Motivational drivers for distributors engaging in multi-level marketing in KwaZulu- Natal, South Africa

Abstract

Multi-level marketing (MLM) is an emergent business opportunity in the marketing world. Distributors must be motivated to sell the products and create a pyramid of marketers to get the job done effectively. Motivation will influence the distributor’s attitude towards growth and development. As a result, insights for MLM companies in determining the motivational factors that influence distributors to be successful in MLM are important, yet not well known. This study examined the drivers of distributors’ motivation to engage successfully in MLM in KwaZulu-Natal (KZN). The quantitative research approach and a questionnaire as an instrument were employed to gather data from distributors in MLM companies within the KZN province. The findings showed that distributor motivation is driven by the quality and innovativeness of products to a great extent. Compensation package is also a significant driver of distributor motivation, while price discounts were found to have a moderate influence. The study recommends MLM companies to remain innovative and produce quality products that meet or even exceed expectations of distributors to drive their motivation. Compensation packages can be tailored to suit the criteria of individuals to appeal to different people in unique and effective ways that drive motivation.

Keywords

• motivation drivers
• multi-level marketing
• distributors
• compensation packages
• quality of products
• discounts
• marketing