The 10 th International Conference on Asia Pacific Business Innovation and Technology Management January 20-22, 2013, Taipei, Taiwan http://www.apbitms.org Factors Motivating Direct Sale Agents to Become Successful in Multi-level Marketing Nakul Lerkjarijumpon a *, Kiattisak Smaksman a , Suttipong Suwannasatit a , Smateera Phomsiri a , Somchai Lertritdecha a College of Innovation Management, Rajamangala University of Technology Rattanakosin, Nakornpathom, Thailand Abstract Over the past two decade, multi-level marketing (MLM) has played an important role in Thailand direct sale market, especially skin-care and cosmetic products. Question concerning on the factors that motivate and drive the direct sale agents in multi-level marketing to become active and successful member in their organization. This study focuses on four major effective factors of MLM business, including, product quality, sale commission, support system, and training program. Survey data from MLM members in skin-care and cosmetic products of 400 respondents is analyzed by using linear regression and Ordered Probit models. The results indicate that sale commission and support system are only two factors that have significant influence on driving MLM members to actively perform and become successful in MLM sale agents. Additionally, Thai government agents are more likely join the MLM business and become successful as sale agents. The findings reveal that MLM companies in skin- care and cosmetic products can successfully motivate their sale agents by enhancing their sale commission mechanism and improving their support system. Keywords: Multi-level marketing; Skin-care and cosmetic products; Ordered Probit models. 1. Introduction The direct selling business has been spreading into Thailand for more than 35 years. The first company that operated a single level marketing was Tupperware Thailand Co., Ltd. Its business was widely successful in Thailand for a while. After that, another famous international company that became popular among Thais was Avon Products Inc. Later on, Amway Thailand Co., a famous international direct selling company, operated in Thailand and also brought a multi-level marketing (MLM) into Thailand. At the same time, Giffarine Skyline Unity Co. has also been recognized and successfully widespread among Thais. It is the first direct selling company that was established and administered by Thais on 17 March 1996. In 2011, Giffarine’s turnover was reached more than 5,440 million Baht (Direct Selling Association) which was the second highest revenue direct selling company in Thailand. 1. Introduction The direct selling business has been spreading into Thailand for more than 35 years. The first company that operated a single level marketing was Tupperware Thailand Co., Ltd. Its business was widely successful in Thailand for a while. After that, another famous international company that became popular among Thais was Avon Products Inc. Later on, Amway Thailand Co., a famous international direct selling company, operated in Thailand and also brought a multi-level marketing (MLM) into Thailand. At the same time, Giffarine Skyline Unity Co. has also been recognized and successfully widespread among Thais. It is the first direct selling company that was established and administered by Thais on 17 March 1996. In 2011, Giffarine’s turnover was reached more than 5,440 million Baht (source: Direct Selling Association) which was the second highest revenue direct selling company in Thailand.