MULTI-LEVEL MARKETING
METHOD FOR RESOLVING
ECONOMIC CRISIS IN SPAIN
Ekaterina
Novoseltseva
26th September
2013
ECONOMIC CRISIS IN SPAIN
Drug related crimes
by 2,2%
Youth
unemployment
55%
Violent crimes by
9,5%
Mortgage
fraud
Unemployment rate
in Spain 27%
ECONOMIC CRISIS IN SPAIN
ECONOMIC CRISIS IN SPAIN
GOVERNMENT ACTIONS
ECONOMIC CRISIS IN SPAIN
STRIKES AND PROTESTS
Thousands of people in
more than 80 cities
Demonstrations
People sleep on the streets
Make fire on the rubbish bins
Blocking the streets
Break windows
FORECASTS ABOUT
ECONOMIC CRISIS IN SPAIN
Spanish
governmnet
European
central bank
• Coming years will
be even worse
• The budget deficit
will increase
• Even harsher
austerity measures
• More violent
protests
• Weaker domestic
demand
• Tight financial
conditions
• Spain will sink
deeper into
recession
• Unemployment will
be worse this year
MULTI-LEVEL MARKETING
Profit from
distributor’s sale
of the goods and
also from sales of
his agents, that
he has recruited
Uses direct selling
and social
networking
relationships
Multi- level
marketing
or Network
Marketing
Independent Massive
sales force
advertising
efforts
WOM
Retail outlets
ADVANTAGES OF
MULTI-LEVEL MARKETING
Bypass the middle man -> keep price lower, while quality is the same
Close to zero investment
Minimal costs
Distributor can freely choose when and how he wants to work
No need to hire employees
Possibility of working from home
Strong support from the sponsor
Great opportunity to earn good money
Unlimited income potential
Distributor works with people he likes
Being entrepreneur and work for himself
Create own highly profitable asset that can be sold or transferred by inheritance
Join a team united by common goal
Equal opportunities for everyone
People believe more their friends than advertising
MLM DURING ECONOMIC RECESSIONS
Significant
growth
during
economic
crisis
More
potential
clients,
partners and
distributors
Sustainable
More job
demand then
supply
-> offers
jobs
Economy
MLM
MLM SUCCESS IN THE US
 Professional magazines
- MLM Insider
- Downline News
- Forbes
- Fortune
- USA Today
- US News & World report
- The Wall Street Journal
- Success Magazine
 DSA (Direct Sale Association)
Several
recessions
MLMGrowth
Now
MLM is studied by many scientists and
students in US Universities.
1985
From 500,000
millionaires in
America,
100,000 (20%) of
millionaires were
MLM people.
1995
From 850,000
millionaires in the
United States,
40% of those
millionaires were
networkers.
MLM SUCCESS IN RUSSIA
Many finance and business universities
have MLM as a subject
Academies of MLM ->MLM education
diploma
Many MLM newspapers and books
- School of MLM Professionals
- Academy of Network Marketing
- MLM-Perspective
Recession
in 1998
MLMGrowth
Now
FUTURE OF MLM
WELL-KNOWN INTERNATIONAL
COMPANIES
MLM IN SPAIN
Bring people certainty, security and safety
Offer endless job
Regain financial control
Offer the same products, but with much lower price
Best time to capitalise on this trend
During economic crisis, MLM is the most sustainable
business
Satisfy all people
Regular companies search for clients and MLM
searches for the sellers
Great opportunity for young people to start their career
Offers massive employment
Spanish is a popular language, easy to broad the
network
Spain is in the Eurozone, easy to distribute
MLM IN SPAIN
The global rise in global sales in the network marketing
industry for period 2010 to 2011 was 16.26%
Consumption ability will increase
Lower costs – affortable products
Unlimited growth of distribution structure -> unemployment
rate will decrease
Positive example – motivation
Now there are more supply then demand and MLM offers
jobs
Positive government’s attitude – more jobs can be created
in magazines, universities etc
New millionaires during economic crisis – will give
optimism to the people
Crime and protests will decrease
Crisis is a way to find a new trend and become rich
SUPPORT FROM THE GOVERNMENT
Spanish Government will definitely benefit from
it
Publicly
speaking
positively
about
Network
Marketing
Open MLM
faculties and
subjects in
Universities
and Schools
Invite MLM
leaders to
give public
speeches
Show MLM
success and
opportunities
in Spain
MLM
magazines
CIRCULAR FLOW MODEL
Consumption is very important!
CONCLUSION
Valued at more than
US$100 billion dollar
per year
Offers an accessible
way for the average
person in Spain to
launch a business
Network
marketing
Substantial income.
increases purchasing
power
THANK YOU!