Advantages and Disadvantages of Joining a Pre-Launch MLM

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pre launch mlm“This is the newest pre-launch MLM opportunity on the planet. Don’t get left behind. Join now!” 

Have you ever received a message like this in an email or through one of your social media accounts? Well you don’t want to get left behind right? You don’t want to miss the boat right? What if this pre-launch MLM is the next herbalife or Monavie, or Amway?

First off thats highly unlikely… New companies literally spring up every day. 40 thousand MLM companies have been created over the past 50 years or so and only about 10 percent (4 thousand) of them have lasted more than 2 years.

Secondly its more important, in my opinion, to get into business with good people who know what they are doing than the opportunity itself. So if you see a message like this, don’t walk RUN in the other direction. Because this is what we call hype. Its unfortunate that many fly by night MLM’ers are only taught how to hype with empty promises of “get rich quick.” Its not their fault. Its just what they’ve been taught by other people who sell smoke.

If you are being told that, “this product is so good it will sell itself” you are being lied to! No product will sell itself. You have to sell it if you want to make any money. Nothing will happen in your business until you make it happen.

Are you are risk taker, or do you prefer security and comfort? 

Like I said, remember that most MLM companies will fail in the first 2 years.

So the question worth asking is do you want to risk joining an unproven MLM company during its pre-launch, or would you prefer the security of joining a long-standing and proven operation?  Big risk often means big reward so thats a question you will want to ponder when making a decision of what company you want to join.

Virtually all multilevel marketing companies start with a prelaunch phase. Why do they do that? It’s to do with marketing and creating 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 fantastic many of those preliminary distributors might have their own groups that go along with them, it’s simply a technique of getting lots of free advertising and getting some excitement going.

The business model of an MLM company is designed so that the more distributors it has the more sales it will make. In this pre-launch phase the company may not be making any money and its target is to get over this unprofitable time as speedily as possible so the more distributors it pulls, the more product it can get out into the marketplace quickly.

It can take some companies many months to get over this period of not making any money so enrolling groups of distributors and experienced people will help them get into profit much faster. Experienced distributors are also conscious of the fact that getting in on the ground floor without them having to pay a buy-in charge can be very appealing.

A multilevel marketing company in pre-launch can save lots of money as there is no product or distribution at that point, all the groups are being formed and going through training.

Sounds great right?

But there might be hurricane clouds on the horizon. 

The rate of failure of companies in the MLM business is gigantic. Remember only ten percent of these companies succeed. Think about it, you have spent 2 or 3 years building your team, changing into a leader and working diligently to make a great income. This is the danger, if it all goes belly up you lose everything and you’re back to square one, but on the other hand many of us have been able to make huge incomes when joining a company early.

A lot depends on the product, training and also what type of compensation structure they offer.

Take a look at the leadership of the company and make sure they track records of success and have strong systems in place. Take a close look at the product and see whether it’s good quality and worth the money, are you able to just buy it from a store at a fraction of the cost? 

For more information about choosing the right company, view my post about 8 characteristics to look for when joining a direct sales company.

Will it be around in 5 years?

An experienced marketeer will be well placed to judge the company on a number of factors to decide whether he’ll join, but a newbie to MLM may not have enough experience to be able to tell if this company will work.

You’ll have to trust your sponsor to do that for you, so always ask questions.

It’s completely enticing, if you get in during the pre-launch either individually or with your own team, and if the company does becomes successful, you and your team will thrive. But there are great risks involved in this. Like losing the faith and respect of your team if the company goes under.

The bottom line with any network marketing business you join is going to be how you run your business. Regardless of whether a company is in prelaunch or has been about for thirty years it’s all down to you. It’s your perspective that matters. If you are offered a superb opportunity to join a prelaunch mlm company, could you hit it big? Do you understand how you should build your business under any circumstance?

Your success is finally in your own hands. Are you a risk taker, or would you be more comfortable with an established business? Either way, this is your business, and it’s only you that will make it succeed so it’s up to you to choose in which situation you’ll be most comfortable.

Either way you will need a consistent stream of new leads and prospects to share your opportunity with. You can learn how to generate 150 high quality free leads when you click here right now!

If you took something of value from this post you can share these insights with your friends and follower via the “share links” above and leave me a comment below.

Adam Chandler

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