Thursday, August 18, 2011

Network Marketing


  • How did network marketing start?
    Network marketing has been around for nearly fifty years. It started in the US, and the first major modern network marketing business was formed in 1959. This company was created by business partners Rich DeVos and Jay VanAndel, originally with just one single product and a new and unique business vision. They regarded conventional sales jobs as unfair – being paid only once for the work that they did even when the company continued to make a profit from their labours for many years afterwards. They believed that they should be paid relative to the benefit the company continued to get from their original work. The only problem with this was that no company would sanction their model of business, and the extra costs of paying the salesmen on an ongoing basis would have pushed the price of the products far too high to be saleable.So DeVos and VanAndel broke away and formed their own company, returning a few years later with enough money to buy out their original employers and incorporate the vitamin business into their growing corporation. Their company is now a multi-billion dollar business operating in virtually every developed country in the world. Within a few short years, many more companies followed in their footsteps and now network marketing is responsible for a turnover of tens of billions of dollars in the US alone.

  • Is network marketing legal?
    Network marketing is absolutely legal, and is governed by strict regulations in most countries. However, be aware that some companies masquerade as network marketing companies whilst failing to conform to the required regulations.In most countries, the network marketing industry is regulated by the Direct Selling Association. There is lots more information on their website regarding regulations and legal issues. They charge hefty fees for membership, so it is certainly possible that a legitimate network marketing company might not be a member of the DSA.

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