During the Industrial Revolution of the 1800s, a large number of new products were being invented that needed to be sold to consumers. These products were often complex and required explanation to potential buyers. Network marketing began to hit its stride following World War II in the 1940s with the California Vitamin Company (renamed Nutrilite in 1939) and the California Perfume Company (now Avon).
The great thing about Network Marketing is that it usually involves a small initial investment and can return high dividends on that investment. Usually, the original investment is only a few hundred dollars. This initial investment will allow you to purchase a product sample kit, and begin to sell the products to friends, family, and others. The Multi-Level component of Network Marketing comes into play, in that most Network Marketing opportunities also ask their representatives to recruit other sales representatives. The new recruits are considered the representative’s downline, and they will usually generate income directly from their sales as well as from those whom they have recruited.
Determine if the company is handling advertising and publicity on its own to help create demand for the product. Find out what restrictions are there on where and how you can promote it, such as advertising and websites. There's not a right or wrong answer to that question. A wide-open policy is more flexible for you, and for everyone else, too. If you're prepared to be highly competitive, that's fine, but if not, you may prefer to work with a company whose policy is more restrictive.
Much has been made of the personal, or internal, consumption issue in recent years. In fact, the amount of internal consumption in any multi-level compensation business does not determine whether or not the FTC will consider the plan a pyramid scheme. The critical question for the FTC is whether the revenues that primarily support the commissions paid to all participants are generated from purchases of goods and services that are not simply incidental to the purchase of the right to participate in a money-making venture.[46]

Network marketing, also known as Multi-Level Marketing (MLM), is a business model where independent contractors buy into a company and earn a commission on the products they sell. The profession appeals to many people because they can be their own boss, set their own hours, and work towards their own success. It is a big commitment, but network marketing can be a very lucrative career.
Scentsy is an MLM company that manufactures wickless, scented and flameless candles with a lot of varying fragrance that leaves customers drooling. People, who haven’t used this brand of candles, instantly fall in love with it once they do. Network marketers are given a good and lovable product to resell and the chances for success are really high.
Of course the book isn't perfect. It could certainly benefit by showing how social media can fit in to your tool kit-- and this is something that Worre does go into outside of his book. Also his online trainings and videos fill in a lot of the gaps, such has his "blitz" strategies that I've seen other people use to go right to the top of our organization in a very short time.
Take Rodan+Fields, a skincare line developed by the dermatologists who created Proactive. It’s supposed be top-notch stuff. When they initially launched the product, they went the traditional retail route. Estee Lauder then bought the company for an undisclosed amount and continued to sell it through traditional retail. Sales of Rodan+Fields were surprisingly lackluster, however, so its former owners bought the company back and implemented the MLM model. Sales of the product skyrocketed to over a billion dollars. They’d claim it was thanks to the word-of-mouth marketing MLMs facilitate. I’d venture to guess it had more to do with the fact they have a captive customer base amongst the hundreds of thousands of distributors who are required to make minimum purchase amounts each month and recruit other distributors who will have to make minimum purchase amounts each month too.
Because they’re constantly opening up in new international markets like Latin America or India where the concept of MLMs is novel. They can start the whole process of creating a pyramid anew in these countries. Even with this international outreach, however, MLMs will eventually reach a wall where they can no longer recruit new people into the scheme, and even the longstanding billion dollar companies will collapse.
If you want the efforts you put in today to pay off far into the future, choose a company that has proven it intends to be around for the long term. Approximately 90 percent of all network marketing companies fail within their first two years. You don't want to invest your precious time and resources—not to mention your future—in something that may not be in business next month.
I initially spoke to a retired friend who said she joined a health and beauty direct selling company as a means of meeting new people. She had recently remarried and moved to a new location, so she combined the practice of meeting new people with making extra money.  After almost a decade in the business, she’s built a small niche business with family and friends despite switching to from one company to another competitor after three years.
×