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A Study on the Effects of Network Marketing to the Performance of Direct Selling Companies in Cagayan A Research Proposal Presented to the Graduate School University of Saint Louis Tuguegarao City Master in Business Administration

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Page 1: A Study on the Effects of Network Marketing to the Performance of Direct Selling Companies in Cagayan (1)

A Study on the Effects of Network Marketing to the Performance of Direct Selling

Companies in Cagayan

A Research Proposal Presented to the Graduate School

University of Saint Louis

Tuguegarao City

Master in Business Administration

PELAGIO C. LABANG JR.

May 2012

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A Study on the Effects of Network Marketing to the Performance of Direct Selling Companies in Cagayan

A STUDY ON THE EFFECTS OF NETWORK MARKETING TO THE

PERFORMANCE OF DIRECT SELLING COMPANIES IN CAGAYAN

ABSTRACT

The development of new harmonized system on network marketing must be informed by

an understanding of what direct sellers actually think and how they really behave. Without

diagnostic empirical data on the behaviors and opinions of direct sellers, the policies and

processes developed at a community level (or transposed and implemented at a national level)

may not appropriately address the economic and social reality of the direct selling industry.

This study attempts to identify the impact of the activities of network marketing (a.k.a.

pyramiding or networking) with the operation and performance of direct selling companies as to

the perception of the public with the many issues and experiences encountered by its members

(may it be positive or negative) in the process of managing the system. It was designed to

provide evidence regarding the change in attitudes and practices of direct sellers in Cagayan due

to the influence of Networking.

Kustin and Jones suggest that "Many consumers do not understand the system of direct

selling that often has negative perceptions of direct selling organizations and network marketing

in particular”. Furthermore, Raymond and Tanner pointed that “There are many cases where

customer had developed such negative perceptions as a direct consequence of the frustration

experienced when direct selling representatives supplying them with their products quit”.

This study was initiated to collect quantitative survey data regarding the attitudes and

practices of direct sellers. To the researcher’s knowledge, it is the first broad and empirically

based picture of what direct sellers believe about the work they do and what behaviors they

undertake based on their beliefs. To understand these attitudes and practices in context, they

were compared with the attitudes and practices of independent branch managers, independent

group supervisors and group heads/recruiters.

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A Study on the Effects of Network Marketing to the Performance of Direct Selling Companies in Cagayan

Keywords: networking, direct selling, system

INTRODUCTION

Filipinos today are greatly affected by the economic crisis of the country and on this case

relying on their salary is not enough to sustain their needs, thus they become wiser in earning

extra money as an additional support for their needs. For these reasons most of them, especially

the students and those who are employed are seeking opportunities that will shield them from

unexpected financial crisis and job losses.

To this point, most Filpinos who belong to the ordinary family engage themselves into

different kind of business particularly into business that is becoming increasingly part of the

economy and that is network marketing and direct selling. As a quick background, direct selling

from a fixed retail location, marketed through independent sales representatives. While network

marketing (a.k.a MULTI-LEVEL MARKETING) function by recruiting salespeople to sell a

product and offer additional sales commissions based on the sales of people recruited into their

down line, an organization of people that includes direct recruits, recruits' recruits, etc. And now

we all work for ourselves. It is indeed very simple to be involved at because of its affordability

you don't need to come up with a big amount of money in order to be part of it, it only requires

time and effort and if you have a brilliant ideas to market your business and the product there is

an assurance for your success.

Due to its popularity and affordability, the said businesses have already invaded the

various places of Cagayan especially in major areas like Tuguegarao where the students and

employees are gathered together and have easy access and communication. It captures the

interest of the said groups because they can easily earn a profit without missing their class and it

will serve as their extra income to support their financial needs with regards to their studies.

Avon, Natasha, Tupperware Brands, Aim Global, Business Empire and Vera-7 are just some of

the popular direct selling and network marketing companies where the student are involved with.

