When multi level marketing, usually referred to as MLM, first got started there were very few players in the field. For this reason some of the first companies grew by leaps and bounds. When you are the only game in town it is easy to fill the stadium with eager fans. The first companies had excellent products but the compensation plans were not that great. There were tremendous volume requirements and to stay qualified required one to jump through hoops, so to speak. Most of these companies still exist and have not varied much from their original marketing methods. They know that they are solid in the marketplace and all they have to do is use the top distributors to motivate new distributors with the dream of one day having a lifestyle similar to theirs. The idea of multi level marketing did not take very long to catch on, however. The start up cost was small compared to other types of businesses. There was very little competition in the marketplace. Most of the new distributors back then just wanted to make a little extra money to supplement their present income and this was easily achieved with minimal effort. Some of the first companies offered household products or cosmetics and personal care items. This worked out fine because people were already spending money on these items anyway. The idea of purchasing these items through your own personal business appealed to people and the growth that followed was astounding. Just as one who plants a pretty garden can expect weeds; it did not take long for the Scam artist to see the opportunity to get in on the band wagon. Pyramid schemes started to pop up everywhere, to the point that the government had to get involved. It got so bad that the public started to refer to all multi level marketing companies as pyramid schemes. There were lawsuits and company shut downs in the news. Some of these con artists made off with millions and people who got involved with the companies lost a lot of money in many cases. After having success in shutting down some companies that were clearly pyramid schemes the government decided to go after some of the big well established companies because, on the surface, they looked the same. They attacked a couple of billion dollar companies. I don't have to call the names. If you know anything about the industry these are still major players. The law suits went on for a few years and the government lost. These companies had the resources to hire the best attorneys and proved that they were legitimate companies and should be allowed to operate just as any other business. Soon after the government backed off other new multi level marketing companies started to spring up. Most of these companies had excellent products and the concept had already caught on. One can attend a meeting of almost any of these companies and see someone who works his business fulltime and makes a six or seven figure income. The fact that they are willing to share the story of how they went from, "Rags To Riches," in record time is used to inspire others to follow in their footsteps. The fact that one can start with a few hundred dollars and have the potential to make thousands makes it very enticing. Then along comes the Internet. This allowed information to be transferred at a record pace. Instead of going to a meeting to hear what the business was about, most companies have a website that gives a complete presentation. This allows for record growth. It was like going from horse and buggy to a jet airplane. Some of the older well established companies were a little reluctant to change the way that they operated but later realized that they had no choice. In the past one signed up by filling out a form that had to be mailed in to the company. With the Internet one could pull up the website and sign up online and be in business in minutes with their first order on the way in minutes instead of days. Today there are so many multi level marketing companies that it is sometimes hard to make a decision as to which one is the best to get involved with. I have heard it said that there are several hundred started every month. Most of them will not survive two years but new distributors won't know this until they close. I have been involved in companies that closed over the years. Most of them were very courteous and sent a letter informing distributors that they were stopping operations and did not bill again and delivered all ordered products on time. I thought that it would be a good idea to give new people to the industry a little history. Multi level marketing is a much broader concept. This is by no means a complete story. I could probably write a book about my experience in the industry alone but this will give you a short version of how the industry has come to this point.
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