History of Multi-Level Marketing

Business network (MLM) under the brand names associated with American chemist Karl Renborg (1887-1973). He was the first who applied the idea of network marketing to life, creating an economic system, an industry is considered the most promising in the 21st century.

Renborg Karl has 20 years living in China and worked in many different companies. Between the years 1920-1930, the government fell to the hands and Karl Chiang Chiang government was arrested along with other foreigners. The living conditions are lack of prison, he saw the role of nutrition for human health. To overcome the living conditions of malnutrition, has found a method Renborg scraped from the iron nails rust mixed into the diet and deal with the warden to get different kinds of vegetables. He and a few prisoners to follow this approach should be more resistant and survived to the date of return.

In 1927, Karl of the U.S. and start processing the nutritional supplements that vary based on an alfalfa grass contains many vitamins, minerals, protein and many other beneficial nutrients. He suggested that those who used his free trial products but no one dared to try because they do not want to do experiments. After much effort, but does not bring results, he realized that no one under review for not good things, so he has launched an idea, which later developed into an advanced business .

He Renborg proposal to introduce you to his nutritional supplements for their friend, if someone bought their products, he promised to pay commission. He also decided to pay commission to someone you know if the next product introduction of their relationship. The result was unexpected: information on nutritional supplements benefit began to spread widely (because each of his friends have many other friends and friends of your friends is infinite). Sales revenue of the company's growth beyond imagination, people met to request reference information about this new product.

In 1934 he founded the company Vitamins California and through this new distribution method, as consumers are also becoming a product distributor, his company has quickly achieved sales of $ 7 million that does not take a co ad. The unique in that by saving the cost of advertising and intermediaries (agents, retailers, warehouses ...) should participate in the system he can get higher remuneration.