In my first post of this series Network Marketing Today we explored the birth of the Network Marketing Industry. Here I am picking up where we left off from in that post with the commencement of the Amway Corporation.
It is over 50 years since Amway Corporation started in 1959 and today it is still a well established company operating in more than 80 countries around the world. It was not all smooth sailing for Amway and they would have to fight to prove the legitimacy of their model.
In the 1960s and 1970s counterfeit versions came into existence based on a scam of the 1920s (The Ponzi Scheme) that looked like MLM. This revamped the Pyramid Selling Scheme.
As a result the US government tried to ban the legitimate multi level commission concept taking Amway to court. After fighting for 3 years Amway won proving it was not a pyramid scam, but a legitimate form of doing business.
The legal success of the Amway case resulted in new players entering the market and between 1979 and 1984 hundreds of new companies were launched.
The stigma of the Amway court case has carried over and even today there are people who confuse the Network Marketing model as being a pyramid.
I have a few thoughts on this that I would like to share with you.
The truth is that today the Network Marketing Industry is regulated and there is a great deal of consumer protection.
Over the decades the number of companies entering the industry has continued to grow with a wide array of products and compensation plans. It is recognized as one of the fastest growing industries of all time with an estimated 150,000 people joining the industry each week.
In today’s modern world the Network Marketing Industry has grown up. Many of the leaders in the industry have developed some very sophisticated tools to support the managing of large worldwide networks.
Some of the richest men in the world are now advocating, starting or purchasing Network Marketing Companies. These include Warren Buffet, Donald Trump, Richard Branson and Robert Kiyosaki. This is when I really sense we as an industry have grown up.
Here are a couple of my favorite quotes on the industry from author Paul Zane Pilzer.
“Of all the entrepreneurial opportunities available today, Direct Selling is now emerging as one of the most important.
I believe this is the single most important message you can be promoting to the public at large today.”
“And, that trend will continue as the age of the corporation, which began barely a century ago, gives way to the age of the entrepreneur.
Direct Selling provides an opportunity – open to anyone at all, regardless of background, specialized skills or accrued capital worth – to create a significant residual income.”
The true democratization of wealth!
Stay tuned for the next in the series where I will be sharing some of my story and explaining why to me Network Marketing is a No-Brainer.
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