Are you a risk taker, or do you prefer having a comfort zone? Be aware that most MLM companies will fail in the first couple of years. So that the question to ask is are you wanting to chance joining an unproven MLM company during its pre-launch, or would you prefer the security of joining an established and proved operation?
Having a prelaunch phase for an MLM company can be terribly beneficial. So why do they do it? They do it as a marketing ploy - to make interest and also to attract new distributors without or with their own groups into the business while not having to pay a buy-in charge. The more of a vibe that may be created, and the more distributors interested in the chance, the more free advertising the company will get.
The business design of an MLM company is designed so the more distributors it has the more sales it'll make. In this pre-launch phase the company won't be making any money and its aim is to get over this unprofitable time as swiftly as possible the more distributors it draws, ultimately the more product it can get out into the marketplace quickly .
When any companies starts out it'll take them a number of months to reach a breakeven point and to start showing a profit, so glaringly enrolling as many teams of new distributors as practicable the shorter that unprofitable phase will be. Those distributors and their groups that do join up not only benefit because they did not have to pay a buy-in charge but also know the company is battling to do anything to market the product and get it to the market as quickly as attainable.
A prelaunch multilevel selling company will be keeping its operating costs down in the primary phase as it is unable to yet get its product out into the market to make a profit.
It all sounds too good to be true . In some cases it could be.
The plain fact is, that nine out of ten MLM firms fail during their first couple of years of business, so before you jump in, bear that under consideration. During those first 2 or 3 years, just like if you had joined an established business, you'll put a good deal of effort into growing your business and your team, and all of that time you have invested will be wasted. Inversely those who have been lucky to join a company during its pre-launch which has become sucessful, have gone on to become very wealthy.
Do not be in such a hurry that you fail to take a good look at the product, the training the company offers and also the sort of compensatory plan they're offering. Management of a new MLM business is vitally important and you must ascertain whether the managing team are experienced in the MLM financial model. The product again is another crucial factor, is it top quality, is it something you can buy anywhere, and will you be proud to plug it? Is it something that'll be obsolete in just one or two months?
Experience social promoters are able to judge certain facets of a new MLM business quickly , and they look at a number of things before they join, newcomers to the network marketing business may not know the easiest way to judge an exciting new business as effectively . Your sponsor should be someone that you can trust and raise questions of, and you must always ask questions.
The plus side is if you join an internet promotion company during prelaunch you have an big opportunity to become successful, but on the other hand it can be dodgy.
As with any business there's risk concerned and it doesn't matter if you join a longtime business or get in on a prelaunch. The simple fact of the case is if you do not have the right attitude you will not succeed in either situation. Established or prelaunch it actually isn't important. What's important is how you manage your business. Have you got the facility to establish a successful business?
That is it in brief. It's up to you to judge 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 rather more stable and established situation. The majority will opt for the latter choice, so that the percentages will be in their favor direct from the beginning.
Source: http://freigeld.blogspot.com/2012/10/isnt-getting-in-on-mlm-pre-launch.html
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