The success of this system is very dependent on the ability of members to build extensive and effective networks

Oct 13, 2025 by orovajewels.com 69 views

The Effect of Multi Level Marketing System on New Member Business Interest (Study at PT. Multy Sukses International Branch Medan)

Introduction

In today's world, the issue of limited employment opportunities is one of the main concerns faced by the people of Indonesia. Establishing a business entity or running a business is one solution that can help reduce unemployment and poverty. One of the business systems that is now increasingly popular is Multi Level Marketing (MLM). This tiered marketing system allows distributors to sell products or services directly to consumers by utilizing their own networks. The MLM system has been widely adopted by various companies, including PT. Multy Sukses International Branch Medan, which is the focus of this study.

Background of the Study

The MLM system is a business model that has been around for decades, but its popularity has increased significantly in recent years. This system allows individuals to earn income by selling products or services to their network of contacts. The MLM system is based on a tiered structure, where each member acts as a seller and a lecturer for newer members. This creates synergy that can increase business interest in new members. The success of this system is very dependent on the ability of members to build extensive and effective networks.

Objectives of the Study

The main objective of this study is to analyze how much the influence of the multi-level marketing system on the interest of doing business for new members in PT. MULTY SUCCESS INTERNATIONAL MEDAN BRANCH. This study aims to provide insights into the effectiveness of the MLM system in motivating individuals to do business.

Methodology

This study used a quantitative approach, where data was collected through questionnaires distributed to new members of PT. MULTY SUCCESS INTERNATIONAL MEDAN BRANCH. A total of 100 respondents were chosen as samples through the simple random sampling technique. The data was analyzed using a significant partial test (T test) to determine the relationship between the multi-level marketing system and the interest in doing business of new members.

Results

The results of the analysis showed that the multi-level marketing system had a positive and significant influence on the interest of the business of new members. The test results show the value of t count of 14.174 which is greater than T table 1.664, and the significance obtained is 0.000 smaller than 0.05. This shows that there is a strong relationship between the two variables.

Discussion

The multi-level marketing system provides an opportunity for individuals to build networks and market products, which can create significant income potential. The success of this system is very dependent on the ability of members to build extensive and effective networks. With the tiered structure, each member not only acts as a seller, but also as a lecturer for newer members. This creates synergy that can increase business interest in new members.

In addition, the success of MLM in motivating individuals to do business can be seen from how this system provides training and support to members. These facilities can increase the confidence of new members and reduce the fear of failure that often prevents people from starting a business. Therefore, it is important for MLM companies to continue to provide education and guidance to their members in order to achieve optimal results.

Conclusion

This study shows that the multi-level marketing system has a significant influence on the interest in the business of new members. This creates new hope for individuals who are looking for business opportunities in the midst of limited employment opportunities. Therefore, the potential of MLM needs to be explored further to create a greater impact on the Indonesian economy.

Recommendations

Based on the findings of this study, the following recommendations are made:

MLM companies should continue to provide education and guidance to their members in order to achieve optimal results.
The government should provide support and incentives to MLM companies in order to promote entrepreneurship and economic empowerment.
Individuals who are looking for business opportunities should consider joining MLM companies, as they can provide a platform for building networks and marketing products.

Limitations of the Study

This study has several limitations, including:

The study only focused on new members of PT. MULTY SUCCESS INTERNATIONAL MEDAN BRANCH, and did not include other members of the company.
The study only used a quantitative approach, and did not include qualitative data.
The study only analyzed the relationship between the multi-level marketing system and the interest in doing business of new members, and did not explore other factors that may influence this relationship.

Future Research Directions

Future research should aim to explore other factors that may influence the relationship between the multi-level marketing system and the interest in doing business of new members. This may include exploring the role of social media in promoting MLM, or the impact of MLM on the local economy. Additionally, future research should aim to include a larger sample size and a more diverse population to increase the generalizability of the findings.
Frequently Asked Questions (FAQs) about the Effect of Multi Level Marketing System on New Member Business Interest

Q: What is Multi Level Marketing (MLM) and how does it work?

A: Multi Level Marketing (MLM) is a business model that allows individuals to earn income by selling products or services to their network of contacts. The MLM system is based on a tiered structure, where each member acts as a seller and a lecturer for newer members. This creates synergy that can increase business interest in new members.

