Transcription
The History and Future ofNetwork Marketing1
In The Beginning2
Carl Rehnborg, Lee Mytinger and William Casselberryof Nutrilite Vitamin company created theMLM or Network Marketing concept in 1945.3
“Multi Level Marketing” constituted twosimple rule changes for how typicalDirect Sales operated.4
FirstAny distributor now at any rankcould and should enroll or“sponsor” others.5
This created a compounded effectof how fast new distributorscould join the company.6
Sales representative growthcould grow geometricallylike lilies on the pond.7
SecondInstead of a representative just beingpaid on their own sales, they couldqualify to earn on virtually all of thesales on all of the levels ofrepresentatives enrolling as aresult of their sponsoring.8
This impacted incomes dramatically from a few hundred a monthto tens of thousands even potentially more.9
Even back then hype andexaggeration was a commonmethod of operation.10
Nutrilite ProductsRehnborg acted as“scientific advisor”telling distributorsNutrilite supplementscontained a “secretbase of unusualtherapeutic value.”11
Nutrilite Products12
Nutrilite ProductsA “how to get well and stay well”booklet was the primary salespiece representing Nutrilite aseffective against almost everydisease known to man.13
Nutrilite ProductsThe FDA executed manyproduct seizures andultimately issued a consentdecree dated April 6,1951against Nutrilite and thebooklet was banned.14
Nutrilite Products1953Top Nutrilite distributors beganselling for Numanna Labsresulting in Nutrilite filing suitciting the 2-year non-compete aspart of their distributor agreement.15
Nutrilite ProductsThe FTC later ruled Nutrilite’s2-year non-compete inviolation of Fair Trade Acts.16
Nutrilite Products1950Rich De Vos and Jay Van Andelbegan a Nutrilite distributorship thatpeaked at over 2,000 distributors.17
1959Rich and Jay formAmerican WayAssociation(Amway) sellinghousehold cleaningproducts whilecontinuing theirNutrilitedistributorship.18
1972Amway purchases Nutrilite fromCarl Rehnborg’s estate.19
The early 70’s wereThe Wild Wild Westfor network marketing.Pyramid schemelegislation did notexist. “Pyramid”schemes were notdefined and not illegal.20
Companies such as HolidayMagic, Bestline, KoscotInterplanetary and Dare toBe Great flourished.21
Glen Turner with his ‘Dare to be Great’and Koscot Interplanetary opportunitiesredefined what “Fast Growth” meant.22
Most states, in response to theunprecedented success, wrotespecific laws to regulate GlennTurner’s business model rightout of business.23
1979 Federal Trade Commission vs.Amway rules Amway is NOT anillegal pyramid scheme.24
The RenaissancePeriod25
In March 1992,Success Magazinedoes the first everpositive endorsementand educationalarticle ever done onthe industry by a mainstream magazine 26
and outsellsevery issue inthe 100 yearhistory of themagazine.27
Authors such asJohn Milton Foggdedicate their careersto educating andtraining the virtues ofNetwork Marketingdone right.28
1,000,000 copies sold29
Network Marketing – featuredextensively in Forbes,Fortune, USA Today,US News & World Report,The Wall Street Journal, andSuccess Magazine.30
In 2010 125 billion in revenue150 countries75 million men and women arenetwork marketing distributors.31
Almost 20 years ofconsecutive growth.Fewer than 1% of the populationinvolved so far.32
175,000 new people in the U.S.and another 300,000 around the worldjoin a network marketingcompany every week.33
2009 through 2011The top 7 publicly tradednetwork marketing companiesaveraged 268% increase inshare value.34
“Mad Money” market guru Jim Cramerrecently told his CNBC viewers:“Direct selling has never gotten its duefrom Wall Street. It’s time we recognizethat the direct sales model works, and itworks well.”35
“From 2006 to 2016,there will be ten millionnew millionaires in theU.S. alone manyemerging from directselling.”-PAUL ZANE PILZER, World-Renowned Economist andBest-Selling Author of The Next Millionaires36
“ Direct selling givespeople the opportunity, withvery low risk and very lowfinancial commitment tobuild their own incomegenerating asset and acquiregreat wealth.”-ROBERT T. KIYOSAKI, Author of Rich Dad Poor Dad andThe Business of the 21st Century37
“Network marketing hascome of age. It’sundeniable that it hasbecome a way toentrepreneurship andindependence formillions of people.”-STEPHEN COVEY, Author of The Seven Habits ofHighly Effective People38
“You strengthen ourcountry and oureconomy not just bystriving for your ownsuccess but by offeringopportunity to others ”-BILL CLINTON, Former U.S. President39
Key Note Speaker forthe Direct SellingAssociation’s 2012Annual Meeting.-GEORGE W. BUSH, Former U.S. President40
“[Network marketing is]a tremendouscontribution to theoverall prosperity of theeconomy.”-TONY BLAIR, Former British Prime Minister41
“ you don’t need to create abusiness plan or create aproduct. You only need to find areputable company, one thatyou trust, that offers a productor service you believe in andcan get passionate about.”-DAVID BACH, Author of the New York Times best-seller,The Automatic Millionaire42
“ the first trulyrevolutionary shift inmarketing since the adventof ‘modern’ marketing atP&G and the HarvardBusiness School 50 to 75years ago.”-TOM PETERS, Legendary management expert and author of InSearch of Excellence and The Circle of Innovation43
“ a home-based businessoffers enormous benefits,including elimination oftravel, time savings, expensereduction, freedom ofschedule, and theopportunity to make yourfamily your priority as youset your goals.”-ZIG ZIGLAR, Legendary author andmotivational speaker44
“ How the bestorganizations of thefuture might run – in thespirit of partnership andfreedom, not ownershipand control.”-JIM COLLINS, Author of Built to Last andGood to Great45
“What works isdelivering personal,relevant messages topeople who care aboutsomething remarkable.Direct sellers are in thebest position to dothis.”-SETH GODIN, Best-selling author of Permission Marketing,Unleashing the Ideavirus and Purple Cow46
“Direct selling isactually one of theoldest, most respectedbusiness models in theworld and has stood thetest of time.”-DONALD TRUMP, Billionaire BusinessmanNow owns the Trump Network47
“The direct sellingbusiness model is onethat can level theplaying field and closethe gap between thehaves and have-nots.”-RAY CHAMBERS, Entrepreneur, Philanthropist andHumanitarian who now owns Princess House48
“ best-kept secretof the businessworld.”-ROGER BARNETT, New York Investment Bankerwho now owns Shaklee49
“The bestinvestment Iever made.”-WARREN BUFFET, Billionaire InvestorOwns three direct selling/networkmarketing companies50
99% of Americans are stillnot involved that’s 285 million people51
99% of Americans still donot have a solid financialfreedom plan52
The 40/40/40 plandoes not workanymore 53
Work 40 hours a week for40 years for 40% ofwhat was not enougheven for the 40 years.54
We areDawning the Day 55
When most people in the worldare building their wealth viathe Asset Value of a ResidualNetwork Marketing Income.56
How are we going to do it?How are YOU going do it?57
Are you ready to draw a linein your sand?Are you the Ship or theLighthouse?58
MLM or Network Marketing concept in 1945. “Multi Level Marketing” constituted two simple rule changes for how typical Direct Sales operated. 4 . First Any distributor now at any rank could and should enroll or “sponsor” others. 5 . This created a compounded effect of how fast new distributors could join the company. 6 . Sales representative growth could grow geometrically like lilies .
