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LARRY

5 Discouraging Reasons You Should Avoid Pre-Launch MLM Opportunities Like The Plague

Well, it's a literal epidemic in the world of network marketing right now.

The pre-launch opportunity has hit the airwaves and people are dancing in
the street like when Michael Jackson's "Thriller" video came out. Every other day it seems, I'm getting an email from someone trying to get me to look at
"the next big thing."

This article is going to be quite a reality check and may shake a few trees, but I wouldn't be doing my job if I didn't speak about this issue.

Let's think "out of network" for a moment; meaning, why not explore this from a conventional business perspective for a moment. Companies that hit the scene for the first time are considered "volatile" and need time to "season" before they can generally be taken seriously. Anyone getting in too early is considered a "guinea pig" or laboratory experiment, and for good reason. No matter what is written on paper or who the management is, starting a new business is higher risk than rolling a set of rigged dice. History shows that the odds are stacked against you.

Here are the 5 things that you should consider with respect to a pre-launch MLM that could have you on the highway to Hell if you're not careful:

1. Chance of failure in the first 2-3 years is VERY VERY LIKELY - maybe sooner. Again, Startups of any type are high risk, and network marketing is not immune to this. Projections of growth, success and stability is nothing more than a fancy educated guess. Unless you can predict the future, don't get all emotional about the comp plan and product.

2. Sudden or constant changes is a HUGE red flag. When they start fooling around with the comp plan, calling it an "improvement" or "adjustment" is a sure sign of experimentation. It's also likely that the product formula itself could change or be altered in some way. Take this as a sign that something could be wrong and plan your exit strategy.

3. Your downline could get spooked and jump ship. Everyone defaults to a place of security and stability, so if there are a lot of unknowns, your people could decide to step off in search of something more secure.

4. Attracts the worst type of MLMer. I know of someone who joins a new network marketing company every few months. They are hooked like a drug addict on the rush of a brand new opportunity, and like a drug addict, when the high wears off they are on to the next hot "drug." You don't want MLM junkies in your downline, trust me.

5. Your reputation could get permanently damaged. This is the riskiest of them all. You have to ask yourself, "Do I really want to risk damaging my reputation on a highly volatile, non-proven startup just to make a buck?" Once your name gets damaged, you'll have a heck of a road to travel after that. Don't ever put your name in jeopardy - ever.

If you decide to pursue membership in a startup MLM opportunity, please consider seriously the risks involved. Sure, you could enroll a lot of people and make a lot of money on the sheer excitement, but after the honeymoon is over you don't want to wonder if you married a witch. If you decide to move forward, do your due diligence and walk into it with both eyes open.

I would not recommend a startup of any type especially if you are not prone to risky behavior. My recommendation would be a company that is at least 3-5 years old and starting to gain some momentum. At this stage of the game, they would have worked out the "bugs" and can provide you with some concrete data for consideration. Don't get caught up in the hype and be careful out there.

Larry Beacham
The Stonecold Millionaire
LarryBeacham.com
614-516-9906

The LinkedIn Lead Generation Blueprint will teach you how to get 10-15 high quality leads for ANY MLM opportunity on LinkedIn. Download the FREE training video today.

Tags: affiliate, attraction, beacham, larry, marketing, mlm, network

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Yes I compelely agree with what you are saying. However many current MLM groups are starting to revolutionalize the way the do their structions. My direct upline is the owner of Tahitian Noni. They have been a strong player in MLM for over 14 years and continue to grow. Yet they are still changing the face of Network Marketing. They have just launched international a new twist to the game. I am a first level generation for their new international organization. I am not going to lie and say that I was completely skeptical to start. I was even scared to talk to people out of embarrassment. However I dont regret it one bit. I have watched my group grow to the point that I no longer can keep up. I rely on their software to do that for me. The nice thing as well is your downline is given to you every other level. So when you become a manager, you are give 3 international accounts right off the bat. For everyone that you place under you, they too receive their next level. This concept has been so well recieved and is growing at a rate that Im just completely grateful I got the chance to be apart of it. I only got into this because the owner was one of my wifes patients. They developed such a great relationship that they chose our family to become apart of this launch.

This is no stress. You either watch the change or be apart of it and make it happen.

Best of luck with your future.

Craig

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Waoh, this is a great post. I was about joining a pre launch when i stumbled on this. Now i know i have to do my due diligence and buld more on the one i am having success with. I really will not want to lead my team into trouble. Thanks larry.
Odofin Caleb

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Larry, you're absolutely right. I agree with all of your comments.

There's one point I'd make that you don't cover, though: that's the pre-launch in YOUR country of an established, successful company from another country. Example: an Australian company, established in 1997 and successful in Australia, New Zealand, Singapore and Malaysia will open in North America, Europe and India in 2010.

Most of your arguments won't apply in this case, because the track record already exists. So pre-launch doesn't automatically mean "start-up company".

By the way, I predict that this low-profile company (it needs no hype and razzamatazz because its people make much more money, in a lot less time, with far fewer people than other MLM opportunities) will be the "sleeper" of 2010 in North America.

John Counsel

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