History of Direct Selling and the Begining of The MLM Industry

  Written by Kathy Sammons on Mar 9, 2009 6:57 pm

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I was thinking about the evolution of direct sales, looking at how far it had come from door to door peddlers in the late 1800s, to the sleek PPC (pay per click) capture pages of today. 

Many well known businesses have had their start in direct marketing.  In 1890 David McConnel started selling perfumes from his company in New York City, by 1906 there were 10,000 representatives.  In 1937 they changed their name to Avon.

Then there was the, always familiar, Fuller Brush company that started in 1905.  In 1931 Frank Stanley Beveridge, who was the former vice president for Fuller Brush Company started a company called Stanley Home Products.  They sold household items that people used every day.  Starting in the depth of the great depression their idea was that many people could start their own business with little money down, and be very successful.

It was during this time that they figured out a way of increasing sales by promoting to groups and organizations.  Along the way they moved into the home and thus the home party plan was born.  It was this training that produced leaders like Mary Kay Ash founder of Mary Kay Cosmetics and Brownie Wise of Tupperware, as well as others.

In 1934 a vitamin company, selling food supplements, became the king of the vitamin world.  Nutrilite went on to develop the first MLM style compensation plan in 1945.  In 1949 a couple of buddies started working with Nutrilite and became some heavy hitters in the business.  In 1959 they had a falling out with Nutrilite and started the Amway Corporation.  Interestingly enough, in 1972 Amway acquired Nutrilite.

Companies continued to improve products to bring to the market and there were many product breakthrough in the direct sales industry.  In 1956, for instance, Dr. Forrest Shaklee developed a method of extracting minerals from vegetables and created the Shaklee Vitamin Company.

I find it very fitting that in this time of economic distress, we are again seeing an increase in companies and distributors using this form of product marketing.  Many people today fill the internet seeking a better way of making a living.  It is in their hopes and dreams that companies are moving ahead and developing new products and services that continue to build our industry to the force that it is today.

For more information see: The History of MLM

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