Multi-level marketing (MLM), also known as network marketing, is a business model that relies on distributors or salespeople who earn commissions from selling products or services to customers, as well as recruiting other distributors who then also sell and recruit, creating a "downline" of salespeople.
The concept of MLM dates back to the 1920s and 1930s, with companies like California Vitamin Company (later known as Nutrilite) and Shaklee Corporation. However, it wasn't until the 1950s that the modern MLM industry really took off.In 1959, Amway was founded by Jay Van Andel and Rich DeVos, and it quickly became one of the largest and most successful MLM companies in the world. Amway's success inspired many other MLM companies to emerge, including Mary Kay Cosmetics, Tupperware, and Herbalife.
The MLM industry continued to grow in the 1970s and 1980s, with new companies like Nu Skin, Melaleuca, and Avon entering the market. However, the industry also faced criticism and controversy, with some critics claiming that MLMs were pyramid schemes that relied on the recruitment of new distributors rather than the sale of actual products.In response to these criticisms, the MLM industry developed stricter regulations and guidelines to ensure that their business models were legitimate and ethical.
Today, MLMs continue to operate and thrive around the world, with companies like Amway, Herbalife, and Avon still among the largest and most successful in the industry.