Groundfloor MLM: 7 Things They Don't Want You to Know

The groundfloor MLM, you've heard the hype: get in now, make millions. It's gonna be big.

Really? This is what some slickster thinks works in the network marketing business? Let's take a critical look and see if the groundfloor MLM idea makes any sense.

What They Don't Want You to Know
1. Ground floor or Groundfloor MLM
What it means: You might hear this for a brand new company that has just started, like "get in on the groundfloor." Or, maybe you hear "if you miss the groundfloor, you missed the boat," or something similar.

You hear this because someone has a misunderstanding of how MLM or the network marketing business works. In MLM, as long as the product has appeal, you have a groundfloor opportunity every day.

2. A new opportunity isn't better, it is untested
I have heard this as an explanation of what makes a groundfloor MLM opportunity better.

What makes it better?

In reality, nothing. Some people have the mistaken idea that when you get in first, you will reap larger rewards. Not true. You will reap the rewards you deserve from the work you do.

A new MLM company just starting out doesn't present some magical opportunity. I think perhaps some think this due to a misunderstanding also of saturation.

I won't go into detail, but most saturation arguments are overblown. Look at Mary Kay Cosmetics. This company has been around for 50 years, and has sales over $1 billion per year.

When should you get into Mary Kay? Now is a great time (and I am not in Mary Kay) because it has a good brand, excellent products, and people use those products. Tons of opportunity, not saturation.

This concept really means that the top 10 MLM companies will be established companies. A great MLM opportunity should offer the same or better opportunity to the new recruit as it did when it opened.

3. No one knows who we are
Believe it or not, some people will tell you that by getting in on a groundfloor MLM, you do better because nobody knows about it. Talk about a mixed up strategy.

Ever seen a movie that no one has heard of? It's actually hard to do, because for you to see it, the movie had to be advertised. For an MLM to grow, people have to know about it.

I've heard this stated in another way, by a marketing man. When asked what is the best thing in business to ask for, he said a hungry crowd, meaning a group of people who want what you sell. That's hard to do if they don't know about you and your company.

4. We have no products, or just 1
Think about this for a minute. A new company starts up, with 1 product in one size. How many successful companies do that?

Even gasoline has more than that.

If you start in a groundfloor MLM, you may not have much to sell. Now don't let that discourage you, every company starts somewhere and many with 1 product to start do just fine - like Reliv. But having only 1 product isn't a reason to brag, either.

Hopefully, your company has planned their launch carefully.

5. We may run out of money
A quick observation: which company is doing better, the new one with no or few sales, or the one with $100 million per year?

In every field, companies go out of business regularly. Some don't make it. The network marketing business is no different. A company with some time and sales and profit under its belt has a better chance of survival. The new start up may make it or not. Again, not a reason to rush into a new MLM company.

The top ten MLM companies will be those with a strong balance sheet, not the ten that opened last month.

6. Investment Required
Close on the heels of running out of money, they may want yours to get started. Sometimes, when a friend asks you to join a groundfloor MLM, she may mean a company that hasn't opened yet, perhaps pre-launch.

Be careful. Investment carries risk. In this case, you get in or invest with the idea that you will own a piece of the company, not become a distributor.

7. We can't help you build your business
A new start up groundfloor MLM won't have many recruiting materials. Won't have meetings you can bring people to see how things work. Won't have much for you to use to build your business.

For some, this situation fits fine. They want to be the swashbuckler, the pioneer in a new company. For others, a beaten path sounds better.

Look before you leap
Jumping into a new company just because it is new or a groundfloor MLM opportunity doesn't always work. You still have to build an organization. You have to do the work before you get paid. Just like in more established companies.

If you find a great new opportunity, that's wonderful. I hope it works out for you. Don't join only because it is new. Join because it makes sense, the company has good leadership, and a hungry crowd that wants their products. And because you are prepared to work.

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Comments

Fri, 6 Mar 2009 at 8:59 PM, by Dale Kathryn
Liked your article. It's true that many people believe mlm or home based businesses are a get rich quick scheme. They are just like any other business. You treat it like a business and you will be rewarded. It takes time and effort, however the results are well worth it if you stick with it long enough to see the results.
www.dalegrove.com

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