When to Join an MLM Company, work from home business opportunity.
By Daren C. Falter, Author of How to Select a Network Marketing Company
Don’t Be Fooled By These!
Here are three of the most common statements you’ll hear from people regarding the timing of their opportunity.
Statement: We’re just entering the momentum phase!
Truth: Every company claims to be entering the momentum phase, no matter if they’re brand-new or forty years old. They’re either lying about their momentum, stretching the truth, or don’t really know what the momentum phase is. Don’t take anyone’s word for it. If you want to review the true nature of momentum, go back to the beginning of this chapter and study it carefully.
Statement: Our company is ground floor.
Truth: This statement is so overused, and so often misused, that it no longer has any meaning. Just keep in mind that most companies that claim to be ground floor will leave you for dead in the basement. I advise my clients to wait at least two to four years before joining a company, if not longer. If a company is a great company this year, it will still be a great company next year. Sometimes it takes longer to determine if they’ll be successful long-term. Joining a start-up is usually the kiss of death. Once you’ve gained some experience, and built significant relationships in the industry, you can gain the experience necessary to join scrutinize and select a start-up company, but don’t just take the start-up hype at face value. Find out with whom you’re locking arms before its too late.
Statement: Our company is in pre-launch, which is even better than ground floor!
Truth: Sometimes a company will do what is called a pre-launch and start signing on distributors and sending out product. One purpose for doing this is to test the company’s systems with real-time activity. There’s nothing wrong with this if everyone participating in pre-launch is well aware of the potential dangers. However, there are other reasons for pre-launch that can be major red flags. Sometimes companies can’t afford to launch officially with their own financing, so they get assistance from their own distributors. They’ll use money from sign-up fees or initial investments in large quantities of product to finance the start-up of the company. Other companies use this as a gimmick to make their numbers look better. They stay in pre-launch for their first two years of business. Then, when they officially launch, they say, “We generated one million dollars in revenue in our first month of business,” when in fact they’ve already been in business for twenty-four months. It’s a classic example of the smoke and mirrors tactics that low-integrity people use to try to compete with the larger companies. My advice is this, unless you totally understand what you’re getting into, never join a pre- launch company. Having read this book, if you join a pre-launch company and your company goes out of business, you’ll have no one to blame but yourself.
Now a “pre-enrollment” phase is different. Pre-enrollment is simply a period of a few weeks or a few months where you can place people into the system in a pre-signup situation. No credit cards are drafted and no commission checks are cut. It’s just a time to fill the matrix with a few hundred or a few thousands eager beavers. If a company opens up a pre-enrollment phase, they must be capable of dealing with the potential explosion of product sales, or the potential lack there of.
Experts agree that selecting a company in any start-up phase is risky. Although there are some terrific rewards associated with being one of the first distributors in a network marketing company, the risks seem to outweigh the rewards. Leave the start-up phase to professional network marketers, risk taking entrepreneurs, and those who have nothing to lose. Selecting a company in the momentum phase can bring the same exciting growth, but at this point the risk is significantly reduced. Regardless of when you join, an entrepreneur’s primary concern is selecting a company that has long-term stability, not short-term, flash-in-the-pan profits.
Selecting a company in the stability phase is a much more inviting option than it once was as we proceed further into the twenty-first century. More companies and distributors understand the principles of dynamic marketing and can generally maintain healthy growth for decades. Once a company has been established in a country for twenty years or more, it may be more difficult to recruit new distributors in that country based on everyone’s familiarity with the program, but it’s still a viable opportunity. I’ve seen many distributors become top leaders in a mature company within twenty-four months. If you choose the right program, building during the stability phase can be effective, but there is still no better time to build a network marketing business than during the hyper-growth momentum phase.
And finally, the most important momentum in your company is the momentum you make. I’ve known hundreds of people whose companies experienced incredible momentum growth, yet these individuals didn’t take advantage of that growth and missed out on the opportunity of a lifetime. I’ve also known people who have joined companies in the advanced stages of stability or maturity that have created their own momentum within their company and have launched themselves to the top of their pay plan. Ultimately, the most important momentum is the momentum that you create yourself as an independent distributor. To achieve this, all you need is a stable company, and the heart of a lion, and you’re on your way to the top.
Special note on timing
Please remember the only timing factors I have discussed in this chapter relate to timing in selecting a company during a specific growth phase. I also briefly mentioned industry timing and indicated that the MLM industry is currently entering the momentum phase. Another important consideration includes the timing of the product industry with which you are associated. This topic was thoroughly covered in the previous chapter and should not be overlooked. Is your product industry on an upswing? Do current events, news, word-of-mouth opinion, and popular culture indicate a long-term increase in sales? Is the industry you are marketing in its momentum phase? How about timing in your own life? You may be convinced that network marketing is your destiny. However, if the timing in your life is wrong, you may be setting yourself up for a struggle that has nothing to do with the viability of the MLM industry or the company you choose. Many people end up blaming their chosen company, product, compensation plan, or they even blame MLM for their failures when, in fact, their woes are all a consequence of making the decision to join a company at a time in their lives that did not make sense. There are many timing issues to think about. Consider them all before making your ultimate choice.
About the Author
Daren C. Falter is the author of the network marketing industry-wide best seller How to Select a Network Marketing Company. Daren has been a consultant to the network marketing industry for over 12 years and a student and participant for over 20 years. Daren has built downline organizations into the tens of thousands of distributors with several different companies. Daren is a popular convention speaker and trainer. You can visit Daren online at his blog at www.networkmarketingreview.com. You can also order Daren’s best-selling MLM book at www.networkmarketingbook.com.
Copyright ©2009 DC Falter Marketing, Inc. ALL RIGHTS RESERVED
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