Factors Influencing Performance of Multi-Level Marketing SalesForce in Direct Selling in Thailand - Dissertation Example

Globally, a large number of firms coming from diverse industries attempted to apply the use of the direct selling method as a form of marketing distribution channel. During the past decade, most businesses all over the world suffered from a series of global recessions and economic downturns. Despite the global economic struggle, direct selling remains in a positive position by making a lot of multinational companies experience business expansion in both advanced and emerging markets (Marczak, 2012; The Wall Street Journal, 2011).

In Thailand, the direct selling industry is currently experiencing phenomenal growth despite the country’s internal political turmoil and economic recession (The Wall Street Journal, 2011; Sribenjachot, 2007). The number of sales representatives who are working as MLM distributors in Thailand increased from 5.4 million in 2008 up to 10 million in 2009 (The Wall Street Journal, 2011, p. 15). In 2011, the number of sales representatives who are working as MLM distributors in Thailand has reached 10.

1 million (WFDSA, 2013). Due to unknown reasons, it is surprising to know that the direct selling business in Thailand continues to grow as the number of their existing MLM sales representatives and total annual sales increases each year. 1.1 Purpose of the StudyThis study aims at investigating and identifies factors that have a significant influence on the performance of the MLM distributors in direct selling organizations in Thailand. By examining the relationship between variables that affect the performance of sales representatives, the independent variables of this study namely the commitment to the Company, the perception of MLM, sales reps characteristics, commission, training, the leadership style of the up-line (sponsor).

The dependent variable is the success of the distributor. To gain a better understanding of factors that impact the success of multi-level marketing as a marketing strategy implemented by direct selling organizations and to formulate strategies to retain a successful sale force based on identified factors. It is assumable that the distributor's success leads to the success of the distribution channel that brings about organizational success.In relation to the growth and profitability of direct selling companies in Thailand, this study aims to investigate and identify factors that could significantly influence the performance of MLM distributors in direct selling organizations.

Amway, Giffarine, Nu skin Enterprises, Zhulian, and SISEL International are among the few leading direct selling companies that are actively using MLM strategies (Giffarine, 2012; Vander Nat and Keep, 2002). Therefore, a primary research study that combines the use of quantitative and qualitative research methods will be applied to gather a more subjective response from a total of 500 sales representatives who are currently working and are directly involved in any of the MLM companies in Thailand.