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MLM History Is a Story of Innovation and a Battle for VindicationMLM history is quite interesting. Although there is no definitive source of information in regards to the history of MLM once the pieces come together a story of innovation and vindication emerges.It is generally agreed upon that MLM came out of Nutrilite, now known as Amway®, in 1959 when Rich DeVos and Jay VanAndel developed the concept. They originated the idea that allowed individuals to become Independent Business Owners (IB0s) retailing their nutritional products and earning income recruiting others to do the same. These Independent distributors develop their businesses by building an active customer base, who buy direct from the parent company and by recruiting a downline of independent distributors who market the products as well thereby expanding the overall organization. Each MLM organization today has their own unique compensation model that often includes sales bonuses for reaching different performance levels but this is out of scope for this document.
Amway was not only the first but is in fact still the largest MLM Company worldwide to this day. In 1999 Amway decided to create Quixtar, a separate business to capitalize on the e-commerce trend, however they found that a separate web-based brand was not necessary and are now in the process of transitioning the $6.8-billion Amway brand to the Amway Global name. On Amway’s 50th anniversary in May 2009 this will be completed. Utilizing the MLM Business Model Amway has been ranked #1 in online sales for Health and Beauty by Internet Retailer Magazine’s “Top 500 Guide”. With more than 13,000 employees supporting the Amway business worldwide it is easy to see that the MLM concept is a solid one.
So what is in MLM history that gives it a negative connotation for many? Unfortunately other’s attempted to duplicate this business model but not exactly. A counterfeit version popped up in the 1920s based on the well known scam The Ponzi Scheme, a fraudulent investment scam, that reflected the original idea but was actually a very sophisticated con and so the pyramid scheme was born. A pyramid scheme is an investment scam that involves a financial investment for the “privilege” of recruiting others into the program to do the same. There is no actual business however with no products, services etc… This is the essential component that most people who have a prejudice against MLM do not understand.
Another quite interesting fact in MLM history is that most MLM companies of the time and all today had strict guidelines to ensure that everything was ethical and business was conducted legally. In fact it was the MLM industry that first petitioned the government to outlaw pyramid schemes. Laws were passed to stop the rampant pyramid schemes popping up that actually restricted the development of the legitimate Network Marketing industry. Once again the Amway Corporation played a central role working with the Federal Trade Commission to address the issue. It was determined that Amway was not a pyramid scheme, but a legitimate form of doing business opening up the opportunity again for anyone looking to own their own business without the necessity of having to develop their own products, manage delivery or take on the cost of having an actual storefront.
MLM is a thriving business even in this weakened economy. In fact some would go so far as to say that it is strengthened by it. Many people are coming to the realization that they require multiple-streams of income to survive. What better way to do this than own your own home based business? Unfortunately the reality is that those that would use the MLM business model for illegal or at the very least unethical gain are not just relegated to MLM history. However this is a thriving industry and some of the biggest names in business are using the MLM model today.
Or you may what to understand what is required of the Multi-level Marketer in this new internet based environment and some of the MLM scams and challenges they face as the MLM history continues… From MLM History to MLM Ninja Home 
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