In this thesis, I tried to find out the concrete factors which enables individual businessman to succeed in the industry of network marketing, an emerging marketing strategy in the distribution business. Furthermore, I carried out the research to reve...
In this thesis, I tried to find out the concrete factors which enables individual businessman to succeed in the industry of network marketing, an emerging marketing strategy in the distribution business. Furthermore, I carried out the research to reveal how these factors actually influence business outcomes.
After constructing a questionnaire and surveying 325 people in 10 network marketing companies, I noticed that there are 7 sucess factors. Firstly, interpersonal relationship proved to be the most important factor, not only between sponsors and down-line personnels but also between distributors and consumers. Secondly, the confidence of one's success as a distributor, pleasure, vision, faithfulness, and self-control including executive faculty are momentous factors of success. Thirdly, the conviction as a distributor, target-setting, positive attitude, education, and training to internalize good habits are essential. Fourthly, problem-solving capabilities, information-collecting, and circumstantial judgment are needed. Fifthly, system management, such as supportive activities for personnels and leadership should not be neglected. Sixthly, distributors should be easy-going. The final factor is sales support, which comprises of product diversity, quality, and compensation programs.
Regression analysis on theses factors show that they are effective by the order they have been presented above, except the final one. Whereas sales support in the general industry, education, and training in insurance industry are the key factors to success, interpersonal relationship and self-control are considered to be the most important among all in the field of network marketing.
Network marketing and pyramid business are like the two sides of a coin. Thus, businessmen in network marketing companies should keep in mind the side effects that are caused by pyramid businesses. To avoid bringing harm to the society, they should practice self-control. By doing so, they will be able to build their distribution business on a healthy foundation.