Lots of MLM corporations start out with a "pre launch"phase. Why do they do it? Basically to create a buzz, and plenty of these corporations permit new distributors to join without a buy-in. Some will bring their own teamsalong too , so this is a way of getting free advertising and to whip up a large amount of excitement.
Obviously the more groups 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 theproduct out into the market, the faster they can reach that break even point.
The reality is that when most firms start out, it does take a couple of months to get to the break even point and start making money, so signing people up as distributors benefits the company straight away. Distributors also know that if the company reaches success fast then it wont 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 small as possible, because there isnt any product ordistribution involved until the sales teams are set up and trained.
Sounds great doesnt it? But there could be hurricane clouds on the horizon.
Because sadly over 90% of MLM corporations fail within the first 2 years, so you have got to bear that under consideration. During those two years youll have put plenty of effort into building your team and any moneyyou have put into the business will be wasted. But heapsof people have got into MLM during pre-launch and gone on to make six figure incomes.
A lot depends on the product, coaching and also what type of compensation structure they offer. Take a look at the management and ensure they have robust systems inplace and raise questions. Take a close look at the productand see if it is good quality and worth the money, is it ableto just be purchased from a store? Will it be around in five years?
A professional marketer will be able to judge the company on a considerable number of factors to decide whetherhell 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 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 down-line properly.
But that is where the rubber meets the road with anyinternet promotion business - regardless when you join. As it truly is not important if the company is new, in pre- launch, or has been settled for a while. None of that really matters. What matters is what will YOU do with the company? How are you going to build your new business?
That is the bottom line. But is also necessary to consider if joining a pre-launch mlm is worth risk. If youre serious about getting in and getting busy - maybe you must put the likelihood of success in your favor by joining a definite, well-established company with a past history.