You Could Be Playing The MLM Lottery By Signing up with A New MLM Signing up with a new MLM company can be an attractive opportunity for both brand new and veteran network marketers. We've all heard amazing stories of distributors who "got in early" with companies that are now household names. Those tales inevitably start with, "And they got in at the beginning..." and end with, "...and now they're set for life." Of course, the stories of network marketing outliers who got into Direct selling organizations like NuSkin, Amway, Herbalife, and Shaklee in the beginning and who are now multi-millionaires inspire and spur on those just getting started in the industry. However is getting in with a start-up all it's cracked up to be? The Statistics Are Not In Your Favor With New Multilevel marketing Organizations Let's look at the industry statistics, shall we? Numerous multi level marketing professionals estimate that 9 out of 10 new multi level marketing companies fail within the first two years. As author and long-time industry trainer Rod Nichols says in his book, Successful Network Marketing for the 21st Century: "This means that if you choose a company that is under two years old, you only have a ten percent chance of success." When you look at the possibility of getting involved with an MLM start up from that standpoint, it surely makes it much less desirable, doesn't it? But, there are also other risks involved with signing up with new companies. Let's consider a few to determine if joining a newly launched MLM is really worth the dangers. Pre-Launch Companies Often End Up With Immense Issues One more seemingly appealing route to success in direct selling is to become a distributor for a company that is in pre-launch. "Pre-launch" is when a new company allows potential reps to pay to join before they are even selling their products or services. As Mr. Nichols says in his book, they do this to raise resources for their official launch. The problem with this is it points to the reality that the company is under-capitalized to begin with. And, chances are that they will run out of cash at the most ill-timed times; for example, when they are having their first big growth spurt and have to pay out enormous commission checks to distributors. Peculiar Things Happen to Downlines in Pre-Launch... Additionally, strange things can happen with downlines in the course of pre-launch. I have an acquaintance who signed up during pre-launch with a certain new company that shall remain anonymous. She invested considerable time and effort to build a downline ahead of launch, although all her sign-ups were just on paper. As it turns out, she hooked a "big fish" by attracting a very successful and knowledgeable career networker into her downline. This individual had a track record of growing huge downlines, so my friend was sure she would be set when the company launched. Regrettably, in order to make the opportunity more appealing to the big distributor, her upline leader decided to position him several levels over my friend in the business. To say the least, my colleague was devastated, and switched over to a different new MLM which has since gone out of business. And to my understanding, she has probably left the industry, perhaps for good. So Is It Worth The Gamble? Is it really worth it to join a new MLM? For me, the response is a definite "no". My advice is to investigate any new MLM company thoroughly before joining. Examine at their leadership, ask about their financial backing, scrutinize the products, and then weigh the disadvantages with care. There's no sense playing the new network marketing company lottery, unless you are utterly certain you are holding the winning ticket.
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Undoubtedly, the stories of MLM stand-outs who got into Network marketing companies like NuSkin, Amway, Herbalife, and Shaklee in the beginning and who are now incredibly wealthy inspire and motivate persons just starting out in the industry. Nevertheless is getting in with a start-up all it's cracked up to be?
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