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Key Facts You Must Understand About MLM Ground Floor Opportunities
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By Lee Hooker
MLM ground floor.You might be looking into joining a company because someone told you that it is a ground floor opportunity. This is supposed to mean that you can get rich quick if you join now and tell everyone you know because this does not happen often.
Well, let me tell you what my experience has been. I have been present at the start of companies that had promise. I was a founder and a part of the decision making process in at least three of these companies. Not one of them is still in business as a network marketing company. This often happens with mlm ground floor opportunities.
The owners have great intentions and are usually honest people. I had a friend call me from Florida this week with a start up company that deals with cell phones. She is excited because she has almost qualified to be a top level person. She has people lined up that have put in their information because it is free.
One of the these MLM Ground Floor Opportunities that I was
involved with was with was a company here in the Dallas area that develops and manufactures products for some of the largest network marketing companies in the world. You would know the names if I told you. They ship 80 to 100 truckloads of products each week to these companies.
That was ground floor company there, and they actually owned the product and they were the manufacturer, and they still had problems. My point is that most ground floors never get off the ground.
I went inside the plant which was a huge facility. I saw the large tanks for juices and pills that they manufacture. There were over 100 employees. The building was almost 200,000 square feet. I was told that one run was for 30,000 to 50,000 bottles of product. Having been involved in many of these pre-launch or ground floor businesses I finally understood what the pre-launch was all about.
You see, most owners of mlm companies come up with an idea and they decide to market a product. They are not going to bottle or manufacture it. They find companies that do this for them. These companies won't produce ten cases of product. No, no. They produce a minimum of 30,000 to 50,000 bottles. This cost close to half a million dollars off the bat.
No one in his right mind would risk this kind of money on a ground floor business even if he had it, so they do what is called a pre-launch and offer incentives to people who join early and put their money in and secure positions in the marketing structure. If it makes it, "Fantastic." If it doesn't they try something else and the people that put their money up loose out.
This is similar to what companies do when they raise, Venture Capital, for some company they are starting. These are high risk investments and the investors know and can afford to take the risk.
At some point all successful companies were start ups, so I am not suggesting that this is a bad situation to get yourself into, I am just saying that this is something that you need to think about when looking into joining an mlm ground floor opportunity.
Lee Hooker is a multi level marketing seasoned veteran. His website is a complete training camp for new and experienced multilevel pros to gain new knowledge. You can get much more information at his site at:
http://www.mlm-boot-camp.com/mlm-ground-floor.html
http://www.stemcelldelight.com
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