MLM Prelaunch – What to Avoid

December 3rd, 2008 | by Chris |

As more and more multilevel marketing companies start business at an increasing rate these days and almost all of them online, the majority of them chooses to begin with what is called an MLM prelaunch. It is a short period of time before the official launch of the company that new distributors may join the opportunity under favorable terms. Usually most of them are waiving up the sign up fees for new members or give further incentives to attract a big number of new distributors in a short period of time.

Pre-launches are also a very dangerous field as most of them never survive for more than 2 years and in most cases they are closing within the first months. Add to this that many of them are nothing more than disguised scams that pray on the hopes and dreams of average people that want to build a better financial future for them and their families but end up losing money to con-men, and is natural for someone to start wondering if they worth the trouble.

Actually, many seasoned network marketers advise people never to join an MLM company at this stage and to wait for some months or even years before they commit themselves to these opportunities. They claim that if an opportunity is so good that worth your participation it would still be good in the future too. so there is no need to take the risks of joining a new multilevel marketing launch but rather wait for a future time that would be more easy to distinguish whether the company has a future or is nothing but another failure waiting to happen.

Although this advice is sensible and good to follow if you are new to the network marketing industry and you have limited experience on how this market works, its whereabouts, and people, you may also missing on good opportunities. No doubt opportunities which are in pre-launch mode are more easy to market and build a downline in a short period of time while you are taking advantage of the fact that usually new members sign up for free. Later when the company would start to operate normally, you would start be making money when people in your organization start purchasing products, whether for selling them or for personal use.

Of course, in order to avoid the pitfalls and make sure you won’t be joining an MLM prelaunch that would go belly-up in the future or would turn out to be a scam, where some would run with your money to exotic destinations, you need the relevant experience to distinguish such things.

On a more practical level some things you need to check in order to avoid scams and start-ups that are going to go bankrupt is the following.

First, the product. If it is too good to be true probably they are overstating its features. And if someone is lying to the distributors that are supposed to move his product and make money for him probably is not someone worthy to do business with, so stay away from such situations.

Second, the founders and managers of the company. If they have no experience or have a past record of failures in the network marketing industry, probably they are not the best candidates to entrust them with you money, time, and future effort of building your multi level marketing home business with them. In case they had trouble with the authorities in the past is pointless to mention that you shouldn’t even bother thinking more about joining that start-up.

Oval Office Building in Scheppach
Photo by Detlef Schobert

Of course, there are countless other small things that someone with experience knows how to recognize them and small bits of information that may sett off alarm bells in his mind. The key when it comes to MLM prelaunches in order to protect yourself is not avoidance, but good and detailed information on various aspects of the new company that it’s starting business.

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