This may be a pretty tall order to reach but considering that the great
majority of start-up Network Marketing companies fail within their first
three years you don’t want your income stream to suddenly dry up! It’s no
picnic to discover that after you’ve spent time, effort and money to build a
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solid organization the company closes down because one of those
essential elements was missing.
There is the prevalent myth that the best time to join a company is at startup—
the so called ‘ground floor opportunity’—, but if the truth be told, the
ground often caves in leaving many people very unhappy. This does not
mean that you should wait for five years to see if a company would do
well, because logically, this would mean that no Network Marketing
company will ever get started. The point here is that you should assess
your risk and know that the chance of losing your money is higher with a
new company than with a company having a proven track record.
You know the saying that the proof of the pudding is in the eating; just so
the proof of the stability of a Network Marketing company is in the duration
of survival. In fact, in over 60 years of Network Marketing history and after
tens of thousands of Network Marketing start up companies, only around
42 companies have made it to their 5th birthday.
Any business owner would admit that the first years are the toughest. This
is the period when the company is just establishing a footing and income
is most likely low. If the company does not have the proper financial
backing it is not likely to survive these years. You would not want to join a
company that is depending too much on the distributors for survival. A
Network Marketing company takes time to build momentum by the very
nature of the business - word of mouth advertising, people telling people.
Before it reaches top momentum it must have the financial backing to
survive the early hurdles.
Customer support for the distributors is also a critical part of the company.
If their distributors feel neglected then they will simply not stick around.
Especially in today’s market where there are thousands of Network
Marketing companies beckoning. The distributors are the consumers and
salespeople, and to neglect them is to commit certain suicide.
A sad reality of the Network Marketing industry is that there are many
scam artists that come along just for the quick cash just before they close
shop and disappear. This would require that you do your due diligence
such as checking consumer alert websites as FTC.gov and
WorldWideScam.com among others. These scam artists will normally
emphasize the compensation plan over the actual product—if there really
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is a product—and apply high pressure sales tactics to persuade you to join
the “ground-floor opportunityâ€. These criminals prey on human greed and
have little sympathy for the naïve.