Factors that influence distributor satisfaction within multi-level marketing in South Africa

Abstract

Purpose of the study: Limited research has been done in South Africa's MLM industry, particularly pertaining to distributor satisfaction and the factors that influence distributor satisfaction. This study aims to determine the factors that influence distributor satisfaction within multi-level marketing (MLM) in South Africa.

Design/methodology/approach: The study considered existing literature and was quantitative and descriptive in design. Non-probability convenience sampling was used to draw the sample through self-administered online questionnaires via Google Forms, which resulted in a total of 376 questionnaires collected for data analysis from distributors of health and wellness MLMs in South Africa.

Findings: A standard linear regression analysis was also conducted. Results indicated that the method of diffusing business opportunity, the perceived quality of the recruitment process and the perception of products and services predict distributor satisfaction within health and wellness multi-level marketing (MLMs) in South Africa. Recommendations/value: It is crucial for health and Wellness MLM businesses in South Africa to improve their distributor satisfaction.

Managerial implications: Health and wellness MLM businesses in South Africa who want to improve their distributor's level of satisfaction can focus on improving the method of diffusing business opportunities and aim to improve the perception that the distributors have of the recruitment process as well as products and services.