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Pre-Launch MLM What's That All About

By Robert David Strong

"This is the freshest pre-launch MLM opportunity in the world. Join now!"

Timing is everything, or is it? Most new internet promotion companies fail within three years. So the question begs : Is it worth the risk to join a new network marketing program in prelaunch?

Virtually all multilevel selling companies start with a prelaunch phase. Why do they do that? It's to do with promoting and making interest and it is also a method of building a distribution network, where these first distributors don't have to pay to join. If the break actually looks great many of these preliminary distributors might have their own teams that go along with them, it's simply a way of getting lots of free advertising and getting some excitement going.

Instead of simply a drip of sales in this initial phase the company can start promoting lots of product thru these pre-made teams of distributors. During the beginning of any company there is a quantity of time when the company doesn't earn a profit so the quicker they can reach their breakeven point the better.

The truth is that when most firms start out, it does take a few months to get to the break even point and begin making money, so signing folks up as distributors benefits the company immediately. Distributors also know that if the company reaches success quickly , then it will no longer be free to join, so better to get in in the pre launch phase than to get in and have to pay later .

When any companies starts out it'll take them numerous months to reach a breakeven point and to start showing a profit, so clearly signing up as many teams of new distributors as practicable the shorter that unprofitable phase will be.

Wow that sounds great or is it? Don't dive into this too swiftly.

Because unhappily over 90% of MLM firms fail in the first couple of years, so you've got to bear that under consideration. During those 2 years you'll have put plenty of effort into building your team and any money you have put into the business will be wasted. But lots of folks have got into MLM during pre-launch and gone on to make 6 figure incomes.

The success fulness of an MLM company can often be traced to the standard of its products, how reasonably its compensatory schedule is structured, and , the quality of its training. Management also plays an important role, and an MLM company has a better chance if it is management personnel have prior experience inside multilevel marketing. Of course the product is also extremely important it has to be evergreen, of top quality and cost-effective not something that can be purchased at the local shop for less. Evergreen means people will always need the product.

For those that are experienced in network marketing they'll also have the power to judge the company and know which factors to have a look for, where somebody new to internet marketing might not know what to look for. If you respect your sponsor and his judgment, he should be able to tell you the final analysis, and you need to ask searching questions.

If the company takes off, you can harvest great rewards by being one of the first thru the door, either by already having your own team, or by building a great down-line correctly.

Do not be in such a hurry that you fail to take a good look at the product, the coaching the company offers and , the type of compensation plan they are offering. Management of a new MLM business is vitally important and you have to ascertain whether the managerial team are experienced in the MLM financial model.

Your success is finally in your own hands. Are you a risk taker, or would you be more relaxed with an established business? Either way, this is your business, and it's only you that will make it succeed so it's up to you to decide in which situation you will be most comfortable.

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