Comparisons of Salespeople in ML vs' SL Direct Selling Organizations

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Comparisons of Salespeople in ML vs. SL Direct
Selling Organizations

• Mia Yan
• Jake Raynard

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Background of Study

• Purpose
• Determine whether ML and SL salespeople differ on
  behavioral, motivational, or descriptive
  characteristics
• Implications for managers and organizations

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Sample Data Collection

• Sample 22 member companies of the Direct Selling
  Association in the UK
• Questionnaire - salespeople in 1st month with the
  company
• 4050 questionnaires sent - 673 usable responses
  (response rate of 18)

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• Multilevel
• Amway
• Cabouchon
• Dorling Kindersley
• Herbalife
• Kleeneze
• Mary Kay Cosmetics
• Natures Sunshine
• NSA
• NuSkin
• NutriMetics
• Oriflame
• Studio Dee
• World Book Learning Journey
• Single Level
• Ann Summers
• Betterware
• Encyclopedia Britannica
• Kirby

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Research Methodologies

• Variables
• Job characteristics
• Proving oneself to others personal feelings of
  success work rewards and career growth being in
  control
• Job satisfaction
• Organizational commitment
• Involvement and loyalty propensity to leave
• Met expectations
• Personal growth and well-being achieving and
  accomplishing results job and its image and
  rewards undesirable job characteristics
• Image of direct selling
• Hard sell, misleading, illegal advantages to
  buyers and sellers better salespeople than
  retail stores

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Characteristics of Respondents
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Comparison of Salespeople
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Comparison of Salespeople
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Comparison of Salespeople
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Comparison of Salespeople
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Comparison of Salespeople

• Single Level Salespeople
• median age 33.3
• median income 15,351
• education 11.5 college or post graduate
• work experience 63.5 (5 years)
• primary job 65.5
• Prior selling experience 51.7
• Median hours a week for DS 9.4
• Mean intention to quit 2.07

• Multilevel Salespeople
• median age 37.3
• median income 21,229
• education 26.3 college or post graduate
• work experience 73.8 (5 years)
• Primary job 35.7
• Prior selling experience 42.6
• Median hours a week for DS 6.7
• Mean intention to quit 1.75

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Discussion SL Salespeople

• importance of proving themselves
• desire to increase self-confidence (younger, less
  educated, less experienced, lower income)
• importance of selling a highly competitive
  product (boost their confidence)
• independent contractor simply sells the
  product/ service
• do not assemble a cadre of salespeople/ downlines
• Consider DS as their primary work activity (more
  hrs)
• Equates success with personal sales levels

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Discussion ML Salespeople

• personal selling is not the only focus
• build and maintain ones organization, a network
  of downlines.
• attains success through intrinsic feelings of
  personal satisfaction (recruiting, training, and
  motivating others)
• MLs move beyond a tactical focus on completing
  tasks (SLs)
• strategic focus on facilitating the completion of
  plans through others

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Implications for Managers

• Single Level DS companies
• Focus on recruiting younger, less highly
  educated, less experienced people who view direct
  selling as their primary work activity
• Multilevel DS companies
• Recruit older, more highly educated people with
  greater full-time experience who wish to maintain
  another job in addition to DS work

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Single Level Organizations

• Training focus
• sales skills
• product knowledge
• Competitive advantage
• Self-motivation
• Confidence building activities
• Shorter-term sales goals build their confidence
  incrementally

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Single Level (contd)

• Recognition programs highlighting achievements
• Compensation payments should be given frequently
• Stress individual performance rather than
  competition with a whole group

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Multilevel Organizations

• Training focus
• Activities building organizational commitment
• Communications or newsletters to highlight group
  achievements
• Group meetings for those within a persons
  downline
• Any type of social activities

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Amway team activity (Germany)
Amway Team (Taiwan)
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