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

Michał Roman, Marta Wasiak, Monika Roman, Kamil Roman, Arkadiusz Niedziółka, Andrzej Krasnodębski and Sylwia Królak
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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

Sustainability, 2021, vol. 13, issue 16, 1-27

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.

Keywords: motivation; compensation; Multi-Level Marketing; system; Poland (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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