Network Marketing History
1910 Madame C.J. Walker born 1867 began to teach individuals how to start their own businesses selling hair care products door to door.
1917 Carl Rehnborg was in China where he learned about the rotating credit systems which date back to the 13th century. The rotating credit systems have names: Hui, Esusu, Dashi, Mujin, Tanamoshi.
1939 Carl Rehnborg began selling his vitamins as the California Vitamin company and renamed it to Nutrilite that same year.
1945 Carl Rehnborg invented the multi-level marketing compensation plan, to pay people in a down-line/level model to distribute his vitamins.
1951 The court issued a permanent injunction forbidding anyone who sold Nutrilite products from referring to any edition of "How to Get Well and Stay Well" and more than 50 other publications that exaggerated the importance of food supplements. The court decree also contains a long list of forbidden and permissible claims about nutrition and Nutrilite products.
1959 Jay Van Andel and Rick Devos former top Salesmen for Nutrilite founded the American Way aka Amway.
1972 Amway took controlling interest in Nutrilite.
1979 Amway was charged with price fixing, misrepresentation of income claims, and pyramiding claims by the FTC. Amway was also barred from paying referral fees.
1980 FED-X implemented "DADS" (Digitally Assisted Dispatch System) to coordinate on-call pickups for customers; this system allowed customers to schedule pickups for the same day. This was the first blow to the Network Marketing model. The Independent Business Owner (IBO) was largely unnecessary.
1994 The internet was introduced to the general public. This was the final blow to the Network Marketing model. The Independent Business Owner is no longer necessary.
1994 Amway took complete control of Nutrilite
1998 MADvoice.com now called BAMway (BAM Advertising Movement!) FRANCHISE like model was launched. Our domain was purchased: 9/26/98
1999 Amway purchased Quixtar.com for their internet shopping mall model on 2/5/99.
2001 Avon launches first ever retail beauty brand in partnership with JCPenney. The Network Marketing agents were livid however, Avon set a trend that the Independent Agents were no longer needed.
2004 Amazon.com is helping customers find something surprising...its retail rivals resembling a virtual mall!
2005 FTC shut down 2x2.net a Network Marketing internet mall.
2006 FTC proposed a rule that would have eliminated the $500 minimum investment requirement under the Franchise Rule, meaning it would apply to all Network Marketing companies, even if they have a smaller start-up cost. Hence, the $499 maximum membership fee with most Network Marketing companies.
2006 Google to settle click-fraud lawsuit for $90M. Challenge to pay-per-click advertising could seriously threaten Google's main source of revenue.
2007 The 800 Club now called the BAMcircle.net™ profit sharing / internet franchise like system was launched. This compensation model was designed to fix the MLM compensation plan.
2007 FTC shut down Burnlounge, Inc a Network Marketing company.
2010 A Settlement was reached with AmWay/Quixtar, Inc., class action lawsuit about the pricing of AmWay's products and the recruitment of Quixtar distributors, whom the company calls “Independent Business Owners” (“IBOs”). Our founder Bryan Franklin was asked to be an Expert Witness on this case by Willie Gary, Esq.
2011 "What About This One?" Solicitations to join a Network Marketing company seem to be everywhere – at family gatherings, at the office, at the supermarket, at a party with friends, in the neighborhood, even at church!
2012 BailOutStayOut.com was launched to address joblessness with an Entrepreneurial 1099 model in conjunction with W-2 jobs.
2012 Network Marketing Success? - "The greatest STORY ever SOLD!" FREE eBook / Coffee Table book. Every home should have one on their coffee table because it is a great conversation piece.
2012 Michael Johnson's firm Herbalife was accused of running a 'pyramid scheme' by a Belgian court, but the super-fit Santorum backer is cashing in big as the highest paid CEO in America!
2012 Bill Ackman of Pershing Square has called Herbalife a pyramid scheme and launched an all out assault via FactsAboutHerbalife.com
2013 FTC shut down Fortune High Tech Marketing, a Network Marketing company. Several high ranking COGIC clergy were participating in FHTM.
2013 Bill Ackman’s team sent Minyon Moore, a former senior Clinton White House aide, to host a meeting in October at the landmark West Angeles Church of God in Christ in the city’s predominantly black South Central neighborhood.
2013 Herbalife hires former L.A. Mayor Antonio Villaraigosa as an advisor.
2013 Google.com Note: A company as huge as Google has shut down their independent affiliate linking network.
2014 Bill Ackman was interviewed on CNN regarding the difficulty of exposing the flaws of Herbalife.
2014 Herbalife settles a class action lawsuit for $15 million.
2015 FTC Acted to Halt Vemma as Alleged Pyramid Scheme. Promised Unlimited Income Potential, But Most Participants Lose Money.
2016 Only about 18 percent of Herbalife distributors qualified for earnings and 95.5 percent earned on average just $627.55 gross. Herbalife agreed to a $200 million settlement with the FTC that requires it to revamp its compensation system to reward distributors for sales to customers rather than for recruitment.
2016 On 06/22/16 1iMALL.COM began the process of changing the name to the new brand BAMway - BAM Advertising Movement.
2017 Jeunesse Global a Network Marketing company whose US executives are facing pyramid scheme and racketeering allegations claims to be enjoying record growth in Australia.
2017 A nationwide class-action lawsuit has been filed against Nerium International, LLC, a Texas-based Network Marketing company selling anti-aging products, along with three high-level executives, a top distributor and 10 unknown co-conspirators, who are alleged to be operating a pyramid scheme.
2018 A new lawsuit accuses President Trump, his company and three of his children of using the Trump name to entice vulnerable people to invest in sham business opportunities including ACN.
2018 Some distributors who claim they were duped by Herbalife's promises they'd get rich selling health and personal care products are suing the company for as much as $1 billion in damages.
2020 The FTC's latest action against Success by Health, (SBH) and its "serial pyramid scheme promoter" lays out the blueprint for how it prosecutes alleged pyramid schemes. The company, which sold coffees, teas and nutraceuticals, is said to have paid its approximately 5,000 distributors about $200 on average while paying $1.35 million to the four individuals defendants named in the complaint.
Many former Presidents have promoted Network Marketing! Watch the video above!
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