According to Felix M. Lao Jr., Ph.D in his book of Principles of Marketing, “the choice

of the most effective method of approach is an important factor in the initial contact of having

your prospect in this kind of business”. That is why the students and employees who were

involved in direct selling and network marketing are having their own styles, gimmicks,

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A Study on the Effects of Network Marketing to the Performance of Direct Selling Companies in Cagayan

“diskarte” in marketing and selling their products and in recruiting their prospective target

individual. The more products you sell the more your earnings, and the more individuals you

recruit the more chances of having a high amount of profit.

The direct selling industry is rather unique. The people who sell the products in this

industry are independent salespeople or “distributors”. They are crucial to the success of the

business. They are their own bosses and are independent from the corporate organization which

supply them the products. These distributors do not receive any salary or benefits from the

corporate office. Multi-level marketing has more sophisticated commission plans compared to

direct selling. It is generally known as “network marketing” which involves selling both the

product and the business opportunity associated with selling the product.

REVIEW OF RELATED LITERATURE

Related definition literature of direct selling and network marketing:

World federation of direct selling associations (WFDSA) has defined Direct Selling as on

non-fixed retailing places and through the use of face-to-face way, the product and service are

sold directly to the consumers. However, the direct selling education foundation of USA in 1992

had a definition on direct selling as a distribution method for consumptive product or service

through personnel contact (sales personnel to the purchaser) and at different commercial

locations, mainly at home. Here the nature of ‘consumptive “and “distribution way” is

emphasized from direct selling. It can be categorized in two ways in broad sense and in narrow

sense. In broad sense, direct selling is a selling way that the manufacturer or the product importer

sells the product directly to the final consumer. For example, the fisherman sells the fishes to the

customers directly and the farmers sell the rice directly to the consumers, etc. In broad sense,

direct selling should include the narrow direct selling as a product manufacturer or importer,

through direct seller and consumer and through a way of face-to-face selling, introduces or sells

the product or service to consumers. Generally speaking, direct seller is not employee of the

company and the selling is usually done in non-fixed selling site. Today, both direct marketing

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A Study on the Effects of Network Marketing to the Performance of Direct Selling Companies in Cagayan

and direct Selling are sometimes all called Direct Selling. However, a direct effectiveness selling

is that the product manufacturer or importer, through the mail of DM, catalogue, broadcasting,

TV channel, internet, etc., transfer the product and service information to the consumer and the

consumer then reply through mail or answer through telephone. Therefore, we can see two keys

in Direct Selling: “Face-to-face selling” and” Sell at non-fixed places”. (Professor Te-Fa Chen,

2006)

Difference between Direct Selling and Network Marketing:

Direct selling is you got be selling end of story. If you're out there, you've got a product

and you go knocking door-to-door, that’s direct selling. Or if you do it through an online system,

that’s direct selling. In Multi-level marketing is – some companies are out there and you will join

their organization through a sponsor and how it works, that’s multi-level marketing. Network

marketing on the other hand, is you are paid for all the sales volume in your entire organization

every week. You're not restricted to levels, its sales volume. Total sales volume in your entire

organization that you're paid the commission on. And that’s a significant difference. (According

to the interview of Ken Maxwell by Swalin) (http://swanlin.hubpages.com/hub/Difference-

between-MLM--Network-Marketing--and-Direct-Selling)

Direct selling refers to a distribution method, whereas network marketing refers more

specifically to a type of compensation plan found in direct selling. A direct selling company that

offers a multilevel compensate on plan pays its representatives/distributors based not only on

one's own product sales, but on the product sales of one's "down line" (the people a

representative/distributor has brought into the business, and, in turn, the people they have

brought into the business). (Posted by Poorya Montaseri on January 19, 2009)

Direct Sales went through important changes in the United States. It first began with Yankee

peddlers selling their goods to the colonies. When new business forms developed, peddling

declined, and retail outlets came into existence. However, manufactures were not satisfied with

this retail form of business, so they introduced direct sales into their sales force to promote their

goods.

