Network Marketing: 90 years of Remarkable Change

Network marketing is also known as Multi-level marketing (MLM) or Direct Selling Business. It is a marketing or network strategy through which any company can provide products and services to the common people at a very fast rate. There is no document to clarify the origin of network marketing but some sources describe that the father of Network Marketing is Carl Rehnborg. The began of Network Marketing was in 1930s with companies like Nutrilite whoes founder was Carl Rehnborg, which allowed distributors to earn commissions on their sales and those of people they recruited. Here is a brief overview of network marketing history:

1. Early Beginnings (1920s-1930s)

• California Vitamin Company (1934): Often considered one of the fist MLM Companies, this company (later known as Nutrilite) was founded by Carl Rehnborg. The model involved distributors not only selling products but also recruiting new distributors.
• Nutrilite Products (1939): Nutrilite formalized the MLM structure by allowing distributors to earn commissions on the sales made by people they recruited.

2. Expansion and Growth (1940s-1970s)

• Amway (1959): Two former Nutrilite distributors, Jay Van Andel and Rich Devos, founded Amway (short for “American Way”). Amway became one of the most successful MLM companies, and its business model became a template for other MLM companies.
• Rise of Health and Wellness Products: MLMs began to expand into other sectors, particulary health and wellness, with companies like Shaklee and Herbalife being founded.

3. Period of 1990s to 2000s

• International Growth: MLM companies expanded globally, especially into markets in Asia and Latin America. This period saw an explosion of new MLM companies and products, ranging from cosmetics (e.g., Avon, Mary Kay) to financial products and services
• Diversification:MLMs started offering a wider range of products, moving beyond health supplements and cosmetics to include items like energy services, legal plans, and telecommunications.

4. Modern Developments (2010s-Present)

• Digital Transformation: The rise of the internet and social media transformed how MLMs operate. Distributors increasingly use online platforms to reach potential customers and recruits, expanding their reach beyond traditional, in-person methods.
• Continued Controversy: As the industry grew, so did concerns about its business practices. Regulatory agencies in various countries have imposed stricter rules to protect consumers, addressing issues like transparency and the sustainability of earnings claims.
• New Regulations: Despite its growth, network marketing remains controversial. Critics argue that most participants earn little to no profit, with income heavily skewed towards those at the top of the recruitment chain. Some MLMs have been shut down or fined for operating as pyramid schemes.

Overall, network marketing has evolved significantly since its inception, adapting to new markets, products, and technologies, but it continues to face significant challenges and skepticism.

5. List of Network Marketing Companies from 1934 to 2024

Nutrilite (1934): Nutrilite is a brand of mineral, vitamin, and dietary supplements developed in 1934 by Carl F. Rehnborg. Nutrilite products are currently manufactured by Access Business Group, a subsidiary of Alticor whose products are sold via Amway worldwide. The Nutrilite brand is known as Nutriway in Denmark, Finland, Norway, Sweden, Turkey, Australia and Newzealand.

California Perfume Company (CPC) : It is one of the oldest direct selling companies in America. The company was founded in 1886 by David H. McConnell (1856-1937) as the California Perfume Company (CPC). McConnell established a manufacturing headquarters and research laboratory in Suffern, New York, in the 1890s.

Shaklee (1956): Shaklee Corporation is an American manufacturer and multi-level marketing distributor of natural nutrition supplements, weight-management products, beauty products, and household products. Dr. Shaklee was born with tuberculosis in 1894 but survived due to his mother’s herbal remedies and commitment to natural healing. This inspired him to create the first known vitamin supplement in 1915 and pursue natural health. After developing cancer from radiation exposure treating patients, he healed himself using nutrition and supplements, founding the basis for Shaklee. He went on to establish health clinics and pursue various natural health qualifications. In 1955, he started Shaklee Corporation with his sons to distribute his supplements more widely and help others through.

Amway (1959):Amway Corp. (short for “American Way”) is an American multi-level marketing (MLM) company that sells health, beauty, and home care products. The company was founded in 1959 by Jay Van Andel and Richard DeVos and is based in Ada, Michigan.

