How old is network marketing industry

Network Marketing has been around for over 50 years. This company started out as a direct sales company signing up sales people that would use the product for their personal use and sell to it to their family and friends. Their friends and relatives not only liked the product but they started to realise that they could benefit financially themselves by buying the product at the wholesale price and in turn selling it to others.

In , California Vitamins changed their name to Nutralite Corporation which implemented the first true Multi Level Marketing compensation plan. Everyone involved in the company got paid on multiple levels of sales made. 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. A pyramid scheme is when you sell a system without a product.

Not only do you have product, but you have whatever you're going to be putting out for these parties, whether it's food, alcohol, flyers, you're going to be creating a website, all this kind of stuff. When all of that starts to add up, at slim margins on some of these products, it becomes very hard to make a meaningful amount of money. Generally, that involves recruiting a lot of people under you. But sometimes it is just being a really good salesperson. It's not impossible.

But it's improbable. If you find yourself needing a side hustle, and you're a salesman in your day-to-day job or have a history of being able to do cold calling and sales, well, this might be better than other side hustles for you.

But if you've never sold before -- and trust me, I have sold, it is a difficult, difficult thing to do -- think about how willing you are to ask your friends and family, and then strangers, to spend money. It's easier to do that if you believe in the product.

It's also hard to do that when you know that someone is maybe spending money they can't afford, or maybe the product isn't quite a perfect fit for them. You really have to think about your willingness to be competitive and be a salesperson.

That's not for everyone. Discounted offers are only available to new members. Stock Advisor will renew at the then current list price. Investing Best Accounts. Stock Market Basics. Stock Market. Industries to Invest In. It went into administration in These days, there is a great variety of products and services offered via direct selling, not only through the traditional face-to-face approach but also online and via home parties. The DSA represents over 50 industry members, all having to adhere to a strict code of conduct.

PRB Accountants provide tax and bookkeeping services to network marketers and are not affiliated with any specific network marketing companies. Contact us on info prbmp. Many ground-floor members make nothing while many who come in years later make a fortune.

The truth is, in good network marketing companies, members can make any amount of money, regardless of where they are in the organization. Income is related to effort, not position. Further, while members of multi-level marketing companies can earn greater and income and rewards based on their effort, they don't change position unless people above them leave the organization.

That means, no matter when you join or where you are in the organization, you have an equal chance to do well if you do the work. Saturation is impossible because there isn't a finite number of people. Every day new people are born or turn 18, thereby adding new potential network marketers to the pool of prospects. Further, more than 6. These numbers indicate that network marketing can work. Success or failure has less to do with network marketing itself, and instead, is determined by the amount effort one puts into their business.

It's true that not everyone succeeds in network marketing. But getting rich shouldn't necessarily be how network marketing is judged not to mention "rich" is a relative concept.