5 Discouraging Reasons You Should Avoid Pre-Launch MLM Opportunities Like The Plague

by The Stonecold Millionaire on October 14, 2009

blog photo 2Well, it’s a literal epidemic in the world of network marketing right now.

The pre-launch opportunity has hit the airwaves and people are dancing in the street like when Michael Jackson’s “Thriller” video came out. Every other day it seems, I’m getting an email from someone trying to get me to look at “the next big thing.”

This article is going to be quite a reality check and may shake a few trees, but I wouldn’t be doing my job if I didn’t speak about this issue.

Let’s think “out of network” for a moment; meaning, why not explore this from a conventional business perspective for a moment. Companies that hit the scene for the first time are considered “volatile” and need time to “season” before they can generally be taken seriously. Anyone getting in too early is considered a “guinea pig” or laboratory experiment, and for good reason. No matter what is written on paper or who the management is, starting a new business is higher risk than rolling a set of rigged dice. History shows that the odds are stacked against you.

Here are the 5 things that you should consider with respect to a pre-launch MLM that could have you on the highway to Hell if you’re not careful:

1. Chance of failure in the first 2-3 years is VERY VERY LIKELY – maybe sooner. Again, Startups of any type are high risk, and network marketing is not immune to this. Projections of growth, success and stability is nothing more than a fancy educated guess. Unless you can predict the future, don’t get all emotional about the comp plan and product.

2. Sudden or constant changes is a HUGE red flag. When they start fooling around with the comp plan, calling it an “improvement” or “adjustment” is a sure sign of experimentation. It’s also likely that the product formula itself could change or be altered in some way. Take this as a sign that something could be wrong and plan your exit strategy.

3. Your downline could get spooked and jump ship. Everyone defaults to a place of security and stability, so if there are a lot of unknowns, your people could decide to step off in search of something more secure.

4. Attracts the worst type of MLMer. I know of someone who joins a new network marketing company every few months. They are hooked like a drug addict on the rush of a brand new opportunity, and like a drug addict, when the high wears off they are on to the next hot “drug.” You don’t want MLM junkies in your downline, trust me.

5. Your reputation could get permanently damaged. This is the riskiest of them all. You have to ask yourself, “Do I really want to risk damaging my reputation on a highly volatile, non-proven startup just to make a buck?” Once your name gets damaged, you’ll have a heck of a road to travel after that. Don’t ever put your name in jeopardy – ever.

If you decide to pursue membership in a startup MLM opportunity, please consider seriously the risks involved. Sure, you could enroll a lot of people and make a lot of money on the sheer excitement, but after the honeymoon is over you don’t want to wonder if you married a witch. If you decide to move forward, do your due diligence and walk into it with both eyes open.

I would not recommend a startup of any type especially if you are not prone to risky behavior. My recommendation would be a company that is at least 3-5 years old and starting to gain some momentum. At this stage of the game, they would have worked out the “bugs” and can provide you with some concrete data for consideration. Don’t get caught up in the hype and be careful out there.

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{ 2 comments… read them below or add one }

Joshua Boxer October 16, 2009 at 4:53 am

Larry,

Thank you for letting the “Truth” be known about pre-launch MLM’s. It’s funny how people think that because they get in on the ground floor of an opportunity, they think they will have an edge on success. The truth as you and I know is no matter what the opportunity is, if folks don’t know how to market, they are dead in the water.

Pre-launches are merely to stir up buzz in the market place. Newbies get suckered in and have no business being in business. If people got a solid internet marketing understanding and mastered the skills necessary to be successful online their chances of success would be far greater.

Thanks Stone Cold…..For distributing another revelation..

Josiah Ruff March 29, 2010 at 10:58 am

Larry,

You know this article is on point. It’s funny though because with every “rule” there is an exception. Thank God for that! I’m sure you know what that exception is…

Josiah

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