The #1 Reason To Stay Away From Pre-Launch, “Ground Floor” And Other Dangerous Network Marketing Opportunities

[LARRY]

Imagine for one moment that you need to obtain a sizeable bank loan for a particular need, 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.

Having no track record is VERY risky and most financial institutions 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 at a very high interest rate.

Here’s the point: You need SOCIAL PROOF in order to establish yourself as a legitimate and sound entity, otherwise anyone associated with a pre-launch or “ground floor” opportunity is nothing more than a guinea pig in a science experiment.

What is social proof? It is a combination of third party references that can point to credentials, successes, and genuine stability in a company. 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 super-duper 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 if you look closely at the numbers, approximately 1% of all network marketing companies make it.

If you knew that a particular airline crashed 99 out of every 100 planes that took off from their port, would you get on any of their planes?

You can expect your plane to crash if you’re involved in the wrong company, particularly a pre-launch or “ground floor” opportunity. Those are the FACTS.

What if you heard about a company that, among the Fortune 500 companies highlighted in Inc. Magazine, for example, was ranked #1, 3, and 18 in key categories, and over the 120 year history of the MLM industry is the fastest to hit 1 billion dollars? This would at least qualify as sound social proof, wouldn’t you agree?

Here’s an example of what quality social proof looks like: http://www.youtube.com/watch?v=zKXAHA7lgUk

To feel good about a product, service, 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. This is the path to genuine MLM success.

Larry Beacham
LarryBeacham.com
614-516-9906

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[Vickie Haun]

Interesting thoughts! I am however not completely on board with this! At one point, every existing network marketing company was in fact new and another interesting point..........of those that got involved with these companies when they were new...........most were rewarded enormously! Is there risk? Oh, you bet there is! But, sometimes those risks are what take you where you want to go!

[John Counsel]

Larry,

I'm intrigued. 120 years for network marketing? By what criteria do you make that claim? I've seen 70 years but never anything approaching 120 years.

I'm not challenging your historical accuracy, just interested in learning more.

John Counsel