By Steven Suchar

Roll up! Roll up! Don't miss this brand new MLM opportunity! Don't get left behind!

Are you are risk taker, or do you prefer having a comfort zone? Be aware that most MLM corporations will fail during the first couple of years. So the question to ask is are you wanting to chance joining an unproven MLM company during its pre launch, or would you prefer the security of joining an established and proved operation?

Having a pre launch phase for an MLM company can be particularly favorable. So why do they do it? They do it as a marketing ploy - to create interest and also to draw in new distributors with or without their own groups into the business while not having to pay a buy-in charge. The more of a buzz that may be created, and the more distributors interested in the opportunity, the more free advertising the company will get.

The business model of an MLM company is designed so that the more distributors it has the more sales it will make. In this pre launch phase the company will not be making any money and its target is to get over this unprofitable time as quickly as possible the more distributors it pulls, finally the more product it can get out into the marketplace swiftly.

When any companies starts out it'll take them numerous months to reach a breakeven point and to start showing a profit, so clearly signing up as many teams of new distributors as feasible the shorter that unprofitable phase will be. Those distributors and their groups that do join up not only benefit because they did not have to pay a buy-in charge but also know the company is trying to do anything to market the product and get it to the market as quickly as possible.

A pre launch multilevel selling company will be keeping its operating costs down in the original phase as it is unable to yet get its product out into the marketplace to earn a profit.

It all appears too good to be accurate. In a number of cases it may well be.

The plain fact is, that nine out of ten MLM firms fail during their first couple of years of business, so before you jump in, bear that in mind. During those first 2 or 3 years, just like if you had joined an established business, you may put a good deal of effort into building your business and your team, and all of that time you have invested will be wasted. Conversely people who have been fortunate to join a company during its pre launch which has become successful, have gone on to become very wealthy.

Don't be in such a hurry that you fail to take a good look at the product, the training the company offers and , the sort of compensation schedule they are offering. Management of a new MLM business is very important and you have to discern whether the management team are experienced in the MLM business model. The product again is another vital factor, is it high quality, is it something you can purchase anywhere, and will you be proud to push it? Is it something that will be obsolete in just a few months?

Experience social marketers are able to judge certain facets of a new MLM business fast and they look at a number of things before they join, newcomers to the internet marketing business may not know the easiest way to judge a brand new business as effectively . Your sponsor should be someone that you can trust and pose questions of, and you must always ask questions.

The plus side is if you join a social marketing company during pre launch you've got an big opportunity to find success, but on the other hand it can be dangerous.

As with any business there is risk involved and it doesn't matter if you join an established business or crash a pre launch. The fact of the case is if you do not have the right attitude you will not succeed in either situation. Established or pre launch it truly isn't important. What does matter is how you manage your business. Have you got the ability to build a successful business?

That's it in a nutshell. It's your decision to decide if you can take the chance of joining a brand-new MLM company during pre launch or whether you would prefer the to be in a rather more stable and established situation. The majority will opt for the second choice, so that the chances will be in their favor right from the beginning.

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