Ground Floor MLM Business Opportunity: To Follow or Not to Follow?
I was approached today about joining a ground floor, pre-launch MLM opportunity. Still debating the pros and cons of making this potential decision, I thought it would be a great topic for discussion on the blog.
Typically, it is a risky proposition to enroll with a brand new, unproven company. In fact, when someone is new to the industry, I do advise against choosing a network marketing opportunity that is less than two years old. Any business is risky when it is new…network marketing is no different. However, there are instances where taking a calculated risk may turn out to be a good business move.
Let’s consider the drawbacks of enrolling with a ‘ground floor opportunity’:
Corporate Leadership may not have effective management and marketing skills
Products and price points have not been exposed to the real consumer world
Compensation plan, if unique in any way, has not been proven in the real world
Marketing materials, web site design, distributor training…quality and effectiveness are not yet known
Manufacturing and distribution channels…anything new has potential pitfalls here
Corporate cash on hand. Is the company well-funded to sustain operations until the company reaches profit mode?
The whole thing COULD be a scam. Real mlm scams are thankfully rare, but they are out there.
What might be some acceptable reasons for joining a ground floor mlm opportunity?
The company is positioned to market, sell and recruit new distributors on the Internet. Traditional warm-market methods are out…Internet Network Marketing is the trend.
The products are in industries experiencing ongoing yearly growth. Industries trending upward include wellness, diet and weight loss and travel.
You personally know and have worked with (or now work with) some of the founding members. Savvy, successful networkers are there for the potential profits. But you may also stand to profit from their guidance, marketing skills and leadership.
Always, always be thorough and do your due diligence before joining any MLM business opportunity, whether it is brand new or established.