Network marketing of amway products by distributors in kottayam district of Kerala state

Network marketing or Multilevel marketing is best described as direct selling compensation plan in which independent sales people may receive compensation in two fundamental ways. Sales people may earn compensation from their personal sales of goods and services to consumers. They may earn compensation from the sales or purchase of those persons they have personally recruited or sponsored in to the plan and from the sales of the group or network recruited or sponsored into the plan by those they have personally recruited. The most important advantage of network marketing is that it avoids duplicate products and helps the distributors to build their own business through their sales efforts and by inviting others to become sellers and develop their own business. In this paper, an attempt is made to study the impact of socio economic factors on certain dependant variables and marketing performance of distributors and the problems faced by them in marketing Amway products.