Tupperware (1948):Tupperware is an American company that manufactures, and internationally distributes preparation, storage, and serving containers for the kitchen and home. It was founded in 1942 by Earl Tupper, who developed his first bell-shaped container and introduced the products to the public in 1946.

Mary Kay (1963): Mary Kay Inc. is an American privately owned multi-level marketing company. Mary Kay is based in Addison, Texas. The company was founded by Mary Kay Ash in 1963. Richard Rogers, Ash’s son, is the chairman, and Ryan Rogers, Ash’s grandson, was named CEO in 2022. In 1963, Mary Kay Ash founded the company based on a line of cosmetics she had been wearing for several years. She purchased the formula from a woman who had been selling it privately.

Forever Living Products (1978): The company Forever Living, sometimes referred to as Forever Living Products as well as just ‘ Forever ‘ was founded in the USA during 1978. The person who started the company was Rex Maughan from the State of Idaho. The primary headquarters for the company is currently situated in Arizona; Rex graduated with a BSc in accounting from Arizona State University. Forever Living Products is a multi-level marketing company which was founded in 1978 in Tempe, Arizona by Rex Maughan. The company has reported a network of 9.3 million distributors and revenue of $4 billion in 2021, and in 2006 they reported having 4,100 employees.

Nature’s Sunshine (1972): Nature’s Sunshine was founded in 1972 by Gene and Kristine Hughes, who started encapsulating capsicum in their home kitchen. The company employs a network Marketing business model in which their products are primarily sold to the consumer by independent distributors who receive commissions based on their own sales, as well as sign-up bonuses and commissions based upon the sales of any distributors they may have recruited.

Herbalife (1980): Herbalife Nutrition Ltd., also called Herbalife International, Inc. (with a U.S. subsidiary called Herbalife International of America) or simply Herbalife, is an American multinational network Marketing corporation that develops and sells dietary supplements. The business is incorporated in the Cayman Islands, a tax haven, with its corporate headquarters located in Los Angeles, California. The company was founded by Mark R. Hughes in 1980,^[6] and it employs an estimated 9,900 people worldwide. The company operates in 95 countries through a network of approximately 4.5 million independent distributors and members. In October 2022, previous CEO Michael O. Johnson was appointed as Chairman and interim Chief Executive Officer following the departure of John Agwunobi.

Nu Skin (1984): Nu Skin Enterprises, Inc. is an American Network Marketing company that develops and sells personal care products and dietary and nutritional supplements. Under the Nu Skin and Pharmanex brands, the company sells its products in 54 markets through a network of approximately 1.2 million independent distributors.

USANA Health Sciences (1992): Usana Health Sciences, Inc., or USANA, is an American direct-selling (Network Marketing) company based in West Valley City, Utah. As of 2021, Usana was the 14th largest direct-selling company in the world by revenue.^[3] This network markting company manufactures most of its nutritional products, dietary supplements, and skincare products at a West Valley City facility. It develops and manufactures high-quality, science-based nutritional and personal care products with a primary focus on promoting long-term health and wellness. Its products are sold in 25 countries via a network of independent distributors.

Neways (1987): Neways, Inc. is a multilevel marketing (network markting) company that develops, produces, and distributes personal care products, cosmetics, and nutritional supplements that are free of the toxic ingredients the company says are to be found in everyday products.

Amsoil (1972): AMSOIL Inc. is an American corporation based in Superior, Wisconsin that primarily formulates and packages synthetic lubricants, fuel additives, and filters. Company founder Albert J. Amatuzio developed several synthetic motor oil formulations throughout the mid-to-late 1960s. 

Young Living (1993): Young Living is a network markting company based in Lehi, Utah. Founded by Donald Gary Young in 1993, it sells essential oils and other related products.

Market America (1992): Market America is a multi-level marketing (Network Marketing) company founded in 1992 by JR and Loren Ridinger. Headquartered in Greensboro, North Carolina, the company employed around 800 people as of 2016. The products offered by the company include household cleaning supplies, jewelry, personal care products, auto care, cosmetics, dietary supplements, custom websites, water purifiers, and weight management products.

