MULTI-LEVEL MARKETING METHOD
FOR RESOLVING ECONOMIC CRISIS IN
SPAIN
Ekaterina Novoseltseva
26th September 2013
Unemployment rate in Spain 27%
Youth unemployment 55%
Mortgage fraud
Drug related crimes by 2,2%
Violent crimes by 9,5%
ECONOMIC CRISIS IN SPAIN
Spanish economy is in a phase of market
instability
Private consumption
Domestic demand
Quality of life
Salaries
GDP
Austerity measures
Public wages are cut by 5 %
Cut in monthly subsidy for the long-term unemployed
Cut in benefit for new mothers
Raise a retirement age from 65 to 67 years
Measures will be even worse for the citizens
ECONOMIC CRISIS IN SPAINGOVERNMENT ACTIONS
Reduce spending on education ( more working hours and more students per class by 20% ) 10 billion by 2015
7 billion cut from central and regional health budgets
Elimination of 80 000 teaching jobs
Increase tuitition for public university by 50%
Freeze salaries and pensions
Increase in taxes
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
ECONOMIC CRISIS IN SPAINSTRIKES AND PROTESTS
Spanish governmnet
• Coming years will be even worse
• The budget deficit will increase
• Even harsher austerity measures
• More violent protests
European central bank
• Weaker domestic demand
• Tight financial conditions
• Spain will sink deeper into recession
• Unemployment will be worse this year
FORECASTS ABOUT ECONOMIC CRISIS IN SPAIN
MULTI-LEVEL MARKETING
Multi- level
marketing or
Network Marketin
g
Uses direct selling and
social networking
relationships
Profit from distributor’s sale of the goods and also from sales of his agents, that he has recruited
Independent sales forceWOM
Massive advertising effortsRetail outlets
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 inheritanceJoin a team united by common goal
Equal opportunities for everyone
People believe more their friends than advertising
ADVANTAGES OF MULTI-LEVEL MARKETING
Significant growth during
economic crisis
More potential clients,
partners and
distributors
Sustainable
More job demand
then supply
-> offers jobs
MLM DURING ECONOMIC RECESSIONS
Economy
MLM
By 2015, it is estimated that 50% of homes will be involved in the MLM Industry (US)
In USA over 70 percent of the Direct Selling Revenues come from Network Marketing.
MLM SUCCESS IN THE US
From 500,000 millionaires in America, 100,000 (20%) of millionaires were MLM people.
198
5
From 850,000 millionaires in the United States, 40% of those millionaires were networkers.
1995
Professional magazines - MLM Insider - Downline News - Forbes - Fortune - USA Today - US News & World report - The Wall Street Journal - Success Magazine
DSA (Direct Sale Association)
MLM is studied by many scientists and students in US Universities.
Several recession
s
Now MLMGrowth
MLM SUCCESS IN RUSSIA
Recession in 1998
NowMLMGrowth
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
Relatively new term and it has tremendous opportunity for
growth
Gives freedom to people
Recommendations are more valued than advertising
Accessible to everyone
Has support from politicians, celebrities and well-known people
Fast growing phenomenon
Become one of the main methods of doing business( like
franchising)Modern consumers want speed,
choice, quality and customization
FUTURE OF MLM
Over 50 million people are engaged in Multi Level
Marketing all over the world
$125 billion in revenue
worldwide
300 000 new people around the world join a
network marketing
company every week
Network Marketing is in 150 countries
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 sellersGreat 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
Spanish Government will definitely benefit from it
Publicly speaking positively
about Network
Marketing
Open MLM faculties
and subjects in Universitie
s and Schools
Invite MLM leaders to give public speeches
Show MLM success
and opportunities in Spain
MLM magazines
SUPPORT FROM THE GOVERNMENT
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
Substantial income.increases
purchasing power
Network marketing
MLM is not a panacea for solving economic crisis in Spain, but it is an important component of the process, that can improve the economic and social situations in Spain.
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