THE FACTORS AFFECTING

MEMBERS OF THE
SELECTED NETWORK
MARKETING COMPANIES
IN SURIGAO CITY
LINDY LOU YAMILO
JHESON MORIAL
BS Business Administration
Major in Marketing Management
 Rationale of the Study
Unemployment is defined as a situation
where someone of working age is not able
to get a job. The more probable cause of
unemployment in the Philippines is the
unavailability of the jobs provided. In order
to address the issue of being unemployed,
some people ventured into Business which
allows us to earn more than the fixed
monthly income in an employment.
Multilevel marketing (MLM) is a
marketing strategy where salespeople
earn money by selling products and
recruiting people to join their team. They
receive a slice of the money earned by
those whom they recruit. These sellers
are in turn urged to sell and recruit. It
started in the US at the turn of the
nineteenth century with California
Perfume Company, better known as
Avon (LaciTexter 2016).
The attractive features of building Network
marketing is the low capital or low entry cost
required to get started. The ongoing operating
cost often revolve around accessing educational
and motivational materials, acquiring business
building tools and attending seminars provided
and organized as part of the support system.
Further to this are incidental costs such as
phone and fuel. The advantage also in being in a
Network marketing business is the opportunity
to establish it part time alongside your current
occupation or business.
 Context of the Study
 What do you know about your topic? What
makes your study different from the other
previously done researches on similar topic
as your study? Cite related literature that can
help you build the arguments of your paper.

There are a lot of misconceptions in

Network Marketing this is because the
general public does not fully grasp its
concepts or its potential.
 Research
Objectives/Problems
The objective of this study is for
the researchers to be able to
provide a better understanding in
the views of Network Marketing
and know as to why people
ventures in this kind of business
despite its misconceptions.
STATEMENT OF THE PROBLEM
The research will answer the following
questions:
1. What is the profile of the participants as
to:
1.1 Age
1.2 Sex
1.3 Civil Status
1.4 Educational Attainment
1.5 Occupation
1.6 Number of Years of Membership
2. Which of the following
factors significantly affect the
members towards Network
Marketing?
2.1 Company Reliability
2.2 Return of Investment
2.3 Product Saleability
2.4 Support Services
3. Is there a significant difference in
the factors significantly affecting
members towards Network
Marketing when they are grouped
according to their profile variables?

