PRE LAUNCH MLM

Nowadays almost every new MLM company that starts business begins with a phase that is called pre-launch. It is a short time-period usually that occurs before the full launch of the company and new distributors can join for free in most of the cases. During that window of time individuals can bring their teams or prospect for new distributors in favorable terms as the "free to join" and similar sentences attracts a lot of people interested to start their own home business.

But why the companies do it?

First of all, the number of distributors a company has reflects the number of sales it makes. In business there is something called the break even point, when in general the revenue from the sales equals the total expenses and costs of running the company. In simple words from a certain number of sales and up the company makes a profit whereas under that number is suffering a loss.

A Network Marketing company like any other business is in for profits and one of the first things is seeking to do is to come as fast as it can to the break even point. If its capital evaporates before it reaches that point it would simply go out of business as you understand. In order to turn quickly profitable it uses the pre-launch phase. Since more distributors equals more sales the company wants to sign up a number of them that it deems as adequate in order to become profitable.

When a free sign up is offered during that phase it works as an incentive for people to join and start building a team before the company gets operational. While in that phase the company keeps its expenses in a very low level, since no distribution and sales of products takes place, before an adequate number of members have joined so it can pass the break even point. What's more, it also creates a buzz that can help in advertising and recruiting.
Should you join at this stage?

The truth is that 50% of all start ups fail in their first year and 90% fail in the first two years of operation. When you join a new company instead of an established one with at least seven years in operation you accept a risk. If it fails your work and possible capital that you have put in building your business is now lost. But on the other hand the competition is small in that early stage so you can build your organization faster and make more money in the process if the venture succeeds and the company survives.

If you are an experienced Network Marketer you possibly have the skills to make a proper evaluation of the company and the risk that you are accepting by participating. By taking into consideration things like the management team, the market that the company serves, the product, the training program and other you can make a good judgment.

Unfortunately if you are new to the game you don't have the necessary experience and skills to make a proper evaluation so you have to rely on your sponsor's ability to do so. If you are uncertain it would be best for you to start with an established company instead of seeking one at pre-launch.

Pre Launch MLM, it has it's pros and cons. Imagine being part of MLM companies like Amway when they first had their pre launch, how would that have changed your financial situation today? There are a lot of lucrative MLM opportunities in this industry and one of the ones that will become giants in the future are in pre launch right now! That's cool side of Pre Launch MLM opportunities. But there's also the bad side and the ugly side to it. Therefore, you need to become aware of this before you jump into a Pre Launch.

There is absolutely no way you can know if the Pre Launch MLM you're looking at is the right one. It could be the wrong one, before thinking of joining you must go and research about the company in full detail. Make sure there's enough information available for that particular company that you are researching, if you do not find enough information about that Pre Launch MLM opportunity, then I strongly advise you to beware of becoming involved with that MLM company. Every type of company should have good amount of information, it doesn't matter if it's new, old or if it's a Prelaunch MLM, they should all have good amount of information available. You should look into information about the owners of the MLM company and the products they are selling, you should know this information intimately. If there is not enough information about the opporunity you're being offered then I suggest you to move on.

No, here comes the worst part of all. After you have been pitched about this awesome new Prelaunch company wich is going to be the next best thing, and gets you pumped after you finish researching about it, and you get involved with the MLM company and the next thing you discover is that this "next best MLM" is a pyramid scheme, scam or never even launches. This is ugly side of Prelaunch MLM. The owners end up having financial difficulties or something goes wrong with the products and you ended up right in the middle of all this. If this happens, then I believe that not enough research has been done on the company and the owners.

The best way to avoid running into this kind of problem is to learn about the MLM industry leaders. When they join businesses they know that their reputation is on the line. Therefore, if you do your research on these people you will come to know that they only join solid businesses.

Getting involved with a Prelaunch MLM is a very exciting opportunity and can get you financial freedom in the future. But make sure you do your homework and complete your research before even thinking about joining a Pre Launch MLM.