Reasons for Leaving Multi-Level Marketing on the Polish Market
Purpose: The purpose of this article is to identify the reasons for resigning from participation in Multi-Level Marketing (MLM) systems in the Polish market and to determine the factors influencing the decision to terminate cooperation with companies operating within this model. The analysis takes into account economic, organizational, and ethical aspects, as well as issues related to the motivation of MLM participants. Design/Methodology/Approach: A qualitative-quantitative approach was applied in the study. The collected data originated from a survey conducted using the CAWI method among former participants of MLM systems in Poland. The qualitative analysis involved the categorization and interpretation of respondents’ open-ended answers to the question: “What was the reason for resigning from activity in your most recent MLM company?”. The results were supplemented with a literature review on motivation, organizational loyalty, and the management of direct sales networks. Findings: The research results indicate that the most common reasons for resignation include the lack of measurable financial benefits, excessive effort required to achieve desired outcomes, difficulties in sales and recruitment, and the low attractiveness of marketing plans. Among ethical factors, respondents mentioned characteristics resembling financial pyramids and a lack of transparency in company operations. Some participants also cited personal reasons such as lack of time, other professional goals, or a change in their preferred work style. The findings suggest that overly high expectations placed on participants and inadequately designed motivational systems contribute to increased turnover within MLM structures. Practical implications: The obtained results may serve as a basis for developing more effective strategies aimed at retaining distributors within MLM structures. They highlight the need for greater transparency of marketing plans, the implementation of fair and adequate compensation systems, and the enhancement of managerial competencies among network leaders. The conclusions may be applied by MLM companies to reduce participant turnover and to strengthen motivation, satisfaction, and loyalty among their members. Originality/value: The article represents one of the few studies addressing the reasons for resignation from MLM activities in Poland. It offers a new research perspective by focusing not on the motives for joining, but on the mechanisms of withdrawal and declining engagement within MLM structures.