Distributors’ Inclination towards MLM: An Analysis

The present paper is an endeavour to study the reason behind the phenomenal growth of Multi-level Marketing (MLM) or network marketing all over the world. This study is undertaken from the point of view of distributors of MLM. The assumption made in the study is that the distributors join MLM if demand for the products of MLM exists substantially in the market. Inclination of distributors towards MLM industry indirectly indicates sustainability of this industry. The results are based on survey of 184 distributors selected from Kolkata and its outskirts by using convenience sampling technique. The findings indicate that five factors influence distributors’ joining the MLM industry such as business development, personal freedom, financial independence, product quality and incentives. This study also made a distinction between MLM and Pyramid scheme, as many people have misconception about MLM.