Reasons To Avoid Pre-launch, “Ground Floor”, And Other Dangerous Network Marketing Opportunities

Imagine for a moment that you need to obtain a sizeable bank loan for a particular need or business venture, and you walk into your local branch to visit with a loan officer. You’ve never obtained credit before, so you have great confidence in knowing that there is no derogatory information that would prevent you from getting approved. To your shock and amazement, you get denied; not because of bad credit, but because of NO credit. Having no credit is as bad, if not worse, than having bad credit.Gangster

Having no track record is VERY risky, especially in today’s economy, and most financial institutions can’t / don’t want to take on this level of risk, and they certainly don’t want you “practicing” on them. You may find someone to fund your project, but it will normally be a private interest at a very high interest rate. Ever heard of Guido & Vinny?

So what’s the point? You need some kind of proof, SOCIAL PROOF, in order to establish yourself as a legitimate, sound, & worthwhile entity. Pre-launch or “ground floor” opportunities are often nothing more than guinea pig or science experiments. Is it any wonder then why many go down in flames?

What is social proof you might ask? It’s a combination of third party references that can point to credentials, successes, and genuine stability in a company or endeavor. This type of proof only comes with time. It doesn’t matter who the founders are, the “big name” that endorses it, or even the potential of the world changing product or service. Without social proof, you are rolling the dice and would probably have better odds in Vegas of success.

Here’s a quick history lesson on the MLM/Network Marketing Industry:
-The industry of MLM/Network Marketing is over 120 years old
-In this same time period, there have been over 40,000 MLM/Network Marketing companies started
-Out of the 40,000 that have been started, only 4,800 remain in the marketplace
-Of those 4,800 companies, only 8 have managed to reach 1 billion in sales
-The “icons” of the MLM industry, and those who have been able to sustain themselves long –term, offer consumable goods, rather than services, volatile goods (i.e. coins), or travel.

So, a close examination of the numbers reveals that approximately 1% of all Network Marketing companies actually make it.

Now don’t get me wrong, Network Marketing is a great opportunity & there are obviously many companies doing a great job & have been doing so for quite some time. But you must be careful none the less. These numbers are not wholly inconsistent with business in general. Most startup companies fail whether in Network Marketing or not. It’s the nature of the beast. But as with any investment, you must carefully weigh the facts & the risks.

But what if you heard of a company that was ranked among the fastest growing companies in America, a company backed by one of the largest companies in the industry, that had been around for over 37 years with a stellar record as being #1 in the industry for years on end? A company that boasts worldwide sales in over 30 countries, and with over 600,000 distributors? A company that pays out 55% of it’s revenue to it’s distributors? Contact me, & we’ll talk about just such a company.

To feel good about a product or service, a company or pay plan is simply not enough. Look for genuine social proof so that when you get going, you don’t have to look over your shoulder wondering if the company will be there, or if your reputation will be damaged, or what’s going to happen with your career. This is the path to genuine MLM / Network Marketing success. It all comes down to choices we make in business, & life in general. Choose wisely!

To Your Success,

Ted Heims

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