Network Marketing History – From Sales to Relationships Business

The history of Network Marketing is just fascinating to me. When network marketing began in the 1950′s it was very much a direct sales business. Back then, MLMers would literally go door to door getting customers for laundry detergents and multipurpose cleaners.

There was much less emphasis was placed on sponsoring. Independent reps would buy their products from “direct” distributors who had achieved a level where they could deal directly with the company. Direct distributors would have a truck load of products shipped to their home!

Thankfully, MLM has made much progress since then. Every independent distributor deals directly with their own company and there’s no need for huge inventories.

The great thing about the Network Marketing profession is that it is constantly evolving with advances in technology. It is a very fluid and flexible business model.

As the business evolved, and distributors no longer need to go to their Direct Upline for products, the appeal of building a sales force to create a long term residual income stream overtook the direct sales model.

Today, the big promise of Network Marketing is passive residual income. This makes it a much more desirable business to be involved in, because the business is now not a sales business, but a vehicle for time and money freedom.

And because of that, it’s now overwhelmingly about sponsoring people into the business before the direct sales of products and services.

Building a business for passive income introduces many more dynamics into the system than if one was to just focus on product sales. It introduces to the business the dynamics of leadership and relationships.

Creating relationships is what you’ll need to get good at if you want earn the big money this business!

If you ask the most successful non-Network Marketing entrepreneurs and business people what is the single biggest factor in their success, they’ll tell you 95% of it comes from the relationships they’ve created over time.

Relationships are the most powerful asset of commerce, and yet you won’t find them anywhere on a balance sheet because relationships are intangible.

Relationships are especially important in Network Marketing. They are the foundation of the business.

Wealth and prosperity is literally stored in the relationships you build with your personally sponsored people. If you can create solid life long friendships, you’ll never have to worry about money again.

But it’s not just about making friends. It’s about forming a winning team.

Every 7 figure earner in this profession will tell you most of their income comes from just 3 or 4 key people who have gone out and built incredible groups.

That is the power of creating a synergistic mastermind with just a handful of people who have the same vision as you.

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