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Researching Risk Perception and Risk-Taking Behaviors of Women 1

Researching Risk Perception and Risk-Taking Behaviors of Women in Multilevel Marketing

Companies in the U.S.

An Application to the Direct Selling Education Foundation

1667 K Street, NW, Suite 1100

Washington, DC 20006

Research Project to Develop New Knowledge about the Recruiting Behaviors of Multilevel

Marketing Agents to Inform Training Programs, Expand Multilevel Marketing Teams, and

Increase Industry Revenues

Author:

Tara Jackson

Park University


Abstract

This exploratory research project will discover how the success of women in multilevel

marketing (MLM) organizations can be predicted by understanding their risk perception and

risk-taking behaviors. Although the body of research on MLM has begun to grow in recent years,

opportunities to understand, utilize, and revolutionize this industry abound. The bodies of

research on female entrepreneurship and direct selling success from behavioral and

psychological perspectives have almost entirely excluded MLM from their investigations. This

research will help to fill in that gap by examining risk perception and risk-taking in a female

dominated MLM organization, Mary Kay Cosmetics (MKC). MKC has been a leader in the

predominately female driven direct selling industry as a result of its business development

practices. This research will support innovation in training and development in MKC and other

MLM organizations because of its focus on recruiting, the MLM activity that most determines

the level of success of individual selling agents and the growth of MLM companies. Funds will

be used to compensate personnel and cover transportation, supplies and technological expenses

incurred while collecting data, analyzing data, writing the final research article and handling

administrative tasks.

Keywords: entrepreneur, women, multilevel marketing, Mary Kay Cosmetics, risk perception


Table of Contents

Abstract 2

I. Introduction 4

Statement of Problem 4

Purpose of Research 4

Significance of Research 5

II. Background 6

Literature Survey 6

III. Description of Proposed Research 10

Method 10

IV. Budget 14

V. Description of Relevant Institutional Resources 15

VI. Personnel 16

VII. References 17

VIII. Appendices 22


Introduction

Statement of Problem

Mary Kay, Inc., the largest direct selling company in the United States has over 3.9

million independent business contractors across the globe (Market Watch, 2015; Mary Kay,

2015), but only a very small percentage of these business women have maintained levels of

leadership in the company. The total number of Mary Kay (MK) Sales Directors, the leaders in

the company is less than 2% of the amount of consultants which indicates a low rate of success

in recruiting and/ or a lack of attempts in recruiting (Mary Kay, 2015). In Mary Kay Cosmetics

and other multilevel marketing organizations (MLMs), the business contract provides the MK

salesforce the opportunity to earn commissions on the sales of their recruits. Therefore,

recruiting, or team building drives business for MLM companies and determines the level of

leadership that its selling agents achieve. The Mary Kay Awesome Achiever (MKAA) unit has

32 direct selling agents who live, work and train in the Memphis (TN) metropolitan area; only

two are currently in the advanced career level of Independent Sales Director. The majority of

MKAAs have not achieved a higher status in their career because of limited recruiting success.

This study will examine the relationship between MKAA’s perception of risk in recruiting and

their subsequent recruiting behaviors and success.

Purpose of Research

Like the majority of companies in the Directs Selling Association, Mary Kay, Inc has a

predominately female entrepreneurial salesforce with a low level of career advancement. Gender

biases held by men and women have negatively impacted society’s perception of female

entrepreneurship (Thebaud, 2015). Entrepreneurship is often viewed by both genders as an


endeavor more suitable to the aggressively risk taking nature of a man (Thebaud, 2015). If

women unconsciously assume that they lack inherent entrepreneurial qualities, they may not be

confident about engaging in entrepreneurial activities or encouraging other women to start a

business. This is very unfortunate considering that research shows how the more risk averse

nature of women is more conducive to successful entrepreneurial behaviors. Because perception

of risk is based heavily on the amount of information that is readily available and the manner in

which it is framed, more factual studies on female entrepreneurship, especially in MLMs are

needed.

