Pre Launch MLM – Really?
Friday, April 6th, 2012Timing is important, or is it? Most new internet promotion companies fail inside three years. So the question begs : Is it worth the danger to join a new internet marketing program in pre launch?
Lots of MLM companies start out with a “pre launch” phase. Why do they do it? Fundamentally to create a buzz, and plenty of these firms permit new distributors to join without a buy-in. Some will bring their own teams along as well , so this is a technique of getting free advertising and to stir up a large amount of excitement.
Manifestly the more groups 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 reality is that when most companies start out, it does take a few months to get to the break even point and begin making money, so signing folk up as distributors benefits the company straight away. Distributors also know that if the company reaches success fast then it will no longer be free to join, so better to get in in the pre launch phase than to get in and need to pay later .
The pre launch mlm company can keep its operating costs as low as possible, because there’s no product or distribution concerned until the sales teams are set up and trained.
Sounds great doesn’t it? But there may be storm clouds on the horizon.
Because unhappily over 90% of MLM corporations fail within the first couple of years, so you’ve got to bear that under consideration. During those two years you will have put plenty of effort into building your team and any money you have put into the business will be wasted. But plenty of folk have got into MLM during pre launch and gone on to make 6 figure incomes.
A lot is dependent on the product, training and also what kind of compensation structure they offer. Have a look at the management and confirm they have robust systems in place and pose questions. Take a close look at the product and see if it is good quality and worth the money, can it just be bought from a store? Will it be around in 5 years?
An experienced marketer will be well placed to judge the company on a number of factors to choose whether he is going to join, but a newcomer 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.
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 downline properly.
But that’s where the rubber meets the road with any network marketing business – in any case when you join. As it truly doesn’t make any difference if the company is new, in pre launch, or has been established for a while. None of that really matters. What matters is what will YOU do with the company? How will 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 – perhaps you must put the odds of success in your favour by joining a established, well established company with a record.
Learn more about a pre launch mlm. Stop by Steven Suchar’s site where you can find out all about a pre launch mlm and what it can do for you.