MULTI-LEVEL MARKETING METHOD FOR RESOLVING ECONOMIC CRISIS IN SPAIN Ekaterina Novoseltseva 26 th 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

ECONOMIC CRISIS IN SPAIN GOVERNMENT ACTIONS

Thousands of people in more than 80 cities DemonstrationsPeople sleep on the streetsMake fire on the rubbish binsBlocking the streetsBreak windows ECONOMIC CRISIS IN SPAIN STRIKES 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 Marketing 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 force WOM Massive advertising efforts Retail 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 inheritance Join 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

MLM SUCCESS IN THE US From 500,000 millionaires in America, 100,000 (20%) of millionaires were MLM people From 850,000 millionaires in the United States, 40% of those millionaires were networkers 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 recessions Now MLMGrowth

MLM SUCCESS IN RUSSIA Recession in 1998 Now MLMGrowth 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

FUTURE OF MLM

WELL-KNOWN INTERNATIONAL COMPANIES

MLM IN SPAIN Bring people certainty, security and safetyOffer endless jobRegain financial controlOffer the same products, but with much lower priceBest 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 careerOffers 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 increaseLower 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 decreaseCrisis 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 Universities and Schools Invite MLM leaders to give public speeches Show MLM success and opportunities in Spain MLM magazines SUPPORT FROM THE GOVERNMENT

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 Substantial income. increases purchasing power Network marketing

THANK YOU!