This study will examine the behaviors of the MKAA unit located in the Memphis, TN

metropolitan area to discover the relationship between the recruiting success of the MK ladies

and their perception of risk and risk taking behaviors in recruiting activities. This research will

seek to find a pattern that can be used to predict MLM agents recruiting success based on their

perception of risk in recruiting activities and risk taking behaviors. The findings of this research

on Mary Kay selling agents will shed light on the stagnant career advancement of direct selling

agents throughout the industry and lay the foundation for targeted training programs and

methods to improve team building behaviors.

Significance of Research

In the U.S. market system, women are now about only half as likely to become

entrepreneurs as men (Morelix, Fairlie, Russell, & Reedy, 2015). Morelix et al. found that in

2014, only 37% of businesses were started by women in the U.S. (2015). However, women made

up over seventy percent of the direct selling salesforce. In 2010, businesses owned by women

grew at more than double the rate of others and were responsible for 23 million jobs.


Consequently, female entrepreneurs contribute to poverty reduction and economic growth in the

U.S. Because strengthening the female entrepreneur is so important for the success of the U.S.

economy, identifying ways to bolster the success of female entrepreneurs is a necessary research

endeavor.

The body of research on women in direct selling organizations is limited, but scholarly

research focused on female business practices in MLM is nearly non-existent. There are notable

studies on female entrepreneurship and risk taking behaviors and attitudes of women

entrepreneurs that contribute to the body of research underlying this proposed study. Once

published and/ or included in the Direct Selling Education Foundation (DSEF) research archives,

this study will provide implications for further research on women in MLM and other

entrepreneurial endeavors. This study is necessary and important for both male and female

entrepreneurs because the decisions MLM entrepreneurs make when facing the risk of failure

will impact their team building performance. Understanding how risk is related to entrepreneurs’

team building activities can help experts design training and tools to lower or eliminate these

perceptions of risks and contribute to greater chances of success in multi-level organizations.

Understanding the characteristics of successful team builders in a MLM can lead to the creation

of policies or training models that increase the growth and development of these organizations.

Background

Literature Survey

This literature review examines studies about Mary Kay, Inc, entrepreneurial risk, and

multilevel marketing (MLM) in order to compare the recruiting success Mary Kay Independent

Business Owners who are willing to risk failure and those who are not.


Mary Kay Cosmetics: The purpose of the Mary Kay Cosmetics Company (MKC) is to

enrich women’s lives by providing women career opportunities (Ash, 1994). The company has a

dual marketing structure meaning that there are two functions of Mary Kay, Inc.—the

independent contractors and the corporation. The independent contractors enter the company as

beauty consultants and are able to move to the highest status in Mary Kay as a national sales

director provided that they recruit a designated amount of team members and maintain the

appropriate level of sales. This structure of the independent business contractor function of MKC

makes it a MLM organization.

Multilevel Marketing: Multilevel marketing (MLM) is a marketing strategy in which

the distributors of products or services are compensated from their own retail sales and from

retail sales made by their recruits (Vander Nat & Keep, 2002; Xardel, D., 1993; Hossan,

Aammad & Ferdous, 2012; World Federation of Direct Selling Association, 2015). In 2014, the

top four skin care and cosmetic DSA companies, Mary Kay, Inc., Arbonne International, Avon

Products, Inc, and Nu Skin generated 16 billion dollars in revenue (Market Watch, 2015). The

$34.5 billion in retail sales, 18.2 million people in the MLM salesforce, and projected increase of

activity and sales should substantiate the need for more scholarly research in the field of MLM

(Direct Selling Association, 2015; Euromonitor, 2015).

Opponents of MLMs argue that MLMs are difficult to succeed in noting that salesforce

turnover rates can be as high as 100% (Peterson & Wotruba 1996; Wotruba & Tyagi, 1991).

Training is key to building successful MLM teams (Peterson & Wotruba 1996; Wotruba & Tyagi

1991). Euromonitor (2015) reported that direct selling organizations are enhancing the training

they provide their sales agents in order to “improve their retention rates in order to boost sales.”


