Friday, April 27, 2012

The Mlm Myth of Prelaunch Riches

"Prelaunch; get in now; great positions available........."

You hear it all the time. The first thing you must know is that 90% of start-up associates don't survive past the first year. Of those that do, the majority fall before five years. For sure every enterprise has to start and if nobody joined them, our whole business would be stagnant.

Wealth

But you need to do some serious due diligence on a new enterprise opportunity to be sure it's worth the risk. Remember the modern sad case of eFusjon, launched with huge hype early in 2009, only to be taken to court in less than a year.

The carrot that is dangled with a prelaunch normally goes with associates gift a binary or a matrix recompense plan. In these plans distributors can be located into groups or teams. This makes the numbers look good if your sponsor can claim that you already have a downline before the enterprise is even trading.

But hang on - there has to be volume for this to mean anything. And remember that if you have been gifted a downline leg in a binary plan, you will need a second leg to get paid. So you still have to work and you will only be rewarded on the weaker leg.

Often you hear of a big name heavy hitter joining such a enterprise and that seems to endorse it for you. Well that is what is intended but what you should realise is that often those big name distributors are paid by the enterprise to join. A bribe maybe? Well an inducement for sure. The huge benefit those guys have over the midpoint distributor is that they will in effect take quite a few members of their existing team to their new home. The midpoint man has to build from scratch. So there is no way you can hope to emulate what they might achieve.

But more than this, what these tempting offers are playing on is fear and greed. Sounds harsh, doesn't it?

Why fear? Well, what they are saying in effect, is that the best opportunity is only available by getting in before too many others; before the shop is saturated and the pot of gold runs out. But if you want to build residual revenue to pay you on into your golden years, then you've got to find a enterprise that is going to continue to grow. If its best pay-out is at the beginning, then run far and fast! They must have an eternal pot of gold.

And greed? That is all part of the 'instant culture' we live in today. You can't get your hands on a pile of cash simply by getting in early. The natural order and the way to wealth is the same as planting seeds. The harvest only comes after cultivation, care and lots of watering. The issue is we want to plant seeds now; skip the work of tending them and get a great yield in a few months.

So, look for a enterprise that is at least 5 years old. By then they will be through the teething problems; the infrastructure should be solidly in place; the products established and a prestige built. Expect to work hard and be suspicious of any implication that there is huge early money to be made just by signing up at the beginning.

The Mlm Myth of Prelaunch Riches

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