The influence of MLM companies and agent attributes on the willingness to undertake multilevel marketing as a career option among youth

Abstract

Purpose – The direct selling industry is experiencing phenomenal growth in Malaysia. The Domestic Trade, Cooperatives and Consumerism Ministry projects that there will be a 20 percent increase in volume of direct sales growth to RM5.5 billion in 2010, RM6.2 billion in 2011 and RM7 billion in 2012. The Direct Selling Act 1993 has been reinforced to accord protection to potential consumers. With the real wages in Malaysia decreasing and increasing unemployment especially among fresh graduates there may be a greater incentive to explore multilevel marketing (MLM) to supplement their income and maintain their desired modern lifestyle. However, the perception of MLM has in the past been tainted by unscrupulous pyramid and Ponzi schemes which aims at quick profits and are not sustainable. This paper aims to investigate the influence of perception of MLM companies and agent attributes on the willingness to undertake MLM as a career among youth.Design/methodology/approach – The sample of this study comprised 218 ...