Entrepreneurial Risk: Experts on entrepreneurship (e.g., see Cunningham & Lischeron,

1991; Raffiee & Jie, 2014) acknowledge that it is the “core of the dynamics of modern

capitalism, [and] the entrepreneur is the ‘driving force of the whole market system’” (Kor,

Mahoney, & Michael, 2007; Mises, 1998, p.29). Merriam-Webster (2015) defines the

entrepreneur as “a person who organizes, manages, and assumes the risks of a business or

enterprise.” Entrepreneurship has always been associated to risk, the “key ingredient of

entrepreneurial activity” (Shaver & Scott, 1991, p. 23). Because of its value and impact on our

nation’s economy, entrepreneurial risk should be studied and used to maximize business

dealings.

Entrepreneurial risk taking behaviors can be described as being either risk tolerant (more

willing to take risks) or risk averse (more willing to avoid risk). As noted in the Thebaud (2015)

study, people often consider risk tolerance as an entrepreneurial trait, but research has not

confirmed this assumption. In fact, some studies (Shaver, Williams, & Scott, 1990; Bullough,

Renko & Myatt, 2014; NcNerney, 1994) have found that entrepreneurs’ willingness to take risks

is situational. This argument could suggest that the fear of failure can make team building a risky

venture for MK ladies.

In 2003, Parry, Wharton, and Fugate conducted an experimental study to determine if risk

taking could be developed in entrepreneurs in order to increase their success rate in

entrepreneurial activities. Parry et al. (2003) found that after the experiential course, the women

in the study exhibited reduced avoidance in risk taking (risk aversion). Mich, Conners, and

Feldman (2014) conducted an experimental study using a Personal Selling Experiential Learning

course that resulted in a positive impact on risk aversion. These studies suggest that training

entrepreneurs -- especially female entrepreneurs -- can help lower their aversion to risk and


improve their knowledge, confidence, and perceptions in entrepreneurial activities such as team

building (Mich et al., 2014; Parry et al, 2003). MK training leaders must train their MK ladies to

recognize what they are thinking and feeling when they are engaged in or faced with recruiting

activities, so they can develop methods to effectively whether a situation poses risk and make

good business decisions (Caine & Caine, 2006).

A previous survey of literature on entrepreneurial risk, MLM recruiting and MKC

discovered at least three groups of women from the MKAA unit who will seek to advance in MK

through recruiting. The first group consisted of MK ladies who were willing to risk failure they

perceived to be present in recruiting activities (they persevered through recruiting activities). The

second group was MK ladies who were not willing to engage in recruiting activities due to the

risk of failure they perceived in recruiting activities. Studies (e.g., see Corman, Perles, &

Vancici, 1998; Kor et al., 2007) concluding that successful entrepreneurs often avoid risk by

creating new opportunities to grow and succeed revealed an additional group of entrepreneurs

—“cannot lose” entrepreneurs. Because these successful entrepreneurs transform situations so

that they cannot lose, they do not often consider their business activities to be risky (McNerney,

1994). The “cannot lose” group of MK ladies is made up of women who may not be willing to

risk failure, but still engage in recruiting. These women may not perceive any risk of failure in

recruiting, or they may change elements of recruiting to eliminate the risk involved. Finally, the

last group that was discovered was the group of MK ladies who may be willing to risk failure but

were not willing to risk other factors that impact recruiting such as a loss of finances,

relationships, or pride.


Description of Proposed Research

Method

The goal of this study is to uncover a pattern in the relationships between MK ladies’

perceptions of risk of failure and risk taking behaviors that can predict recruiting success in MK.

Between July 7, 2016 and December 8, 2016, twenty MK ladies who have agreed to participate

in the study group will report their recruiting activities and new team members on a weekly basis

using their weekly accomplishment sheets. (See Appendix D.) At every weekly unit meeting

during the study period, the MK ladies will respond to three to six interview questions about

their perception of risk of failure in recruiting activities and their related actions. The data from

the weekly accomplishment sheets and interviews will be analyzed to discover the correlation

between the MKAA groups and the different elements that impact the recruiting success of the

groups with respect to risk perception and risk taking. (The specific relationships to be analyzed

can be found below.) The Data Specialist and Principal Investigator for this project will report

their findings in a research article that will be added to the Direct Selling Education Foundation’s

Research and Case Study Archive. (See Table 1.)

Objective 1: Determine correlation between the perception of failure in recruiting and risk

taking behaviors.

