comparisons of salespeople in ml vs. sl direct selling organizations mia yan jake raynard
TRANSCRIPT
Comparisons of Comparisons of Salespeople in ML vs. SL Salespeople in ML vs. SL
Direct Selling Direct Selling OrganizationsOrganizations
Mia YanMia Yan
Jake RaynardJake Raynard
Background of StudyBackground of Study
• Purpose:Purpose:
– Determine whether ML and SL Determine whether ML and SL salespeople differ on behavioral, salespeople differ on behavioral, motivational, or descriptive motivational, or descriptive characteristicscharacteristics
Implications for managers and Implications for managers and organizationsorganizations
Sample & Data CollectionSample & Data Collection•SampleSample: 22 member companies of : 22 member companies of
the Direct Selling Association in the the Direct Selling Association in the UKUK
• Questionnaire - salespeople in 1Questionnaire - salespeople in 1stst month with the companymonth with the company
• 4050 questionnaires sent - 673 4050 questionnaires sent - 673 usable responses (response rate of usable responses (response rate of 18%)18%)
Multilevel:Multilevel:• AmwayAmway• CabouchonCabouchon• Dorling KindersleyDorling Kindersley• HerbalifeHerbalife• KleenezeKleeneze• Mary Kay CosmeticsMary Kay Cosmetics• Nature’s SunshineNature’s Sunshine• NSANSA• NuSkinNuSkin• NutriMeticsNutriMetics• OriflameOriflame• Studio DeeStudio Dee• World Book Learning JourneyWorld Book Learning Journey
Single Level:Single Level:• Ann SummersAnn Summers• BetterwareBetterware• Encyclopedia BritannicaEncyclopedia Britannica• KirbyKirby• Pippa DeePippa Dee• Princess HousePrincess House• TupperwareTupperware• VorwerkVorwerk• World Book ChildcraftWorld Book Childcraft
Respondent Proportion
Multilevel70%
Single Level30%
Research MethodologiesResearch MethodologiesVariablesVariables::• Job characteristics Job characteristics
– Proving oneself to others; personal feelings of success; Proving oneself to others; personal feelings of success; work rewards and career growth; being in controlwork rewards and career growth; being in control
• Job satisfactionJob satisfaction• Organizational commitmentOrganizational commitment
– Involvement and loyalty; propensity to leaveInvolvement and loyalty; propensity to leave
• Met expectationsMet expectations– Personal growth and well-being; achieving and Personal growth and well-being; achieving and
accomplishing results; job and its image and rewards; accomplishing results; job and its image and rewards; undesirable job characteristicsundesirable job characteristics
• Image of direct sellingImage of direct selling– Hard sell, misleading, illegal; advantages to buyers and Hard sell, misleading, illegal; advantages to buyers and
sellers; better salespeople than retail storessellers; better salespeople than retail stores
Characteristics of Characteristics of RespondentsRespondentsCharacteristicCharacteristic MLML SLSL TotalTotal
Significance of Significance of DifferenceDifference
Percent full-time or self-employed prior to start of direct Percent full-time or self-employed prior to start of direct selling activityselling activity 50.950.9 24.024.0 42.742.7 0.00010.0001
Percent with previous selling experiencePercent with previous selling experience 42.642.6 51.751.7 45.445.4 0.0340.034
Percent with five years or more work experience prior to Percent with five years or more work experience prior to direct selling activitydirect selling activity 73.873.8 63.563.5 70.770.7 0.0350.035
Percent with other job in addition to direct sellingPercent with other job in addition to direct selling 64.364.3 34.534.5 55.255.2 0.00010.0001
Percent for whom direct selling is primary work activityPercent for whom direct selling is primary work activity 32.432.4 62.462.4 41.441.4 0.00010.0001
Percent who would seek another work activity if no longer Percent who would seek another work activity if no longer involved in direct sellinginvolved in direct selling 20.620.6 9.09.0 17.017.0 0.0010.001
Percent who work with more than one direct selling Percent who work with more than one direct selling companycompany 15.215.2 10.910.9 13.913.9 0.0920.092
Percent femalePercent female 71.271.2 73.573.5 71.971.9 0.2970.297
Percent with college or post graduate degreePercent with college or post graduate degree 26.326.3 11.511.5 21.821.8 0.00010.0001
Percent married or living as marriedPercent married or living as married 69.569.5 67.167.1 68.868.8 0.2070.207
Median hours per week devoted to direct sellingMedian hours per week devoted to direct selling 6.76.7 9.49.4 7.67.6 0.00010.0001
Mean intention to quit (where 1=never thought about Mean intention to quit (where 1=never thought about quitting; 6=no longer active)quitting; 6=no longer active) 1.81.8 2.12.1 1.91.9 0.0110.011
Median ageMedian age 37.337.3 33.333.3 36.036.0 0.0130.013
Median incomeMedian income £21,229£21,229 £15,351£15,351 £19,212£19,212 0.00010.0001
Comparison of SalespeopleComparison of Salespeople
Primary Job
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
Single Level Multilevel
Organization Salespeople
DS
as
Pri
mar
y Jo
b
Prior Selling Experience
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Single Level Multilevel
Organization Salespeople
Per
cent
age
with
Sel
ling
Exp
erie
nce
Comparison of SalespeopleComparison of Salespeople
Median Age
31
32
33
34
35
36
37
38
Single Level Multilevel
Organization Salespeople
Med
ian
Age
Median Income
£0
£5,000
£10,000
£15,000
£20,000
