This document provides a history of network marketing from its origins in 1945 with Nutrilite Vitamin company to the present day. It describes how Nutrilite founders Carl Rehnborg, Lee Mytinger and William Casselberry created the multi-level marketing concept. It then discusses the growth of the industry in subsequent decades, challenges from regulatory bodies, and the rise of major companies like Amway. The document concludes by noting that network marketing has grown to a $125 billion industry involving over 150 million distributors globally while still involving less than 1% of the population.

1. The History and Future
of Network Marketing
“Live in Houston 2011”
1

2. In The Beginning
2

3. 3
Carl Rehnborg, Lee Mytinger and William Casselberry
of Nutrilite Vitamin company created the
MLM or Network Marketing concept in 1945.

4. “Multi Level Marketing” constituted two simple rule
changes for how typical Direct Sales operated.
4

5. First
ANY DISTRIBUTOR NOW AT ANY RANK
COULD AND SHOULD ENROLL OR
“SPONSOR” OTHERS.
5

6. This created a compounded effect
of how fast new distributors
could join the company.
6

7. Sales representative growth
could grow geometrically
like lilies on the pond.
7

8. 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

9. This impacted incomes dramatically … from a few
hundred a month
to tens of thousands …
even potentially more.
9

10. Even back then hype and
exaggeration was a common
method of operation.
10

11. Nutrilite Products
11
Rehnborg acted as
“scientific advisor”
telling distributors
Nutrilite supplements
contained a “secret
base of unusual
therapeutic value.”

12. Nutrilite Products
12

13. Nutrilite Products
13
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.

14. Nutrilite Products
14
The FDA executed many
product seizures and
ultimately issued a consent
decree dated April 6,1951
against Nutrilite and the
booklet was banned.

15. Nutrilite Products
15
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.

16. Nutrilite Products
16
The FTC later ruled
Nutrilite’s 2-year non-compete
in violation of Fair
Trade Acts.

17. Nutrilite Products
17
1950
Rich De Vos and Jay Van Andel
began a Nutrilite distributorship
that peaked at over 2,000
distributors.

18. 18
1959
Rich and Jay
form American
Way Association
(Amway) selling
household
cleaning products
while continuing
their Nutrilite
distributorship.

19. 19
1972
Amway purchases Nutrilite from
Carl Rehnborg’s estate.

20. 20
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.

21. In the 1970’s, the movie Bustin’ Loose starring
Richard Pryor depicted the mood of the Dark Ages
of Network Marketing.
21

23. 23
Companies such as
Holiday Magic, Bestline,
Koscot Interplanetary and
Dare to Be Great
flourished.

24. Glen Turner with his ‘Dare to be Great’ and Koscot
Interplanetary opportunities redefined what “Fast
Growth” meant.
24

25. 25

26. 26
Most states, in response to
the unprecedented success,
wrote specific laws to
regulate Glenn Turner’s
business model right out of
business.

27. 27
1979 Federal Trade Commission
vs. Amway rules Amway is NOT
an illegal pyramid scheme.

28. The Renaissance
Period
28

29. 29
In March 1992,
Success Magazine
does the first ever
positive
endorsement and
educational article
ever done on the
industry by a main
stream magazine…

30. 30
and outsells
every issue in
the 100 year
history of the
magazine.

31. 31
Authors such as
John Milton Fogg
dedicate their
careers to
educating and
training the virtues
of Network
Marketing done
right.