How do MK ladies’ perceptions of risk of failure in recruiting affect their recruiting behaviors?

Hypothesis: The more often MK ladies perceive risk of failure in recruiting the fewer recruiting

activities they engage in (Negative correlation)

Objective 2: Determine correlation between the perception of failure in recruiting and an

increase in team members.


How does MK ladies’ perception of risk of failure in recruiting activities affect their rate of

adding team members?

Hypothesis: MK ladies who perceive risk in failing in team building more often recruit fewer

team members (Negative correlation)

Objective 3: Determine correlation between an increase in team members and the

elimination of risk (of failure) in recruiting

How does eliminating the possibility of risk in recruiting impact MK ladies’ increase in team

members?

Hypothesis: MK ladies who eliminate the possibility of failure in recruiting more often recruit

more team members (Positive correlation)

Objective 4: Compare the recruiting success of MK ladies who perceive a risk of failure in

recruiting to those who perceive other risks in recruiting.

How do MK ladies’ respond to risk of failure vs. other risk they perceive in recruiting?

Hypothesis: MK ladies engage in fewer recruiting activities the more they perceive a risk of

failing in recruiting (Negative correlation)

Study Participants Demographics: Participant Pool consists of at least 15 of the 32

independent business owners in the Mary Kay Awesome Achievers unit (Memphis, TN

metropolitan area) who attend weekly training meetings at least three times a month. Participants

range in age from 25-55, with a mean age of 45.67. All of the participants are female. A

majority of the participants are African American (71.8%), followed by Hispanic (15.6 %),

Caucasian (9.4%) and the 3.1% from an “other” ethnicity. Only 6.2% of the Awesome Achievers

in the Memphis area are Sales Directors, 6.2% are team leaders, 9.4% are star recruiters, 15.6%

are Senior Consultants, and 62.5% are consultants.


Study Participants Eligibility: Participants are eligible to participate based on consistent

(3 or more per month) attendance at weekly training meetings and a signed agreement. (See

Appendix A.) The agreement will require participants to provide weekly accomplishment sheets

and responses to weekly interviews over a six month period. They will receive a small stipend at

the end of the study if they honor the stipulations of their contract in a reasonable manner. Final

decisions are made at the discretion of the project’s PI. Although all Awesome Achievers are

invited to participate in the study, any Awesome Achiever who refuses to sign and adhere to the

Participant Agreement will be disqualified and excluded from this study.

Measures

Organizational records: Weekly accomplishment sheets generated on the MK Intouch

website will be collected from the Sales Director’s assistant each Thursday. The accomplishment

sheets will be submitted to the Data Specialist by the beginning of the Thursday weekly unit

meeting.

Interviews: The investigators will interview all participants who have submitted weekly

accomplishment sheets before, during or after the meeting. The interview will consist of

participants answering three to six questions (See Appendix C). The interviewer will ask each

participant, “Did you fear failing at recruiting when you considered engaging in recruiting last

week?” If the response is “yes,” the follow-up question is “Did you engage in recruiting

activities in spite of fearing failure in recruiting?” If the response to the initial question is “no,”

the follow-up question is “Did you eliminate or reduce your chance of failure in recruiting last

week?” “Did you fear something other than failing during your recruiting efforts last week?” If

respondents answer “yes,” the follow up question is “What did you fear?”


Statistical Data Analysis: Correlational research study (prediction) design is used

because it can be used to predict phenomena based on given variables. This research project will

determine how the predictor variables of risk perception and risk taking relate to the criterion

variables of increased team building numbers and increased team building activity engagement.

Experimental research could not be used as there is no single control group on which a change in

variables could effect change. The data team will develop a codebook to store information about

each research variable. Then they will use the double entry procedure to input the data from the

interviews and weekly accomplishments sheets into an Excel spreadsheet, create graphics such

as histograms, descriptive statistics, and bivariate plots, calculate correlations, test correlations’

significance and generate a correlation matrix reflecting all of the variables.

Challenges in this Research Study

Challenge 1: Because Mary Kay ladies determine their own success goals, members of

the MKAA unit may not have identified team building or career advancement as a goal for their

business. Participation in this study will be limited to MK ladies who identify career

advancement as a goal for their MK business.