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A Study on the Effects of Network Marketing to the Performance of Direct Selling Companies in Cagayan

The men involved in direct sales were very organized, and they believed they could

compete with the retail market, as retail establishments were incapable of providing adequate

services and also could not provide good quality. Direct selling took over the retail market on the

basis of their distributors. Many existing direct sales organization, including the giant Avon

Products, trace their origins from the late nineteenth century.

Direct selling benefits individuals who desire an opportunity to earn an income and also

build their own business, and it benefits customers who seek an alternative to regular shopping

methods. It also offers an alternative mode of earning to those who want to increase their

household income, or to those whose circumstances don’t allow them has a regular part time or

full time job. Direct selling companies market their products through the person-to-person

method, away from retail locations, through a network of independent sales people.

(http://www.morebusiness.com/running_your_business/management/Direct -sales.brc)

The best jobs come from word of mouth. The chance of getting a call back is very

slim, especially since the average human resources office today is overloaded with hundreds of

resumes from other interested candidates. But with no other apparent resources to find work,

many are willing to take their chances. Some even invest in fancy resume paper. Yet how much

simpler would it be if you had a friend at the company who could recommend you for the

position? An inside source who could lead you to the key hiring powers? A shortcut like that

could save you valuable time and money in your job hunt. (Wafa R. Musitief)

Direct Selling business is kind of opportunities often referred to as “seller-based”

opportunities. You earn more money income by making a sale at retail (difference between

members’ price and selling price). So if you’re good in this type of business (if not great) in

selling, you earn more money faster. That’s why successful people in this type of businesses are

often great salespeople. They’re rewarded based on their sales performance. Their main focus is

on making sales a lot of sales.

Network Marketing/MLM business focus on building a network organization of lots of

people who are taught to use/sell a little bit each. MLM companies usually offer reasonably

priced(not over-priced)products that people consume within a month or two and then re-order.

There’s a high repeat-sale rate. It’s easier to attract people to this kind of opportunity because it

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A Study on the Effects of Network Marketing to the Performance of Direct Selling Companies in Cagayan

costs lesser to get involved, more people are able to get involved, and you will have a passive

income.

In direct selling business, you need to be continuously making sales or training your

down lines to makes sales to enjoy the rewards continuously. In MLM, you often need to create

awareness, share with others your own experience with the products and to teach you’re down

lines to do the same. In the long run, your income is mainly earned from the continuous

consumption of the products from everyone in your organization, even if nobody is selling

anything to anyone. (http://blog.cheanu.com/network - marketing/direct selling-vs-multi-level-

marketing-mlm/)

Network marketing has become the most popular business system available around the world.

All the people around the world are becoming interested about these business ideas around the

world. They are looking forward to some new business concepts that can really help them out.

Network marketing is the best technique available for the people who want to add some more

money to their regular professional earnings. MLM has become popular in these recent few years

because the strength of this program has become very renowned and almost everyone knows

about this. However, if you are not so sure about the idea, you now have a huge number of

resources with which you can start working. These resources can be great for you or anyone else

looking forward to start a new business back at home. You have to be technical and you must

have the ideas about the ins and outs of this business concept to be comfortable with the ideas

and business flow around. Network marketing business is the only concept that makes the lives

of the marketers around the world easier than ever.

(http://www.articlesbase.com/mlm-articles/network-marketing-business-a-new-era-of-

business-world-756165.html#ixzz1Zahi8kxt - May 11, 2011)

The systems applied in Network Marketing and Direct Selling:

In Network marketing the seller recruits other distributors or salespeople, and also

receives commissions and bonuses on the sales they make. Down liners are necessary to increase

the sales force, and thus generate a huge number of sales.

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A Study on the Effects of Network Marketing to the Performance of Direct Selling Companies in Cagayan

Direct selling is an art-you have to master it with a lot of dedication. If you want to be

successful in this art, you must be humble, sincere, outgoing, persistent, and honest, as these are

the keys of a successful salesperson. A good sales person should not be afraid to talk to anyone

to get him or her interested in the product.

