Motivational factors in multilevel marketing business: A confirmatory approach

Abstract

In the present scenario of high unemployment; Multilevel Marketing (MLM) generates employment for people who have no permanent source of earning. MLM system has emerged as one of the prime alternatives in the current marketing system. India has become a very popular destination of doing MLM business with high potential of growth. MLM system provides lucrative compensation that works as motivation for people to join this business. Motivation for executives of any firm plays a major role in its success. It also leads commitment of employees towards work and responsibilities. An attempt has been made to identify the motivational variables that have the highest level of contribution for joining the MLM system. Most of the MLM companies focus on compensation plan or reward system but apart from that a number of variables have been found which motivate the distributors to engage in MLM business. Further, the distributors play a vital role in the growth of the business. In this study, we also propose a motivational model to help MLM companies formulate better strategies in making a large network of people for growth of business.

Keywords

• Multilevel marketing system
• Motivation
• Compensation plans
• Network marketing
• Ponzi schemes