Challenge 2: Honest feedback is necessary to develop a body of qualitative data from

which analysts can compare and correlate with quantitative data and draw conclusions. One

interviewer (Data Specialist) who is not affiliated with MK will ask MK ladies about their

perceptions of risk in recruiting in the previous week. The MK ladies will share their feedback in

private settings and will not receive any feedback from the interviewer. The private, non-

judgmental environment will be developed to encourage honest feedback.

Challenge 3: Inconsistent attendance at weekly meetings will negatively impact the risk

perception feedback that will be taken in interviews. MK ladies will be required to commit to


weekly feedback interviews at weekly meetings, by email, or by phone. Consistent feedback will

be a stipulation in their agreements in order for participants to receive stipends for their

participation.

Budget

The $21,370.74 budget for this research covers expenses related to personnel,

telecommunications costs, travel, supplies, and study participant stipends. (See Table 2.)

Personnel

Principal Investigator (PI): Tara Jackson, graduate student at Park University, will

oversee the project. She will be responsible for hiring the Data Specialist. In addition, she will be

responsible for budget administration, project evaluation and the development of the research

document that will be submitted to the Direct Selling Education Foundation for inclusion on their

website. The PI will be compensated $5834 for seven months of service at 25% of an annual

$30,000 salary, with no fringe benefits.

Data Specialist: One Data Specialist (DS) will have a background in statistics and a

doctorate’s or will be close to completing a doctoral degree. He or she will attend the weekly

Awesome Achiever unit meetings, collect data, interview MK ladies, analyze the study data,

report the findings and help craft the final research article. The DS will be compensated $12,222

for eleven months of service at 25% of an annual salary of $40,000, with no fringe benefits.

Telecommunications

Telecommunications costs for a LinkedIn job posting, mobile phone usage, and home

office internet total $604.75. The cost of a one month LinkedIn job posting for the DS position is

$299. The DS will use mobile phones to record interviews and communicate with study

participants. Mobile phone data charges and taxes incurred by the DS will be compensated at $70


for eight months at 25% effort. The DS and PI will use home office internet for data entry and

analysis. The $41 cost of internet at 25% effort totals $143.50 in compensation for the PI for 14

months of usage and $92.25 for the DS for nine months of usage.

Travel

The DS will be reimbursed for gas mileage to and from the Awesome Achiever weekly

unit meeting. A fifty mile round trip taken twenty-two times over the course of the study at the

current rate of 57.5 cents per mile totals $632.50.

Supplies

The total cost of supplies needed to mail stipends and print research documents,

contracts, and planning materials is $77.49. This amount includes $9.80 for 20 postage stamps

($9.80), $2.17 for a box of envelopes, $15.27 for two reams (1,000 sheets) of copy paper, and

$50.25 for the cost of toner for home office printers ($0.046 per page). All costs of supplies

include 9.25% sales tax.

Stipends

Mary Kay Awesome Achiever study participants will receive a $100 stipend for their

satisfactory participation. Twenty participants at $100 each totals $2000 for the cost of stipends.

Description of Relevant Institutional Resources

One benefit of having a Mary Kay consultant as a PI for this research project is her

familiarity with the resources Mary Kay, Inc provides selling agents to develop skills to reach

goals and track their progress towards those goals. The PI enjoys access to the Mary Kay Intouch

website where Mary Kay consultants submit weekly accomplishment data, retrieve educational

information and track their unit’s progress toward goals.


Personnel

The two contributors to this research are Tara Jackson, Principal Investigator (PI) and one

undetermined Data Specialist (DS).

Tara Jackson is a Mary Kay consultant and a member of the Awesome Achiever unit. She

has over ten years of experience as a MLM selling agent and training in MLM networking.

Besides having written the proposal and developed the literature review to support this research,

Tara will lead the implementation of this research study. The PI will manage the budget,

gathering resources as needed and distributing compensation. The PI will be the lead evaluator in

this research developing and analyzing participant feedback surveys and eliciting feedback from

the DS to use as formative assessment. The PI will write the research report that documents the

study and its findings, and she will submit them to the DSEF. The PI will be compensated for her

work in this study at a rate of 25% effort.

