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The History of Network Marketing

Traditionally in the history of network marketing the industry has been product driven, selling from the categories of personal care, vitamin/nutritional supplementation, home and family care, leisure and educational products. Many of the major network marketing companies in the history of network marketing started as direct-selling companies.

In 1990 75 percent of the Direct Selling Association's member companies worked on straight commission. By the end of the 90's that number had decreased to less then 23 percent. Network marketing plans are now used by more than 77 percent of the Direct Selling Association's companies.

Carl Rehnborg was known to be the first man in the history of network marketing to introduce a compensation plan to market his nutritional products in 1945.

Originally named the California Vitamin Company, and later renamed Nutrilite Products Inc., his company used a multi-tiered plan to allow distributors to get a 3 percent commission from a down-line, on top of the regular commission for his own sale.

Rich DeVos and Jay Van Andel began Amway Corporation in 1959. They had both worked for Nutrilite Products Inc., and used an improved compensation plan to market
their own biodegradable products. Amway Corporation is one of the best network marketing business opportunities still in business today.

Today there are thousands of network marketing companies in business in the United States, Canada, Mexico, South America, the United Kingdom, Europe, Australia, New Zealand, Israel, Japan and the Pacific Basin. Network Marketing is reported to be a $100 billion dollar industry, internationally, made up of FORTUNE 500 and New York Stock Exchange (NYSE) companies.

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