Is It A Good Idea To Be Among The First To Join A Legitimate MLM?

Discussion in 'Network/Multi-level Marketing' started by aandrews, Oct 24, 2008.

  1. aandrews

    aandrews Member

    Many network marketers promote a new opportunity as "a ground floor" opportunity, your chance to be at the "top" and "get the best position" in my down line. Does this really matter?

    There are definite advantages to knowing about an income opportunity before most other people. It does give you a head start on advertising, marketing and recruiting which could be advantageous.

    On the other hand, would it do you any good to be at the top just to be at the top? I joined a biz op some time back and my sponsor said she would put so many people under me "it would make my head spin".

    Yes, there were a lot of people "under me" but it did very little good for me financially and this was even true with me signing up about 20-25 people. My head didn't spin, it just shook back and forth at the clever little "head spin" implication she "sold me" on.

    The real truth is that your income depends on you're efforts, your organizational growth and type of comp plan you're in. This can be accomplished when ever you join the biz op.

    The biggest risk you take with the "ground floor" is whether the Company will storm the weather when it launches. Will it be a 1 or 2 year company or a 10+ year Company? Who wants to work very hard only to have it fail like so many Company's do?

    On the other hand, getting in early on a Company that grows well in spite of problems, like Xango and Mona Vie, can turn out to be a financial blessing.

    I'm curious, what do you think?
     
  2. getagrip

    getagrip Gold Member

    I'm not really a fan of MLMs because so many people fail at them, and it seems that many MLMs make most of their money with sign up fees (but I'm aware that not ALL MLMs are like this). As far as being one of the first to join, I guess it would depend on what kind of product they offer and your ability to sell their product - ultimately, MLMs are about sales, and if you can't sell their product, you will fail.
     
  3. pcwork

    pcwork New Member

    It depends to a large extent on how good the product or service sold is and how well the company is run.
     
  4. HarrisonL

    HarrisonL New Member

    I'm not the fan of the MLM too. It is really not easy to make passive income from it.

    I'm not interested in MLM even their products are good. Most of the time, we can get their products outside at a more reasonable price. Yes, MLM companies mark up a lot of profits on their products. If not, how they can afford the commission for multiple level?

    But I believe that it is a good idea to be among the first to join any business opportunity. Just like aandrews said, there are risks too. But sometime we must take some reasonable risks in order to make big money.
     
  5. aandrews

    aandrews Member

    Hey pcworks;

    I like your response. In fact, the words "it depends" or "it all depends" should be in the vocabulary of any business owner or entrepreneur because most answers depend on different situations and circumstances.

    Thanks for the input.
     
  6. cupbucket

    cupbucket New Member

    No only go with established and stable programs.

    Namaste
     
  7. WARRANTIES4LESS

    WARRANTIES4LESS New Member

    Interesting,

    Yes, this is one of the questions which everyone ponders, go with old established company, or new company, but there really is no right answer for it depends on the person.

    Personally, I prefer going with the start ups for this is where the most potential lies, and even if there may be a little more risk, the rewards are much greater for the hard workers who seize the new opportunites.

    The same research must be utilized in both categories, new or established businesses, but this can prove to be difficult with start ups since there us usually little to go on compared to an old established company.

    MLM is not easy for beginners in either case, but I prefer start ups more than going with the old well known companies, unless a new unique product is introduced, so you have to look at everything before deciding on a company.

    Look for recession proof industries, look for unique products or services, solid value, and then solid management which all must be verified, then you have something. New breakthrough products and services are what I research, unique, in demand, niche, and above all, high quality and true value are my key attributes I look for.

    Success to all, Mike
     
  8. jaynen

    jaynen New Member

    There's only a couple industries I could see a "new" network marketing company being ground floor in terms of the product. That being said, most are just "ground floor" in terms of their company, which means nothing. Only professional network marketers (the one's that jump-around) really benefit from new companies, and it's normally due to partial ownership and bonuses; this is why many people think network marketing is a scam, because once the people make a couple million they *poof*
     
  9. WARRANTIES4LESS

    WARRANTIES4LESS New Member

    jaynen: There's only a couple industries I could see a "new" network marketing company being ground floor in terms of the product. That being said, most are just "ground floor" in terms of their company, which means nothing. Only professional network marketers (the one's that jump-around) really benefit from new companies, and it's normally due to partial ownership and bonuses; this is why many people think network marketing is a scam, because once the people make a couple million they *poof*

    Good point,

    Indeed the so called heavy hitters move around a bit, and for good reason, they know very well that once they hit the 18 month wall, it is all over at that point. If you have not hit this wall yourself, then you may not know it exists, but I assure you, the heavy hitters know about it, and this is why they keep switching companies. Attrition is the killer for all of us, and this is why you have to move about if you want the big money, nothing new, it has been like this for years. Sure, some get the bonus of stock ownership or up front money to move to a new company, but the bottom line is the wall.

    Success to all, Mike
     
  10. unselfishbuddy

    unselfishbuddy New Member

    It really depends on the program's system. There are only a few programs available today that have a built-in team building system that re-assigns personals. If that's the case, then it really doesn't matter whether to join in the beginning or some time later. However, if you do get in first you mostly likely will be eligible to receive that re-assigned personal sooner than later.
     
