Multi-level marketing: Factors motivating people to get involved in MLM

• Main Authors: Moreno, Leana Carmen, Sanchez, Ma. Gileanna Janella, Santiago, Marizza
• Format: text
• Language: English
• Published: Animo Repository 2000
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/16710
• Institution: De La Salle University

This exploratory-descriptive study focuses on factors that motivate individuals to engage in multi-level marketing. These factors are classified accordingly social, personal, cultural, physiological, or security needs. Aside from these factors which affect people's decisions to enter into the business, the rewards and benefits gained from involvement in MLM were also be taken into consideration. This is in relation to finding out what it is exactly about MLM that can motivate people to want to be a part of it as well as to remain with it. A self-administered survey was conducted among multi-level marketers from two MLM companies, specifically, Amclean and Nu Wave, who are based in Manila. The questions tried to find out the level of involvement of the marketers and the motivational force that keeps them active. Fifteen marketers from each company were chosen for this, and all of them must have been involved in MLM for at least four months already. Face-to-face interviews were then conducted with two respondents selected from the survey, who have at least three downlines. The results show that in terms of social needs, all of the respondents got into the business in order to achieve a higher status in society. Majority of the respondents were influenced by their peers to engage in MLM, while others were influenced by their family. There were even instances wherein friends and family, due to certain misconceptions concerning the business, discouraged marketers. Money ranked highest as the primary motive for engaging in MLM. This was closely followed by basic needs and security needs. The prestige status ranked highest among the personal needs closely followed by the need for belongingness. Nu Wave holds daily meetings and frequent training seminars which seem to result to a more active involvement. Amclean, on the other hand, holds routinary but less frequent meetings and seminars. In terms of the satisfaction of needs, marketers claim that need for money, the needs for belongingness, prestige, self-esteem and confidence were met through their involvement in the MLM business.