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1. Lots of MLM corporations start out with a "pre launch"
phase. Why do they do it? Basically to create a buzz, and
plenty of these corporations permit new distributors to
join without a buy-in. Some will bring their own teams
along too , so this is a way of getting free advertising and
to whip up a large amount of excitement.

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

3. The reality is that when most firms start out, it does take a
couple of months to get to the break even point and start
making money, so signing people up as distributors
benefits the company straight away. Distributors also
know that if the company reaches success fast then it
won't be free to join, so better to get in in the pre launch
phase than to get in and need to pay later .

4. The pre launch mlm company can keep its operating costs
as small as possible, because there isn't any product or
distribution involved until the sales teams are set up and
trained.

5. Sounds great doesn't it? But there could be hurricane
clouds on the horizon.

6. Because sadly over 90% of MLM corporations fail within
the first 2 years, so you have got to bear that under
consideration. During those two years you'll have put
plenty of effort into building your team and any money
you have put into the business will be wasted. But heaps
of people have got into MLM during pre-launch and gone
on to make six figure incomes.

7. A lot depends on the product, coaching and also what
type of compensation structure they offer. Take a look at
the management and ensure they have robust systems in
place and raise questions. Take a close look at the product
and see if it is good quality and worth the money, is it able
to just be purchased from a store? Will it be around in five
years?

8. A professional marketer will be able to judge the company
on a considerable number of factors to decide whether
he'll join, but a new entrant to MLM may not have enough
experience to be in a position to tell if this company will
work. You will have to trust your sponsor to do that for
you, so always ask questions.

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

10. But that is where the rubber meets the road with any
internet promotion business - regardless when you join. As
it truly is not important if the company is new, in pre-
launch, or has been settled for a while. None of that really
matters. What matters is what will YOU do with the
company? How are you going to build your new business?

11. That is the bottom line. But is also necessary to consider if
joining a pre-launch mlm is worth risk. If you're serious
about getting in and getting busy - maybe you must put
the likelihood of success in your favor by joining a
definite, well-established company with a past history.

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