What is direct selling?

Known as the land of opportunities, Spain is popular for its immensely expanded business landscape. It is also favored for its robust economy and a wholesome marketing model that are deeply ingrained into the Spanish business culture. Aligned with Spain’s work culture, direct selling in Spain is one of the most popular marketing models that offers the perfect recipe for success to businesses in various sectors. Introduced in the mid-20th century, it provides the workforce with a sense of entrepreneurial freedom as well as allowing them to cultivate strong relationships with the customers.

The direct selling model is particularly effective in the Spanish society since it allows businesses to build a personal relationship with each of its customers, on a one-on-one basis and establish lasting consumer loyalty and rapport. This business model offers tremendous opportunities for aspiring Spanish entrepreneurs, those seeking home-based business or employment opportunities and looking for growth.

Besides, unlike traditional sales channels, direct selling allows businesses in Spain to do away with costly brick-and-mortar stores and investing in hiring full-time employees. The direct sales model enables enterprises to drive sales conversions in addition to building strong customer relations. The biggest advantage of implementing direct selling in Spain is that it enables distributors to engage with the local as well as international clientele.

What does it take to succeed as a direct selling business in Spain?

To build a successful direct selling business in Spain, you need to gain a deep insight into the industry and the market you are targeting. Additionally, it is important to be open to adopting the latest technological trends in the industry. Implementing direct selling software into your workflow helps to ease the processes within your direct selling business and keeps it organized. Finally, to establish your enterprise in the Spanish market, it is essential to cultivate a team of distributors who understand your products and services. This will not only help you grow your presence within the country but also aid you in expanding your presence globally in the long run.

Need more insights on how to start a direct selling business in Spain? Here is Epixel MLM Software’s comprehensive guide on direct selling to ease your way into Spain's direct selling market. Let's dive in!

Basics of direct selling in Spain — A closer look into the local context

Direct selling in the Spanish market: An overview

The direct selling business model in Spain follows the idea of selling products or services directly to consumers without any intermediaries. Direct selling eliminates the requirement for expensive storefronts, or even a presence on online marketplaces. The convenience and freedom it the Spanish direct selling market provides to entrepreneurs led to the generation of $694 million in retail sales, with a salesforce of 190,428 in 2023.

It also provides businesses with the freedom to avoid spending on costly advertising campaigns. Instead, businesses implementing this sales model profit from Spain's communities, through face-to-face demonstrations and at times, virtual interactions.

There are many industries that are booming by adopting the direct selling approach in Spain. For instance, the health and wellness sector generate the highest revenue in product categories and is a 40% contributor to the direct selling market. According to the WFDSA Report 2023, the cosmetics and personal care industry is a close second in the list of market contributors i.e. 37%.

The report also highlights that household goods and durables also account for 10% of the total retail sales in Spain. Home care, clothing and accessories, utilities and home improvement are also key players in the Spanish direct selling market with 7%, 3%, 2%, and 1% respectively.

History of direct selling in Spain

While direct selling in Spain made its debut in the 1920s, mainly in the field of publishing, it gained momentum in various sectors by 1960. Since then, direct selling in Spain has been a preferred model for businesses across industries. In the beginning direct selling primarily meant door-to-door salespeople approaching households with innovative products from international markets. However, during Spain's economic expansion in the 1980s and 1990s, the sales model evolved into highly effective marketing models like party plan, multi-level marketing structures, and digital channels such as webinars, social media, virtual meets and more.

Presently, Spain ranks fifth in the European Union direct sales market; following Italy, France, Germany and Poland with an annual turnover of €642 million in 2023.

Core principles of direct selling in Spain

Foundational principles adapted for Spanish culture

The Spanish direct selling market is based on some core principles, that if adhered to, can help budding direct selling businesses achieve success. Following are the important principles of direct selling in Spain.

Strengthening relationships
Spanish direct sellers build customer loyalty addressing their customers’ needs, regional preferences, and concerns with patience and respect. This approach builds the trust that Spanish consumers particularly value, leading to repeat purchases.