No one is born a top selling agent or consultant. To be a success in sales, you must learn not only

the basic techniques, but also the way these should be applied. It takes consistent effort, vision

and also focus. As they say, when you love what do you do will never lose interest; this applies

to direct sales. You must believe in what you are selling and be passionate about it, so that your

customer’s best interests, you will be able to succeed in direct sales, and build a group of loyal,

lifetime clients. (http://www.morebusiness.com/running_you_business/management/Direct-

Sales.brc)

The term network in network marketing describes the various levels of recruits qualified

for compensation in a company by independent distributors even if they are not directly involved

in the sale of a product or service. The levels refer to those directly and personally recruited as

well as those they have personally recruited and so on.

The system encourages distributors to duplicate their network business by building and

maintaining their own network of distributors (called down lines) each with their own retail

customers. This way, the distributors’ down line base expands and the company’s distributors’

base expands with it, with sales as the common basis for earning by both the company and its

distributors.

A sales representative first becomes effective at selling a product to a consumer and

recruits one person and trains them to get customers. This person would be called your down

line. Once your sales representative can get customers at will, and then train them how to recruit

another person. Ensure that your sales rep can train HIS new sales rep how to get customers.

Then, you recruit one other person and repeat steps two through four. Keep doing this until

you’ve reached the income your desire.

(http://www.firstclassmlm.com/2007/12/05/how-mlm-works/)

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A Study on the Effects of Network Marketing to the Performance of Direct Selling Companies in Cagayan

Advantages of Network Marketing to Direct Selling:

Direct selling provides important benefits to individuals who desire an opportunity to

earn an income and build a business of their own; to consumers who enjoy an alternative to

shopping centers, department stores or the like; and to the consumer products market. It offers an

alternative to traditional employment for those who desire a flexible income earning opportunity

to supplement their household income, or whose responsibilities or circumstances do not allow

for regular part-time or full time employment. In many cases, direct selling opportunities develop

into a fulfilling career for those who achieve success and choose to pursue their independent

direct selling business on a full time basis.

The cost for an individual to start an independent direct selling business is typically very

low. Usually, a modestly priced sales kit is all that is required for one to get started, and there is

little or no required inventory or other cash commitments to begin. This stands in sharp contrast

to franchise and other business investment opportunities which may require substantial

expenditures and expose the investor to a significant risk of loss.

Consumers benefit from direct selling because of the convenience and service it provides,

including personal demonstration and explanation of products, home delivery, and generous

satisfaction guarantees. Moreover, direct selling provides a channel of distribution for companies

with innovative or distinctive products not readily available in traditional retail stores, or who

cannot afford to compete with the enormous advertising and promotion costs associated with

gaining space on retail shelves. Direct selling enhances the retail distribution infrastructure of the

economy, and serves consumers with a convenient source of quality products.

Networking is the single most powerful marketing tactic to accelerate and sustain success

for any individual or organization. (Adam Small)

Direct selling is the business model made famous by Tupperware, Avon, Amway and a

host of other companies- is big business in the Philippines. According to the direct selling

association of the Philippines, its members post P25 billion in total yearly sales, and the local

industry is growing at 14 percent annually. Globally, the direct selling industry is worth $120

billion a year- and, one out of every 7.5 households worldwide has a direct seller.

