The term network marketing first became popular in 1982 through the book ‘Megatrends’ by John Nesbit. There, the author predicts that as our world becomes increasingly technological, more consumers will become dependent on their personal communications to make decisions. Everyone has to filter more and more information for use every day due to the excessive accumulation of marketing information around them. This increases the importance of communication skills such as effective communication, listening, problem solving and public speaking.
Mr. Nesbit predicted that businesses would become increasingly dependent on the transmission of their marketing messages through their personal communication networks. As a result, the term network marketing came into being. The term was used by a number of Amway's major retailers and spread like wildfire among other distributors of multilevel direct sales companies.
It is for this reason and since that time that everywhere these two terms, namely multilevel marketing and network marketing, have been considered synonymous and there is no difference between the two. It is not bad to know that the leaders of Amway Company did this because the word MLM was notorious in the United States at that time, and they changed the name to eliminate the negative atmosphere caused by this notoriety.
It should be noted that the network marketing method has been used by many other types of businesses - and not just direct sales. From real estate agents to health clubs, everyone uses network marketing to attract customers and buyers. Although this method often includes word of mouth, it is different because in network marketing there are incentives and incentives for word of mouth.
Through MLM, now called network marketing, the direct selling process can be passed from person to person. The result of this scheme can be a significant increase in group sales for a salesperson. This design can act as a very strong stimulus to create a geometric growth in the sales volume of companies.