The PI will hire the DS in March 2016. He or she will have a background in statistics and

a doctorate’s or will be close to completing a doctoral degree. The DS will have authored a study

in which he or she has conducted a statistical analysis. The DS may not be a current MK agent.

The DS will be responsible for conducting the study and assisting the PI with writing the

research article. He or she will attend weekly Awesome Achievers meetings for six months to

interview study participants about their perception of risk and to collect weekly accomplishment

sheet data that reveals the agents’ recruiting activities. The DS will code the information, enter it

into an Excel data program, analyze the data and report the results to the PI. The DS will be

compensated for his or her work in this study at a rate of 25% effort.


References

Ahern, E. (2011). The benefits of pink think: A history of the Mary Kay Cosmetics Company in domestic and global contexts. Tempus, 12 (2).

Ash, M.K. (1994). Miracles Happen: The Life and Timeless Principles of the Founder of Mary Kay, Inc. New York: Quill.

Brown, S., Dietrich, M., Nunez, A. & Taylor, K. (2013). Business ownership and attitudes towards risk. Applied Economics. 45, 1731-1740.

Bullough, A., Renko, M., & Myatt, T. (2014). Danger zone entrepreneurs: The importance of resilience and self-efficacy for entrepreneurial intentions. Entrepreneurship: Theory and Practice, (3), 473.

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Direct Selling News. (2015). 2015 DSN North America fifty list. Retrieved from http://directsellingnews.com/index.php/view/2015_dsn_north_america_50_list#.VfeoqxFViko

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Tri-State Bank of Memphis. (2015). Deposit Products. Retrieved from http://www.tristatebank.com/personal-banking/deposit-products/

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Kor, Y.Y., Mahoney, J.T., & Michael, S.C. (2007). Resources, capabilities and entrepreneurial perceptions. Journal of Management Studies, 44(7), 1187-1212. doi:10.1111/j.1467-6486.2007.00727.x

Market Watch (2015). Avon is no longer the no. 1 global direct sale company. Retrieved from http://www.marketwatch.com/story/avon-is-no-longer-the-no-1-global-direct-sales-company-2015-02-12


Mary Kay, Inc. (2015). Company Facts. Retrieved from http://www.marykay.com/en-US/About-Mary-Kay/CompanyFounder/Pages/Company-Quick-Facts.aspx

McNerney, D. (1994). Truths and falsehoods about entrepreneurs. HR Focus, 71(8).

Mich, C, Conners, S., & Feldman, L. (2014). The impact of experiential learning on student perceptions of a career in sales. Academy Of Marketing Studies Journal, 18(2), 1.

Mises, L. V. (1998). Human action: A Treatise on Economics. Scholar’s Edition. Auburn: Ludwig von Mises Institute.

Morelix, A., Fairlie, R., Russell, J., & Reedy, E. (2015). The Kauffman Index 2015: Startup Activity. State Trends. Ewing Marion Kauffman Foundation Retrieved from http://www.kauffman.org/~/media/kauffman_org/research%20reports%20and%20covers/2015/05/kauffman_index_startup_activity_national_trends_2015.pdf

Parry, L., Wharton, R. & Fugate, R. (2003). The longitudinal effects of entrepreneurship training on risk tolerance: a look at similarities and differences between male and female undergraduate students. Developments in Business Simulation and Experiential Learning. 2 (30), 207-212

Peterson, R.A. & Wotruba, T.R. (1996). What is direct selling? Definition, perspectives, and research agenda. The Journal of Personal Selling and Sales Management, 1 (Fall).

Raffiee, J., & Jie, F. (2014). Should I quit my day job?: A hybrid path to entrepreneurship. Academy of Management Journal, 57(4), 936-963. doi:10.5465/amj.2012.0522

Shaver, K. & Scott, L. (1991). Person, process, choice: The psychology of new venture creation. Entrepreneurship: Theory and Practice, 16(2), 23.

Shaver, K., Williams S., & Scott, L. (1990). Entrepreneurial beliefs, creativity and risk-taking: Personality or situation? [unpublished manuscript] College of William and Mary.