Monavie (2005): MonaVie is a defunct, American multi-level marketing (Network Marketing) company that manufactured and distributed products made from blended fruit juice concentrates, powders, and purées. The company was the subject of several controversies. Health claims for its products had not been scientifically confirmed or approved by regulatory authorities and its chairman had been previously involved in false health claims concerning another beverage company. According to Forbes, MonaVie’s business plan resembled a pyramid scheme. In 2015, the company defaulted on a US$182 million loan and went into foreclosure.

YTB International (2001): YTB International, known as YTB Global Travel, Your Travel Biz or YTB, is a multi-level marketing business through owner-affiliated websites offering travels, excursions, and lodgings. The company was funded in 2001 by J. Lloyd Tomer, Scott Tomer, and Kim Sorensen. The company is currently owned by Sam Hathi.

Isagenix (2002): Isagenix International LLC is a privately held network marketing company that sells dietary supplements and nutritional superfood products. The company, based in Gilbert, Arizona, was founded in 2002 by John Anderson, Jim Cover, and Kathy Cover. Isagenix was founded by John Anderson and Jim and Kathy Cover in 2002. The company expanded into Australia and New Zealand in 2007.

Lifewave (2004): LifeWave is an American company established in 2004 by David Schmidt. The company sells its self-developed series of energy patches through the 
multi-level marketing (Network Marketing) business model. The company has a large number of distributors worldwide, and there are also many of these in Norway.

Jeunesse Global (2009): Founded in 2009, Jeunesse Global quickly became one of the fastest-growing direct selling companies in the world. Jeunesse Global is now an industry-leading brand, appearing in the Inc. 5000 for five straight years and having been named one of the Direct Selling News’ Best Places to Work three times. The Jeunesse Family comprises Jeunesse Distributors and employees across six continents in more than 140 countries. Despite being spread across the globe, we’re all united by our passion to create a positive impact throughout the world.

Seacret Direct (2011): Seacret (Seacret Spa International/Seacret Direct) is a United States-based multi-level marketing (Network Marketing) company that sells cosmetic and other personal care products made from Dead Sea minerals, mud, and nutrients. The company was founded by Izhak and Moty Ben Shabat in 2005.

Mi Lifestyle Marketing Global Private Limited (2013): Mi Lifestyle Marketing Global Private Limited is a Private incorporated on 14 March 2013. It is classified as Non-government company and is registered at Registrar of Companies, ROC Chennai. Its authorized share capital is Rs. 28,000,000 and its paid up capital is Rs. 20,009,300.

Oriflame: Oriflame was founded on January 1, 1967, in Sweden by brothers Jonas af Jochnick and Robert af Jochnick, and their friend Bengt Hellsten. The head office of Oriflame is located in Schaffhausen, Switzerland, with a registered office in Stockholm, Sweden. Oriflame Holding AG is a Swedish-Swiss multinational multi-level marketing (Network Marketing) company that sells beauty and personal care products directly to consumers online through a network of independent sellers.

Avon: Avon.Avon Products, Inc. or simply known as Avon, is an Anglo-American multinational company selling cosmetics, skin care, perfume, and personal care products. It is a multi-level marketing company based in London. In 2020, Avon had annual sales of $9.1 billion worldwide.

Modicare : Modicare started in 1996 and pioneered direct selling in India. Modicare started with 1 center, 7 products and approximately 400 Consultants. Today it has Pan India presence with over 40 centers catering to over 2700 cities. It has over 100 products and 100000 active consultants. The company is also present in Nepal.

Some important questions related to this post

Ques1 Who is founder of Network Marketing?

Ans: Carl Rehnborg

Ques2 Could you provide the source for more information regarding Network Marketing History?

Ans: Yes sure, you can click on the network marketing word on the very first line of this post.

Ques3 Which was the first MLM Company?

Ans: Nutrilite

Ques4 Who was the Founder of Amway Company?

Ans: Jay Van Andel and Rich Devos

Ques5 What was the original name of Amway Company?

Ans: American Way

Conclusion

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