An Answer To An Earlier Post

Recently I posted an open question regarding the oldest MLM currently operating in the industry. See A Question About MLM. I received an email reply to my question from David Robison. David has allowed me to post his response here and I wish to first thank him for that and for the thoroughly researched answer.
You can read more from David Robison at On The Road With Dave. I highly recommend reading his blog as it is very well written, entertaining, and informative. Thanks again Dave.

This response was originally posted as a comment on a blog forum.

"PART 1
I thought about this question a long time before responding. It seems a simple enough question, but is much more complex upon examination. Audrey’s answer addresses what is the negative in most people’s minds. A bad experience with a direct seller colors the perception towards all direct sellers. But woven into our social fabric is a pre-conceived notion that selling or direct selling is bad. We associated from an early age that salesmen are “hucksters” “slick” “conniving”…even in everyday language we say someone was dishonest by comparing them to ‘an used car salesman” This certainly predates any MLM company, or bad experience with Amway. The pendulum has swung twice in the history of direct sales. Once it was considered an elite career to be envied. It then suffered a collapse due to societal changes; it recovered in the days of urban sprawl and now suffers at the hands of change once more. The weight of the pendulum now hangs suspended momentarily awaiting how the change may be handled.
In the mid-19th century, as the Industrial Revolution took place, Direct Sellers were looked upon as a link to the big city for thousands of people still living in rural areas. They distributed not only products, but also urban ideas and culture. The agent, peddler and drummer traveled from city to the rural areas carrying products representing the urban manufacturers and wholesalers. To the rural youth he was the representative of the CITY Par Excellence, and in a period when mobility and success pointed to the urban areas, the traveling salesman became an instructor, a guide, and a handbook of city life and manners to all those anxious to cleave from their rustic background.
By the 1920s some 200,000 door-to door salesman were working for companies such as W.T. Rawleigh Medicines and Fuller Brush. “Scientific Homemaking” was introduced and time saving management principles were being put in place. Housewives thrived on laborsaving devices and companies such as West Bend Pots and Pans and Electroloux had legions of salesman answering the call. Sears Roebuck split off their catalog sales of Encyclopedia Brittanica into Direct Sales, to sell directly to the enlightened masses. Direct Sellers were bringing innovation and education to the masses It’s interesting to note that the Great Ponzi scheme took place in 1919 involving international postal reply coupons, most alive today do not know one “specific” involving the case, and yet equate Ponzi with a scam. He has become woven in the fabric of sales mythology. But popularity of Direct Sales suffered at the hands of politics, depression and war. Retail shops feeling the squeeze of competition lobbied for regulations for direct sellers, citing “fly by night” companies collecting deposits but never delivering products. A sales agent was nothing more than “ advance agents for burglars”. Chambers of Commerce spoke at PTA meetings claiming 87% of sales agents were dishonest or suspect” The Great Depression brought a general distrust of businesses located out of the local area. Many had invested in companies that were in the “Big City” and had lost all their money. Children of the thirties grew up knowing to only trust the people you know in your own town. Those children of the 30s grew up to be adults of the 40’s and post World War II. Their influence on their children of the Baby Boom can not be ignored. Our American values and beliefs and also perceptions of the door to door salesman persist because of that.

More to Follow
David Robison Quote: If I'm correct about the reality of this negative perception then my question is Why Does That Perception Exist? Where did it originate? Why does it continue?

PART 2
By the time the 1950s were over, we had fled to the cities in search of success in the corporate world. We had embraced television advertising, rock and roll, and looking forward to retirements in style. Rural areas were being gobbled up by the concentric growth of our cities. We were as close to the city as we had ever been and we loved it. Stores were plentiful, shops were full, and the direct seller was passé’ But the turbulent sixties brought dissatisfaction. Our youth were involved in “evil practices” and communists were on every corner looking to destroy our way of life. We longed for simpler times. We discovered suburbia. We could work in the city and retreat home to the suburbs. But this brought new needs. I remember as a child, the phrase “going to town”. Saturdays were blocked off to travel into the city to do grocery shopping, and to check out the new department stores. Our need for privacy and seclusion battled with our desires to shop. Ding-dong! “Avon Calling”. An Avon lady could show a suburban housewife how to look lovely in her own home, and provide a social outlet and a chance to catch up with the “goings-on” in the neighborhood. A chance to shop again at home arrived again. Tupperware parties! A chance to socialize in the suburbs and shop at the same time. Direct Sales were once again as welcomed as the morning milkman. But retailers once again saw their sales decline due to do urban flight from the inner city and fought back.
The 1970s brought the innovation of the shopping mall. The City could once again come to the people. The malls provided shops and social situations for Mom, Dad, AND the kids. At this same time you had the youth of the 60s finding their way in the employment scene. They were searching for a way to make income, but trying to stick to their 60s principles. They wanted to provide for their families but did not want the corporate life as their parents. They sought ways to express independence while making a living. The social dynamics of a direct sales organization attracted them to new environmental products, health care, and products to improve the earth. These “fringe” businesses attracted “fringe” people. The Amway freaks in mini-buses.
By the time the 80s arrived, and profit and cash were desirable once again, the small business owner was popular again. Everybody was seeking extra income to enjoy the 80s lifestyle. MLM became the popular vehicle to fulfill the need and desires of those longing to be rich. With the legal hurdle of establishing MLM as legit in 1979, the industry flourished. And with that popularity came the problems Audrey refers to. It was 1920 once again, and “rural farm boys” were becoming agents for W.T. Rawleigh once again (figuratively speaking) seeking the “good life” in sales. But like their 1920 counterparts…. these new MLMers had little experience with business principles. They worked a short time and became “fly by night” As I said in Part 1, the issue is complex, feel free to ask more questions. As you clarify your position, I will try to do the same.
Thanks for this topic!
David Robison Quotes in these posts are attributed to "Charismatic Capitalism" by Nicole Woolsey Biggart
Dave, if your still with me....your direct question..................Nicole Woolsey atrributes The California Vitamin Company, that later became Nutrilite, with the first MLM compensation plan. The plan was named the C&M Marketing Plan after Casselberry and Mytinger, The designers of the plan and distributors for California Vitamin."

As you can see, David has done a fair amount of research on this topic. Thanks for the hard work you obviously endured and for allowing me to post your answer.