Pre Launch MLM – Really?
New pre-launch mlm opportunity. Do not miss out.
Jumping into a new MLM opportunity could make you rich, or break you. Taking into account that the majority of MLM companies go belly up in the first 2 years, you should consider it cautiously. So what are the pros and cons of joining an network marketing opportunity during its pre-launch phase?
Nearly all multilevel marketing companies start with a prelaunch phase. Why do they do that? It has to do with selling and making interest and it’s also a way of building a distribution network, where these first distributors do not have to pay to join. If the break actually looks great many of those preliminary distributors may have their own groups that go along with them, it’s simply a way of getting a lot of free advertising and getting some excitement going.
Obviously the more teams of distributors an MLM company has the more sales it makes, that is clear.
Once their break even amount has been reached then the company is in profit, so that the quicker they get the product out into the marketplace, the quicker they can reach that break even point.
When any company starts out it will take them a number of months to reach a breakeven point and to start showing a decent profit, so glaringly enrolling as many teams of new distributors as possible, the shorter that unprofitable phase will be.
Those distributors and their teams that do join up not only benefit because they did not have to pay a buy-in fee but also know that the company is trying to do anything to plug the product and get it to the marketplace as quickly as possible.
The pre launch mlm company can keep its operating costs as low as possible, because there’s no product or distribution involved until the sales groups are set up and trained.
It all seems too good to be true. In a few cases it may be.
The failure rate of companies in the multilevel marketing industry is big only 10% of these firms succeed. Mull it over, you have spent two or three years building your team, changing into a leader and working tirelessly to make a great income. This is the chance, if it all goes belly up you lose everything and you are back to square one, but on the other hand many people have managed to make large incomes.
Do not be in such a hurry that you fail to take a good look at the product, the coaching the company offers and also the sort of compensation plan they’re offering. Management of a new MLM business is very important and you have to determine whether the management team are experienced in the MLM business model.
The product again is another vital factor, is it good quality, is it something you can buy anywhere, and will you be proud to promote it? Is it something that’ll be obsolete in only a few months?
An experienced marketing expert will be in a position to judge the company on a considerable number of factors to choose whether they will join, but a recent entrant to MLM may not have enough experience to be well placed to tell if this company will work.
If the company takes off, you can harvest great rewards by being one of the first thru the door, either by already having your own team, or by building a great down-line correctly.
But that is where the rubber meets the road with any network marketing business – regardless of when you join.
As it really doesn’t make any difference if the company is new, in pre-launch, or has been running for a while.
None of that actually matters. What matters is what will YOU do with the company? How are you going to build your new business?
That is it in brief. It’s down to you to determine if you can take the risk of joining a brand spanking new MLM company during prelaunch or whether you would prefer the to be in a more stable and established company. Most folks will select the latter choice, so that the chances will be in their favor right from the beginning.
so choose wisely!!
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To Your Success,
Paul M. Butler
Network Marketing Specialist
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