Driving Distributors’ Satisfaction in Multilevel Marketing (MLM) Companies

The purpose of this study is to identify the major factors that will influence the satisfaction of distributors towards multilevel marketing (MLM) companies in Malaysia. The five antecedents investigated are: up-line support, methods of diffusing business opportunity, perceived quality of recruiting process, perceived quality of training program and perception of products/services. A proposed conceptual framework that serves as the foundation in this research is adopted from Delgado (2000), with the inclusion of an additional independent variable, perception of products and services (Osei, Katsner, & Narteh, 2014). Results from the study indicate that among the five factors, only the perceived quality of training program has no significant impact on distributors’ satisfaction. Method of diffusing business opportunity, perceived quality of recruiting process, up-line support and perception on products/services are shown to have positive impact on distributors’ satisfaction.