University Scholars Discover Network Marketing.
Network Marketing Lifestyles — March 2000
By Michael L. Sheffield
Network Marketing Expert Consultant
Have you ever heard that courses in network marketing are taught at Harvard University? Thousands, perhaps even hundreds of thousands of people have heard that — and it's not true. (This article is one in a series by Network Marketing consultant Michael L. Sheffield on this and related topics.)
The "MLM at Harvard" rumor is one of a handful of Baron Munchausen-like tall tales that made the rounds in the early 1960s. First published as an unsubstantiated claim by an over-eager author, the Harvard rumor soon took on a life of its own. Starved for recognition and respect, network marketers by the score circulated this falsehood. Finally, in 1992, Upline ran a story by founder John Fogg, entitled "The Lies of MLM, " that quickly became one of the journal's most popular, oft-reprinted articles in its history. "MLM taught at Harvard" was one of the first industry canards to fall under mythbuster Fogg's ax.
Why was the article so popular? Because people want to know the truth — and more, people want to know that when they boast about this great business that they're connected with, that their boasts are factual. It's interesting that Harvard was the anchor of credibility seized upon by those inferiority complexed individuals who fed the Multi-Level Marketing (MLM) rumor mill.
Why "interesting"? Because evoking the name "Harvard" is the classic gesture that defines academic respectability. The very strength of the rumor confirms something I have long believed: for network marketing to be completely accepted in the business world, it needs an academic stamp of approval.
The good news is that stamp of approval is well on its way. The environment has changed remarkably since the covered wagon days of the late 1980s and early 1990s, when the industry was still a largely unrecognized economic force.
In recent years, the movement toward home-based business has accelerated with the downsizing or "right-sizing" of traditional businesses. This trend has increased public awareness of network marketing. Studies by the Direct Selling Association (DSA) indicate that:
- Direct selling accounts for annual sales of more than $80 billion world-wide.
- The US contributes nearly $25 billion.
- 12 million Americans derive independent contractor income from direct selling.
- One in every 10 households has someone involved in network marketing or direct sales.
Note that "Direct Selling" is the sales industry's umbrella term for personal sales methods that include network marketing as well as older methods, such as door-to-door sales. Today, network marketing comprises the major part of "direct selling" figures.
Very little has been done in academic circles to teach the history, present status, principles, and operation of this economic dynamo। All the same, network marketing, also known as Multi-Level Marketing, is being recognized increasingly by academics as a significant force in the global economy. Network marketing is knocking on university doors lobbying for that yearned-for seal of approval — and some of those knocks are being answered.
