The network company Herbalife, which is very controversial, has been known on the market since 1980. During this time, Herbalife was far ahead of all the many multilevel network marketing companies and took first place in the top, beating the oldest company such as Amway, which was formed in 1959 and takes only the third place in the top. Herbalife is engaged in the distribution of biologically active food additives - dietary supplements that help to balance nutrition, reduce and control weight.
Various tinctures and medicinal teas for healing have been known since antiquity, long before the term dietary supplement appeared, but only now these drugs are primarily made for commercial profit. Among the company's products there are individual care products, perfumes, energy supplements and sports nutrition.
Many people who have used Herbalife drugs, whose reviews can be found on the Internet, note the positive effect of dietary supplements on the body. There is a steady weight loss without any side effects, as well as an improvement in well-being and increased performance.
But Herbalife drugs do not affect all people equally. You can find sharply negative reviews, including from experts. After reading the reviews of doctors about Herbalife products, you can see that not all of them consider dietary supplements useful, and some even claim that their use causes great harm to humans. Therefore, it would be correct, before starting to use Herbalife preparations, the reviews of people who used them to study, and also consult with a specialist in this field.
The history of network marketing is connected with the name of the American scientist, businessman and doctor of chemistry Karl Renberg. He is the one who created the world's first Nutrilite dietary supplement. But his main merit is the creation in 1934 of a completely new business strategy, which later became known as network marketing. The history of network marketing began with the fact that in 1931, a scientist discovered in addition to a large amount of protein, many more useful substances, including vitamins and minerals, in alfalfa and created a nutritional supplement on its basis.
In 1933, he begins to test her effect on friends. But some friends hid boxes of powders, not daring to try them. And then Karl gets the idea that if people pay for supplements, then they will take them. And so it happened. The drug gave a stunning result. Friends and acquaintances also wanted to purchase miraculous powder. Then the idea of a new business strategy comes to Renborg. Friends and acquaintances become the first distributors for him, and he calls his sales scheme recommendation-based marketing.
The essence of the method was that each new buyer automatically becomes a distributor and creates his own network, and this continues an infinite number of times, and the company is obliged to supply employees with products and pay them commissions. The company can afford it, since it does not spend money on advertising, because people are the source of information, and if the company sells its products, the price is much lower than that of companies selling other people's goods. As a rule, financial pyramids are formed from such companies and such companies quickly fall apart.
Thus, the distributor, which is located at the very top, may subsequently not work at all, but receive lifelong interest. Renborg was the first to invent the principle of sponsorship, that is, a company representative helps his newcomer, trains him and is responsible for his work. Thus, the evolution of the concept of marketing took place - it becomes multilevel from a single-level one, though all the terms appeared after the death of Renborg.
Today, the evolution of the marketing concept is that for the first time in network companies nothing needs to be sold, partner companies will do this, and distributors will only disseminate positive information about products.