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 beneficial. So why do they do it? They do it as a promoting ploy - to create interest and also to draw in new distributors without or with their own teams into the business without needing to pay a buy-in fee. The more of a stir that may be created, and the more distributors drawn to 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'll make. In this pre launch phase the company won't be making any money and its target is to get over this unprofitable time as speedily as possible the more distributors it attracts, 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 promoting company will be keeping its operating costs down in the initial phase as it is unable to yet get its product out into the market to make 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.

Do not be in such a hurry that you fail to take a close look at the product, the training the company offers and , the type of compensation plan they're offering. Management of a new MLM business is very important and you have to ascertain whether the managerial team are experienced in the MLM financial model. The product again is another crucial factor, is it high quality, is it something you can buy anywhere, and will you be proud to plug it? Is it something that will be outmoded in just a few months?

Experience network marketers may be able to judge certain aspects of a new MLM business swiftly and they look at a number of things before they join, newcomers to the network marketing business may not know the correct way to judge a brand new business as efficiently. Your sponsor should be someone you can trust and raise questions of, and you should always pose 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 does not matter if you join a longtime business or get in on a pre launch. The fact of the case is if you do not have the right perspective you won't achieve success in either situation. Established or pre launch it really doesn't matter. What is important is how you manage your business. Do you have the facility to establish a profitable business?

That is it in brief. It's down to you to judge if you can take the danger of joining a brand new MLM company during pre launch or whether you would prefer the to be in a more stable and established situation. Most folks will choose the second choice, so the percentages will be in their favor right from the beginning.

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