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We all know that there are countless multi-level marketing companies in the business world, but the newest facet is storming the business world.  These companies are starting up almost daily and offering all sorts of different products.  They are referred to as pre launch MLM companies and they are hitting the market so fast they might cause you whiplash.

These are multi-level marketing companies that are just beginning and don’t have a lot of capital to get started.  They offer a great deal to those that jump on their bandwagon before the “official” launch of their company.  The deal is most often in the form of free membership to those that join early.  If you’re familiar with MLM systems, this probably seems like a great opportunity because you’re getting in on the ground floor, which likely means higher income for you.  The company leverages that theory to bring in dedicated MLM associates to begin building the structure and creating the buzz necessary to make the real launch worthwhile.  This all happens before the company has to start paying for much overhead, product distribution and associate compensation.

Win-win situation, right?  Well, this is where the whiplash part comes in.  First, the companies are starting so quickly that they are inundating the market.  How do you choose which is the best option?  The oversaturation causes its own problems.  It spreads the base of folks that are really interested and talented in the form of MLM very thin.  It has the potential to overwhelm the buyers with too many options.  It overburdens the sources of capital for start up businesses.  All of these aspects may lead to sacrificing the stability of the company, which in turn means that the company may go out of business almost as quickly as it came on the scene.  After all, the Small Business Administration statistics show that consistently only 50% of small businesses survive past the first five years.

There are steps you can take to prevent the neck injuries of MLM whiplash caused by a collision with a pre launch.  Start by knowing exactly what you’re getting into by doing as much research as you can and asking plenty of questions.  Before taking the plunge, make sure you have the beginnings of a network to bring into the system.  Remember that people make MLM’s succeed, so be sure you are willing to dedicate yourself to the company and the product to help make it succeed long term.