Through the years, marketing had evolved to the extent where organizations were started for the sole purpose of marketing and selling products which they did not produce. Manufacturers were keen to produce as fast as possible and believing they should maximize their profits by capturing market share.

Through all these advents and with modern media for advertising, a huge percentage of what the end-users pay goes into the marketing, not in the actual products value. Look at the brightly-lit billboards and full page advertisements in newspaper and you would understand why.

Moreover, with the economy turned global, marketing organizations mushroomed overnight under the “auspices” as sole agents and distributors. One can argue that most manufacturers would not be in a position to open offices and factories in every countries and rightly so. Then again, the true value enjoyed by end-users would be overwhelmed by those advertising costs again.

In the late 1950’s, the concept of MLM was started in USA. The concept was genuine initially in delivering value to end-users. Through words of mouth or referrals without the costly advertising, MLM started as an alternative marketing business model. This MLM evolved to a stage where it was no longer viable to deliver value as almost every levels were compensated, thus the selling price increased greatly, matching the traditional way of marketing.

Some MLM organizations recognized this ‘flaws’ and took certain measures to maintain the value of its products to end-users. At the same time, these MLM organizations must also balance the compensation to their marketers. One step was to limit the numbers of levels being compensated. This was often known as referral marketing. The important issue was that almost all involved would be compensated in a way calculated to benefit the effort vended and the value the end-users would benefited.

Through this referral method, almost all advertising costs would be minimized.

And the better news? There are lots of smaller manufacturers who devoted to produce better for health and eco–friendlier products like household cleaners who could not afford those huge advertising, marketing and new product placement fees and  costs.

The end results? Getting the referral marketing method that serves their needs and deliver more value for much better products to end-users.

At the same time, it provides more opportunities for everyone to have some income like home-based moms, retirees and low salaried employees who see a need for a second income.

Above all, with today’s modern technologies like the Internet, the phones

and the facsimile machines commonly found at homes, busy moms now had the opportunities to also work from home and also care their children at the same time.

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