Entrepreneurial freedom and mobility
Direct selling allows businesspeople to start their own enterprise with minimal investment. Distributors can sell the products anywhere, using multiple channels and techniques. From door-to-door sales, to utilizing social media to expand, direct selling provides freedom and flexibility which goes well with the Spanish market. Besides, direct selling has also proven to be a viable alternative for professionals seeking flexible working hours, regular pay and remote opportunities.

Value-driven sales culture
Spanish direct sellers focus educating their customers on their products and its benefits to help them make informed decisions. This approach not only provides value to the customers but also fosters long-term loyalty and trust.

Types of direct selling in Spain

Direct selling in Spain includes different sales models, each with specific characteristics suited to different regions and demographics:

Single-level marketing (SLM)

Single-level marketing involves one-on-one sales directly to customers, where Spanish businesses reach a wide market base and earn a profit without recruiting full-time employees.

Multi-level marketing (MLM)

Multi-level marketing in Spain has gained significant traction with the global clientele since EU regulations provided mandatory compliances to ensure legitimate operations. Spanish MLM operations include rewarding sales performance and creating supportive team cultures that reflect Spanish culture.

Party plan model

Party plan consultants arrange social gatherings to introduce products and make sales to a large group of customers, simultaneously. Virtual events through platforms like Zoom, Facebook Live, and interactive webinars are also conducted under this sales model.

Key factors to consider before joining a direct selling company in Spain

Spanish direct selling company checklist

According to a market survey report of 2023, the direct selling sector in Spain had employed around 190,500 independent distributors. Additionally, approximately 77% of the workforce constitutes of women between the ages 35 and 54.

Direct selling sector in Spain offers excellent employment and business opportunities to budding entrepreneurs as well as working professionals. Numerous people consider this field as a lucrative side hustle, while for many this is a source of full-time employment.

That said, before indulging in the field, it is advised to do thorough research about the company and the Spanish market.

Consider the following factors before making your decision.

Company reputation
Established companies operating successfully in Spain typically have strong support systems tailored to Spanish business practices. Look for companies recognized by Spanish business authorities and operating in compliance with Spanish and EU regulations to avoid legal issues.

Product relevance for Spanish consumers
To make direct selling your bread and butter, ensure that the products are relevant and appealing to the target market. Products should address real needs and deliver authentic value to customers, to drive consistent sales and profit.

Transparent compensation plans compliant with Spanish regulations
Understanding compensation structures is crucial. Look for transparency and fairness in how the plan rewards sales efforts within Spanish legal frameworks. Avoid companies that emphasize recruitment over sales, to dodge possible pyramid schemes.

Training and support
Credible direct selling businesses invest in developing their team with market-specific training. Before joining a direct selling company in Spain, inquire about their Spanish-language support systems, training materials adapted for the Spanish market, and mentorship programs.

Culture and ethics aligned with Spanish values
Examining the organization's work culture and ethics is essential. Credible enterprises prioritize ethical business practices compliant with Spanish standards and EU regulations. Additionally, we suggest you dig through the company’s history, track records with past employees, distributor profitability business practices, client testimonials, etc. before joining the company. Companies with membership in Spanish regulatory bodies and associations such as AEVD (Asociación Española de Empresas de Venta Directa, the Spanish Direct Selling Association) adhere to strict legal and ethical standards.

Global presence
Research the company's reach across different Spanish regions and beyond to ensure growth opportunities.

The direct selling value chain in Spain

Manufacturing and distribution adapted to Spanish market

Products distributed through direct selling in Spain may be manufactured domestically or imported, then procured by distributors for direct customer sales. This sales cycle reduces costs without any investment in infrastructure, allowing competitive pricing and better profit margins. Companies with local production or efficient import logistics have advantages in the Spanish market.

Role of a distributor in Spanish culture

According to recent survey, direct sales businesses in Spain can expect a 75% of overall customer loyalty. That said, customer experience is critical in Spain's relationship-focused business landscape. The direct selling model can only be successful if the company delivers value, quality products, ensures prompt follow-ups, provides personalized recommendations, and dispute resolution. Distibutors play a key role in maintaining a direct selling company’s reputation, and market standing. Distributors are trained to adapt to a customer-centric approach, along with prioritizing customer satisfaction. They are taught to identify individual customer needs and provide recommendations and after-sales support. This promises profitability and sustainability in Spain's direct selling sector.

