Timing is everything, or is it? Most new internet promotion companies fail within three years. So the query begs : Is it worth the risk to join a new network marketing programme in prelaunch?
Lots of MLM corporations start out with a "pre launch" phase. Why do they do it? Essentially to create excitement, and plenty of these corporations allow new distributors to join without a buy-in. Some will bring their own teams along as well , so this is a method of getting free advertising and to stir up a large amount of excitement.
Obviously the more teams of distributors an MLM company has the more sales it makes, that's 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.
The truth is that when most firms start out, it does take 1 or 2 months to get to the break even point and begin making cash, so signing folk up as distributors benefits the company instantly. Distributors also know that if the company becomes successful fast then it will no longer be free to join, so better to get in during the pre launch phase than to get in and need to pay later on.
The pre launch mlm company can keep its operating costs as low as possible, because there is no product or distribution involved until the sales teams are set up and trained.
Sounds great doesn't it? But there could be typhoon clouds on the horizon.
Because sadly over 90% of MLM firms fail in the first two years, so you've got to bear that in mind. During those two years you'll have put a lot of effort into building your team and any money you have put into the business will be wasted. But plenty of people have got into MLM during pre-launch and gone on to make 6 figure incomes.
A lot depends upon the product, coaching and also what sort of compensation structure they offer. Take a look at the management and ensure they have strong systems in place and pose questions. Take a close look at the product and see whether it's good quality and worth the money, can it just be purchased from a store? Will it be around in 5 years?
A professional marketeer will be well placed to judge the company on a considerable number of factors to choose whether he is going to join, but a new entrant to MLM may not have enough experience to be in a position to tell if this company will work. You will have to trust your sponsor to do that for you, so always raise questions.
If the company takes off, you can harvest great rewards by being one of the first through the door, either by already having your own team, or by building a great down-line correctly.
But that's where the rubber meets the road with any social marketing business - in any case when you join. As it actually doesn't matter if the company is new, in pre-launch, or has been established for a while. None of that truly matters. What matters is what will YOU do with the company? How can you build your new business?
That's the base line. But is also crucial to consider if joining a pre-launch mlm is worth risk. If you are serious about getting in and getting busy - maybe you must put the odds of achievement in your favor by joining a proven, well-established company with a track record.
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Have a look at this complete article about Pre Launch MLM for far more information!
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