About every other day I receive an email about the last best pre-launch MLM opportunity, the deal of the decade. More and more new MLM companies advertise a pre-launch phase to attract their first distributors and it seems to be the brand new pandemic in the network marketing world.

Whether you are currently looking for a MLM company to join or you are involved in one of those pre launch opportunities, keep on reading because this might open your eyes.

Here are the top 3 points that you should consider with respect to a brand new or pre-launch MLM company:

1.  There is a 90% chance that a new company will be out of business within its first two years:

As I wrote in a previous post, The Four Main Reasons For Failure in Network Marketing, the #1 reason why people fail in their MLM business is because they get involved in the wrong company. And one key variable to evaluate a company is how long it has been in business.

It is important to know that only 10% of new companies ever make it to their 24th month before going out of business. And if a company is less than 5 years old, statistically the company is still at great risk of going out of business. You need to understand that partnering with a MLM company younger than 2 years old is exactly like putting your money on a high-risk volatile stock.

You should also watch out for new divisions of existing companies and evaluate them by the same time standards as any new MLM company. The reason why the parent company decided to launch a product or service under a new company rather than with its already existing company is often because they want to protect the existing company in case the new division would fail.

The other possibility is you find an existing company which previously did not use network marketing as its distribution model and is now doing so. Again, past experience does not matter. Many successful companies have gone bankrupt when they decided to try to use network marketing in their new endeavor.

As far as pre-launches are concerned, it is important to recognize that on occasion, a fledgling business will use a pre-launch as a way of raising much needed funds to fund the opening of the business. And those funds are in such case provided by unsuspecting new distributors attracted by hype and false promises.

What happens when the company doesn’t raise enough capital to sustain the business? It crashes and burns, and the new distributors lose their investment. My advice is you should never pay money to partner with any company who has not yet officially opened for business.

2. You would have a very hard time building a downline:

First, MLM brand new companies and especially pre-launches attract all kinds of tire-kickers, definitely not the best quality MLM prospects. Some people I know join a new network marketing company every other month. They are not really serious about building a MLM business, and are permanently looking for some get-rich-quick scheme or easy path to wealth. You definitely don’t want this type of people in your downline.

Then, sudden or constant changes by the pre-launch or new company’s management, for example with the products or the compensation plan, is not a good sign. These so called product enhancements, compensation plan adjustements or improvements are a proof that they are still experimenting and that their business model is not strong enough. This should be a red flag. Your downline would also probably consider quitting because they feel the business is not on the right track. After all, everyone is looking for some security and stability.

3. You could lose your biggest asset: your reputation:

If you join a company in its start-up phase, you have to be prepared for the risk of losing your investment, your customer base, your business. But much worse, your reputation could also be permanently damaged. And people will be less inclined to follow you into another business opportunity if the last one you recommended crashed and burned.

So ask yourself if you really want to risk damaging your reputation on a highly volatile startup just to make some money. Remember your name is your biggest asset, and make sure you don’t make it a liability.

As a general rule, until a company has proven itself by staying in business for 24 months, they should still be considered high-risk. Starting a business is not easy, and unless you have a real solid experience with different MLM companies already, I would not recommend you join a new  MLM company, and especially not in a pre launch phase. There are enough reputable companies out there for you to build a successful MLM business without taking any greater risks.

What Is Ardyss?

Ardyss was created by a Mexican family who was involved in the garments production and decided to start a business in the wellness industry. Ardyss started as a factory and company back in 1991. Today Ardyss International is a leading company in the health and wellness industry and is doing business in Mexico, the United States, Canada, Dominican Republic, Venezuela and Puerto Rico, with more than 40 distribution centers worldwide.

The company has an ongoing product research and development staff of engineers and doctors, and offers a wide range of products: reshaping products for women and men; nutrition products such as le’vive Juice, an organic juice that concentrates the power of the world’s top five anti-oxydant producing fruits; high-quality skin care products; and the well-know BodyMagic, a reshaping system for both men and women.

Ardyss products are solid in that they are affordable for the average person and they provide quick and visible results to the consumer.

Is Ardyss a Good MLM Business Opportunity?

It is in 2007 that Ardyss International relocated their corporate headquarters to Las Vegas, Nevada and changed from a direct sales to a network marketing business model. This change opened the door for people to join the Ardyss MLM opportunity and allowed them to build their own business working from home.

The start-up costs to join Ardyss are low, $30 to join to a $299 PowerPack (data from the Ardyss website from year 2008). The compensation plan is typical of any MLM company. You can have a look at it here.

It is quite solid and Ardyss has laid the ground work within this compensation plan to allow its distributors to make back their initial investment very quickly and build a profitable business.

Even though Ardyss International can be seen as an old company that has been around for almost twenty years, it is still a ground-floor opportunity for anyone interested in growing a solid home-based business.

However…

It is important to join a good company, but this is not enough, and if you do want to make money in Ardyss, realize that your ability to create a successful organization is completely independent of the company that you join. I am convinced that success in MLM has much more to do with who you are and become as a person.

Too many distributors in MLM are still struggling and failing because they don’t realize they have to learn real marketing skills. If you want to have success with Ardyss, you’ll have to learn how to build your business like the top producers in this industry, how to leverage the power of the internet. If you learn how to master Attraction Marketing, you will succeed with your Ardyss business.

For more information, go to the comprehensive Ardyss Review now and visit my Solutions For Your Ardyss Business website, you’ll have an opportunity to receive free internet marketing training videos.

The compensation plan is a stair-step breakaway. My purpose is not to enter into much details on this type of compensation plan, but just to point out that with this model only a few top distributors will come out ahead. As shown on the Herbalife official website, in the Herbalife Compensation plan, only about 1% of active leaders make more than $80,000 a year, and 2% more than $18,000 per year.

Every single day I get inquiries from Herbalife reps from different countries who are struggling and can’t figure out how to be successful in their Herbalife business. There is no doubt that Herbalife is a very reputable company with high quality products. So why are so many Herbalife distributors struggling and failing?

It might well be because times have changed. The MLM industry is changing fast, the promises of MLM and “life-long” residual income are gone for the average person. And uplines are still teaching reps old methods that do not work anymore: the old-school techniques are dead and will get you nowhere. Forget chasing friends and family, buying leads, cold-calling, spending hours on the phone qualifying prospects; forget hotel meetings and handing out flyers in supermarkets. This might have been efficient when we were not living in the internet age. But this is 2009 and our cyber world.

The new generation of internet marketers has already understood this. Today’s top marketers have a totally different way to look at their business that completely changes their results. They learn how to understand and leverage the power of the internet, they learn how to position themselves as leaders, they learn how to bring value to the market and the industry so that they can attract an endless stream of prospects to them.

If you want to make money in your Herbalife business in 2009 and have a chance to be successful, you’ll have to learn how to build your business like the top producers in this industry.