Essential skills and strategies to succeed in direct selling in Spain

Top direct selling skills for the Spanish market

The direct selling sector has a high employment rate and provides flexibility to its aspirants in terms of eligibility criteria. However, there are skills that can make you a highly desirable candidate in this industry.

Soft skills and communication
Social skills are paramount if you want to excel in the field of direct selling in Spain. Since the job demands you to foster a bond with your customers to ensure sales, empathy, understanding, and effective communication skills are fundamental. Direct sellers often incorporate success stories, testimonials from their customers, and before-and-after experiences into their sales pitch. This helps potential customers visualize the product’s benefits and needs.

Product understanding
Customers expect comprehensive product knowledge from distributors. Understanding how products will specifically benefit your Spanish consumers— including regional preferences—builds credibility and trust. In-depth knowledge about ingredients, benefits, and results leads to confident responses to questions from your consumers and thus increases sales.

Building customer engagement
Developing a personal brand that resonates with Spanish customers helps stand out in competitive markets. An online presence through personal websites, blogs, and on platforms like WhatsApp, Instagram, Facebook establishes authenticity and boosts customer engagement.

Time management
Direct selling's flexibility appeals to Spanish entrepreneurs but requires adaptation to local business patterns including extended lunches and later business hours. Setting achievable goals aligned with Spanish market dynamics and working through actionable steps ensures steady progress.

Teamwork
Leadership qualities along with ability to work in a team is crucial in this field. In the direct selling market of Spain, team success significantly influences individual achievement, making supportive leadership an asset for candidates.

Technological trends for direct selling for Spain

Technological innovation has opened new vistas for direct selling in Spain. Adaptation to the latest tools and platforms has simplified processes and enhanced distributor-customer relations.

Online platforms and virtual events

Social media has transformed direct selling in Spain by expanding the reach and accelerating conversions.

How so? Simply by maintaining their social presence through latest trends and sharing relevant content regularly.

Besides, live streaming and webinars can also be organized to engage with old and new clientele. This facilitates real-time interaction and expands brands' reach across diverse regions and international markets.

Ecommerce and referral programs

Ecommerce integration with Spanish payment preferences and referral programs create convenient shopping experiences for customers. Online shopping with transparent tracking and delivery enhances the buying experience and builds customer retention in Spain's growing digital marketplace.

CRM and data analytics for the Spanish market

CRM systems tailored to customer behaviors centralize information and optimize sales processes. Analytics identify fast-moving products, seasonal trends, and preferences specific to Spanish consumers and regional variations. Spanish-market segmentation based on buying habits helps businesses develop targeted marketing approaches that resonate with specific customer groups.

Direct selling software with Spanish localization

Direct selling software provides comprehensive localization solutions for managing business processes and sales teams with tools adapted according to the market. These platforms simplify commission calculations compliant with Spanish tax requirements, genealogy management, supply chain processes, and customer service through AI-powered automation teamed with language capabilities.

AI and NLP Chatbots

Chatbots are a great addition to direct selling business in Spain, to improve customer service and assistance. Besides they also help distributors enhance their performances and assist customers with their orders and queries.

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Core features of direct selling software for Spain

Compensation plan management
Direct selling software ensures automated commission calculations in compliance with Spanish tax requirements. Real-time payouts through secure payment methods eliminate errors and ensure regulatory compliance.

Mobile app optimized for users
User-friendly mobile apps language support empowers distributors to communicate and manage operations effortlessly. Users can track sales, monitor team performance, access training materials, and place orders anytime.

Sales enablement tools
Promotional tools including landing pages, ad banners, product catalogs, and multimedia elements in Spanish facilitate marketing across channels.

Analytics and market insights
Direct selling platforms also provide advanced dashboards that provide detailed performance reviews, and key indicators relevant to the Spanish market. These insights support data-driven decision making. Reports on top performers, product trends, and customer segments also help develop effective sales and marketing strategies.

Compliance with Spanish and EU regulations
Direct selling platforms have compliance management features that ensure alignment with legal requirements and EU regulatory standards. Secure architecture safeguards business data and financial transactions in compliance with Spain's strict data protection laws.

