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Multi-level Marketing Origins in The United States

by Andrew Gregory Smith



It's not simple to figure out just when the Internet Marketing and multi level marketing business model first came into operation, as it has been used in several form or another for several years without the name it now has. Travelling salesmen have been around from the mid to late 1800s and towards the end of the 1800s some companies gave these salesmen licence to train new salespeople for a proportion commission based on their sales.

In 1945 an US company called Nutrilite started the first documented Multi level markeing pay plan, where Marketers with a proven sales track record could train new distributors for their own business. They would then get commissions based on their own productivity and the productivity of the persons they trained.

In a genuine MLM (multi-level marketing, MLM) organization your commissions are always depending on the sale of products. This might be from sales you personally generate, or sales generated by a person in your team, or downline, but the only way to gain commissions is by distributing products. The more products sold by both you and your team, the higher your commissions!

Sadly, the Multi Level Marketing business model has been open to exploitation by less reliable organizations, or individuals, who have used the industry name to cover unlawful pyramid schemes. In an unlawful pyramid you pay money and get no tangible goods in return. Therefore, the people promoting these schemes receive commissions for signups and not commissions depending on the quantity of goods sold.

The role of an individual in a pyramid is to influence people to part with money for nothing in return, which is both unlawful and immoral! The function of a Multi-level Marketing distributor is to promote the benefits of a product and to find individuals who've a need for their product. They can also recruit newbies into their team with a view to opening sales channels within new social networks. If your business has a top quality product that truly benefits the customer, then working with a Network Marketing company could be lawful, rewarding and lucrative.



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New Unique Article!

Title: Multi-level Marketing Origins in The United States
Author: Andrew Gregory Smith
Email: mlmsummit@gmail.com
Keywords: network marketing,home business,business,internet marketing,marketing,make money,money making,finance
Word Count: 346
Category: Marketing
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