The Four Generations of Network Marketing

Generation 2

1980 – 1990

Growth Period

The second generation was a period of rapid growth created by the strength of the core values and skills  developed and refined during the first generation. 

The foundation of this 2nd Generation was motivation.

Generation 2 Transcript

Taylor:

So, let’s talk about generation number two. 

Larry:

Sure. Yeah. 

Taylor:

Let’s talk about the motivation. So, we’ve got generation one, generation. We’ve got number two, which is the motivation, which is the building. 

Larry:

That’s where you build. And when we started Herbalife in February 1st of 1980, I gotta tell you, it was something that was different, kay? And no one believed that the government was gonna abide by what they said, but we were willing to test it, kay? A whole ‘nother story about how we put all that together with really no money and no anything just the absolutely drive, Mark was the driver there’s no doubt about that one, okay. But I was the one that had the experience, and I was the one that knew the fundamentals, I was the one that was able to guide this ship through all the storms that we had to do getting everything put together and keeping it going. Listen I’m not trying to downplay Mark whatsoever okay, never could I have achieved what I achieved in Herbalife without Mark and vice a versa. 

 

But, we took everyday people. We took carpet cleaners, we took mattress salesmen, we took truck driver, we took waitresses and school teachers. And because we had this clear path that we could run on we thought legally, which we did, and then we had these new found ingredients we had the special product that we had, was able to take all the things I’d gone through, from generation one til now, and put those in action here and it was remarkable what happened. It was just remarkable. 

Taylor:

Well, and something very, very significant took place whenever we’re talking about a marketing plan because this is the marketing plan you wrote because of the legalities and because it was legal, and now it is a viable industry and now we can be called “multi-level marketing” because it’s a real thing now, they actually agreed to making it legal, not only could you pay one generation, they made it legal to pay three generations. 

Larry:

Right 

Taylor:

Which absolutely changed the entire complexion of our industry as we know it today. 

Larry:

But the key to the three generations was the retail wholesale. Because today … anyway … this is so much and I don’t know how much you guys are getting out of this I don’t know what you want out of it but I’m telling you we enjoy sharing it with you. 

 

Generation one, I went back earlier and I said there’s two things that the growth of this industry’s had today the growth came from generation two 1980 to 1990. Not the multi-billions that we’re doing, but the result of what happened in generation two and generated these multi-billions opened the doors up for all these other companies to get started up. Good, bad, and indifferent, okay? 

Taylor:

Yes. 

Larry:

But here is the deal. What took place was Amway kept … charting their growth into greatness. Herbalife started it’s growth into greatness, okay just like that mediocre growth and so we were able to teach all of those fundamentals: run, hit, catch, throw to every so many people. 

 

We ran into difficulties in Herbalife, legal difficulties because of competition we were growing so fast, we were up to 100 million dollars a month in five years, okay we were growing so rapidly all the political favors of everybody was called in and they really blind sighted us and we were before the US Senate and we were on every television station and everything you can imagine, and we went from 100 million dollars a month down to less than ten million dollars a month and we were doing most 80 million of that was in America it drove us down to three million a month in America, kay. That’s a death rattle, kay. Nobody survives that but we did, and we did because of the fundamentals, but here’s what happened. In that transition as we’re going up everybody else is going up, their income’s going up, their lifestyle’s going up. Nobody believed that we were gonna survive that. So everybody started new companies. And they were having babies these new companies, and all of our distributors there was nobody better, ever, okay, that there was out there to do this and they started going to these other companies. 

 

Our top leaders hung around the flag pole. Why? They had the most to gain and the most to lose. What happened was the B and C team players that left us were very good and they went to these other companies and they started making more money and their upline was making and that started a whole ‘nother set of dynamics, of where everything shifted and they started growing. All of the companies … There’s so many companies came out of generation number two that went on to have babies. So generation two is 1980 to 1990 that’s the growth period. 

Taylor:

Well and this part for me is … for you to have an understand why this is important to you. Whenever we talk about core values and whenever we’re talking about fundamentals we are talking about a brief case of skills, something that … it’s a self-responsibility where it makes you self-motivated. What we call the four selves which is one of our six pillars, but having a true understand of that self-responsibility and where you took everyday people, the truck driver, the mattress salesmen, the carpet cleaner, whenever we refer to them as ordinary people. But they had the skills that it wasn’t necessarily built around Herbalife, it was given the personal growth and development skills that they were able to take those skills … which is going to be important to you, and take those skills to the new company or wherever they went. Because those are things whenever you have the skills, it doesn’t matter where you are. 

Larry:

Where you go. 

Taylor:

And it doesn’t matter where you go. It’s like you whenever you were … the rug got pulled out so you took those skills and you went to another company and able to do the same thing. That’s the concept, whenever you can take everyday people and give them a set of skills, that life skills, business skills, people skills, and they can take and run with it no matter where they are, that’s significant to this story because that’s the leadership that took to these other companies. 

Larry:

Started all these other company … Let me just talk a little bit about remember I said some of the B and C team players left, let’s talk about Jeff Roberti he was a waiter, 20 years old when I met him and he was a waiter. He was bout a B or C team player in Herbalife and he always says “I made a fortune in Herbalife, not in money” he said “but I made a fortune cause I learned the skills on how to do it”. He moved over to a company called NSA, kay, and has been there all of these years, number one distributor over there, and made over a hundred million dollars and still making it. Cheryl Quartisi a schoolteacher same concept. 

 

My carpet cleaner, my mattress salesman start their own company and that company is still going …. it’s just amazing what happened with all of these people that took these basic fundamental skills and moved forward into the 90s and to generation number three.