A Study on Multi-Level Marketing (MLM) as a Career Venture for Filipino Entrepreneurs

Abstract

Multi-level marketing is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a downline of distributors and a hierarchy of multiple levels of compensation. Distributors of a multi-level marketing business foster a combination of friendship and instrumentality in developing networks. The study intended to investigate the motivational variables that contribute to venturing and engaging in a multi-level marketing business. It also aimed to determine the derived benefits from venturing in a MLM. There were fourteen (14) successful MLM venture capitalists as respondents of the study. Interview was conducted to the respondents using guide questions to collect and gather the data. The study shows that among the motivational variables that contribute to venturing or engaging in a MLM are as follows; success stories of people who successfully joined MLM was ranked 1 among the motivational variables, followed by generates employment for people who have no permanent source of livelihood, and lastly venturing in an MLM provides lucrative compensation, financial rewards or incentives. It was concluded that focus to one’s job is a great attribute to success of most MLM venture capitalists, and people with ambition in life and commitment are likely to perform.