The IGC also owns and operates WiBOO – a web-based service intended to unite social network with e-commerce, focused on micro and small businesses, and distributed as Multilevel Marketing.
The history of Direct Selling in Brazil started in 1942 and in 2013 the industry generated US$ 14.6 billion in sales. Currently, there are more than 65 direct selling companies legally operating in Brazil.
However, Brazil is a unique country in terms of marketplace and legislation with regard to the network marketing. Therefore, it is highly recommended that a foreign company willing to recruit and sell in Brazil consults with specialists in that matter beforehand.
While there is a regulatory body, member of the WFDSA, there are no specific laws establishing clear rules for the direct selling industry. The ABEVD (Associação Brasileira de Empresas de Vendas Diretas), similar to other DSA around the world, has its ethical code and criteria to accept members, but it is highly recommended that a foreign network marketing company consults with professionals before entering the Brazilian market.
The IGC highly professional staff includes MLM lawyers, license and patent specialists, translators, accountants and real estate agents to help any network marketing company establish infrastructure in Brazil.
Overview of the IGC’s MLM consulting and assistance services for foreign Network Marketing companies
It is worth mentioning that regardless of their education, few people in Brazil speak fluent English or any other common language besides the native Portuguese.
Many foreign companies make the common mistake of “testing” the market with few Brazilian English speaking leaders before translating their website, back office, compensation plan, products and marketing materials into Portuguese.
Our practice shows that this method does not work, because even some network marketing leaders get involved in the business, they won’t be able to promote and sell effectively in Brazil without having all materials and tools in Portuguese. In over 90% of all cases, the network marketing company “burns” before even starting or in the best-case scenario, it takes years to take off.
Therefore, it is highly recommended that at least the most important part of the website, product descriptions and promotional materials are translated into Portuguese before the company starts recruiting or selling in Brazil.
The IGC translators are fully prepared to translate:
- The company’s website, replicated websites and back office
- Text materials in PDF, MS Office, or any other format, text over images, etc.
- Subtitle or voice over for any video materials including webinars, etc.
For Network Marketing Companies with Physical Products
– Product legalization
Brazil is heavily regulating the sale of any physical products manufactured abroad. In most cases license by the Ministry responsible for a particular industry is necessary and it could be very bureaucratic and lengthy process.
Regardless of the nature of products – health, nutritional, cosmetics, electronics, fashion cloths or accessories, the IGC specialists are ready to help with the import, license, patent, trademark or any other legalization procedures.
In case the foreign network marketing company decides to manufacture its products in Brazil, licensed production facilities can be provided.
– Company registration
For companies selling physical products, the law requires a Brazilian legal entity. The established company will be responsible for the products legalization, customer support, logistics, etc.
IGC can help with all that is required by law including, but not limited to: company formation, office space rent or purchase, staff hiring, warehouse and logistics, bank account opening and accounting services, etc.
For Network Marketing Companies with Digital Products
In most cases, no physical presence in the country is required. However, IGC will evaluate and advise on any particular case to confirm the exempt of such physical presence in Brazil.
In any case, Portuguese translation of the website, replicated websites, back office, digital products and their manuals in text or video, compensation plan and any other marketing materials is highly recommended to ensure success in Brazil.
The IGC’s MLM lawyers are fully prepared to evaluate the Compensation Plan of any network marketing company and advise on its compliance with the Brazilian law.
It is very important to have professional opinion in that matter in order to make sure that the company will be accepted as sustainable and legal entity, and not a financial pyramid or Ponzi scheme, which are prohibited in Brazil.
It is highly recommended that once a company and its products are legally present in Brazil, an ABEVD membership is obtained. A membership in the Brazilian Association of Direct Selling Companies will guarantee credibility and facilitate the company’s quest for success in Brazil.
The IGC professionals will make sure all requirements are fulfilled and help with obtaining membership in ABEVD.
For further information about the IGC’s MLM consulting and assistance services, please contact:
IGC – Public Relations
Tel: +55 11 98111-3642