Determinants of income for multilevel distributors in Cuenca

Abstract

Objective: This paper analyses the variables that significantly influence the income for the distributors of a multilevel marketing company in Cuenca (Ecuador), an activity that has grown in recent years in terms of workers and income in the country. Methodology: A cross-sectional descriptive study was conducted with 92 distributors and a multiple regression was applied to optimize the variables that impact the income they obtain from multilevel direct sales. Results: The results indicate that the majority of multilevel distributors are female, their level of education corresponds to basic and intermediate level, with moderate experience in business. Moreover, it is clear that seniority in the company, purchases and training are positively related to the income for the distributors. Originality/relevance: The research is relevant for multilevel distribution entrepreneurs to design more specific strategies that have an impact on distributor sales. Theoretical/methodological contributions: This analysis contributes to the empirical literature on the nature of multilevel selling in Ecuador, and also provides an analysis of this retail business in the third largest city in the country.