The Establishment and Enforcement of "Self-Evaluation" for Multi-level Marketing Business

Multi-level marketing (MLM) is an efficient marketing channel. If it is practiced carefully, it could shorten the distance between the producers and the consumers. It can also economize channel cost and let the consumer enjoy a high-quality and low cost product or service. The purpose of promoting "self-evaluation" in MLM business is to improve their operation management and image. Self-evaluation can help MLM business examine each department's performance. It can also find out the difficulties and problems of the business. Simultaneously it may help distributors and consumers have an in-depth cognition and positive confirmation effect to the MLM business. This research conducted a sample survey among people who attended the regulation workshop organized by Fair Trade Commission (FTC), to analyze the "evaluation indexes" proposed in the report of a project sponsored by FTC in 2006, to see whether they fit the actual operation of MLM business. This research also evaluated the feasibility of applying the "evaluation indexes" to the self-evaluation of MLM business. The experiences of self-evaluation in domestic and international related industry were examined for our references. Some top managers of MLM companies were interviewed to understand their position toward the self-evaluation of MLM. In the meantime, this research considered from the position of the consumer and the company to establish the self-evaluation index of MLM business. A handbook of self-evaluation for different size of MLM business was proposed. In addition, some inducements were proposed to encourage MLM companies to adopt the self-evaluation.