Your MLM Business – Best to Get Started on the Ground Floor?

starting your mlm network marketing business on the ground floorAnyone starting a network marketing or MLM business is looking for the best opportunity to make good money from their efforts.

Is it better to go with a hot new “ground floor” MLM business opportunity that is launching with lots of momentum and great potential?

Or, should you choose an older, more established opportunity that has been around for a while? This question often sparks a lot of discussion and debate.

Here are two common viewpoints that I often see in discussions about this. What do you think?

MLM Business Startups Are Just Too Risky

MLM companies start up and go out of business every month. This is one reason why this industry has such a bad reputation.  Building a successful business takes a good effort and a strong focus, so why gamble with a risky new start up? Go with an established company and be safe, not sorry.

This is my take on it…

This makes sense. Our industry does have a poor reputation in this area, because of the “start-fail” cycle of new MLM companies repeating so often. Some promising opportunities start out with apparently strong credentials, but are unable to make the cut and crash within a year or two. This can be due to many factors.

As strange as it seems, some MLM start ups fail because they grow too quickly and can’t cope with the demand for their products or services. Others suffer and decline due to bad management or poor product quality.

That said, it’s important to note that many MLM companies that come and go quickly are not genuine opportunities to begin with. Many are outright pyramid scams tagged by their promoters as MLM or network marketing to make them seem legitimate. Unfortunately, this reflects poorly on opportunities that really are genuine and legitimate.

Now, here is another side of the debate.

Your Best Shot at Making Money in MLM

If your goal is to earn a large income, joining a network marketing company that has been around for several years may not be a good option. Although these are strong and stable companies, they are mature and have already enjoyed their biggest growth boom (or have passed their “momentum phase”). It would be difficult to earn a large income with such an opportunity.

Here’s what I think…

Many entrepreneurs seeking wealth enjoy the thrill of “getting in on the ground floor” of something new and exciting. The thrill is somewhat like the rush of taking $500 to a casino in hope of returning home with $50,000. There is always a strong draw toward the excitement and sense of anticipation that surrounds a hot new opportunity.

Now consider the boring old MLM company that has been around for years. Still going strong. Still having lots of people signing up. Still offering a genuine opportunity for people to build large incomes, with many doing just that. Demonstrating a pattern of success and viability, but without all the glamor. So what’s the deal?

The difference is in the risk.

Let’s say your goal is to earn an extra $20,000 this year. You can join Hot New MLM Opportunity A or Boring Old MLM Company B. If you get out and work at it, you can earn that money with either one.

Let’s say you earned that money in Hot New MLM Opportunity A in six months. You’re on the road to wealth. A year up the road, the company (being new and relatively untested) begins to experience some unforeseen issues. Checks are going out late. The future starts to look uncertain. Concern about the company making it long term grows.

In Boring Old MLM Company B, you work your tail off and earn that $20,000, but it takes you a year instead of six months! One year up the road, the company is entering its twelfth year. The company has been tested by time and passed. Your growth continues at a steady pace. Your income may not grow as fast or as big as it could the first year with Hot New MLM Opportunity A. It will, however, continue to grow and produce a nice steady residual income for years.

Take one path, and you gamble and shoot for a bigger payout faster. You’re also expecting to make significantly more money over the long haul because you “got in early”.

Take another path, and your income may build more slowly. You might not be able to make as much money as fast, but you have history and stability on your side. You can feel reasonably assured that what you do build won’t suddenly go away one day.

Which is your choice?

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Eldon Beard, Home Business Success Coach

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About Eldon Beard

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