Who Is the Founder of Network Marketing?

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Updated: May 2026 Oleksandr Honcharov, CEO at FlawlessMLM Carl Rehnborg is widely considered the founder of network marketing. He created Nutrilite in 1934 and introduced the first multi-level compensation plan in 1945, which became the blueprint for the modern MLM industry. Dexter Yager and Dr. Charles King are also called "the father of network marketing" in different contexts. What is the father of network marketing depends on whether you mean the inventor of the model or the educator who codified it. Key figures in the founding of network marketing Carl Rehnborg — founded Nutrilite in 1934 and designed the first multi-level pay plan in 1945. The structural founder. Rich DeVos and Jay Van Andel — founded Amway in 1959 based on Rehnborg's model, building it into a $7+ billion company. Dr. Charles King — created the first university-level MLM certification program at the University of Illinois at Chicago, sometimes called the "father of network marketing" in academic contexts. Dexter Yager — Amway's most famous distributor, who built training systems that shaped the industry's culture. Mark Hughes — founder of Herbalife in 1980, who pioneered the modern wellness MLM category. Definition: The founder of network marketing is Carl Rehnborg, who designed the first multi-level compensation plan in 1945 at Nutrilite. Other figures called "the father of network marketing" include Dr. Charles King (academic), Dexter Yager (training and culture), and Amway co-founders Rich DeVos and Jay Van Andel. There is no single "father" because the industry grew through layers of contributions. Rehnborg invented the model. Amway scaled it. King legitimized it academically. The industry as we know it took 80 years to assemble.

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