The majority of MLM companies start out with a “pre launch” phase. Why do they do it? Essentially to generate a buzz, and a large amount of these companies allow new distributors to join without a buy-in. Some will bring their own teams along too , so this is a method of getting free advertising and to stir up a lot of excitement.

Manifestly the more groups of distributors an MLM company has the more sales it makes, that’s obvious. Once their break even amount has been reached then the company is in profit, so the quicker they get the product out into the market, the quicker they can reach that break even point.

The reality is that when most firms start out, it does take 1 or 2 months to get to the break even point and start making money, so signing folks up as distributors benefits the company straight away. Distributors also know that if the company becomes successful quickly , then it will no longer be free to join, so better to get in in the pre launch phase than to get in and need to pay later on.

The pre launch mlm company can keep its operating costs to a minimum, because there is no product or distribution concerned till the sales teams are set up and trained.

Sounds great does it not? But there may be hurricane clouds on the horizon.

Because unhappily over 90% of MLM companies fail within the first couple of years, so you’ve got to bear that noted. During those two years you’ll have put a large amount of effort into building your team and any money you have put into the business will be wasted. But plenty of people have got into MLM during pre-launch and gone on to make 6 figure incomes.

A lot depends on the product, coaching and also what kind of compensation structure they offer. Take a look at the management and ensure they have powerful systems in place and pose questions. Take a close look at the product and see if it’s good quality and worth the money, can it just be bought from a store? Will it be around in 5 years?

A professional marketing expert will be well placed to judge the company on a number of factors to decide whether he’ll join, but a recent entrant to MLM may not have enough experience to be able to tell if this company will work. You’ll have to trust your sponsor to do that for you, so always ask questions.

If the company takes off, you can reap great rewards by being one of the first thru the door, either by already having your own team, or by building a great down-line properly.

But that’s where the rubber meets the road with any social marketing business – regardless when you join. As it truly is not important if the company is new, in pre-launch, or has been revealed for years . None of that really matters. What matters is what will YOU do with the company? How will you build your new business?

That is the final analysis. But is also crucial to consider if joining a pre-launch mlm is worth risk. If you are serious about getting in and getting busy – maybe you must put the likelihood of achievement in your favor by joining a definite, well-established company with a past history.

If you’re searching to become a member of a prelaunch mlm then go consider finding the right prelaunch mlm.