Influencer collaborations with Spanish personalities

Direct sellers often collaborate with Spanish influencers and micro-influencers to expand their target demographics across geographical locations. These social media ambassadors introduce brands to wider audiences. If executed effectively, collaborations with trusted Spanish voices create authentic endorsements that resonate with local consumers.

Regulatory and ethical considerations in Spanish direct selling

Key regulatory aspects

Direct selling businesses in Spain be vigilant while navigating through specific regulations, and EU directives that govern various aspects of the industry. Following is some compliances you must adhere to while setting up a direct selling business in Spain.

Legal framework

1. Consumer protection: Spanish direct selling businesses must be transparent vis-a-vis the product and services they want to sell. Businesses must provide consumers with comprehensive details prior to purchase, ensuring informed decision-making.
2. Electronic marketing: The Spanish Act on Information Society Services and ecommerce (LSSI) regulates electronic marketing practices. As per LSSI, prior consent from recipients is necessary before sending promotional/business emailers to prospects as well as customers.
3. Advertising standards: The General Advertising Law defines advertising parameters, and local laws may impose additional criteria. Compliance with these regulations is crucial to avoid practices deemed aggressive or misleading. Key regulations also include Spain's Anti-Pyramid Scheme Law, consumer rights protections, and GDPR data requirements.

Ethical standards

1. European codes of conduct: Businesses must follow the codes of conduct developed by the European Direct Selling Association (Seldia). It provides an outline for ethics for direct selling companies and sellers. These guidelines cover consumer protection, fair competition, and the enhancement of the direct selling industry's public image.

Data protection

1. Advertising exclusion systems: Before conducting direct marketing communications, businesses must consult advertising exclusion systems (e.g., Robinson lists) to respect individuals who have opted out of receiving such communications. This practice ensures compliance with data protection regulations and respects consumer preferences.
2. Industry guidelines and associations in Spain: The Asociación Española de Empresas de Venta Directa (AEVD) and similar organizations regulate direct selling in Spain by establishing ethical standards and best practices.
3. 3. Building long-term trust in the Spanish market: Trust and transparency form the foundation of successful direct selling. Delivering consistent value, maintaining ethical practices, and providing exceptional customer service builds the brand trust essential for success in Spain.

Direct selling challenges in Spain

1. Public skepticism

One of the biggest challenges direct selling companies face, is overcoming public skepticism. Many people often associate distributors with being a part of pyramid schemes or illegal operations. This misunderstanding stems from fraudulent schemes that are rampant in the market today. Sometimes, fraudsters disguised as legitimate businesses end up fooling genuine customers into losing a lot of money. This has tarnished the reputation of the direct selling model.

However, this can be overcome by educating consumers about these distinctions takes time and effort, making it harder for genuine businesses to build trust and attract potential sellers or customers.

2. Rejection handling

Rejection is inevitable in sales and in turn, challenging. Direct sellers and distributors must accept rejections and view them as opportunities. They must learn to refine their approach from time to time to better align with customer expectations.

Besides, understanding why prospects decline—be it due to lack of need, price concerns, or other issues—helps identify areas of improvement in the sales strategy. This leads to an increase in future conversion rates and better customer retention.

3. Market saturation and competition

Competition intensifies as more entrepreneurs enter Spain's direct selling industry, particularly in urban centers like Madrid, Barcelona, and Valencia. Alternative products create additional competitive pressure. It is advised that Spanish businesses and sellers differentiate themselves through exceptional service, regional specialization, and innovative marketing techniques that resonate with local preferences.

4. Time management and burnout

Direct selling companies should involve their workforce in frequent team building events, periodic training, stress management classes and community building exercises. Balanced and realistic goal setting reduces stress and enhances productivity and helps in addressing anxiety and skill gaps. This boosts the morale of the workforce and helps them maintain a work-life balance.

Conclusion

Spain's direct selling market is booming by the day. With its expanding community of dynamic entrepreneurs, and a growing workforce, Spain is fast-tracking its way to economic growth and development. As the fifth-largest market in the EU, Spain showcases the enduring strength of direct selling in the digital era, along with its potential to become a hotbed of innovation and entrepreneurial spirit. With its steady upward momentum, this sector promises to keep creating opportunities and empowering people from all walks of life across the country.