Guys lets talk about Prelaunches. If you’ve been around MLM for a while you know what I’m talking about. If not listen up because this may be a useful topic for you in the future. So we’re on the same page. A prelaunch is a period of time where a MLM company is in the beginning stages of doing business in a country. During this time the company relies on a handful of reps. They call these reps “Founders” and their job is to build a sales force and spread the gospel of the company, so to speak.
Prelaunches are all the rage in the MLM community.
But why? Well there’s this myth told in MLM that says to be super successful you have to get into the deal early. To be fair it’s more of a half truth than a myth. Getting into a company before it blows up and everyone wants to get involved can be lucrative. Yet, getting in early doesn’t guarantee success. There’s still the component of working to think about. Actually the work component is what turns me off about prelaunches, among a few other things.
Little to No Infrastructure.
Have you taken on a new project without a plan of action. Or made something from scratch without directions or help? That’s kind of what launching a new company is like. The company is still in It’s infant stages. Likely, the back-end side of business will have quite a few bugs. (ie: customer service, shipping, quality control, payments, training, etc). The whole company might be run the same 3 people for all you know. I remember stories of the beginning years of my first company. Two hour wait times for customer service, zero marketing materials, no training program, handwritten paychecks from the CEO. It was a cluster fuck!
High Failure Rate.
Will the company withstand the test of time. Let’s face it MLM is not a traditional business model. BUT the companies that pay us are traditional businesses. They have employees, have to adhere to certain laws, and are subject to the same low success rates as any other business. It’s said that 9 out of 10 new businesses fail in the first 5 years. Of the 1 business that last 5 years 90% don’t make it another 5. Statistically speaking that means 1 out of 100 new businesses will last 10 years or more. What the odds are of picking out the brand new MLM that will last that long. Needle in a haystack anyone?
The Grass isn’t ALWAYS Greener.
There’s this epidemic of “shiny ball syndrome” in the MLM space. These MLM hoppers jump from company to company chasing the new hot product or service. It kind of makes sense in a weird way. Especially so if you believe being a founder is the key to MLM success. All you have to do is find something special before a trend starts to crest and ride the wave! It definitely works for some.
For others jumping ever 3-6 months serves as a distraction and CAN hurt your credibility. If you’re toting every new company you join as the best of the best how will it look on you? Eventually will people stop believing you know what you’re talking about/doing. It’s like the little boy who cried “Wolf.”
That said sometimes we make mistakes! Sometimes as we get to know a company we realize they aren’t what we thought and need to bounce. Sometimes the company goes through troubles and you’re forced to find a new home. I’ve been there before and it sucks.
Then There’s BDA’s…
A BDA or business development agreement is a contract between two parties usually an experienced marketer and a company or a potential sponsor. In these deals the experienced marketer agrees to a certain level of production (sales) over a certain period of time in exchange for compensation outside of the normal compensation structure. Nothing wrong with it this money is to help leaders maintain a certain lifestyle as well as support their teams. Flights, conference rooms, events don’t pay for themselves. The leader has to pay for it and if the leader left a company to build with a new company chances are their income went to zero the moment they left. I won’t, however, follow someone to a company if they have a BDA. Not because of morals or anything it’s common sense. I dunno who told me this but… You should never trust the opinion of someone who benefits from you financially . I’d go further and say never trust the opinion of someone being financially compensated. With either case get a second opinion!
Nothing against anyone. BUT money can influence you and skew your judgement a little bit. Besides that the BDA doesn’t help me make money. So I would rather wait until it runs out. Once all that is left is the comp plan that’s when the truth of the viability of a company comes out. Once I know how they like the compensation structure that I would be subject to then I can make a decision.
The Bottom Line…
I prefer companies that have been around a while and that will be around for a lot longer. Companies with some time in tend to have a defined structure, plus trial and error to benefit from. Whether you want to deal with prelaunches or not is up to you. They just aren’t my cup of tea.
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