Network Marketing Today – Part 2

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.

Please leave me your comments below. I love hearing what you have to say. And please share this post with your Twitter and FB friends by clicking on the share buttons. I appreciate you telling others.

24 thoughts on “Network Marketing Today – Part 2

  1. Rachael Macgregor

    Great post Sue! Network marketing is really the way forward. It’s a shame that so many people doubt it when really if you take a look at traditional businesses with all their meetings and memos it is a far more productive and lucrative way to do business for both the company AND the distributor. Win/Win!

    Rachael Macgregor
    Rachael Macgregor recently posted..What Is Alexa And How To Improve Alexa RankingMy Profile

    1. Sue Post author

      Thanks for your comment Rachel. I laughed at your observation of traditional business with all its meeting and memos. I remember it well and I am glad to be away from it. I also totally agree with your comment on NWM being a Win/Win.
      Have an awesome day.


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  3. Andre Messner

    Hello Sue,

    This post is a great reminder of where the Network Marketing industry has come from and how it has recently grown into more legitimacy.

    From looking at the economy and status of network marketing in the late 70’s and early 80’s, I believe network marketing is about to explode.

    It is definitely a great time to take advantage of the industry.

    Have a great day!
    Andre Messner
    Business Strategist & Mentor
    Andre Messner recently posted..This Skill Pays Over 10K / Month Do You Have ItMy Profile

    1. Sue Post author

      Andre thanks for fining my blog and for your comment. I enjoyed digging back and remembering how it started.

      I agree with you that it is definitely a good time to be in the industry.

      You too have great day.


  4. Gerald Gigerl

    Hey Sue,

    thanks for creating this fantastic post-video. We all were facing spots were people tried to tell us that it´s a scam and you can´t make any money.

    Network Marketing works, and I agree that you have to treat your business like one.

    Talk to you in a bit,


    1. Sue Post author

      Gerald it is amazing how this distrust has hung around. Given the length of time it is pretty much amazing. I do think it is changing though.

      Talk soon

  5. Sue Post author

    Hi Oliver
    It has been interesting for me to dig back into the history.

    I agree with your comment on the excuse of the pyramid stuff. I actually do not get that one very much at all.

    Hope all is great in your world.

    1. Sue Post author

      Hi Linda
      I loved doing the history bit as it helps me understand now. You are right it is a great business model.

    1. Sue Post author

      Hi Kat
      Thank you so much. Hearing that from you means a lot!

      My MLM is Mannatech. Is that what you mean?


  6. Don Enck

    Hi Sue,
    I’m enjoying your history lesson of the Network Marketing industry. So much has happened over the years and continues to happen today. We as an industry have grown. More and more people recognize the power behind Network Marketing and are beginning to understand that it is not a “pyramid scheme”.

    It says a lot when powerful people of influence taught it as a viable means of creating wealth. It says something when a respected college professor now teaches a college curriculum class on the network marketing industry in their business college. It is coming of age and with the economy so unstable and many people loosing jobs more and more are coming into network marketing as they now understand the benefits of it. I look forward to the next in your series.
    Don Enck recently posted..The Blog Mastery AwardsMy Profile

    1. Sue Post author

      Hi Don
      I am glad you are enjoying my history lesson :-). It is not my usual thing to dig back like this but I am really enjoying it.
      I totally agree with you that in these unstable economic times more people are turning towards MLM. I am sure once they have embraced it and enjoyed some success that these times may seem like a blessing.
      I did not know about the business college. I would love to find out more about that from you.

  7. LouiseSteiner

    I love this post Sue. I particularly like your thoughts on the “cloak and dagger” and lack of transparency. It is so true, and although things are changing, there are still many reps out there operating this way. In fact my MLM still teaches that approach!!!
    LouiseSteiner recently posted..“Google Page Rank” Demystified!My Profile

    1. Sue Post author

      Wow Louise I am surprised to hear your MLM still teaches that approach. I do understand some people run when they here MLM before they even listen to the opportunity. It is a pity and it always tells me they do not really understand.
      I think in general things are changing but we have a way to go.
      Take care,

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    1. Sue Post author

      Hey Andrew my pleasure and thanks for always commenting on my posts. I appreciate it very much.