Multi-level marketing companies have expanded beyond nutritional products to include beauty products, consumer goods, and services. The concept began in the US in 1945 with the California Vitamin Company. New MLM companies have evolved in sales methods, product offerings, and international expansion. Examples include Avon, Mary Kay, Wine Shop at Home, and Vorverk.
Multi-level marketing companies, which initially focused primarily on nutritional products, have expanded to include many new offerings such as beauty products, a wide variety of consumer goods, and many services. These new businesses, often referred to simply as MLMs, range from wine doorstep sales to online business travel service operations. New companies based on the MLM model continue to be created as consumer trends change.
The concept of multi-level marketing is considered to have begun in the United States in 1945. The California Vitamin Company began selling nutritional products under the brand name Nutrilite through independent contractors working under a specific type of compensation agreement. This MLM arrangement provided that the selling distributors would earn commissions on individual sales, commissions on the sales of hired distributors, and bonuses for meeting pre-set performance goals. Distributors have made more money with multiple levels of sales teams.
New MLM companies have evolved in three main ways since 1945. Some companies have developed innovative sales methods. Other companies have started selling different types of products ranging from makeup to housewares to cutting-edge health products. New MLM companies have also expanded internationally.
Companies that began offering products in innovative ways included Avon and Mary Kay, which used internal parties. New MLM companies that continue to evolve the sales party technique include Wine Shop at Home. Vendor Distributors for Wine Shop at Home provide wine samplings for dinners for up to 10 couples with the host couple providing the venue.
Other new MLM companies offer a variety of new products and services. Some of these companies have delved into the health and beauty industry. The new MLM companies’ products include acai berry-based fruit drinks and a wide variety of other nutritious beverages. Other product types include vehicle fuel, high-end cookware, and children’s educational toys. The growing segment of high-end kitchenware is also sold through house parties
Even new MLM companies have started offering services instead of consumer products. These services include online business travel services, prepaid legal services, and financial planning services. Some MLM companies also offer educational services, including online self-improvement classes.
The MLM industry has also grown into a worldwide company. This includes more than US-founded companies that have expanded to other countries. It also covers companies like Vorverk, which is an international MLM based in Germany; Natura Cosmetica, based in Brazil; and Oriflame, a Swedish company. Each of these regularly ranks among the top 10 MLM companies in the world based on sales volume.
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