Pre Launch MLM – 5 Biggest Problems with This Technique
Author: carlos
Pre Launch MLM has endured its fair share of criticism in recent years. With the vast number of marketing techniques available, many question the actual effectiveness of this method. It is used at the beginning stages of a growing company and offers discounts as an incentive to get in on the ground floor. However, many people are leery of signing on to a business that does not have an established reputation. Although working for a business that is just starting out has the potential to lead to unparalleled success, more often than not, it tends to flop.
One of the biggest problems with the technique of pre launch MLM is the poor statistics of start-up businesses. It is a sad truth that virtually half of starting businesses fail within their first year. Furthermore, 90% fail after their second year. These grim statistics make people, understandably, hesitant about investing their time and money in a company without an established history of success. Also, even if the business is initially showing great numbers and potential, this is not necessarily an indication of its future money making potential.
Because of the aforementioned failure rate when it comes to pre launch MLM opportunities, it also creates a problem with regards to getting people involved. As the success of MLM is dependent on a large, strong downline, if you are having difficulty building your client base, you will be spending a lot of your time recruiting customers without getting much return on your investment. Also, the people that you do end up attracting are oftentimes not the most beneficial. Many people gravitating towards a pre launch MLM are opportunists and not necessarily business people. Therefore, they are most likely not the ones that you want to rely on in order to make you the most money possible, as they are typically inexperienced and less likely to follow-through.
A third problem is that these businesses can sometimes simply be money making schemes run by fraudulent owners. This, coupled with the problems involved in creating a successful downline, lead to the fourth issue with this method. This is that, although you can start your company for a reduced cost, if you cannot build a client base or if the company goes bust, you have essentially wasted all of the money you saved and more. The fifth biggest problem with pre launch MLM is the difficulty in attracting serious distributors. They understand the risks involved and are skeptical of any business that has not proven itself, as you should be as well.
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Posted in MLM Resources and Tips
Great article Carlos, and full of truth.Pre Launches, Launches, and RE?? Launches?? Way to much emphasis put on this. Typical Hype. I always get a chuckle when I see a \\\\"Re-Launch\\\\" . If you light a bottle rocket, and it fizzles without going off, it\\\\\\\’s called a DUD, LOL. Thanks for the great read my friend.
Carlos,
Awesome 5 rules to live by when researching for a new MLM company. Pre-launches are hype for one reason – generate new reps. IF done right, you can build success rather quickly.
However, if the company flops, it’s like pie in the face to you. Not only in the wallet, but in the minds of all of your team that you brought across with you.
Great idea to get these ideas in front of others to learn from.
~ Linus
Hey Carlos,
Excellent article. Every business struggles at startup and MLM’s are no different. I agree with the concept of “easy money” but true business people understand that amount of work required to make ANY business successful.
Great read and great content …. as always.
To Your Continued Success,
Bill
You are so right. No one should touch a company that is less than 2 years old let alone one that is in prelaunch. The failure rate alone should be enough to indicate that choice.
Good suff.
Bob Howard
Hey Carlos,
You discussed some great issues and valid reasons not to get involved with pre-launches. It’s like a game of chance and when it comes to business, is very risky.
You also put your reputation on the line as well because people follow people and NOT necessarily a business opportunity. So guess who is blamed when people are brought into a company and it flops??? You guessed it…
- Yo
Carlos,
This is great information. I am still searching for a primary and now I have a guideline on what to look out for.
Nice job.
Tamra
So many People fall into the Hype trap…. This info is really Helpful. Great post Carlos
Carlos,
Another great post. Being a business owner I have struggled through those first two years and understand what it takes to succeed. Business is always a gamble but I would not bring my associates into a company until they have a couple years under their belt.
John Stone
I agree with a lot of your points Carlos. As entrepreneurs we are also gamblers to a certain extent. With more risk can come more reward. I think making educated risks are o.k..
Thanks for the great post,
~Bert
Hey Carlos,
You’re absolutely right on target with this one. If you’re going to spend the time to build a business online, you don’t want the company you’re promoting to disappear in a year!
Awesome looking blog by the way!
Barry
Before starting a business, it is very important to know the negative aspects of the business. These five big problems are important to stay aware of the failures in MLM.