Thebaud, S. (2015). Status beliefs and the spirit of capitalism: Accounting for gender biases in entrepreneurship and innovation. [Abstract]. Social Forces, (94) 1. doi: 10.1093/sf/sov042

Vander Nat, P.J. & Keep, W.W. (2002). Marketing fraud: An approach for differentiating multilevel marketing from pyramid schemes. Journal of Public Policy and Marketing, 21(1), 139-151

World Federation of Direct Selling Association. (2015). What is direct selling? Retrieved from http://www.wfdsa.org/about_dir_sell/?fa=whatisds

Wotruba, T. R. & Tyagi, P. K. (1991). Met expectations and turnover in direct selling. Journal of Marketing, 55, 24-35.

Xardel, D. (1993). The Direct Selling Revolution: Understanding the Growth of the Amway Corporation. London: Blackwell Publishing.


Table 1.

Research Project Timeline with Procedures and Evaluation Method

Date Procedure DetailsFebruary 2016

Process Principal Investigator (PI) opens interest bearing checking account (NOW) at Tri-State Bank of Memphis, TN (2015) and deposits grant award into the account.

March through April 2016

Process PI recruits Data Specialist (DS) by April 1 and provides DS with the literature review and other resources supporting the study.PI issues disbursement of ½ of total compensation for PS and DI on April 29.DS studies resources to develop deeper understanding of research.

May 2016 Formative Assessment

DS and PI meet to review plans and develop norms for collaboration. (Do the DS and PI have a shared vision for the project?)

June 2016 Process DS gets Awesome Achievers Sales Director’s written permission to conduct research on her team. (See Appendix B.)DS collects the study participant agreements and contact information.

Formative Assessment

DS contacts study participants between June 15 and June 30 to remind them of the expectations of the six month study and to answer any questions or address any concerns.PI submits first progress report (for the period between the grant awarding date and June 2016) to the DSEF via email by June 24. (See Appendix E.)

July through December 2016

Process DS attends weekly Awesome Achiever unit meetings to collect data between July 7 and December 8.DS codes and enters data into Microsoft Office database.


PI and DS meet to assess quality and quantity of data collected to-date and discuss data coding on August 19.PI and DS provide feedback about communication, work responsibilities and any concerns on August 26.


PI submits second progress report (for the period between June 2016 and September 2016) to the DSEF via email by September 23.


PI emails a Survey Monkey questionnaire on October 6 to inquire about the study participants’ level of comfort with the DS, any challenges they have faced in the study, and any positive experiences they have had to-date.


PI and DS meet on November 18 to discuss participant questionnaire, work experiences and plan for end of study data analysis and data submission.


PI submits third progress report (for period between September 2016 and December 2016) to the DSEF via email by December 16.

January Process DS conducts a correlational study using various variables from the


2017 six month study (amount of new team members, recruiting efforts, times fear of failure was perceived in recruiting, times risk of failure was eliminated from recruiting activities, and times other fears impacted recruiting) to test the hypotheses in this research.

Process PI mails stipends to participants on January 20.Formative Assessment

PI and DS meet to discuss data analysis results and personal assessment of the research project (its weaknesses and strengths) on or before January 30.

February through March 2017

Process PI issues disbursement of remaining compensation to DS and PI on February 17.PI and DS use data analysis results to write research study and submit it to the DSEF by March 28 along with final progress report and financial accountability statements.

April 2017 Process PI emails research study to study participants before April 28.


Table 2.

FY2016-2017 Budget

Personnel Salary Technology Travel Supplies StipendsTotal

Compensation2016-2017

Principal Investigator

(.25 FTE)

$5834.00 $143.50(home internet)

$32.76(1/2 paper and ink

budget)$6010.26

Data Specialist

(.25 FTE)

$12,222.00 $162.25(mobile and home

internet)

$632.50(mileage:

1,100 miles)

$32.76(1/2 paper and ink

budget)$13,049.51

20 Stipends for MK Awesome

Achievers Study Participants

($100 ea.)

