Ever heard of network marketing or multi-level marketing? Do you know how it originated? You may be surprised to learn how this industry first began.
There was a fellow by the name of Rehnborg who was one of the first to discover the importance of nutrition in our diet. Rehnborg knew that people needed a single simple solution to the complex problem of dietary supplementation.
After years of research Rehnborg came up with the then-revolutionary idea of combining every needed mineral and vitamin into a single product. Thus, the first multi-vitamin was born in 1934. Rehnborg started a company by the name of Nutrilite in 1939 to sell his multi-vitamin to the world.
There was only one problem.
People were not well educated on the necessity of a diet full of vitamins and minerals. It took a lot of one-on- one education for people to realize how important these substances were.
In order to distribute his product, his wife suggested that Rehnborg set up his own sales force of people – people who were already zealous consumers of Nutrilite themselves. This strategy created a constant need for Nutrilite to recruit and train new salespeople as the company expanded.
Then Rehnborg came up with another revolutionary idea. What if the distributors could be rewarded for training new salespeople? Thus, a marketing plan was born that allowed salespeople to make money directly from selling the Nutrilite product and indirectly by receiving a partial commission from the sales of the newly trained salesperson.
Isn’t it amazing that a billion dollar industry was created (network marketing) from one man’s good intentions? And that the network marketing business model is now considered to be one of the greatest business models in the world?
What better way to educate people about their health than through network marketing? It still stands today as being a viable business model whereby more millionaires are created than any other industry.