A History of Network Marketing
Kenneth Brailsford has served in leadership positions for several companies including Nature’s Sunshine and Zija International, as well as KEB Enterprises, where he now serves as a general partner. Sometimes called the “father of herbal encapsulations," Kenneth Brailsford is a pioneer in the network marketing realm as well. Network marketing started in the 1920s with Carl Rehnborg, who first discovered the benefits of health supplements while visiting China. Upon returning to the US, he started the California Vitamin Company, which was later renamed Nutrilite. Rehnborg invented a system by which consumers could get products directly from the manufacturer and sell to friends and family, and then be paid for continuing to sell the product down the line. This marketing method worked so well that Jay van Andel and Rich DeVos, two of the Nutrilite distributors, set up a new company using the same strategy in the 1970s. Their company, Amway, became one of the best-known network marketing companies in the US. Network marketing is based on the same structure as a pyramid scheme, with the important difference being that pyramid schemes do not have a product. However, network marketing companies can get into trouble if more of their revenue comes from recruitment, than from the selling of the product itself. There is some evidence that network marketing is more popular than ever before, the reasons for which are numerous: it appeals to people who want to gain extra income on their own time, and is a relatively accessible entrepreneurial avenue. Further, it typically requires a low initial investment in the product and revenue can grow from there.












