Amazing Secrets about the history of direct selling and MLM. The Untold Story

Multi-level Marketing, Network Marketing, Pyramid Schemes all fall under the general category of Direct sales or Direct selling. A mode of Selling goods or services with the help of a group of people or network of people.

If we dig in search of the History of MLM or Direct Selling, there is no recorded proof for it but actually assumptions only.

History is always like that, won't have any recorded proof of many things. My Findings are written here

1st Direct Selling company – The history of Direct Selling was started.

Direct selling is person-to-person selling or door-to-door selling strategy.

The fact that this mode of selling was first used by peddlers and small business owners even before the 1st Direct selling company registered. We are not looking to dig that out

Southwestern company founded in 1855 was the 1st Direct selling company.

This company sold Educational books, Software, etc. by using direct selling methods. The university students or college students were their distributors or independent contractors. They recruit a few hundred to a few thousand new students as independent contractors for the company every year. This was an entrepreneurial program for students at that time.

The history of Direct selling started from this point.

It's all begun. A new era for MLM

Some say that Nutrilite is the first MLM company. At the same time, the number of people arguing that California perfume company is the first MLM company is not small.

Nutrilite started as a California vitamin company by Carl Rehnborg and renamed in 1939.

California Perfume Company founded by David H McConnell renamed Avon in 1939.

the New era for MLM. Everything has happened after world war 1 or the global economic downturn that happened during the 1920s.. Both companies mentioned above have their own space in the history of MLM

The direct selling and Multi-Level Marketing was introduced to reduce distribution and marketing cost. as well as in the absence of Technology and advertisement this model is ideal for a live demonstration and educative selling

This method was largely used by companies selling wellness, perfume, home utilities, books, etc...

Companies and individual contractors recruit more individuals to enhance sales. But

In the early stages, independent contractors or distributors have had no right to recruit more individuals for enhancing their sales.

1st compensation Plan - Evolution of MLM started

In the early days of Direct Selling, the distributors or sale representative only get ‘X’ % percentage of their Sales volume only.

By the end of the 1930s, The Amway was founded by Jay Van Andle and Richard Marvin DeVoss . They were former distributors of Nutrilite. Later Amway bought Nutrilite

Amway introduced MLM compensation plans system into the industry. This paved the way for many changes.

The system allowed suppliers to profit a portion of the profits from the sales of suppliers on their team.

This was the first step in the revolutionary transition from Direct selling to MLM

From that onwards new era for Multi-Level Marketing Has started. Later, a variety of compensation plans has evolved. And many companies have emerged after that.

In 1978 WFDSA founded. WFDSA was established through 12 direct selling associations.

Now it has 63 local DSAs in each country.

World Federation of Direct Selling Associations; A representative for Direct sellers and direct selling Companies

The Federation was set up to address various direct selling issues around the globe by allowing DSAs the ability to share information, strategies and to plan common practices.

In 1985 the code of ethics was introduced by FDSA. Other DSAs adopted it locally