Q: What are the benefits of joining a Multi Level Marketing company?

A: The benefits of joining a Multi Level Marketing company include the opportunity to earn income by selling products or services, the ability to build a network of contacts, and the potential to create a business empire. Additionally, MLM companies often provide training and support to their members, which can increase their confidence and reduce their fear of failure.

Q: How does the Multi Level Marketing system motivate individuals to do business?

A: The Multi Level Marketing system motivates individuals to do business by providing them with the opportunity to earn income, build a network of contacts, and create a business empire. The system also provides training and support to its members, which can increase their confidence and reduce their fear of failure.

Q: What are the limitations of the Multi Level Marketing system?

A: The limitations of the Multi Level Marketing system include the potential for individuals to become overly dependent on the system, the risk of financial loss if the system fails, and the potential for individuals to become isolated from their friends and family.

Q: How can individuals ensure that they are successful in a Multi Level Marketing company?

A: Individuals can ensure that they are successful in a Multi Level Marketing company by following these steps:

Research the company thoroughly before joining
Set clear goals and objectives for themselves
Develop a business plan and stick to it
Build a strong network of contacts
Continuously learn and improve their skills

Q: What are the potential risks of joining a Multi Level Marketing company?

A: The potential risks of joining a Multi Level Marketing company include the risk of financial loss, the risk of becoming isolated from friends and family, and the risk of becoming overly dependent on the system.

Q: How can individuals protect themselves from the potential risks of joining a Multi Level Marketing company?

A: Individuals can protect themselves from the potential risks of joining a Multi Level Marketing company by:

Researching the company thoroughly before joining
Setting clear goals and objectives for themselves
Developing a business plan and sticking to it
Building a strong network of contacts
Continuously learning and improving their skills

Q: What is the role of the government in regulating Multi Level Marketing companies?

A: The government plays a crucial role in regulating Multi Level Marketing companies by ensuring that they operate in a fair and transparent manner. The government can also provide support and incentives to MLM companies that operate in a responsible and sustainable manner.

Q: How can individuals report any concerns or complaints about a Multi Level Marketing company?

A: Individuals can report any concerns or complaints about a Multi Level Marketing company to the relevant authorities, such as the Federal Trade Commission (FTC) in the United States. They can also report any concerns or complaints to the company itself, and seek support from their friends and family.

Q: What are the potential benefits of Multi Level Marketing for the local economy?

A: The potential benefits of Multi Level Marketing for the local economy include the creation of new job opportunities, the increase in economic activity, and the promotion of entrepreneurship and economic empowerment.

Q: How can individuals get involved in Multi Level Marketing and start their own business?

A: Individuals can get involved in Multi Level Marketing and start their own business by:

Researching the company thoroughly before joining
Setting clear goals and objectives for themselves
Developing a business plan and sticking to it
Building a strong network of contacts
Continuously learning and improving their skills

Q: What are the potential challenges of starting a Multi Level Marketing business?

A: The potential challenges of starting a Multi Level Marketing business include the risk of financial loss, the risk of becoming isolated from friends and family, and the risk of becoming overly dependent on the system. Additionally, individuals may face challenges such as lack of experience, lack of skills, and lack of resources.

Q: How can individuals overcome the potential challenges of starting a Multi Level Marketing business?

A: Individuals can overcome the potential challenges of starting a Multi Level Marketing business by:

Researching the company thoroughly before joining
Setting clear goals and objectives for themselves
Developing a business plan and sticking to it
Building a strong network of contacts
Continuously learning and improving their skills

Q: What are the potential opportunities for growth and development in Multi Level Marketing?

A: The potential opportunities for growth and development in Multi Level Marketing include the creation of new job opportunities, the increase in economic activity, and the promotion of entrepreneurship and economic empowerment. Additionally, individuals may have the opportunity to develop new skills, build new relationships, and increase their income.

Q: How can individuals take advantage of the potential opportunities for growth and development in Multi Level Marketing?

A: Individuals can take advantage of the potential opportunities for growth and development in Multi Level Marketing by:

Researching the company thoroughly before joining
Setting clear goals and objectives for themselves
Developing a business plan and sticking to it
Building a strong network of contacts
Continuously learning and improving their skills