The concept of franchising had its rough moments also and nearly passed into oblivion. It was only saved by 11 votes.
When network marketing came on the scene it was regarded in much the same way as franchising, but for the efforts and money spent by Jay Van Andel and Richard DeVos, Amway would never have survived.
Network marketing dates back to the early 1940’s. The owner of a California company, called California Vitamins, discovered that most of the growing customer base was made up of friends and family of their sales force who recommended them because they were so impressed with the product line. Those referrals in turn, began recommending the product to their own friends and family. The existing satisfied customers became the new sales force and a commission system was developed. Both the original sales force and the new customer based sales force were rewarded for their efforts and network marketing was born. The same company later changed their name to Nutralife Food Supplement Company.
In 1959 Jay Van Andel and Richard DeVos founded Amway, the name derived from The American Way, and they based the pay plan on the same marketing concept as Nutrilife. 50 years later, and 80 countries around the world, with more than 3 million people distributing their products, they are truly the “Grand Daddy’s ” of network marketing.
There are more than 50 million people worldwide with more than a $100 Billion in sales in this fast growing industry. New companies choose this method of direct sales in order to get their product out quicker, to more people, and at less cost to themselves.
In this day and age of our troubled economy, network marketing just may be, the working from home, home based business you have been looking for. However, be careful, do your own research, choose a company and product you are comfortable with and you would be proud to represent. Above all don’t just join a company because your friend asked you to.
Remember, it is all about choices, and it is your choice to make.