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Essence of the Compensation Plan in the Process of Motivation in Multi-Level Marketing (MLM). A Case Study

Author

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  • Michał Roman

    (Institute of Economics and Finance, Warsaw University of Life Sciences, 02-787 Warsaw, Poland)

  • Marta Wasiak

    (Public Relations Student Research Group, The Economic Department, Warsaw University of Life Sciences, 02-787 Warsaw, Poland)

  • Monika Roman

    (Institute of Economics and Finance, Warsaw University of Life Sciences, 02-787 Warsaw, Poland)

  • Kamil Roman

    (Institute of Wood Sciences and Furniture, Warsaw University of Life Sciences, 02-787 Warsaw, Poland)

  • Arkadiusz Niedziółka

    (Faculty of Agriculture and Economics, University of Agriculture in Krakow, 31-120 Krakow, Poland)

  • Andrzej Krasnodębski

    (Faculty of Agriculture and Economics, University of Agriculture in Krakow, 31-120 Krakow, Poland)

  • Sylwia Królak

    (Public Relations Student Research Group, The Economic Department, Warsaw University of Life Sciences, 02-787 Warsaw, Poland)

Abstract

The objective of the article is to present the compensation plan and the possibilities resulting from cooperation with FM World. The study provides the characteristics of the market economy compensation system, especially the functions, goals and traditional compensation forms as well as the essence of the key motivation theories for organization management and the characteristics of the most important ones. The term Multi-Level Marketing (network marketing) is discussed, especially the nature of that sector, controversies and possibilities. The company, FM World, is covered, especially the information on the products distributed and services. The compensation plan and the incentive programme offer applied in the company are provided in detail. The study involved the use of a diagnostic survey. The group of respondents included 107 FM World distributors and cooperants with the Rentierzy.FM structure. The level of satisfaction of the respondents with the cooperation and the compensation plan offered are investigated; satisfaction with the incentive programmes available and the perspectives of further cooperation with the company were determined.

Suggested Citation

  • Michał Roman & Marta Wasiak & Monika Roman & Kamil Roman & Arkadiusz Niedziółka & Andrzej Krasnodębski & Sylwia Królak, 2021. "Essence of the Compensation Plan in the Process of Motivation in Multi-Level Marketing (MLM). A Case Study," Sustainability, MDPI, vol. 13(16), pages 1-27, August.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:16:p:8738-:d:608739
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    Cited by:

    1. Jaeung Cha & Jinwoo Lee & Changhee Lee & Yulseong Kim, 2021. "Legal Disputes under Time Charter in Connection with the Stranding of the MV Ever Given," Sustainability, MDPI, vol. 13(19), pages 1-25, September.

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