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History and Future of Network Marketing History and Future of Network Marketing Presentation Transcript

  • The History and Future of Network Marketing “Live in Houston 2011”1
  • In The Beginning2
  • Carl Rehnborg, Lee Mytinger and William Casselberry of Nutrilite Vitamin company created the MLM or Network Marketing concept in 1945.3
  • “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 on the pond.7
  • Second Instead of a representative just being paid on their own sales, they could qualify to earn on virtually all of the sales on all of the levels of representatives enrolling as a result of their sponsoring.8
  • This impacted incomes dramatically … from a few hundred a month to tens of thousands … even potentially more.9
  • Even back then hype and exaggeration was a common method of operation.10
  • Nutrilite Products Rehnborg acted as “scientific advisor” telling distributors Nutrilite supplements contained a “secret base of unusual therapeutic value.”11
  • Nutrilite Products12
  • Nutrilite Products A “how to get well and stay well” booklet was the primary sales piece representing Nutrilite as effective against almost every disease known to man.13
  • Nutrilite Products The FDA executed many product seizures and ultimately issued a consent decree dated April 6,1951 against Nutrilite and the booklet was banned.14
  • Nutrilite Products 1953 Top Nutrilite distributors began selling for Numanna Labs resulting in Nutrilite filing suit citing the 2-year non-compete as part of their distributor agreement.15
  • Nutrilite Products The FTC later ruled Nutrilite‟s 2-year non-compete in violation of Fair Trade Acts.16
  • Nutrilite Products 1950 Rich De Vos and Jay Van Andel began a Nutrilite distributorship that peaked at over 2,000 distributors.17
  • 1959 Rich and Jay form American Way Association (Amway) selling household cleaning products while continuing their Nutrilite distributorship.18
  • 1972 Amway purchases Nutrilite from Carl Rehnborg‟s estate.19
  • The early 70‟s were The Wild Wild West for network marketing. Pyramid scheme legislation did not exist. “Pyramid” schemes were not defined and not illegal.20
  • In the 1970‟s, the movie Bustin’ Loose starring Richard Pryor depicted the mood of the Dark Ages of Network Marketing.21
  • (BUSTIN‟ LOOSE VIDEO HERE)
  • Companies such as Holiday Magic, Bestline, Koscot Interplanetary and Dare to Be Great flourished.23
  • Glen Turner with his „Dare to be Great‟ and Koscot Interplanetary opportunities redefined what “Fast Growth” meant.24
  • (CHALLENGE TOAMERICA/GLENN TURNER VIDEO HERE)
  • Most states, in response to the unprecedented success, wrote specific laws to regulate Glenn Turner‟s business model right out of business.26
  • 1979 Federal Trade Commission vs. Amway rules Amway is NOT an illegal pyramid scheme.27
  • The Renaissance Period28
  • In March 1992, Success Magazine does the first ever positive endorsement and educational article ever done on the industry by a main stream magazine…29
  • and outsells every issue in the 100 year history of the magazine.30
  • Authors such as John Milton Fogg dedicate their careers to educating and training the virtues of Network Marketing done right.31
  • 1,000,000 copies sold32
  • Network Marketing – featured extensively in Forbes, Fortune, USA Today, US News & World Report, The Wall Street Journal, and Success Magazine.33
  • In 2010… $125 billion in revenue 150 countries 75 million men and women are network marketing distributors.34
  • Almost 20 years of consecutive growth. Fewer than 1% of the population involved so far.35
  • 175,000 new people in the U.S. and another 300,000+ around the world join a network marketing company every week.36
  • 2009 through 2011 The top 7 publicly traded network marketing companies averaged 268% increase in share value.37
  • “Mad Money” market guru Jim Cramer recently told his CNBC viewers: “Direct selling has never gotten its due from Wall Street. It‟s time we recognize that the direct sales model works, and it works well.”38
  • “From 2006 to 2016, there will be ten million new millionaires in the U.S. alone…many emerging from direct selling.” -PAUL ZANE PILZER, World-Renowned Economist and Best-Selling Author of The Next Millionaires39