$2000.00 $2000.00

$299(LinkedIn job

posting)

$11.97(postage and envelopes)

$310.97

Total Budget for Study $18,056.00 $604.75 $632.50 $77.49 $2000.00 $21,370.74


Appendix A

Risk Perception and Risk-taking Behaviors of Women in Multilevel Marketing: Mary Kay Recruiting

Participant Agreement

I _______________________ agree to participate in a research study about the recruiting (print name) activities and success of Mary Kay independent business owners in the Awesome Achiever unit (Memphis, TN). I understand that no personal identifying information will be revealed or shared in this study. I understand that I will not receive any compensation for my dedicated participation besides a stipend of ($100) that will be paid to me no later than one month after the conclusion of this study (January 2017).

Dedicated participation will require the following commitments by me.

Initial by each statement below.□ Weekly participation in Awesome Achiever unit meetings (at least three per month)

□ Submission of completed weekly accomplishment sheets by each Thursday via Mary Kay Intouch (or physical Mary Kay, Inc. approved weekly accomplishment sheet document) reflecting work from the previous (Monday-Sunday) work week.

□ Weekly participation in 2-5 minute interviews at weekly unit meetings (or via email or phone if necessary).

I understand that my inability to honor the commitments to dedicated participation listed above will disqualify me from participation in this study and any portion of the stipend.

By signing below, you agree to the terms of this agreement and participation in this research study.

_________________________________________ ______________________(Signature) (Date)

By providing your email below, you will receive an electronic copy of this completed research.


Appendix B

Risk Perception and Risk-taking Behaviors of Women in Multilevel Marketing: Mary Kay Recruiting

Sales Director/ Unit Participation Agreement

As the Sales Director of the Awesome Achiever unit, you are being asked to commit to a six-month study on your unit’s risk perception and risk taking behaviors in recruitment activities. This research will be added to the Direct Selling Education Foundation’s Research and Case Study Archives and used to help support more effective recruiting focused training of women in multi-level marketing organizations. The terms of this agreement are listed below.

No personally identifiable information about the members of the Awesome Achiever unit will be shared or revealed in the study.

A Data Specialist will attend every weekly meeting from July 7 to December 8 to interview participants before, during and/ or after each weekly unit meeting with each interview lasting between 2-5 minutes per participant. The Data Specialist will take special care to not disrupt the unit’s meeting activities.

The first twenty members of your unit to complete an agreement to participate in this study will receive a $100 stipend. No preference will be given for specific career levels. Mary Kay ladies on all career levels, including Sales Director are encouraged to participate.

If you agree to the terms of this contract, please write the statement below, sign and date.

I, _______ agree to the terms of the Risk Perception and Risk-Taking Behaviors of Women in Multilevel Marketing: Mary Kay Recruiting Sales Director/ Unit Participation Agreement.

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_________________________________________ ______________________(Signature) (Date)


Appendix C

Interview Questions for Study Participants

Participant Name: Date of Interview:

Reporting on Business Conducted the week of:Week Total Number of Recruiting Activities:

Weekly Total of New Team Members:

Weekly Total Sales:

1. Did you fear failing at any recruiting activities last week?

Yes. (Go to Question 2.) No. (Go to Question 3.)

2. Did you engage in recruiting activities last week in spite of the fear you perceived?


3. Did you eliminate or reduce your chance of failure in recruiting last week?


4. Did you fear anything other than failing during your recruiting efforts last week?

Yes. (Go to Question 5.) No. (End of Interview)

5. What else did you fear during your recruiting efforts last week?

Record response here.

(End of Interview)6. How did you eliminate or

reduce your chance of failure in recruiting last week?

Record response here.

(End of Interview)


Appendix D

Mary Kay, Inc. (2007). Weekly Accomplishment Sheet. Retrieved from http://content2.marykayintouch.com//Content/Education/CustomerService/WeeklyAccomplishSheet.PDF


Appendix E

Progress Report Summary to the Direct Selling Education Foundation

Principal Investigator: Grant Number:

Title of Project:

Period Covered by this Report Total Number of Participants To-Date:

Remaining Cash Balance To-Date:From: To:

□ Has Changed

□ Has Not Changed

□ Has Changed

□ Has Not Changed

Instructions: Provide an overview of the research activities within the identified reporting period. Explain any changes noted above in regards to the number of participants and the use of funds.

Signature of Principal Investigator: Date:

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