(“PRINCIPLES OF MARKETING pp.244” First edition 2008 by Felina C. Young and

Cristobal M. Pagosa)

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A Study on the Effects of Network Marketing to the Performance of Direct Selling Companies in Cagayan

Regarding on Sales and Marketing approach, direct selling retails their product in

consumer homes and away from fixed retail outlets by independent salespeople. The unlimited

earnings or commissions largely depend on the volume of the sale, and to avail, and the sales

manager and supervisors handling the sales representative earn incentives based on personal

sales. In Network Marketing, its marketing approach uses networks of distributors to sell

products not in the traditional outlets, unlimited earnings or over rides from sales of other

distributors under his organization. All distributors can avail of the discounts incentives by

purchasing a smaller amount or quantity; there is commission on over rides when a distributor is

no longer involved in day-to-day activities of the business. (Principles of Marketing 1st Edition

pp. 214 by Felix M. Lao Jr. PhD)

Small wonder then that Filipinos are on direct selling (also called face-to-face)

bandwagon- and the wagon is showing no signs of slowing down. Homegrown direct-selling

companies like AIM Global, Human Nature, Boardwalk, M & Co. and Water Philippines are

going toe-to-toe with their foreign counterparts, with remarkable success. Direct selling works in

the country because it provides opportunities for people to augment their income, there is no

need for a formal education to take part in, it can be a home-based business, and everything is

simply based on your contracts. (DSAP chairman Ador Bonquin, country manager of Amway

Philippines)

Despite its image problem- pyramid scams often pose as direct-selling businesses and

network marketing business models are viewed with suspicion- direct selling is a viable path for

entrepreneurs. Why? According to futurist, author and entrepreneur Ross

(www.Dawsonblog.com), direct selling is based on social networks and personal relationships-

and relationships” are central to all our lives,” he says. (Entrepreneur Magazine, Philippines

December 2010 Issue)

Network Marketing is somewhat like franchising, sometimes describe FRANCHISE

PEOPLE both give the right to do business with the use of the company’s name and the use of an

established or duplicable system of doing business except network marketing does not require

distributors to pay for expensive and upfront franchise fee. (Book of Josiah Go “Network

Marketing 2004 Edition)

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A Study on the Effects of Network Marketing to the Performance of Direct Selling Companies in Cagayan

It works by having an agreement between you and a manufacturer or distributer to

purchase products at wholesale price and sell them at retail, the privilege to sponsor others(called

down line) multiplying your sales based and profit by receiving a percent of the sales made

through your down lines. (Principles of Marketing 1st Edition pp. 204 by Felix Lao Jr. Ph. D.)

The Reality of Network Marketing to Direct Selling:

A lot of people join networking because they thought that it is the easiest way to earn

money. Actually networking is not easy as you think. It takes a lot of time and effort for you to

succeed in this kind of business.

Network marketing has some good and not so good side. Good side is it is easy to earn

money but that is if you know how it really it works, if you have a lot of time and if you a have a

lot of courage. The not so good side is there would really come a time that your market will

saturate. (Negosyo- Network marketing in the Philippines tips 2011- Posted on My 5, 2011 by

phpinoytv)

For most of us Filipinos, network marketing or multilevel marketing is a new business

format that boggles many minds. As a concept. Network marketing has been touted as the fastest

way to accumulate wealth nowadays. The concept is used to penetrate the market as fast as

possible without entailing expensive marketing costs such as marketing and promotions.

For the most part, network marketing is spread by word-of-mouth. You most likely have

to be invited to join a business orientation or a seminar.

Many of us have joined network marketing groups and after a while quit or do not renew

their license and proclaim that it was no good group. Oftentimes, many have expressed

disappointments over the outcome when compared to their initial enthusiasm before joining the

business.(http://www.millionnaireacts.com/1444/on-network-marketing-and-multti-level-

marketing.html) Posted by Tyrone Solee in Investments

There are basically four factors that you have to investigate before joining any network

marketing or multi level marketing group.

First, what are the products? Are they good quality? Are there a variety of products that

you can buy for personal consumption or retail to your customers? Some groups have single

products such as health juice, prepaid cards, or a website. The same goes if they only have one

product line such as food supplements only, or just cosmetics. The choice is too limited.

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A Study on the Effects of Network Marketing to the Performance of Direct Selling Companies in Cagayan

Second, what is the company background? Will they be around for the long haul? Who

are the company’s owners? Just as you choose which bank to put your money in, you also have

to look into the networking company that you intend to join. It must be as stable as a bank, with

an impeccable worldwide or local business.

