MLM Prelaunch Risks

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Prelaunch is a dirty word. Prelaunch should be a four letter word. And we just don’t use it in this house!

I cringe a little when I see the word prelaunch. When a new MLM company comes on the scene it’s necessary for them to do a prelaunch so when they go live they already have active distributors. But quite often a prelaunch brings disaster for the distributors.

By the time an MLM reps advertise “get in on the ground floor”, it’s not really the ground floor anymore. Other seasoned MLM reps are already on the ground floor and have brought their downline from their other company over. So, joining when you see this ad is quite like NOT going to get you on the ground floor.

Those that jump into a prelaunch and bring their downline with them are professional MLM jumpers. They make their money after the prelaunch, find another prelaunch MLM company to join, and then they jump ship again. This ends up destroying large sections of distributors in a company, and if you sponsored one of those distributors that does that, then you just lost your downline.

It’s this type of actions by MLM reps that give MLM a bad name and makes people think the entire industry is just a scam. That’s why I despise prelaunches, they bring a real bad name to the MLM industry.

The craziest advertisement for a prelaunch said that it was free to join the prelaunch, so if it doesn’t work and you don’t sign up enough distributors then you can just quit before it goes live and then you don’t have to pay. That’s true (for most prelaunches), but there’s no way that mentality is going to bring you success. And if you’re advertising that way, then there’s no incentive for your distributors to sponsor anyone because they can just quit!

Prelaunches also attract the types of prospects that are not business oriented and are looking for a get rich quick plan. And a seasoned MLM distributor knows that this is not a get rich quick industry and that it takes more than getting into a company early. You have to know how to market and how to choose the right company.

Successful MLM distributors won’t even touch an MLM in its prelaunch. If the company and its product is good, it will be even better in a year. An experienced distributor will wait to see if the company will survive their prelaunch stage, because so many don’t even make it past that point! Then, 50% of companies fail in the first year after prelaunch, and 90% fail by the second year.

A contributing factor to the failure of prelaunch companies is their attraction of distributors that jump from one MLM to another. They are always looking for the next best thing when the company they are with doesn’t bring them success. This is because they don’t stick around long enough to create any success.

Now with great success there first must come great risk. With joining a new company there is tremendous risk. But if the company survives the prelaunch and the first few years of business the payout will potentially be huge to those who got in early and stayed with the company.

With so many risks to joining a company in prelaunch stages I would recommend anyone new to marketing to shy away and go with a company that is well established with a strong track record. There is a lot to learn in the MLM industry and researching a start up company would just be a distraction from learning what’s most important: marketing!

Cut out the distractions and work with a company founded by professional Network Marketers that have created and launched other successfule companies HERE.

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