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Abstract
Nowadays, MLM Company around the world are highly developed, and companies especially in Indonesia have been using a system of direct sales to the consumers. The career structure in MLM Company has been very much acknowledged. However, not all MLM distributors are able to achieve the line of succession. The purpose of this research is to analyse the main causes of career success in MLM Company. This study uses both quantitative and qualitative methods. The selection of samples is carried out using a snowball technique which retrieved as many as 198 distributors registered at the Multi-Level Marketing (MLM) Company in Medan, namely; PT. Herbalife Indonesia, PT. Orindo Ayu (Oriflame), PT. Sophi Martin Indonesia, PT. K-link, PT. Tupperware Indonesia and PT. Amway Indonesia. The result of the study finds that entrepreneurial competency and committment simultaneously have a significant influence to the career success of MLM distributors. Moreover, the study finds a partial relationship between the entrepreneurial commitment and motivation that has a significant effect on career success, while the entrepreneurial competency does not partially influence the success of career significantly. The results also show that entrepreneurial motivation is a moderating variable that is able to strengthen the influence of the entrepreneurial commitment to career success, as well as between the entrepreneurial competency and career success.
Highlights
The total unemployment in Indonesia up to August 2012 had reached 7.244.956 million people (BPS, 2012)
Based on the results of the partial test (t test), it is known that entrepreneurial competency significantly influences the career success of the Multi-Level Marketing (MLM) distributors
This phenomenon is aligned with the theory stating that the entrepreneurial competency is a very important element in the formation of a businessman’s career success as well as towards all types of MLM businesses, as this concept is fully applicable
Summary
The total unemployment in Indonesia up to August 2012 had reached 7.244.956 million people (BPS, 2012). The total number of entrepreneurs in Indonesia relatively small, but there was a positive trend with the expectation that there would be an increase by 2% of the total population (Soebari, 2008). The problems may still occur with the distributor’s career development in the MLM company, for instance; entrepreneurial competencies are still far from the expectations, seeing the inability of those distributors in motivating its downline and the distrust of prospective buyers for using their products. A small number of product users are turning to become MLM distributors This leads to the inhibition of the distributors’ career success in Multi-Level Marketing Company
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