Sound familiar?

Today someone asks me to check into this new ground floor MLM opportunity for them. Where do all these gamblers come from? Don’t they know that the failure rate for new companies is around 95% during the first two years. Already this guy could be looking at only having one chance in 20 of making it to the third year with his business.

Oh, but not this new ground floor MLM opportunity. These guys have been around since 1999. They adopted the retail business model for their product. It didn’t work, but you know what, the MLM business model is what they should have gone with.

Here is what I found out in a few short minutes.

• The website does not list any information about the owners or managers so we can see what kind of experience they have in MLM or don’t have.
• They have a single category niche product. It failed in retail so now they want to go with MLM. They claim 200 million people use similar products daily in the US. Of course those products cost about one tenth to one twentieth the cost of this product. Looks like they described a different niche.
• There is no compensation plan on the web site. All I know is that they use the MLM compensation plan model.
• I checked out the product. I have seen it in the retail stores. Of course it is not there anymore. The price has gone way way up now. A package of the product is about $15. Similar products can be purchased retail for under $1.
• But there is science behind their product. Yep, one ingredient makes it different than some of the competition. But there is already competition well established who use this one magic ingredient.
• So I know nothing about the people running the company, or the compensation plan. But still I go to see what happens when I want to sign up. I have to agree to the terms and conditions. Guess what? By agreeing I am stating that I have read and understood the policies and procedures and the company’s compensation plan. They want me to lie right off the bat. Where are these items for me to read and understand.

There is more, but any of these things is reason not to look at this company seriously. Yet people will probably flock to it to get in on the ground floor MLM opportunity. They will not recognize how the company is spinning negatives into what looks like positives.

Sadly most will lose their money. Some will lose their trust in people and MLM. Some will feel their failure was all their fault.

But the first thing people should be doing is properly evaluating an opportunity. Before anything else, you must put yourself in the best possible position to achieve MLM success.

When you fall for a company with even a small amount of the kinds of problems listed above, you are reducing your chance to succeed.

It’s time to get educated.

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What they mean by that, is to get in with a company as early as possible, like pre-launch.

The first problem with this belief is that if you really believe it, then you will be building a team of people who do not get the same opportunity that you did. The more time that passes, the less opportunity your new team members have if your belief is true.

The next problem.

The problem that most people never see is that they do not get in nearly as early as they think. In the beginning there are the company founders and they are the only ones that know about the plan. Then they hire one or more master distributors to put at the top of the pay plan.

These master distributors go out recruiting people they already know in network marketing who have built organizations and may be looking for a new company to build. Keep in mind that you and I have never heard one word about this company so far.

As these top level distributors are added, then they go out and recruit more network marketing people. There could be a sizable number of distributors in the company and there is still no public information about the company.

Finally the time comes for the leaders launch. Well actually they just give it a name like that to suck you in. Open advertising is going on and they don’t have a clue if you can be a leader and build or not. And if they are recruiting the public, then they have already launched.

They are just advertising and with a little bit of luck, the people who do not see themselves as leaders will wait to join. They want the best people near the top.

Then the pre-launch rolls out. Again, the company has launched. It is just a way to suck you into thinking that you are really getting in on a ground floor opportunity. If they survive long enough, they will eventually drop the pre-launch name.

Chances are, with many MLM compensation plans and companies, you have already missed the true ground floor that you needed for MLM success based on your belief. (My belief is that the opportunity is yet to come from a timing aspect.)

But it gets worse.

Ninety-Five percent of these companies will not survive for even two years. Those numbers hold true for new companies in general. It’s not just an MLM thing. You can verify through Forbes or Business Week.

That is the same as saying that 19 out of 20 new companies will fail in their first two years.

Are you a gambler?

Those are lousy odds. Can you afford to put two years of your life into a company that has a 95% chance of failure. When they lose, you lose. It’s time to start all over again with the same lousy odds and hope you get lucky the next time.

Has anyone ever jumped on the new company and gotten lucky. Yes, of course. But even with a lot of luck you have to do the work to make it happen. There are a lot more people who got in at the same time as those that did make it, but they never built any income. So even if you get lucky it takes work and MLM skills.

So not only are you gambling that the company will survive at least two years, but you get to live through all the growing pains with the new company.

And possibly the most miserable feeling of all will come after you have built a team. Then the ground floor opportunity doesn’t look so good to prospects. The sponsoring slows down. The people at the bottom are not making money and there are ten more ground floor opportunities calling them. They quit. Then those above them quit. The cycles continue until you lose most of your team. Now you have a tiny team, little income, and the ground floor opportunity is gone. What now?

My suggestion is, join Mentoring For Free, and read Success In 10 Steps. You can plug into free live training calls and hundreds of recorded training calls.

I hear things like this from people quite often, “I have learned more about network marketing in just the first two weeks of free MLM training than what I learned in all my previous years of network marketing combined.”

7 Questions Accountability Partner Bob Burg Build Relationships Colors To Success Color To Success Compensation Plan Don Standard duplicable mlm system duplicable system Facebook FortuneNow.com Free MLM Training free training calls Ground Floor Opportunity Jim Rohn Mentoring For Free Michael Dlouhy MLM Compensation Plan MLM Compensation Plans MLM Duplication mlm mentor MLM Policies and Procedures MLM Skills MLM Success MLM Success Ebook MLM WatchDog Penny Dude Personalities Policies and Procedures Proven Duplicable MLM System Proven MLM System Recurring Income Relationships Scam Social Networking Success In 10 Steps Terminations The Go-Giver Tom "Big Al" Schreiter Tom Schreiter Twitter Video YouTube YTB