THE INFLUENCE OF PAYTREN MLM AND AGENT ATTRIBUTES ON WILLINGNESS TO UNDERTAKE MULTILEVEL MARKETING AS A CAREER OPTION

Abstract

The concept of Multilevel Marketing or referral marketing is a method of product distribution. The distributors are given an opportunity to introduce other distributors to the business. This study is conducted to analyze one of MLM companies in Indonesia which is PT. Veritra Sentosa Internasional. This company is a multilevel marketing company that has been running in the business since 2014. The product of this company namely Paytren. The fluctuation of the members happened in the company because of the Paytren payment system was detained by Bank Indonesia and make the company decide to change the MLM system. The purpose of this study is to analyze the influence of MLM Companies and Agent attributes on the willingness to undertake MLM as a Career Option. The study is using factor analysis and structural equation modeling by distributing the questionnaires to 250 Paytren members. This study adopted theoretical framework from previous research by Nga and Mun (2011) which in six variables namely company, service, reward scheme, agent, trust and career option. The result of this study found that service has the highest influence towards career and followed by trust variable, reward scheme and company which has the lowest value and indicates not significant with career option.