HISTORY OF NETWORK MARKETING

       In 1934 California Vitamin Company made a concept of multi level marketing ,first things first they started selling the products to people who's will use the product for the personal use and if they sell it to their family and friends. they would earn an extra $50 per month which was a substantial income at that time after this their realised that they could get a profit from this process by buying the product to them and resell it to other people to get the substantial income *50$* those people tried to do this may be for the wanna use the product or the just want to resell it again and get the profit.

In 1943, California Vitamins changed their name to Nutralite Corporation which implemented the first true Multi Level Marketing Bonus and Compensation plan. Everone joined the Company and make a sells with them he's getting a commission on the multiple levels of sales made.

In 1949, Jay Van Andle and Richard Marvin DeVoss joined Nutralite Corporation as Members and for the next ten years the company grew and prospered.They regarded conventional sales jobs as unfair - being paid only once for the work that they did even when the company continued to make a profit from their labours for many years afterwards. They believed that they should be paid relative to the benefit the company continued to get from their original work.In 1959 Jay and Richard decided to go in a different direction and start their own Multi Level Company called Amway.

A history of entrepreneurship

Rich DeVos and Jay Van Andel were two friends who shared a similar goal and ambition: they wanted more out of life for themselves, their families, and their friends. In 1959—after numerous ventures into entrepreneurship—they started a new business together in the basements of their homes. They built Amway.

Amway has become the No. 1 direct selling company in the world*. Built on the belief that business ownership improves lives through personal achievement and the opportunity to earn income, the heritage of Amway includes a rich history of entrepreneurship and helping others succeed.

In 1975, US consumer protection agency Federal Trade Commission decided to take Amway to court because they thought that Amway was involved in a Pyramid plot . A pyramid plot or the pyramid scheme is when you sell a system without a product. A number of different pyramid schemes raised up with the advent of MLM. 

Cause of Amway was the most successful multi level marketing distribution company at this time, the Federal Trade Commission decided to make an example of them to prove that Amway was involved in an illegal business. For four years Amway fought in the courts to prove that multi level marketing was a legitimate business finally winning the case in 1979. This paved the way for many more multi level marketing companies to enter this field.

 In the early 80's the MLM term was replaced by Network Marketing. Right now Network Marketing is preparing to become a giant that will out grow any other form of conventional business.

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