Towards Satisfying Distributors in Multilevel Marketing Companies

Abstract

This study examined the relevant factors which affect the satisfaction of distributors towards multilevel marketing (MLM) companies in Malaysia. Six factors were investigated, which includes: method to diffuse business opportunity, perceived quality of recruiting process, perceptions of products and services, up-line support, perceived quality of training program, as well as monthly income. Results of the multiple regression analysis demonstrated that the first four factors significantly affected distributors’ satisfaction. Only perceived quality of training program had no significant effect. Furthermore, one-way analysis of variance indicated that satisfaction was significantly less for distributors whose monthly income derived from MLM activities was below RM1,000 than those earning higher monthly income.