Third, what is their compensation plan? Is it equitable?

Lastly, what kind of training and support will you get to be able to succeed in network

marketing business? You need to be educated in the business.

(http://www.millionnaireacts.com/1444/on-network-marketing-and-multti-level-

marketing.html) Posted by Tyrone Solee in Investments

CONCEPTUAL FRAMEWORK

Understanding the attitudes and practices of those who work in a business sector often

requires understanding how these attitudes and practices compare with those of other similar

business sectors. Appropriate comparison points are necessary because harmonized legislation

for a particular distribution sector (such as direct selling) must not establish unintended

competitive advantages or disadvantages for that sector in relation to competing sectors. As

compared with single-sector research, comparative research can better help policy makers and

managers to determine whether a particular finding is relatively bad or relatively good, and

whether or not a policy should therefore be designed to address one business sector or several.

MLM stands for Multi-Level Marketing. In the Philippines, this is also called Networking

or Network Marketing. This is a business model that allows you to earn commissions from

people who join your business network. There are various styles of it. One popular type of MLM

is the Binary System. In a Binary MLM system, a person can get commissions on each pair of

people that has joined his/her network. There is a left and right group. Each left-right

combination is one pair. One pair gets you commissions. Say what you want to say about MLM

but it is really a proven business model. Someone once told me that MLM is being studied in the

various Manila Business Schools. I once met a lady who actually made a thesis about it. They

analyzed how it actually provides REAL opportunities for ordinary people to become wealthy.

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A Study on the Effects of Network Marketing to the Performance of Direct Selling Companies in Cagayan

We really can’t deny the fact that people have become rich through MLM. Their testimonials,

cheques, and toys (like new cars) provide enough evidence of the effectiveness of MLM.

People, however, are still afraid that this is like a Pyramiding Scheme, where people at the very

top of the Pyramid earn the most money. Those into it will vehemently deny it. They explain that

some MLMs are designed in such a way that people below the network can earn more than those

at the top. Give them your ear and they would provide more info on the intricacies of MLM.

(http://www.jozzua.com/2006/04/26/mlm-in-the-philippines/) MLM in the Philippines, Posted

by Jozzua on Apr 26, 2006

The conceptual framework of this study provides the steps done by the researcher in

realizing the final output needed to come up with the information answering the problems of this

study. The research paradigm that follows indicates the input of the study which includes

knowing the demographic profile of the respondents and formulation of questionnaires as an

instrument in gathering the required data. In order to achieve the desired output, the researchers

will float questionnaires, conduct surveys and interviews to the respondents in order to gather

data, analysis and to have an evaluation of data to come-up with the findings. The input and

process will unveil the output of the study that are important for the researchers to assess the

results, the conclusion and recommendation of the study.

INPUT PROCESS OUTPUT

University of Saint Louis | 13

Knowing the demographic profile of the respondents Formulation of questionnaires as an instrument in gathering the required data

The researcher will float questionnaires, conduct surveys and interviews to the respondents in order to gather data, analysis and to have an evaluation of data to come-up with the findings.

Based on the questionnaires floated, conducted interviews and surveys to the respondents, the researcher will assess the results, the conclusion and recommendation of the study.

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A Study on the Effects of Network Marketing to the Performance of Direct Selling Companies in Cagayan

CONCLUSION

This study has established two direct significant effects of network marketing with direct selling:

trust and attitude. Similar past studies support these findings such as trust to the systems applied

in Network marketing in terms of sales and marketing approach and its methodology and on

sales commissions or incentives and earning potentials and attitude on their willingness to invest

their time, effort and money in joining direct selling and network marketing and should identify

first their capacity to do business. This findings show the good corporate image of direct selling

company will have to start early to build trust and get into a positive attitude towards network

marketing.

