Motivation system in network marketing based on Oriflame

Abstract

This paper attempts to analyze motivation system in Swedish Company, Oriflame, that distributes its products through sales consultants. The aim of the paper is to explore the Multi Level Marketing company’s business model and awards system. Since the author is a sales consultant from 2005 she had an opportunity to see the practical implementation of the company’s motivation system. Motivation and motivation theories are discussed along with the answers to the question what is motivation, positive motivation v. negative one, intrinsic motivation v. extrinsic motivation, difference between content theories and process theories. The second part of the chapter analyzes Maslow’s hierarchy of needs theory, Herzberg’s two factor theory, Vroom’s expectancy theory and Adam’s equity theory. The third chapter includes information about Oriflame, its history, vision and mission and its founders. It also covers information about Oriflame in Poland. The fourth chapter is the analysis of the company’s motivation system and practical presentation of motivation theories. It explains the business model and premium and rebate system. The final chapter concludes how Oriflame motivates its sales consultants and affects new consultants.