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Comparisons of Salespeople in ML vs. SL Direct Selling Organizations

This study compares behavioral, motivational, and descriptive characteristics of salespeople in Multilevel (ML) and Single-Level (SL) direct selling organizations. Implications for managers, research methodologies, variables, and characteristics of respondents are discussed based on data collected from DSA member companies in the UK.

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Comparisons of Salespeople in ML vs. SL Direct Selling Organizations

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  1. Comparisons of Salespeople in ML vs. SL Direct Selling Organizations Mia Yan Jake Raynard

  2. Background of Study • Purpose: • Determine whether ML and SL salespeople differ on behavioral, motivational, or descriptive characteristics • Implications for managers and organizations

  3. 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%)

  4. Multilevel: • Amway • Cabouchon • Dorling Kindersley • Herbalife • Kleeneze • Mary Kay Cosmetics • Nature’s Sunshine • NSA • NuSkin • NutriMetics • Oriflame • Studio Dee • World Book Learning Journey Single Level: • Ann Summers • Betterware • Encyclopedia Britannica • Kirby • Pippa Dee • Princess House • Tupperware • Vorwerk • World Book Childcraft

  5. 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

  6. Characteristics of Respondents

  7. Comparison of Salespeople

  8. Comparison of Salespeople

  9. Comparison of Salespeople

  10. Comparison of Salespeople

  11. 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 Comparison of Salespeople

  12. 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

  13. Discussion: ML Salespeople • personal selling is not the only focus • build and maintain one’s 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

  14. 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

  15. Single Level Organizations • Training focus: • sales skills • product knowledge • Competitive advantage • Self-motivation • Confidence building activities • Shorter-term sales goals – build their confidence incrementally

  16. Recognition programs highlighting achievements Compensation payments should be given frequently Stress individual performance rather than competition with a whole group Single Level (cont’d)

  17. Multilevel Organizations • Training focus: • Activities building organizational commitment • Communications or newsletters to highlight group achievements • Group meetings for those within a person’s downline • Any type of social activities

  18. Amway team activity (Germany) Amway Team (Taiwan)

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