Motivational factors in multilevel marketing business: A confirmatory approach

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...

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Main Authors: Sourav Jain, B.B. Singla, Shashi Shashi
Format: Article
Language:English
Published: Growing Science 2015-10-01
Series:Management Science Letters
Subjects:
Online Access:http://www.growingscience.com/msl/Vol5/msl_2015_90.pdf
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author Sourav Jain
B.B. Singla
Shashi Shashi
author_facet Sourav Jain
B.B. Singla
Shashi Shashi
author_sort Sourav Jain
collection DOAJ
description 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.
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spelling doaj-art-c4e7fa86395d45c2a9d8f341558b1c522025-08-20T03:23:03ZengGrowing ScienceManagement Science Letters1923-29341923-93432015-10-0151090391410.5267/j.msl.2015.8.006Motivational factors in multilevel marketing business: A confirmatory approachSourav JainB.B. SinglaShashi Shashi 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.http://www.growingscience.com/msl/Vol5/msl_2015_90.pdfMultilevel marketing systemMotivationCompensation plansNetwork marketingPonzi schemes
spellingShingle Sourav Jain
B.B. Singla
Shashi Shashi
Motivational factors in multilevel marketing business: A confirmatory approach
Management Science Letters
Multilevel marketing system
Motivation
Compensation plans
Network marketing
Ponzi schemes
title Motivational factors in multilevel marketing business: A confirmatory approach
title_full Motivational factors in multilevel marketing business: A confirmatory approach
title_fullStr Motivational factors in multilevel marketing business: A confirmatory approach
title_full_unstemmed Motivational factors in multilevel marketing business: A confirmatory approach
title_short Motivational factors in multilevel marketing business: A confirmatory approach
title_sort motivational factors in multilevel marketing business a confirmatory approach
topic Multilevel marketing system
Motivation
Compensation plans
Network marketing
Ponzi schemes
url http://www.growingscience.com/msl/Vol5/msl_2015_90.pdf
work_keys_str_mv AT souravjain motivationalfactorsinmultilevelmarketingbusinessaconfirmatoryapproach
AT bbsingla motivationalfactorsinmultilevelmarketingbusinessaconfirmatoryapproach
AT shashishashi motivationalfactorsinmultilevelmarketingbusinessaconfirmatoryapproach