MULTI-LEVEL MARKETING IN SPAIN
Multi-level marketing (MLM) is growing more popular every year regardless of the rumours about it being a scam because some people mistake it for the pyramid scheme which is truly a scam and totally different from MLM. In a pyramid scheme, distributors are supposed to pay a membership fee in order to participate in marketing and for recruiting new people. Pyramid schemes are illegal because people who operate pyramid schemes buy money from distributors with an intention to defraud them.
MLM schemes are sales structures wherein a person sells products or services from a company that they trust. These people are called distributors. Distributors can get revenue either by direct selling of products to customers or by recruiting more distributors to the company. The newly recruited distributors are called ‘downline’ and the distributor who recruits them constitutes the ‘upline’.
The upline distributors also earn money in the form of commission when people recruited by them make sales or recruit more people under them who make some sales. MLM strategy does not ask for money for membership and is a legitimate business strategy. The distributors take up his or her role solely based on their trust on the company they work for and they genuinely believe that the product or service that they market makes a difference and want to spread the word.
MLM provides a lot of advantages to the users like work in their own time. That is one of the reasons why it is getting so popular among the people. You get to start your own business with little to no capital and effort. It is, hence, a great source of passive income for those involved. Now that we are aware of what MLM is and isn’t, let us discuss the state of MLM in Spain, one of the markets in which MLM is booming.
MLM IN SPAIN
Spain offers huge potential for MLM marketing. The people of Spain are known for their socializing nature and this is perfect for MLM marketing as it involves a lot of socializing and networking. With social networks, it has become easier to categorize people into groups and specifically target those you want to reach based on their likes, interests and hobbies. And that is exactly what is happening in Spain and one of the reasons why Spain is perfect for MLM.
In Spain, brand messages which are shared by employees or distributors in this case, rather than the company itself, are 24 times more likely to be re-shared. To put this in other words, the global average is eight times more engagement which is huge. The Spanish demand personalized interaction and MLM work in the country. With this strategy driving so many companies into continued success, it is a miracle that still companies manage to stand out from the rest.
Only those companies that have great business plans to utilize all the resources offered by Spain and exhibits unique qualities can thrive in such an environment. With that in mind, let us look at some of the most popular and successful MLM companies in the country.
Related: Software for Multi Level Marketing
TOP MLM COMPANIES IN SPAIN
VORWERK
Vorwerk is a German company which was launched in the year 1883 and has a strong foundation of trust and age in it. The company specializes in home appliances and as of 2017, had revenue of €792 million. The company is highly popular throughout Europe. Their major products are Thermomix appliances and Kobold vacuum cleaners which are sold through multi-level marketing. Now offering everything from cosmetics to household items, Vorwerk’s diversity is what has helped drive its continued success.
VALENTUS
The name ‘Valentus’ means ‘to prevail’ and the company has done just that. They have prevailed despite all odds and is on the way to becoming a household name in the country. Their goal is to propel people to a life of happiness and health by offering them a lot of products including health supplements, slimming coffee and other energy products. The company is centred around weight management and is honestly one of the best in its niche which is widely used in the country.
AMWAY
Amway is basically a household name at this point and its origin dates back to 1959. Currently, the company makes over $8 billion in revenue and is one of, if not the most popular, MLM company in the world with a wide range of products in nutrition, cosmetics and skincare, wellness and home care products. Amway is based in Michigan, United States and operates in over 100 countries in the world. The company was founded by Richard DeVos and Jay Van Andel and sells a myriad of products in Spain.
ARBONNE
Arbonne was founded in the year 1965 in Norway and is an extremely popular skincare and makeup line widely used in the country. Its products are famous for their quality, purity, safety and effectiveness. It is no wonder that they have achieved huge success despite how small they started out. The company started out with as small as 19 products and a few people but now brings well over $500 million in revenue with its reach spread all over the world. Moderately priced quality products can do wonders to the growth of a company, evidently.
USANA
Usana has grown huge in recent years, thanks to celebrity endorsements and network marketing techniques. Built on the foundation of integrity, trust, health and community, Usana aims at making people’s lives happier and fulfilled. Health supplements offered by Usana are aplenty and helps alleviate pain, especially that associated with degenerative diseases. Strong support of health and science experts adds to the trust and popularity of the company.
JUICE PLUS
Juice Plus was founded in 1993. The original company behind Juice Plus was actually aimed at water filtration and public safety. The company expanded quickly and Juice Plus was launched as a health-oriented company. Since then, the company adopted the MLM strategy which has paved a path of success and helped it reach thousands of people everywhere. Now, Juice Plus is helping people live better lives with fruit and vegetable based supplements and nutrition all around the world.