4. Based on the results of the study,

what recommendations may be
proposed for improvement?
Research Significance
The findings of this study will be significant and
deemed important in the business sector in
Surigao City. The results of the study will be
beneficial and significant to the following:
 Dealers in a network marketing company. The
findings of this study will help in providing a
solid understanding on the role of a network
marketing distributor and share ideas on
how to start up, grow and sustain their
distributor business.
 Entrepreneurs. This study will provide the
flow of networking and encourage to
venture into this kind of endeavor.
 Government. The study will help the
government as the regulatory body to
understand that network marketing is not
same as the pyramiding scams it is often
associated with. Regarding with the food or
medicine products of the company, the
government would ensure that their
products will pass through BFAD (Bureau
of Food and Drugs) and quality control.
 Business Educators. The study will be
used as a reference material for
entrepreneurship and sales related
subjects.
 Business students. The findings of the
study would provide knowledge on the
networking business and they would be
encouraged to invest into such activity
as part time in order to earn money
while attending school.
 Consumers. This study would provide
the customers’ awareness about
how the networking business works
and how these networking business
attract potential buyers.
 Researchers. The findings of this
study would serve as the basis for
further research related to
networking business.
 Theoretical /Conceptual Background:
(Theoretical Framework/Conceptual &
Literature Review- for quanti)
This study is anchored from the concept of
Mark Rawlins (2017) that the simplest reason
people join is because they believe in the
product. They use it and they’re passionate
about it so they choose to be part of the
company that sells it. If the product is a
distributor’s primary motivator, you can count
on him to buy it and to say nice things about it
to others. But the highly-successful distributors
in an organization are rarely motivated only by
their passion for the product.
Many distributors sign up because they want
to earn more money. Job security has gone
down for the average person and corporate
employees tend to change employers every
few years. Even if someone likes their job,
chances are that they don’t feel like they make
enough money doing it. As a distributor, you
have control over what you make. You’re
motivated by what you’re making now, and by
your potential earnings. A conscientious
distributor can see the relationship between
their efforts and the financial reward they
receive. Mark Rawlins (2017).
Self-improvement is another reason people
sign up. Traditional companies typically give
employees the minimum training required
for the job. Network marketing
organizations—with their motivational
rallies, training media, seminars, and
mentoring structures—provide much
more. A Mary Kay beauty consultant, for
instance, may not become rich beyond her
wildest dreams, but she’ll receive the same
kind of training that only corporate
managers get in traditional companies.
A network marketing organization might
say to its people, “our mission is to make
you more than you are. Our
commitment to you extends beyond the
products we sell.” One successful MLM
CEO describes his company as a “self-
improvement company with a
compensation plan.” An organization that
prioritizes its members’ personal goals
has powerful appeal Mark Rawlins
(2017).
According to Benjamin Mueller why people join MLM
is because the person is looking to generate income. In
this reason, the main driver of behavior is to create
cash flow. For this person, their motivation is fueled by
how much money they can make! They are joining the
MLM opportunity because they love the product(s).
Products are essential to their satisfaction level. A
person may join an MLM opportunity for the purpose
of being part of a community of people with a cause.
This also includes the recognition factor of being in an
MLM company. Most people have the combined
motivation of all three of these reasons. A person
usually is not focused on just one aspect, but like; the
ability to make money, have a great product, and be
part of community that recognizes their efforts.
According to Daegan Smith (2018) that for
starters, a lot of multi-level marketing
companies provide their clients with residual
income. Residual income means that you're
receive monetary benefits from the business
for the rest of your life or for the rest of the
company's life, whichever expire first. Multi-
level marketing opportunities are a good
source of income once you have laid the
grounds of a solid foundation. More than
monetary benefits, MLM marketing companies
also provide their members with continuing
training and support.
In network marketing, if you’re not successful then your
Sponsor/Upline will not be successful so it’s absolutely in
their best interest to help and equip you with the right
tools and support that you require to become
successful. Remember, it’s never about you! It’s all about
leverage and how it can be achieved is by supporting
your people. As you start building your own team they
become your downline and you coach them into their
greatness. Your team will benefit from your personal
support and those of your upline and so on and so forth;
you may call this ‘cloning’ or ‘duplication’. The Company
is also committed to helping you because you are their
life source along with every new customer or
distributor/business builder you bring and it has
happened where someone found their one superstar
which ended up being worth millions (Rina C 2017).
Research Hypothesis and
Simulacrum: (for quanti only)
At 0.05 level of significance, it is
hypothesized that there is no
significant difference in the factors
that influence the members
towards Network Marketing when
they are grouped according to
their profile variables.
Method
 RESEARCH DESIGN
This study will employ descriptive
research design using a survey
technique. The design is considered
appropriate since the intent of the
study is to determine the influential
factors of Network Marketing towards
the members.
 PARTICIPANTS
The participants of the study are the selected
members from different Network Marketing
Company in Surigao City specifically; First Vita
Plus Marketing Corporation, Frontrow
International and Alliance in Motion (AIM)
Global. The researchers will conduct the survey
to those available participants that are members
in the said three Networking companies and
they will be selected through random sampling
technique. The sample size will be calculated
through Raosoft.
 INSTRUMENTS
The study uses researcher-made questionnaire
which is divided into two parts. Part 1 is all
about the profile of the participants which
includes age, sex, civil status, educational
attainment, occupation and Number of years
of Membership. Part 2 contains the factors
that significantly affect the members towards
Network Marketing in terms of Company
Reliability, Return of Investment, Product
Saleability and Support Services. The
researcher-made questionnaire will be
presented to the experts for content
validation.
 DATA GATHERING PROCEDURE
Prior to data gathering, a formal letter of request
will be given to the Dean of College of Business
and technology to ask permission to conduct the
study and to float the research instrument
outside the school premise. Upon approval, the
researchers will provide a formal letter of request
asking permission to conduct the study addressed
to the managers of the selected Network
Marketing business establishments in Surigao City.
The questionnaire is administered to the
participants. Retrieval of the questionnaires is
done after it is accomplished. The questionnaire
are retrieved, tallied and scored. An analysis of the
data gathered will be made.
 DATA ANALYSIS
The data gathered during the administration of
the questionnaire will be treated using the
following statistical tools:
 Frequency count and percentage distribution will be
used to describe the profile of the networking
business establishment.
 Mean computation and standard deviation will be
used to describe the level of sales performance of
Network Marketing Distributors in Surigao City.
 Analysis of Variance (ANOVA) will be employed to
treat the significant difference in the factors that
affect sales performance of network marketing
distributors with respect to profile variables.
Expected Output
The expected output of this study is for the
researchers to know and identify which of
the following factors; (1) Company Reliability,
(2) Return of Investment, (3) Product
Saleability and (4) Support Services
significantly affect the members towards
Network Marketing. And to possibly come
up with a Proposed Recommendation for
Areas of Improvement.
Implementation Plan
 State the activities, expected output from
each activity and the target date of
implementation.
THANK YOU! 