Key Motives and Reasons Determining the Start of MLM Activities in the Perspective of Polish Entrepreneurs
Purpose: The aim of the article is to identify the key motives and reasons for individuals to start an MLM business, considering their level of knowledge of and experience in the industry. Design/Methodology/Approach: To achieve the designated objective, a quantitative study was designed and conducted among 352 entrepreneurs running MLM businesses in Poland. The target population consisted of individuals collaborating with MLM companies. A purposive sampling method, including the snowball technique, was applied. Given the nature of the study, the CAWI (Computer Assisted Web Interview) method was utilized. A standardized electronic questionnaire was prepared using the Webankieta.pl platform. Findings: The analysis revealed that various motives drive individuals to start MLM activities. The primary reason, mentioned by 26.7% of respondents, is the search for additional income. Satisfaction with MLM products, indicated by 22.2% of respondents, also plays a crucial role, but it is less often the main reason for starting such activities. Recruitment meetings and recommendations from friends or family have a significant impact on the decision to engage in MLM. The analysis of respondents' statements showed that most have a general knowledge of the products and the MLM company they collaborate with, but they lack detailed knowledge about the functioning of the MLM industry. Respondents typically do not have knowledge of the total number of distributors or consultants working with the company. Practical implications: The article provides valuable insights that can inform further research on the development of the MLM phenomenon in Poland and globally. The study's findings can be useful for companies using the MLM distribution model to train their employees and develop strategies for recruiting new business partners. Originality/value: This article focuses on the topic of MLM, which is underexplored in the existing literature. Given the growing significance of this phenomenon in the economic system, there is a justified need for research and analysis in this area.