  • “…Direct selling gives people the opportunity, with very low risk and very low financial commitment to build their own income- generating asset and acquire great wealth.” -ROBERT T. KIYOSAKI, Author of Rich Dad Poor Dad and The Business of the 21st Century40
  • “Network marketing has come of age. It‟s undeniable that it has become a way to entrepreneurship and independence for millions of people.” -STEPHEN COVEY, Author of The Seven Habits of Highly Effective People41
  • “You strengthen our country and our economy not just by striving for your own success but by offering opportunity to others…” -BILL CLINTON, Former U.S. President42
  • Key Note Speaker for the Direct Selling Association‟s 2012 Annual Meeting. -GEORGE W. BUSH, Former U.S. President43
  • “[Network marketing is] a tremendous contribution to the overall prosperity of the economy.” -TONY BLAIR, Former British Prime Minister44
  • “…you don‟t need to create a business plan or create a product. You only need to find a reputable company, one that you trust, that offers a product or service you believe in and can get passionate about.” -DAVID BACH, Author of the New York Times best-seller, The Automatic Millionaire45
  • “…the first truly revolutionary shift in marketing since the advent of „modern‟ marketing at P&G and the Harvard Business School 50 to 75 years ago.” -TOM PETERS, Legendary management expert and author of In Search of Excellence and The Circle of Innovation46
  • “…a home-based business offers enormous benefits, including elimination of travel, time savings, expense reduction, freedom of schedule, and the opportunity to make your family your priority as you set your goals.” -ZIG ZIGLAR, Legendary author and motivational speaker47
  • “…How the best organizations of the future might run – in the spirit of partnership and freedom, not ownership and control.” -JIM COLLINS, Author of Built to Last and Good to Great48
  • “What works is delivering personal, relevant messages to people who care about something remarkable. Direct sellers are in the best position to do this.” -SETH GODIN, Best-selling author of Permission Marketing, Unleashing the Ideavirus and Purple Cow49
  • “Direct selling is actually one of the oldest, most respected business models in the world and has stood the test of time.” -DONALD TRUMP, Billionaire Businessman Now owns the Trump Network50
  • “The direct selling business model is one that can level the playing field and close the gap between the haves and have-nots.” -RAY CHAMBERS, Entrepreneur, Philanthropist and Humanitarian who now owns Princess House51
  • “…best-kept secret of the business world.” -ROGER BARNETT, New York Investment Banker who now owns Shaklee52
  • “The best investment I ever made.” -WARREN BUFFET, Billionaire Investor Owns three direct selling/network marketing companies53
  • The Top 10 Billion Dollar Network Marketing Companies54
  • 2010 Revenue Avon Products, Inc. $10.9 billion55
  • 2010 Revenue Amway $9.2 billion56
  • 2010 Revenue Natura Cosmeticos SA $3 billion57
  • 2010 Revenue Vorwerk & Co. KG $2.9 billion58
  • 2010 Revenue Herbalife Ltd. $2.7 billion59
  • 2010 Revenue Mary Kay Inc. $2.5 billion60
  • 2010 Revenue Tupperware Brands Corp. $2.3 billion61
  • 2010 Revenue Oriflame Cosmetics S.A. $2.2 billion62
  • 2010 Revenue Forever Living Products $1.7 billion63
  • 2010 Revenue Nu Skin Enterprises, Inc. $1.5 billion64
  • 2010 Revenue Belcorp/L‟Bel Paris $1.3 billion65
  • 2010 Revenue Primerica Inc. $1.3 billion66
  • U.S. Direct Selling in 201067
  • Percent of Sales by Census Region68
  • U.S. Direct Sellers (Millions)69
  • 99% of Americans are still not involved… that’s 285 million people70
  • 99% of Americans still do not have a solid financial freedom plan71
  • The 40/40/40 plan does not work anymore …72
  • Work 40 hours a week for 40 years for 40% of what was not enough even for the 40 years.73
  • We are Dawning the Day…74
  • When most people in the world are building their wealth via the Asset Value of a Residual Network Marketing Income.75
  • How are we going to do it? How are YOU going do it?76
  • Are you ready to draw a line in your sand? Are you the Ship or the Lighthouse?77
  • (LIGHTHOUSE VIDEO HERE)