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Multilevel marketing (MLM) has been a legally recognized business model since 1979 and has existed as a form of compensation since 1932. According to the Direct Selling Association this industry has grown domestically in 14 of the last 15 years, and currently stands at a record 16.3 million representatives in the United States. MLM is also recognized as a legitimate and legal compensation model in over 80 foreign countries as well.

There are a number of economic, demographic, and psychological factors that appear to indicate the future of this industry is very promising, not the least of which is that an index of the 12 largest publicly traded MLM companies shows MLM companies outperforming the S&P 500 in 21 of the last 35 months, and 9 of the last 12 years. So although analyses performed by MLM authorities suggesting a bright future for this industry, no matter how pragmatic, are always accused of impartiality, Wall Street seems to be lined with what are essentially thousands of impartial trend analyst who also seem to be very optimistic about the future growth potential of this market segment.

[See "The Coming Network Marketing Boom", (c) 2008, MarketWave, Inc.]

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