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[julius hamby Contribution Level: 1]

1945 - Nutrilite contracted with Mytinger & Casselberry to become the exclusive American distributor of Nutrilite products. Mytinger & Casselberry created the first documented MLM compensation plan. It worked like this: A Nutrilite distributor bought his supplies at a 35% discount. (Ex: A distributor bought a box of vitamins for $13 and then sold them for $20 = $7.00 profit.)

To encourage the distributor to sell more, Nutrilite paid an extra monthly bonus of 25% on the total sales. 20 customers x $13.00 (wholesale value) = $260 x 25% =$65.00 profit.

Once the distributor proved that he could get 25 customers he was allowed to become a DIRECT distributor - which meant that he could find others who wanted to sell the Nutrilite products and then they would buy their products from him. In essence, once he proved that he could get customers he was “promoted” and allowed to find other distributors and to train them to get customers. As an incentive to train his distributors well, once he and his distributors amassed 150 customers, he received an additional 2% of the total sales volume.

This is not a pyramid - it’s a quota-based system of management. Those who sold the most boxes of vitamins got a higher reward than those who sold little. The MLM compensation plan was simply an extension of the Fuller Brush Company rewarding production. With MLM (Network Marketing) , the company could motivate a sales person to not only sell more products, but to train others to sell more products as well.

There are literally thousands of MLM companies around today, of course not all are legitimate.
there are companies that sell products, like vitamins, energy drinks, snacks, cards, leads, toilet paper, coupons, groceries, information, training, and gold and silver. almost everything I have mentioned can be bought at wal-mart or your local discount store at a much cheaper price.

As the internet has developed over the years the best companies have and will be those with no physical product. If your still trying to sell vitamins or snacks or something like this you, are missing the boat.
When you can put a product out there that is free to a customer and it's something the use anyway, and companies like Nike and McDonalds pay you, why would you peddle products to your friends and family.
People search out these digital companies that don't limit your markets.

Beware of most but not all training programs, there are a few good ones but mostly, those who can't do this business try to make their money teaching. Only learn from those that are successful, there is a reason they are successful.

If I have offended anyone please accept my apologies in advance.

Pete Hamby

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[Chris Brown Contribution Level: 3]

Very true not all companies are good but either are all companies out there not just MLM. True you can get product at Wal-mart cheaper I am not in a nutritional MLM company I have never bought my nutritional products from Wal-mart I allays when you mom and pop nutritional stores who had high quality prices.

Now there are some MLM companies out there that have been documented for sell Welches Grape juice for $200 a bottle. You have heard the saying you get what you pay for.

I live in Los Angeles on the way to LAX I creak up every time there is a restaurant who has a big sign dinners $1.99 I would not want to pay $1.99 for my dinner especially the way the place looks.

You should look for high quality MLM companies to work with.