Why Should "Jumping The Gun" Be Avoided?

by: kevin03
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It is certain that you have seen and received an abundance of offers to join pre-launch network marketing companies, if you are a professional network marketer and are building your mlm business online.

These offers and packages can, many times, seem incredible in the given impression that you would be out of your mind if you did not join. However, it is important that you do not "jump the gun" in order to get in on the deal. Listed below are some reasons as to why you should never overlook "timing in the company along with timing in the industry".

Many people are not aware of the fact that over 90% of start up companies do not in actual fact last longer than two years. Growing pains is something which start up companies must experience. These companies have to witness software problems as well as ensuring that their overall systems are up and running as smoothly as possible. If it really is a fabulous mlm business opportunity, then it should certainly be ten times better after the duration of two tears. It is then, if you are still inclined, that you can join without having the concern that the business may fold.

A real life example of why "timing in the company and timing in the industry" is so important is whereby a number of years ago, a company existed by the name of Excel. This company came about after the federal government deregulated long distance here in the USA. This supplied a majority of companies with the opportunity to get in business. These companies were simply only reseller's of long distance packages. One of them happened to be Excel.

The outcome of Excel is that every person that joined the company within the first two years failed to make it. This is due to the fact that the three main telephone companies were not very cooperative at letting go of their customers. It was necessary that Excel go through litigation until eventually those customers who wished to, were able to switch to Excel. Therefore, no distributors were making money at that time.

The next stage was that Excel began to receive a vast majority of competition from other reseller companies that were new to come on to the scene. Everyone proceeded to purchase time from the three large companies, wholesale, and then sold it at a retail price to customers. Therefore the market became saturated.

It was after this time, that the dawn of what is referred to as the "flat rate" arrived. It was possible for people to pay a flat rate for their phone service, along with TV, cable and internet etc. and not have the worry of outrageously expensive telephone bills. This caused reseller companies such as Excel to have no profit margins remaining. I am certain that you can think of other companies that have also experienced this. There are many things that cost a great deal of money in the past, that are now much cheaper, or in some cases, free. One example of this is the price drop of computers.

The above story is just an example of what can happen to an mlm business. Therefore, as a distributor, it is vitally important to take care when considering taking a gamble and joining a pre-launch company. It is imperative to remember that even if it is a solid opportunity, it should continue to be going strong after two years. For this reason, it is advised not to "jump the gun".

About the Author

Discover Kevin Sinclair's system for making profits regardless of whether anyone joins your network marketing business.  

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