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Originally Posted by BusyBee
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Those older companies are great, they are the pioneers in this industry. They have been around a long time and figure to be around a long time more. But, don’t you think they have reached maturity in the marketplace, and the “legacy” positions in them have been filled?
Is this just a myth that people who join a MLM company early have better chance to made fortunes? (I mean working hard for 3 ~ 5 years, not just sitting on their butts doing nothing).
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I can tell you that the company I work with went into its greatest growth (by far) in its 10th year in business with the release of one particular product. That product was a game changer ... and the company grew from being relatively unknown to being a force in the industry. Before the 10th year, they did business only in the United States ... and that product resulted in a launch of 25 new countries over the next couple of years.
An older company which continues to reinvent itself with new products, added compensation, international expansion, etc. can continue to have "timing" on its side. We've had people come in over the past year, based on another product launch, who reached the top of the payplan in eight or nine months ... while others who have been positioned with the company for years did not advance ... because they did not take advantage of what was currently being offered ... new product ... new timing.
Positioning early on can only have a long-term advantage if the company stays in business. With an approximate 95% failure rate (the general consensus within the industry), a new company is not likely to be in business within one to five years.
That being said ... all the more stable companies were at one time start-ups. In my opinion, it comes down to the management/ownership of the company. They are at the helm and have control of all decisions. The greatest product in the world is useless with a greedy, stupid management team. The same with the greatest compensation plan ... useless if the company no longer does business.
It is possible that there is an advantage with a matrix ... but their history within the industry (with the exception of Melaleuca) is dismal. They are virtually all out of business by the 3rd to 5th year or before. So, in the end, no advantage with a matrix. ... If you're lucky enough to find the rare start-up binary that turns out to be long term, there could be an advantage to positioning early if you are in a power leg and if you actually build the other leg. If you position early in a binary in the weak leg of someone who opts not to move forward, you will have no advantage. If you position early in a binary powerleg, but don't build the other leg, you have no advantage.
There are pros and cons to all companies ... but the risk of investing your time and money into a startup and then finding it closing its doors is very, very high ...
Here is an excellent article by Michael Clouse, and perhaps the most important sentence in the article:
"For example, according to research, since 1957 thousands of different MLM, Multi Level, or Network Marketing companies have opened their doors; and to date only 50 MLM companies have found a way to celebrate their 10th anniversary and still remain in business today." ... Michael Clouse
Top 25 MLM Network Marketing Companies, MLM Companies,
Great conversation!