A Research of Multi-Level Marketing Reward Systems-Binary and Stair Step System

• Main Authors: CHOU,JEN-CHIH, 周仁智
• Other Authors: WANG,CHUN-JU
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/ak53t5

碩士 === 國立宜蘭大學 === 人文及管理學院高階經營管理碩士在職專班 === 106 === After decades of experience in the direct selling business, every few years, there will be innovative direct marketing bonus system. As we know that, the bonus plan starts from the Stair step plan, the matrix plan to the Subsequent Binary plan. The bonus plan is more and more human oriented, and it is easier for distributors who want to participate in the direct selling business. Direct marketing company's main source of profit from sales organization bonus or sales bonuses, the bonus plan is also an important factor affecting distributors choose direct selling companies.In the operation of direct selling companies, the bonus system plays an important role. Therefore, the direct selling company's bonus system has certain research value. However, reviewing the research literature on the direct selling system and the research papers of the direct selling system are still scarce. This study will explain the principles of the system of the Stair step system and Binary system by case study and discuss the two systems which will be representing the company (Stair step system:Amway Company, Herbalife Company and the Binary system: USANA and Naturally Plus Company and we will have detailed practices to present the spirit and practical application of the stair step system and Binary system, and will propose an integrated framework of analysis, and discussion these two kinds of bonus system’s differences and reasoning its applicable context. The results of the study found that the direct-sales companies and the distributors in the binary system and the stair step system have different approaches and applicable situations under different circumstances such as demographic environment, economic environment, life cycle, product characteristics, and corporate goals; for example, in a population environment. Under the factor, the stair step system has no obvious age-orientation and the binary system develops in an environment where the social population aging. Under the economic environment, the stair step system of differentials has a relatively low national Income in the country and a wide gap between the rich and the poor. Under the environment, it is easier to be accepted and developed by the market, and the binary system is more suitable for the development of the market where the national income is higher or the direct selling market is more saturated. Under the life cycle factor, the stair step system has a large variety of product types but no obvious main products. The product life cycle is longer and the product market similarity is high, while the binary system product type is small and at least one main product and its product life cycle are short; under the product feature factor, the stair step system prefers the practicability of the product and the price of the product Low-valued and highly-comprehensive and professional products, while binary system has special effects or special ingredients Characteristic products; under the objective of the enterprise, the stair step system pursues the rapid expansion of business performance and establishes an intensive sales network with direct sellers who attach importance to middle and Senior executive leadership; while the binary system pursues a stable sales volume of sales networks and attaches importance to end customers and newbie distributors.