  11. MyOwnBoss

    MyOwnBoss New Member

    The thing that makes this a tough question in the fact that there's really nothing new under the sun.

    In the event that there is, the first company to come out with that revolutionary product or whatever usually isn't the company that actually makes it into a fortune.

    It's like investing in penny stocks. Brokers will always have a handful of examples of how you could have made thirty trillion percent in a year, but they won't show you that those opportunities are 1 out of thousands and thousands.

    I think you should evaluate working with a company on an individual basis. If you like the product (which means you actually would buy it - even if you weren't part of the company), and you like the business aspects, give it a go.

    These factors are far more important than the age of the company (since, as others have stated - you really can't get in at the 'ground floor' unless you're one of the people forming the company).
     
  12. WARRANTIES4LESS

    WARRANTIES4LESS New Member

    MyOwnBoss: I think you should evaluate working with a company on an individual basis. If you like the product (which means you actually would buy it - even if you weren't part of the company), and you like the business aspects, give it a go.

    These factors are far more important than the age of the company (since, as others have stated - you really can't get in at the 'ground floor' unless you're one of the people forming the company

    Agreed,

    It is important to represent a product or service you believe in and hopefully use yourself. I always look for unique or exclusive products or services, and these will be easier to promote than the dime a dozen variety of programs which are all the same, just different names.

    As to ground floor, this is a general term, and some will say ground floor is in first few years, others will say before it launches, so this depends. If a company has an exclusive, and the market is huge, then ground floor could be several years, it all depends. I prefer ground floor, usually pre-launch, or a company which is just introducing an existing service through a new marketing plan, such as MLM. Child Shield USA just went this route, so even though company was established in 1990, the opportunity through new marketing affiliates is new.

    Success to all, Mike
     
  13. PMHayes

    PMHayes New Member

    Allow me to add my two cents worth, if I may. There are four distinct growth phases every company goes through, according to Success Magazine. These phases can be plotted on an "S Curve." At the bottom of the curve where it has not yet begun to slope upward one finds the Formulation Phase. Don't get in during that phase. Not much happens there.

    Next as the curve is just beginning to trend upward, comes the Concentration Phase. Things are happening, but the company has not exploded into growth, yet. Next as the curve suddenly begins to rise almost vertically, comes the Momentum Phase. You definately want to be in, now! In fact, the best time to get in, if you can recognize it, is just before the Momentum Phase.

    At last, after anywhere from 2 - 5 years, the curve begins to dampen out, and become almost flat, with very slow upward trending. This is the Stability Phase. If a company has survived to this point, you can bet they are going to be around for awhile. As such, you can still make money, but it takes more work and a longer time.

    So, how do you recognize when the curve is getting ready to move from concentration to momentum? Dr. Charles King says that successful Network Marketing companies grow enormously fast once they pass $50 Million in sales. Do some research, find out how their sales are going, look for that earmark. In the end, you can never be completely sure. You just need to be prepared to take a risk, and get in.

    I'm also not one of those who think that liking the product is of ultimate importance. I don't have to like hamburgers to know that McDonald's is a good financial risk. I just have to recognize that there is a viable market for the product. Yes, liking and using the product can help you move it, more easily, but it's not critical to success.

    As to the product cost comment above, my MLM offers real products that make a difference in people's lives and that don't cost out of proportion to what the same item would cost elsewhere, say Wal Mart or GNC. The average cost for individual products in my business is $25 - $30. Not out of reach for anyone, I must say.
     
  14. WARRANTIES4LESS

    WARRANTIES4LESS New Member

    Good points,

    I agree, there are patterns you can identify to determine when is the ideal entry time, but sorry, it is a general statistical analysis, and in a recession like this, you can throw it all out the window, nothing will follow normal market trends under these economic pressures. I listen to people all day crying the blues in MLM and traditional businesses alike, so no one is safe.

    Granted, you don't have to like hamburgers to sell McDonald's, but I bet every franchise owner eats big macs. lol I know a few who do, so I wonder if there are actually any franchise owners who hate the food? A home business is totally different, and if you ever hope to see success, you better love your product or you won't sell a lick, no matter how good it is. Of course, if you are a professional sales person, you can overcome this, but how many in MLMland are pro sales people?

    If your product is good enough whereby people can see or feel a difference immediately, then you have a chance at success, but if it is the usual overpriced me too product, you better be a super salesperson if you hope to make it in a home business in a recession like this one.

    Success to all, Mike
     
  15. maggs_s

    maggs_s New Member

    HarrisonL: I'm not interested in MLM even their products are good. Most of the time, we can get their products outside at a more reasonable price. Yes, MLM companies mark up a lot of profits on their products. If not, how they can afford the commission for multiple level?

    hi, this isn't exactly 100% true. I have joined a mlm business recently and the price is 75%cheaper then other brands.

    The reasons why they can give us commission for selling the product is due to the money saved on advertising, packaging and branding and celebrity endorsements for example Nicole Kidman is in channel no 5 add on tv. can you imagine how much money she got paid for that one advertisement!!!

    back to the topic in hand i feel that if the product is good enough and ticks all the boxes then anyone no matter how long there in will make money. it is obviously best to get in at the top but depending on the product will vary

    x
     

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