32. 32
1,000,000 copies sold

33. Network Marketing – featured
extensively in Forbes,
Fortune, USA Today,
US News & World Report,
The Wall Street Journal, and
Success Magazine.
33

34. In 2010…
$125 billion in revenue
150 countries
75 million men and women
are network marketing
distributors.
34

35. Almost 20 years of
consecutive growth.
Fewer than 1% of the
population involved so far.
35

36. 175,000 new people in the
U.S.
and another 300,000+
around the world
join a network marketing
company every week.
36

37. 2009 through 2011
The top 7 publicly traded
network marketing
companies averaged 268%
increase in share value.
37

38. “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

39. -PAUL ZANE PILZER, World-Renowned Economist and Best-Selling
Author of The Next Millionaires
“From 2006 to 2016,
there will be ten
million new
millionaires in the
U.S. alone…many
emerging from direct
selling.”
39

40. -ROBERT T. KIYOSAKI, Author of Rich Dad Poor Dad and The
Business of the 21st Century
“…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.”
40

41. -STEPHEN COVEY, Author of The Seven Habits of Highly
Effective People
“Network marketing
has come of age. It’s
undeniable that it has
become a way to
entrepreneurship and
independence for
millions of people.”
41

42. “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. President
42

43. Key Note Speaker for
the Direct Selling
Association’s 2012
Annual Meeting.
-GEORGE W. BUSH, Former U.S. President
43

44. “[Network marketing
is] a tremendous
contribution to the
overall prosperity of
the economy.”
-TONY BLAIR, Former British Prime Minister
44

45. -DAVID BACH, Author of the New York Times best-seller,
The Automatic Millionaire
“…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.”
45

46. “…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 Innovation
46

47. -ZIG ZIGLAR, Legendary author and
motivational speaker
“…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.”
47

48. “…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 Great
48

49. -SETH GODIN, Best-selling author of Permission Marketing, Unleashing the
Ideavirus and Purple Cow
“What works is
delivering personal,
relevant messages to
people who care
about something
remarkable. Direct
sellers are in the best
position to do this.”
49

50. “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 Network
50

51. “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 House
51

52. -ROGER BARNETT, New York Investment Banker
who now owns Shaklee
“…best-kept secret
of the business
world.”
52

53. -WARREN BUFFET, Billionaire Investor
Owns three direct selling/network
marketing companies
“The best
investment I
ever made.”
53

54. The Top 10 Billion
Dollar Network
Marketing Companies
54

55. 2010 Revenue
Avon Products, Inc.
$10.9 billion
55

56. 2010 Revenue
Amway
$9.2 billion
56

57. 2010 Revenue
Natura Cosmeticos SA
$3 billion
57

58. 2010 Revenue
Vorwerk & Co. KG
$2.9 billion
58

59. 2010 Revenue
Herbalife Ltd.
$2.7 billion
59

60. 2010 Revenue
Mary Kay Inc.
$2.5 billion
60

61. 2010 Revenue
Tupperware Brands Corp.
$2.3 billion
61

62. 2010 Revenue
Oriflame Cosmetics S.A.
$2.2 billion
62

63. 2010 Revenue
Forever Living Products
$1.7 billion
63

64. 2010 Revenue
Nu Skin Enterprises, Inc.
$1.5 billion
64

65. 2010 Revenue
Belcorp/L’Bel Paris
$1.3 billion
65

66. 2010 Revenue
Primerica Inc.
$1.3 billion
66

67. U.S. Direct Selling in 2010
67

68. Percent of Sales by Census
Region
68

69. U.S. Direct Sellers (Millions)
69

70. 99% of Americans are
still not involved…
that’s 285 million people
70

71. 99% of Americans still
do not have a solid
financial freedom plan
71

72. The 40/40/40 plan
does not work
anymore …
72

73. Work 40 hours a week for
40 years for 40% of
what was not enough
even for the 40 years.
73

74. We are
Dawning the Day…
74

75. When most people in the
world are building their
wealth via the Asset Value
of a Residual Network
Marketing Income.
75

76. How are we going to do
it?
How are YOU going do
it?
76

77. Are you ready to draw
a line in your sand?
Are you the Ship or the
Lighthouse?
77

79. For details and bookings contact:-
Parveen Kumar Chadha… THINK TANK
(Founder and C.E.O of Saxbee Consultants & Other-Mother )
Email :-saxbeeconsultants@gmail.com
Mobile No. +91-9818308353
Address:-First Floor G-20(A), Kirti Nagar, New Delhi India Postal Code-110015