Timing is important, or is it? Most new internet marketing corporations fail within 3 years. So that the question begs : Is it worth the danger to join a new network marketing programme 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.
Glaringly the more groups of distributors an MLM company has the more sales it makes, that's obvious. 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 market, the quicker they can reach that break even point.
The fact is that when most companies start out, it does take a couple of months to get to the break even point and begin making cash, so signing folk up as distributors benefits the company immediately. Distributors also know that if the company achieves success fast then it will not be free to join, so better to get in during the pre launch phase than to get in and have to pay later .
The pre launch mlm company can keep its operating costs as small as possible, because there isn't any product or distribution involved until the sales groups 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 depends on the product, training and also what kind of compensation structure they offer. Have a look at the management and ensure they have strong systems in place and raise questions. Take a close look at the product and see whether it is great quality and worth the money, can it just be acquired from a store? Will it be around in five years?
A seasoned marketing expert will be well placed to judge the company on a considerable number of factors to choose whether he will join, but a newcomer to MLM may not have enough experience to be well placed to tell if this company will work. You'll 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 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.
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.
Glaringly the more groups of distributors an MLM company has the more sales it makes, that's obvious. 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 market, the quicker they can reach that break even point.
The fact is that when most companies start out, it does take a couple of months to get to the break even point and begin making cash, so signing folk up as distributors benefits the company immediately. Distributors also know that if the company achieves success fast then it will not be free to join, so better to get in during the pre launch phase than to get in and have to pay later .
The pre launch mlm company can keep its operating costs as small as possible, because there isn't any product or distribution involved until the sales groups 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 depends on the product, training and also what kind of compensation structure they offer. Have a look at the management and ensure they have strong systems in place and raise questions. Take a close look at the product and see whether it is great quality and worth the money, can it just be acquired from a store? Will it be around in five years?
A seasoned marketing expert will be well placed to judge the company on a considerable number of factors to choose whether he will join, but a newcomer to MLM may not have enough experience to be well placed to tell if this company will work. You'll 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 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.
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