May 31, 2012 | Debbi A. Ballard | Comments 1
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MLM Motivation Can Be Extrinsic or Intrinsic

copyright, 2012, Debbi A. Ballard All rights reserved worldwide.

“Show me the money!” Yes, that famous line shouted by Tom Cruise in one of his movies exemplifies what is referred to as extrinsic motivation. MLM motivation can be extrinsic or intrinsic. Extrinsic motivation is exemplified by the commissions and bonuses in an mlm compensation plan. A networker is motivated to work to receive those monetary rewards.

Intrinsic mlm motivation is exemplified by the recognition that the person is valued as a member of that mlm company’s “community.” That value might be exhibited by featuring the networker in the company’s newsletter or recognizing him/her onstage at events. An MLM company understanding the need for this will not just do this to show value relating to the networker’s big payouts. Instead recognition for outstanding customer service, outstanding contributions in volunteering to local nonprofit organizations, going beyond the norm in assisting downline members, etc., are among the many different ways the company can show its appreciation and respect.

It is by doing so that networkers understand that regardless of their respective ranks or the payouts earned, the mlm company truly appreciates them and values their participation.

Jeff Monday, in his video, refers to the book Predictably Irrational by Dan Ariely and speaks about how much more effective the intrinsic motivation can be in making people more creative, productive and subsequently more loyal. He also references Dan Pink’s book Drive and Dan’s TED presentation.

There is a bit of a debate about the move to more of an emphasis on the intrinsic model of motivation when dealing with either employees or a firm’s independent marketers. Suffice it to say that, in my opinion, both are important. As such mlm companies must look at how mlm motivation can be extrinsic or intrinsic and address those issues strategically to keep the bulk of their networkers happy, productive and loyal. What do you think?

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Filed Under: MLM ArticlesMLM Compensation Plans


About the Author: MLM Consultant, Expert Witness, Author, Blogger, Speaker and CEO of International Network Liaison Corporation...but more importantly, wife, mother, daughter, aunt, cousin and friend.

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  1. There is certainly a great deal to learn about this issue. I really like all the points you have made.

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