Network Marketing is one of the smartest decisions you can make.

Ruby River - is the proud owner of an established, hybrid, Internet home based business system that cuts through the hype and presents a genuine opportunity to exceed your income goals working from home. Motivated, entrepreneur
minded individuals, visit: http://www.rubyshomebasedbusinessopportunity.com