REFERENCES

Ador Bonquin, country manager of Amway Philippines, Entrepreneur Magazine, Philippines December 2010 Issue

Bhurahongse, K., 1999 Internet electronic commerce for multi-level marketing Chulalongkorn University

Bremner, John, 1996 Professional Network Marketing London: Piatkus

Brodie, Stewart, John Stanworth, and Thomas R. Wotruba 2002, Direct Sales Franchises in the UK: A Self-Employment Grey Area International Small Business Journal

Chattananon, A., Lawley, M. and Leelayouthayothin, L.,2008 Impacts of a Thai cause-related marketing program on corporate image International Journal of Emerging Markets

ChenMeiLiang, 2008 Network-Marketing Business A New Era of Business World Journal of International Management Studies

Felina C. Young and Cristobal M. Pagosa, 2008, Principles of Marketing, First edition

Felix M. Lao Jr. PhD, Principles of Marketing 1st Edition

Hassan, R., Ghani, E. K. and Said, J., 2009 Part Time Students’ Benefit Perception on Online Shopping in Malaysia Canadian Social Science

Jeanette Fisher, 2010 You Can Succeed in Direct Selling Without Recruiting

Kara Jankowski, Network Marketing (MLM) vs. Direct Sales – Which Is Right for Me?

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A Study on the Effects of Network Marketing to the Performance of Direct Selling Companies in Cagayan

Kennedy, S.H. Nurturing Corporate Image; Total Communication or Ego Trip? European Journal of Marketing

Kustin, R. A. and Jones, R. A., Research Note: A Study of Direct Selling Perceptions In Australia International Marketing Review

Lin, L. and Lu, C., The influence of corporate image, relationship marketing, and trust on purchase intention: the moderating effects of word-of-mouth”, Tourism Review

Meagher, Lisa, 2006, Gift Incentives for Customers Bring in Business Community Banker

Merrilees, Bill and Dale Miller, 1999, Direct Selling in the West and East: The Relative Roles of Product and Relationship (Guanxi) Drivers Journal of Business Research

MLM in the Philippines, Posted by Jozzua on Apr 26, 2006 (http://www.jozzua.com/2006/04/26/mlm-in-the-philippines/)

Phpinoytv, Negosyo- Network marketing in the Philippines tips Posted on My 5, 2011

Poe, Richard, 1995, Wave 3: The New Era in Network Marketing Rocklin, CA: Prima.

Raymond, M. and Tanner J.F. Jr., Maintaining Customer Relationship in Direct Sales: Stimulating Repeat Purchase Behavior Journal of Personal Selling & Sale Management

Richard Quek, 2008 Things You Need to Know about Direct Selling

Saha, S., 2009 Fraud Scheme Shadow Over Direct Selling Retrieved on 6/29/2010

Stephen Barrett, M.D., 2008 A Study of Multi Level Marketing as a Potential Tool For Socio Economic Development

Swalin, Difference between MLM, Network Marketing and-Direct-Sellingfrom the interview of Ken Maxwell

Tyrone Solee, Millionaire Acts Network Marketing And Multi-Level Marketing Investments

Villarreal, P., 2009Multilevel Marketing Is Bad Retrieved on 5/18/2010.

BIOGRAPHICAL STATEMENT

Pelagio C. Labang Jr. received his Bachelor of Arts major in Economics at University

of Saint Louis Tuguegarao City. He has acquired experiences from the Professional Regulation

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A Study on the Effects of Network Marketing to the Performance of Direct Selling Companies in Cagayan

Commission, Manila in the year 1997 and finally settled a career in the academe. He started his

academic career as Administrative Officer & Marketing Supervisor and Instructor at STI College

Tuguegarao in the year 1999 to 2010 and as Regional Trainer and Assessor for English

Language of the Technical Education & Skills Development Authority in the year 2007 to

present. He is currently working as OIC, Dean of the College of Business Administration, and

Instructor at the International School of Asia and the Pacific.

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