The History of Multi-Level Marketing

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II. Discussion 1.History The history of multi-level marketing is related to America’s chemist, Karl Renborg (1887-1973). He is the first person who gave the idea about multi-level marketing into the life and set up an economic system - a kind of business that has the best potentiality in the 21 century.( Dung,2009). The first multi-level marketing company is California Vitamins in 1940s. In 1959 Richard DeVos and Jay Van Andel founded the company Amway which was an abbreviation for the term “the American way”. Amway from day one was based on the same network marketing concept. Almost 50 years later Amway is a well established network marketing company operating in more than 80 countries around the world and with more than 3 million business operators. ( mark yanell, p10) In Viet Nam, MLM appeared in `1998-1999 and achieved the unexpected revenue total in 2, 3 first years. This activities grew too dramatically, so it made profits from advertisement in other ways such as paper, television be affected. Moreover, some fraudulent companies and distributors acted under name:”Multi level marketing” that made people against this kind of business. Before this situation the competitive law in 2004 and the decree 110/2005/ND-CP in 2005 affirmed that MLM business in Viet Nam is a legal kind of business. ( iMLM.vn website, 18/1/2012, kinh doanh theo mang o Viet Nam). 2.Advantages and Potential There are some advantages of multiple-level marketing that you maybe do not know.  Long-term income and stability. This is the first advantages and also is the main positive. Being a multiple-level marketer , you will not to worry about your financial because of your distributors . That means you can gain the commission from all distributors in your network , no matter how many levels down from the original source, can do the same thing. They can set up their own
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