I have noticed an increasing number of "start-up" companies now appearing on the network marketing scene. You can "tune in" on the Internet and hear of a new company starting up daily . . . maybe several.

Due to the increased functionality of computers and software combined with the speed of the Internet; more and more entrepreneurs are able to develop and manage programs, especially for the network marketing community.

Because of this, I have to question how solid a start-up company really is because it's really as easy as plugging in a computer from one's home, having a supplier from a distance and actually start up a networking program.

MY FEAR IS . . .

My fear is that in many cases we, networkers, are being used as guinea pigs! Let's face it; a person or group of people could start a program up without really being "ready" for the big time but set up just to see if the program will work.

In other words, rather than putting out big bucks on computer systems, product development, marketing surveys and all those factors that go toward developing a solid business opportunity, the opportunity is thrown out to the network marketing community as a "pre-launch" to see what the reaction will be.

Based on the reaction, the owners or developers THEN begin working on putting their business in motion . . . thus a lot of initial problems for both the company and the new distributors.

In fact, I tend to feel that some programs are actually purposely set up to fail (that's another topic). Don't get me wrong; I am not saying all new programs are destined to failure . . . after all look at some of the most successful MLM programs that were start-up programs at one time.

THE BEGINNING NETWORKER AND NEW PROGRAMS

Unfortunately, the beginning networker gets bombarded with new programs and pre-launches because new programs naturally attract more attention and the excitement that new programs generates makes it appear they are the best thing out there.

Additionally, the beginning network marketer doesn't realize that approximately 80% of all start-up programs/businesses do not make it to their second year anniversary and only 20% of those last for five years and only 20% of those make it to ten years.

It's so easy for the new networker to get caught up in the excitement of a pre-launch and the hope that thousands and thousands of people are going to join with them because it is a new opportunity.

Heck, I've even heard of a pre-launch to a pre-launch. Before long we are going to hear of the opportunity to join a group before we even know what the company will be. Sounds a bit like a downline building club doesn't it.

START-UP COMPANIES . . . WHAT TO EXPECT

As a distributor for a brand new start-up company, you can expect a rollercoaster of emotions . . . emotions that will get you so excited one day and so low and emotionally drained the next. You will hear the words "growing pains" over and over.

Growing pains is a nice way of saying the company simply wasn't ready for the quick growth that is taking place. I must ask, "Why weren't they ready? Did they not have confidence in their own program to be prepared for such growth . . . or maybe they were just letting you test the waters for them.

Start-up companies usually must make adjustments and changes that also creates an emotional rollercoaster. I've seen companies have a certain price for their products and within two months had to change their prices just to be able to afford to pay the commissions. I know one company that didn't change their prices, but changed how commissions were figured . . . based on a value that was not 100% of the purchase price.

They were still able to talk about some high percentage commission payout, but of what? That's something the new networker doesn't know in order to make intelligent decisions.

Another problem is usually availablility of products. A company that grows too fast creates a product availablity problem and then distributors become frustrated because they can't get products quickly enough.

IF YOU THINK A START-UP COMPANY IS FRUSTRATING . . . TRY A PRE-LAUNCH!

The big thing now is to be able to get involved before a company is officially started. We call this pre-launch. Usually, the purpose of a pre-launch is to allow the heavy hitters to get their downlines pre-built so they can be earning huge commission checks from the start.

It becomes a race for positioning . . . people wanting "at the top." The word "top" bothers me because to me that suggests there is a bottom. If you would draw out what people are referring to . . . top . . . bottom . . . you would be a single person at the top of this organization with people below making the "picture" look much like a pyramid of ancient Egypt.

It suggests that the closer to the "top" you are, the more money you will make. If that were really true, legally it would be considered a pyramid scheme which is illegal. I would like to think that everyone is at the top of his own business organization and it doesn't matter when you sign up and become a distributor that you have an equal opportunity to build your own business. What pre-launch really does is give people an opportunity to get the word out before masses of other people hear about it.

There is a slight advantage to that, but a true legitimate long-term business opportunity can be a successful venture for you no matter when you join.

If you think a start-up company is tough when it starts up, you should get involved in a pre-launch. Be prepared for anything and everything to change in a pre-launch. I've seen companies even change their name in the middle of a pre-launch and just recently saw a huge change take place after about six weeks of people pre-launching and positioning for a company that was going to be the biggest thing that ever happend to network marketing . . . that is until the change took place.

Think of all the time, energy, and focus that went on ...and much of it was based on a name! What I am saying is be prepared for things like that because it is most sure to happen one way or another.

SO, SHOULD A PERSON GET INVOLVED IN A START-UP COMPANY?

Well, I have! There is a certain amount of excitement and challenge that can be associated with pre-launches and start-up companies. The lows can be balanced out by some extreme highs and the thought of your being in the next "big one" before it actually starts can even be addictive in nature.

Let me warn you, however, that it's like playing with the options market on the stock market. It is truly a high risk venture. If your personality is such that you cannot stand the highs and lows that are associated with start-up companies, then I would recommend against it. Remember, networkers are not only working for their present, but their future as well.

So, you may be asking why I would get involved in a start-up company. For me, it is easy. I've already got my "solid" long-term business locked in! It's a lot easier to take on risks when you have something solid to back you up.

For someone who has never done networking before, I strongly recommend not getting involved in start-up companies until you have a solid business already built in a solid company . . . and then why should you even consider a start-up. Remember, I have done start-ups for the intrigue and adventure and challenge . . . certainly for the wrong reasons, but I would have been even better off staying focused on my main long term program.

WHAT SHOULD YOU DO?

If you are new to network marketing, I would suggest you research and study companies that have been around for a minimum of 2 years. Remember that 80% figure? Even better would be companies that have been around for five or ten years or more. You see, my main FEEL GOOD company is a company that has been around for 130 years and I don't have to worry about whether it will be in business or not. I don't have to worry about start-up problems and growing pains because I selected a company that I could build a future.

I am not saying you will fail by going with a start-up company, but I am saying you will have different kinds of challenges with the hope that the company will last two years or five years or more. It depends on your personality and your makeup.

If you are a "risk taker" and you are working more for your present than for your future, you would probably enjoy the adventure and possible immediate rewards of a start-up type company. If you are wanting to build a residual income for your future and for your estate, then you should consider a company that has been around for awhile and knows what they are doing.

I find the people who are most successful are those who find their own FEEL GOOD company based first on products and then on company heritage and finally on the pay plan. People who become bonded to the products create an excitement within them that builds an income-producing business. The pay plan just seems to take care of those kind of people.

As a new networker or as a networker looking for a company to utilize as a business, you must decide what it is you want to accomplish and what it is that will make you feel good about representing that company. If you can do that with a start-up company and you can prepare yourself for the ups and downs that accompany a start-up company, then go for it. If not, you are better off looking for established companies . . .companies that have survived years of "growing pains," but continue to be growth companies.

Lon Lindsey
Master Networker (and still learning)

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The Art of Building A Business http://www.masternetworker.com