Direct Marketing against Multi-Level Marketing, Pullback and Implication

Ezekiel, Ajayi Olalekan; Toba, Oyedele

doi:10.47119/ijrp1006311020201490

Cited by 2 publications

(2 citation statements)

References 7 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Multi-Level Marketing (MLM) is a marketing strategy that involves a network of independent distributors selling products directly to consumers and recruiting other people to become distributors in their network (Wrenn, 2023a). This model generates revenue from two main sources: direct product sales and commissions from sales made by recruited network members (downlines) (Ezekiel & Toba, 2020). MLMs often use a tiered commission structure, where distributors earn bonuses and incentives based on their network's sales volume.…”

Section: Multi-level Marketingmentioning

confidence: 99%

“…MLMs often use a tiered commission structure, where distributors earn bonuses and incentives based on their network's sales volume. This model offers flexibility and residual income potential that is attractive to many people, especially those looking for a side or full-time business opportunity with relatively low initial capital (Ezekiel & Toba, 2020). However, MLMs are also controversial due to their similarities to illegal pyramid schemes, where more revenue is generated from recruiting new members than from product sales.…”

Section: Multi-level Marketingmentioning

confidence: 99%

See 1 more Smart Citation

Who Benefits The MLM System? Case Study on Consumer Behavior Multilevel Marketing

Elmira,

Rofiah

2024

jefms

View full text Add to dashboard Cite

This research explores who really benefits from the Multi-Level Marketing (MLM) system with a case study of consumer behavior regarding Oriflame products. This research uses qualitative methods with a case study approach to understand the dynamics and motivations behind consumer participation in MLM. The focus of this research is to explore how attitudes, subjective norms, and perceived behavioral control influence consumers' intentions and actions in joining and remaining in MLM, how external stimuli and previous experiences influence consumer behavior. The locus of this research involved five different women's communities, namely posyandu administrators, gymnastics community, Beauty Community members, weekly social gathering founders, and weekly regular recitation members, who were selected through purposive snowball sampling. The results show that despite the potential for significant financial gain and personal development, distrust of the business model and challenges in product sales often hinder long-term success. This study contributes to the literature on consumer behavior in the MLM context and provides recommendations for companies to increase transparency and support for distributors.

show abstract

Section: Multi-level Marketingmentioning

confidence: 99%

Section: Multi-level Marketingmentioning

confidence: 99%

Who Benefits The MLM System? Case Study on Consumer Behavior Multilevel Marketing

Elmira,

Rofiah

2024

jefms

View full text Add to dashboard Cite

show abstract

Unveiling trust as a mediator in distributor loyalty within South African multi-level marketing

Williams,

Kleynhans

2024

South African Journal of Economic and management Sciences

View full text Add to dashboard Cite

Background: Limited research has been conducted in South Africa's multi-level marketing (MLM) sector, particularly pertaining to distributor satisfaction and its influencing factors.Aim: This study aims to determine the extent to which trust mediates the relationship between distributor satisfaction and loyalty within the MLM framework in South Africa.Setting: This study was conducted among distributors within the South African multi-level marketing environment.Method: This study adopted a descriptive research design. A total of 376 distributors from health and wellness sectors, focused on MLM companies in South Africa. They were selected through non-probability convenience sampling. Confirmatory factor analysis (CFA) was employed to validate the data's reliability, while structural equation modelling (SEM) was utilised to examine both the direct and indirect effects postulated in the study. Results:The analysis revealed a notable indirect positive effect, linking distributor satisfaction to distributor loyalty, with trust acting as a mediating variable. Additionally, direct positive correlations were identified between distributor satisfaction and loyalty and between distributor trust and loyalty. Conclusion:For health and wellness MLM companies in South Africa, it is vital to enhance distributor loyalty and trust. This can be accomplished by increasing distributor satisfaction and refining the way they communicate business opportunities.Contribution: Multi-level marketing can benefit from the findings of the research as this improves insight into the direct and indirect effects of distributor satisfaction on distributor loyalty and trust and provides empirical insights into the MLM industry.

show abstract

Direct Marketing against Multi-Level Marketing, Pullback and Implication

Cited by 2 publications

References 7 publications

Who Benefits The MLM System? Case Study on Consumer Behavior Multilevel Marketing

Who Benefits The MLM System? Case Study on Consumer Behavior Multilevel Marketing

Unveiling trust as a mediator in distributor loyalty within South African multi-level marketing

Contact Info

Product

Resources

About