Pre Launch MLM – What’s That All About?
Timing 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 corporations begin with a “pre launch” phase. Why do they do it? Fundamentally to create a buzz, and plenty of these corporations permit new distributors to join without a buy-in. Some will bring their own teams along too , so this is a technique of getting free advertising and to stir up a lot of excitement.
Obviously the more groups of distributors an MLM company has the more sales it makes, that’s plain. Once their break even amount has been reached then the company is in profit, so the faster they get the product out into the marketplace, the quicker they can reach that break even point.
The truth is that when most firms start out, it does take a few months to get to the break even point and start making money, so signing people up as distributors benefits the company instantly. Distributors also know that if the company becomes successful quick 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 low as possible, because there is no product or distribution involved till the sales groups are set up and trained.
Sounds great does it not? But there could be hurricane clouds on the horizon.
Because sadly over ninety percent of MLM companies fail within the first 2 years, so you have to bear that noted. During those 2 years you’ll have put a large amount of effort into building your team and any money you have put into the business will be wasted. But plenty of people 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 reap great rewards by being one of the first thru 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 social 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 settled for years . None of that actually 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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