Lots of MLM corporations start out with a „pre launch“ phase. Why do they do it? Essentially to generate a buzz, and a lot of these corporations allow new distributors to join without a buy-in. Some will bring their own groups along too , so this is a way of getting free advertising and to whip up a large amount of excitement.

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

The reality is that when most corporations start out, it does take a couple of months to get to the break even point and begin making money, so signing folks up as distributors benefits the company immediately. Distributors also know that if the company achieves success quick then it will no longer be free to join, so better to get in in the pre launch phase than to get in and have to pay later on.

The pre launch mlm company can keep its operating costs as low as possible, because there is no product or distribution involved till the sales teams are set up and trained.

Sounds great does it not? But there could be typhoon clouds on the horizon.

Because unhappily over 90% of MLM firms fail in the first couple of years, so you have got to bear that under consideration. During those two years you will have put plenty of effort into building your team and any money you have put into the business will be wasted. But heaps of folks have got into MLM during pre-launch and gone on to make six figure incomes.

A lot depends upon the product, training and also what sort of compensation structure they offer. Have a look at the management and ensure they have strong systems in place and ask questions. Take a close look at the product and see whether it’s good quality and worth the money, is it able to just be bought from a store? Will it be around in five years?

A seasoned marketeer will be well placed to judge the company on a number of factors to choose whether he is going to join, but a recent 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.

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.

But that is where the rubber meets the road with any internet promotion business – in any case when you join. As it actually is not important if the company is new, in pre-launch, or has been established for ages. None of that actually matters. What matters is what will YOU do with the company? How can you build your new business?

That’s the final analysis. But is also necessary to consider if joining a pre-launch mlm is worth risk. If you are serious about getting in and getting busy – perhaps you must put the odds of success in your favor by joining a established, well-established company with a record.

If you would like to become a member of a prelaunch mlm then go check out how to find the right prelaunch mlm.