Henry Ford | The Greatest Inspiration Of Network Marketing

Henry Ford was an American industrialist, the founder of the Ford Motor Company, and the sponsor of the development of the assembly line technique of mass production. Network marketers recognize Ford as one of the greatest inspirations of network marketing. Why? Even though Ford did not invent the automobile, he was the first to produce one that many middle class Americans could afford. He converted the automobile from an expensive curiosity to a practical conveyance. Instead of hiring expert craftsmen to hand-make his cars and sell hundreds, Ford designed a model where ordinary people could put in time and effort to mass-produce millions of cars. That's exactly what network marketing is about. Ford did not change the face of the earth by building his empire around his talents and skills, he found a way to duplicate his talents through his workers, and that's the power of a network.

The Model T was introduced on October 1, 1908. It had the steering wheel on the left, which many companies later copied. It was easy to drive and cheap. It was so cheap at $825 in 1908 ($21,730 today) (the price fell every year) that by the 1920s, a majority of American drivers had learned to drive on the Model T. Ford's network of local dealers made the car ubiquitous in almost every city in North America. As independent dealers, the franchises grew rich and publicized not just the Ford but the concept of automobiling. Sales skyrocketed—several years after 100% gains on the previous year. Always on the hunt for more efficiency and lower costs, in 1913 Ford introduced the moving assembly belts into his plants, which enabled an enormous increase in production. Sales passed 250,000 in 1914. By 1916, as the price dropped to $360 for the basic touring car, sales reached 472,000. Using the consumer price index, this price was equivalent to $7,020 in 2008 dollars.

By 1918, half of all cars in America were Model Ts. All new cars were black; black had a quicker drying time. Model Ts were available in other colors, including red. The design was fervently promoted and defended by Ford, and production continued as late as 1927; the final total production was 15,007,034. This record stood for the next 45 years. This record was achieved in 19 years from the introduction of the first Model T (1908).

By 1926, flagging sales of the Model T finally convinced Ford to make a new model. He pursued the project with a great deal of technical expertise in design of the engine, chassis, and other mechanical necessities, while leaving the body design to his son. Edsel also managed to prevail over his father's initial objections in the inclusion of a sliding-shift transmission. The result was the successful Ford Model A, introduced in December 1927 and produced through 1931, with a total output of more than 4 Million.

Ford did not believe in accountants; he amassed one of the world's largest fortunes without ever having his company audited under his administration.

As the owner of the Ford Motor Company, he became one of the richest and best-known people in the world. He is credited with "Fordism": mass production of inexpensive goods coupled with high wages for workers. Because not only did he find a way to make cars affordable but to pay his workers in high wages. Ford astonished the world in 1914 by offering a $5 per day wage ($120 today), which more than doubled the rate of most of his workers. As a result of raises, the best mechanics in Detroit flocked to Ford, bringing their human capital and expertise, raising productivity, and lowering training costs. Ford announced his $5-per-day program on January 5, 1914, raising the minimum daily pay from $2.34 to $5 for qualifying workers. Detroit was already a high-wage city, but competitors were forced to raise wages or lose their best workers. Ford's policy proved, however, that paying people more would enable Ford workers to afford the cars they were producing and be good for the local economy. Ford clocked a net worth of $188.1 Billion (based on February 2008 data from Forbes).

What Henry Ford did for the automobile industry reduced the process to component parts that can be mass-produced. A successful network marketing business is not a handcrafted masterpiece made by one skilled pair of hands. It’s a symphony of simplicity crafted by hundreds of thousands of hands.

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