£25,000
Single Level Multilevel
Organization Salespeople
Med
ian
Inco
me
Comparison of SalespeopleComparison of SalespeopleEducation
11.50%
26.30%
0.00% 10.00% 20.00% 30.00%
Single Level
Multilevel
Org
aniz
atio
n Sa
lesp
eopl
ePercentage with College or Post Graduate
Education
Work Experience
63.50%
73.80%
55.00% 60.00% 65.00% 70.00% 75.00%
SingleLevel
Multilevel
Perc
enta
ge w
ith 5
+ ye
ars
of W
ork
Expe
rienc
e
Organization Salespeople
Comparison of SalespeopleComparison of Salespeople
Median Hours a Week for DS
0.0 2.0 4.0 6.0 8.0 10.0
Single Level
Multilevel
Org
aniz
atio
n S
ales
peop
leMedian Hours
Mean Intention to Quit
1.4 1.6 1.8 2.0 2.2
Single Level
Multilevel
Org
aniz
tion
Sal
espe
ople
Mean Intention to Quit
Comparison of SalespeopleComparison of SalespeopleSingle Level SalespeopleSingle Level Salespeople• median age 33.3median age 33.3• median income – median income –
15,35115,351• education – 11.5% education – 11.5%
college or post college or post graduategraduate
• work experience – work experience – 63.5% (5+ years)63.5% (5+ years)
• primary job – 65.5%primary job – 65.5%• Prior selling experience Prior selling experience
– 51.7%– 51.7%• Median hours a week Median hours a week
for DS – 9.4for DS – 9.4• Mean intention to quit Mean intention to quit
– 2.07– 2.07
Multilevel SalespeopleMultilevel Salespeople• median age 37.3median age 37.3• median income – median income –
21,22921,229• education – 26.3% education – 26.3%
college or post college or post graduategraduate
• work experience – work experience – 73.8% (5+ years)73.8% (5+ years)
• Primary job – 35.7%Primary job – 35.7%• Prior selling experience Prior selling experience
– 42.6%– 42.6%• Median hours a week Median hours a week
for DS – 6.7for DS – 6.7• Mean intention to quit – Mean intention to quit –
1.751.75
Discussion: SL SalespeopleDiscussion: SL Salespeople• importance of proving importance of proving
themselvesthemselves– desire to increase self-desire to increase self-
confidence (younger, less confidence (younger, less educated, less educated, less experienced, lower income)experienced, lower income)
• importance of selling a importance of selling a highly competitive highly competitive product (boost their product (boost their confidence)confidence)
• independent contractor – independent contractor – simply sells the product/ simply sells the product/ service service – do not assemble a cadre of do not assemble a cadre of
salespeople/ downlinessalespeople/ downlines– Consider DS as their Consider DS as their
primary work activity (more primary work activity (more hrs)hrs)
– Equates success with Equates success with personal sales levelspersonal sales levels
Discussion: ML SalespeopleDiscussion: ML Salespeople• personal selling is not personal selling is not
the only focusthe only focus– build and maintain build and maintain
one’s organization, a one’s organization, a network of downlines.network of downlines.
• attains success attains success through intrinsic through intrinsic feelings of personal feelings of personal satisfaction satisfaction (recruiting, training, (recruiting, training, and motivating others)and motivating others)
• MLs move beyond a MLs move beyond a tactical focus on tactical focus on completing tasks (SLs) completing tasks (SLs) – strategic focus on strategic focus on
facilitating the facilitating the completion of plans completion of plans through othersthrough others
Implications for ManagersImplications for Managers• Single Level DS companies:Single Level DS companies:
– Focus on recruiting younger, less Focus on recruiting younger, less highlyhighly educated, less experienced people who view educated, less experienced people who view direct selling as their primary work activitydirect selling as their primary work activity
• Multilevel DS companies:Multilevel DS companies:– Recruit older, more Recruit older, more highlyhighly educated people educated people
with greater full-time experience who wish with greater full-time experience who wish to maintain another job in addition to DS to maintain another job in addition to DS workwork
Single Level OrganizationsSingle Level Organizations
• Training focus:Training focus:– sales skillssales skills– product knowledgeproduct knowledge– Competitive advantageCompetitive advantage– Self-motivationSelf-motivation– Confidence building Confidence building
activitiesactivities
• Shorter-term sales Shorter-term sales goals – build their goals – build their confidence confidence incrementallyincrementally
Single Level (cont’d)Single Level (cont’d)
• Recognition Recognition programs programs highlighting highlighting achievements achievements
• Compensation Compensation payments should be payments should be given frequentlygiven frequently
• Stress individual Stress individual performance rather performance rather than competition than competition with a whole groupwith a whole group
Multilevel OrganizationsMultilevel Organizations
• Training focus:Training focus:– Activities building Activities building
organizational organizational commitmentcommitment
– Communications or Communications or newsletters to highlight newsletters to highlight group achievementsgroup achievements
– Group meetings for those Group meetings for those within a person’s within a person’s downlinedownline
– Any type of social Any type of social activitiesactivities
Amway team Amway team activity (Germany)activity (Germany)
Amway Team (Taiwan)